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					     ROYAL LIVER
    ASSURANCE LTD




Annual FSA Insurance Returns for the year ended
             31st December 2004




                  (Appendices )


                   Produced using BestESP Services - UK™
                                                                                                                                      Form 2

Statement of solvency - long-term insurance business

Name of insurer                  ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended             31st December 2004
                                                                         Company
                                                                         registration                          Period ended
Solo solvency calculation                                                number              GL/UK/CM                                Units
                                                                                                            day month     year

                                                                    R2          35             GL           31     12     2004       £000

                                                                                                As at end of                As at end of
                                                                                                this financial              the previous
                                                                                                     year                       year

                                                                                                        1                        2

Capital resources
Capital resources arising within the long-term insurance
fund                                                                                    11          603493
Capital resources allocated towards long-term insurance business
arising outside the long-term insurance fund                                            12

Capital resources available to cover long-term insurance business
capital resources requirement (11+12)                                                   13          603493

Guarantee Fund

Guarantee Fund requirement                                                              21              37928
Excess (deficiency) of available capital resources to
cover guarantee Fund requirement                                                        22          565565

Minimum capital requirement (MCR)
Long-term insurance capital requirement                                                 31

Resilience capital requirement                                                          32

Base capital resources requirement                                                      33

Minimum capital requirement                                                             34          207648
Excess (deficiency) of available capital resources to
cover 50% of MCR                                                                        35          499669
Excess (deficiency) of available capital resources to
cover 75% of MCR
                                                                                        36          447757

Enhanced capital requirement
With-profits insurance capital component                                                37              75347
Enhanced capital requirement                                                            38          282995

Capital resources requirement (CRR)

Capital resources requirement (greater of 34 and 38)                                    41          282995
Excess (deficiency) of available capital resources to cover long-
term insurance business CRR (13-41)
                                                                                        42          320498

Contingent liabilities
Quantifiable contingent liabilities in respect of long-term
insurance business as shown in a supplementary note to Form
14
                                                                                        51




                                                                          2
                                                                                                          Form 2

Covering sheet to Form 2

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended       31st December 2004




    ............................................................   Steve Burnett, Group Chief Executive




    ............................................................    George McGregor, Group Finance Director




    ............................................................    William Connolly, Secretary




                                                                     3
                                                                                                                    Form 3
                                                                                                                  (Sheet 1)
Components of capital resources

Name of insurer                  ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended             31st December 2004
                                                             Company
                                                             registration                     Period ended
                                                             number         GL/UK/CM    day     month    year        Units

                                                       R3         35          GL         31       12     2004       £000

                                                             General        Long-term          Total as at the    As at the end of
                                                            insurance       insurance            end of this     the previous year
                                                             business        business          financial year             4
                                                                1               2                     3

Core tier one capital

Permanent share capital                               11

Profit and loss account and other reserves            12

Share premium account                                 13
Positive valuation differences                        14                            6989                 6989

Fund for future appropriations                        15                           641124              641124

Core tier one in related undertakings                 16                               990                990

Core tier one capital (sum of 11 to 16)               19                           649103              649103

Tier one waivers

Unpaid share capital / unpaid initial funds           21
and calls for supplementary contributions
Implicit items                                        22

Tier one waivers in related undertakings              23
Total tier one waivers as restricted
                                                      24
(21+22+23)

Other tier one

Perpetual non-cumulative preference                   25
shares as restricted
Perpetual non-cumulative preference
shares in related undertakings                        26

Innovative tier one capital as restricted             27

Innovative tier one capital in related
                                                      28
undertakings


Total tier one capital before deductions              31                           649103              649103
(19+24+25+26+27+28)
Investments in own shares                             32
Intangible assets                                     33
Amounts deducted from technical
                                                      34
provisions for discounting
Other negative valuation differences                  35
Deductions in related undertakings                    36

Deductions from tier one (32 to 36)                   37

Total tier one capital after deductions
                                                      39                           649103              649103
(31-37)




                                                            4
                                                                                                                    Form 3
                                                                                                                  (Sheet 2)
Components of capital resources

Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended            31st December 2004
                                                             Company
                                                             registration                     Period ended
                                                             number         GL/UK/CM    day     month    year        Units

                                                       R3         35          GL        31        12     2004        £000

                                                             General        Long-term          Total as at the    As at the end of
                                                            insurance       insurance            end of this     the previous year
                                                             business        business          financial year             4
                                                                1               2                     3

Tier two capital

Implicit items, (tier two waivers and
                                                      41
amounts excluded from line 22)
Perpetual non-cumulative preference
                                                      42
shares excluded from line 25

Innovative tier one capital excluded from line 27     43
Tier two waivers, innovative tier one capital and
perpetual non-cumulative prefence shares treated as   44
tier two capital (41 to 43)
Perpetual cumulative preference shares                45

Perpetual subordinated debt and securities            46

Upper tier two capital in related undertakings        47

Upper tier two capital (44 to 47)                     49


Fixed term preference shares                          51

Other tier two instruments                            52

Lower tier two capital in related undertakings        53
Lower tier two capital (51+52+53)                     59


Total tier two capital before
                                                      61
restrictions (49+59)
Excess tier two capital                               62

Further excess lower tier two capital                 63
Total tier two capital after restrictions,
before deductions (61-62-63)                          69




                                                            5
                                                                                                                       Form 3
                                                                                                                      (Sheet 3)
Components of capital resources

Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended            31st December 2004
                                                                 Company
                                                                 registration                     Period ended
                                                                 number         GL/UK/CM    day     month    year        Units

                                                           R3         35          GL        31        12     2004        £000

                                                                 General        Long-Term          Total as at the    As at the end of
                                                                insurance       insurance            end of this     the previous year
                                                                 Business        Business          financial year             4
                                                                    1               2                     3

Total capital resources

Positive adjustments for regulated
                                                          71
non-insurance related undertakings
Total capital resources before deductions
                                                          72                         649103                649103
(39+69+71)
Inadmissable assets other than                            73                           45610                45610
intangibles and own shares
Assets in excess of market risk and                       74
counterparty limits
Deductions for related ancilliary services undertakings   75

Deductions for regulated non-insurance
                                                          76
related undertakings
Total deductions of ineligible surplus
                                                          77

Total capital resources after
                                                          79                         603493                603493
deductions (72-73-74-76-77)

Available capital resources for PRU tests

Available capital resources for guarantee
                                                          81                         603493                603493
fund requirement
Available capital resources for 50% MCR
                                                          82                         603493                603493
requirement
Available capital resources for 75% MCR
                                                          83                         603493                603493
requirement

Financial engineering adjustments

Implicit items                                            91
Financial reinsurance - ceded                             92
Financial reinsurance - accepted                          93

Outstanding contingent loans                              94
Any other charges on future profits                       95

Sum of financial engineering adjustments                  96
(91+92+93+94+95)




                                                                6
                                                                                                                               Form 11

Calculation of general insurance capital requirement - premiums amount and brought forward amount

Name of insurer                  ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended             31st December 2004
                                                                         Company
Long-term insurance business                                             registration                         Period ended
                                                                         number          GL/UK/CM                               Units
                                                                                                     day       month   year

                                                                   R11          35          GL           31      12     2004    £000

                                                                                        This financial                   Previous
                                                                                            year                           year
                                                                                               1                            2

Gross premiums receivable                                                      11                    2531
Premium taxes and levies (included in line 11)                                 12
Premiums receivable net of taxes and levies (11-12)                            13                    2531
Premiums for classes 11, 12 or 13 (included in line 13)                        14
Premiums for "actuarial health insurance" (included in line 13)                15                    1260
Sub-total A (13 + 1/2 14 - 2/3 15)                                             16                    1691
Gross premiums earned                                                          21                    2567
Premium taxes and levies (included in line 21)                                 22
Premiums earned net of taxes and levies (21-22)                                23                    2567
Premiums for classes 11, 12 or 13 (included in line 23)                        24
Premiums for "actuarial health insurance" (included in line 23)                25                    1266
Sub-total H (23 + 1/2 24 - 2/3 25)                                             26                    1723
Sub-total I (higher of sub-total A and sub-total H)                            30                    1723
Adjusted Sub-total I if financial year is not a 12 month period to
produce an annual figure                                                       31

Division of gross adjusted               x 0.18                                32                        310
premiums amount: sub-total I (or
                                         Excess (if any) over 50M EURO
adjusted sub- total I if appropriate)                                          33
                                         x 0.02
Sub-total J (32-33)                                                            34                        310
Claims paid in period of 3 financial years                                     41                    1167
                                For insurance business accounted
Claims outstanding
                                for on an underwriting year basis              42
carried forward at the
end of the 3 year period        For insurance business accounted
                                for on an accident year basis                  43
Claims outstanding              For insurance business accounted
                                for on an underwriting year basis              44
brought forward at the
beginning of the 3 year         For insurance business accounted
period                          for on an accident year basis
                                                                               45

Sub-total C (41+42+43-44-45)                                                   46                    1167
Amounts recoverable from reinsurers in respect of claims
included in Sub-total C                                                        47                        601
Sub-total D (46-47)                                                            48                        566
Reinsurance ratio
(Sub-total D / sub-total C or, if more, 50% or, if less, 100%                  49                   50.00
Premiums amount
Sub-total J x reinsurance ratio                                                50                        155
Provisions for claims outstanding (before discounting and net of
reinsurance)                                                                   51
Brought forward amount
(12.43.2 x 51.1 / 51.2 or, if less, 12.43.2)                                   52

Greater of lines 50 and 52                                                     53                        155




                                                                           7
                                                                                                                               Form 12

General insurance business : Calculation of general insurance capital requirement - claims amount and result


Name of insurer                ROYAL LIVER ASSURANCE LTD

Global business

Financial year ended           31st December 2004
Long-term insurance business
                                                                       Company
                                                                       registration                      Period ended
                                                                                           GL/UK/CM                             Units
                                                                       number                         day month     year

                                                               R12             35            GL       31     12     2004         £000

                                                                                               This financial              Previous
                                                                                                   year                      year
                                                                                                      1                       2

Reference period (No. of months) See PRU7.2.63R
                                                                                      11                    36

Claims paid in reference period                                                       21                   1167
                              For insurance business accounted for on an
Claims outstanding carried    underwriting year basis
                                                                                      22
forward at the end of the
reference period              For insurance business accounted for on an
                              accident year basis                                     23
                              For insurance business accounted for on an
Claims outstanding brought
                              underwriting year basis                                 24
forward at the beginning of
the reference period          For insurance business accounted for on an
                              accident year basis
                                                                                      25

Claims incurred in reference period (21+22+23-24-25)                                  26                   1167

Claims incurred for classes 11, 12 or 13 (included in 26)                             27

Claims incurred for "actuarial health insurance" (included in 26)                     28                   507

Sub-total E (26 + 1/2 27 - 2/3 28)                                                    29                   829
Sub-total F - Conversion of Sub-total E to annual figure (Multiply by 12 and
divide by number of months in reference period)
                                                                                      31                   276

Division of sub-total F   X 0.26                                                      32                    72
(gross adjusted claims
amount)                   Excess (if any) over 35M EURO x 0.03                        33

Sub-total G (32 - 33)                                                                 39                    72

Claims amount Sub-total G x reinsurance ratio (11.49)                                 41                    36

Higher of premiums amount and brought forward amount (11.53)                          42                   155

General insurance capital requirement (higher of lines 41 and 42)                     43                   155




                                                                           8
                                                                                                                                              Form 13
                                                                                                                                             (Sheet 1)
Analysis of admissible assets

Name of insurer                      ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended                 31st December 2004
Category of assets                   Total Long Term Business




                                                                        Company                                                              Category
                                                                        registration                           Period ended                  of
                                                                        number              GL/UK/CM                                 Units   assets
                                                                                                            day month     year

                                                             R13              35                GL          31     12     2004       £000       10

                                                                                                                  As at the end of   As at the end of
                                                                                                                   this financial     the previous
Investments                                                                                                             year               year
                                                                                                                          1                  2
Land and buildings                                                                                           11           399929             382695

                           UK insurance       Shares                                                         21              6977
                           business
                           dependants         Debt securities issued by, and loans to, dependants            22

                           Other insurance
                                              Shares                                                         23              3892             12279
                           dependants
                                              Debt securities issued by, and loans to, dependants            24
Investments in
group undertakings         Non-insurance
                                              Shares                                                         25              2683              1775
and participating          dependants
interests                                     Debt securities issued by, and loans to, dependants            26

                                              Shares                                                         27
                           Other group        Debt securities issued by, and loans to, group undertakings    28
                           undertakings and
                           participating
                           interests          Participating interests                                        29
                                              Debt securities issued by, and loans to, undertakings in
                                              which the insurer has a participating interest
                                                                                                             30

Total sheet 1 (11 to 30)                                                                                     39           413481             396749




                                                                                       9
                                                                                                                                              Form 13
                                                                                                                                             (Sheet 2)
Analysis of admissible assets
Name of insurer                      ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended                 31st December 2004
Category of assets                   Total Long Term Business
                                                                       Company                                                                Category
                                                                       registration                            Period ended                   of
                                                                       number               GL/UK/CM        day month     year       Units    assets

                                                              R13             35                GL          31    12     2004        £000        10

                                                                                                                  As at the end of    As at the end of
Investments (continued)
                                                                                                                   this financial      the previous
Deposits with ceding undertakings
                                                                                                                        year                year
Assets held to cover linked liabilities
                                                                                                                          1                   2
                  Equity shares                                                                             41           871843              900782
                  Other shares and other variable yield securities                                          42
                  Holdings in collective investment schemes                                                 43           252088              329668
                  Rights under derivative contracts                                                         44
                                                                      Approved securities                   45           927145              657746
                                            Fixed interest
                  Debt securities and
                                                                      Other                                 46           269315              187558
                  other fixed income
                  securities                                          Approved securities                   47
                                            Variable interest
                                                                      Other                                 48
Other financial
investments       Participation in investment pools                                                         49

                  Loans secured by mortgages                                                                50              3166                3984
                                            Loans to public or local authorities and nationalised
                                            industries or undertakings                                      51
                                            Loans secured by policies of insurance issued by the
                  Other loans               company                                                         52             10046              10601
                                            Other                                                           53

                  Deposits with             Withdrawal subject to a time restriction of one month or less   54             83386             110499
                  approved credit
                  institutions and
                  approved financial        Withdrawal subject to a time restriction of more than one
                  institutions              month                                                           55              4000                2114

                  Other                                                                                     56
Deposits with ceding undertakings                                                                           57

                                            Index linked                                                    58
Assets held to match linked liabilities
                                            Property linked                                                 59           164900              133583
                                            Provision for unearned premiums                                 60
                                            Claims outstanding                                              61
Reinsurers' share of technical provisions
                                            Provision for unexpired risks                                   62
                                            Other                                                           63

Total sheet 2 (41 to 63)                                                                                    69          2585889              2336535




                                                                                      10
                                                                                                                                              Form 13
                                                                                                                                             (Sheet 3)
Analysis of admissible assets
Name of insurer                    ROYAL LIVER ASSURANCE LTD
Global business
Financial year ended               31st December 2004
Category of assets                 Total Long Term Business
                                                                       Company                                                                Category
                                                                       registration                          Period ended                     of
                                                                       number                GL/UK/CM     day month     year         Units    assets


                                                            R13               35                GL        31    12     2004          £000        10

                                                                                                                As at the end of      As at the end of
Debtors                                                                                                          this financial        the previous
Other assets                                                                                                          year                  year
                                                                                                                        1                     2

Debtors arising out   Policyholders                                                                       71             11331                  2683
of direct insurance
operations            Intermediaries                                                                      72
Salvage and subrogation recoveries                                                                        73
                      Due from ceding insurers and intermediaries under reinsurance business
Debtors arising out   accepted                                                                            74
of reinsurance
operations            Due from reinsurers and intermediaries under reinsurance contracts ceded            75              8856                  4079
                                           Due in 12 months or less after the end of the financial year   76             20912                17697
                      Due from
                      dependants
                                           Due more than 12 months after the end of the financial year    77
Other debtors
                                           Due in 12 months or less after the end of the financial year   78              6487                  5541
                      Other
                                           Due more than 12 months after the end of the financial year    79

Tangible assets                                                                                           80              8620                  2520
                      Deposits not subject to time restriction on withdrawal, with approved credit
Cash at bank and      institutions and approved financial institutions and local authorities              81             21077                11739
in hand
                      Cash in hand                                                                        82                    6                     7
Other assets (particulars to be specified by way of supplementary note)                                   83

                      Accrued interest and rent                                                           84             21066                20055
Prepayments and
accrued income        Deferred acquisition costs                                                          85

                      Other prepayments and accrued income                                                86                   801               641
Deductions from the aggregate value of assets                                                             87

Total sheet 3 (71 to 86 less 87)                                                                          88             99156                64962
Grand total of admissible assets after deduction of market risk and counterparty limits (39+69+88)        89          3098526                2798246
Reconciliation to asset values determined in accordance with the
insurance accounts rules

Total admissible assets after deduction of market risk and counterparty limits (as per line 89 above)     91          3098526                2798246
Assets in excess of market and counterparty limits                                                        92
Capital resources requirement deduction for subsidiary undertakings which are insurance undertakings      93              2644
Other differences in the valuation of assets (other than for assets not valued above)                     94             (1961)                 4617
Other inadmissable assets                                                                                 95             17547                34860
Total assets determined in accordance with the insurance accounts rules (91 to 95)                        99          3116756                2837723

Amounts included in line 89 attributable to debts due from related insurers, other than those under
contracts of insurance or reinsurance
                                                                                                          100




                                                                                        11
                                                                                                                                                  Form 14

Long term insurance business liabilities and margins

Name of insurer                         ROYAL LIVER ASSURANCE LTD

Global business

Financial year ended                    31st December 2004

Category of assets                      Total Long Term Business
                                                                           Company                                                                 Category
                                                                           registration                              Period ended                  of
                                                                           number                  GL/UK/CM       day month     year      Units    assets

                                                                 R14             35                  GL           31      12     2004     £000        10

                                                                                               As at the end of        As at the end of       Source
                                                                                                this financial          the previous
                                                                                                     year                    year
                                                                                                       1                       2

Mathematical reserves, after distribution of surplus                              11                  2413100                  2348101    See Instruction 2

Cash bonuses which had not been paid to policyholders prior to end of
the financial year                                                                12                                                      See Instruction 3

Balance of surplus/(valuation deficit)                                            13                    26596                    12517    See Instruction 4

Long term insurance business fund carried forward (11 to 13)                      14                  2439696                  2360618    See Instruction 5

                                          Gross amount                            15                    11587                    10763
Claims outstanding which
had fallen due for payment
before the end of the
                                          Reinsurers' share                       16                       831                    2314
financial year                            Net (15-16)                             17                    10756                     8449

Provisions for           Taxation                                                 21                      7917                   7261
other risks and
charges                  Other                                                    22                      6515
Deposits received from reinsurers                                                 23
                                          Direct insurance business               31                      7650                   7038
                       Arising out of
                       insurance          Reinsurance accepted                    32
                       operations
                                          Reinsurance ceded                       33                    17698                    9687
Creditors and                             Secured                                 34
other                  Debenture
liabilities            loans
                                          Unsecured                               35

                       Amounts owed to credit institutions                        36                    10792                   16341
                                          Taxation                                37                      1731                   4025
                       Other creditors
                                          Other                                   38                    17142                   18407
Accruals and deferred income                                                      39                      4376                   5604
Provision for "reasonably foreseeable adverse variations"                         41

Total other insurance and non-insurance liabilities (17 to 41)                    49                    84577                   76812
Excess of the value of net admissible assets                                      51                   574253                  360816     See Instruction 6


Total liabilities and margins                                                     59                 3098526                   2798246

Amounts included in line 59 attributable to liabilities to related companies,
other than those under contracts of insurance or reinsurance                      61
Amounts included in line 59 attributable to liabilities in respect of property
linked benefits
                                                                                  62                   183800                  145021

Amount of any additional mathematical reserves included in line 51 which
have been taken into account in the appointed actuary's certificate               63                                           125307     See Instruction 7




                                                                                          12
                                                                                                                                        Form 18

With-profits insurance capital component for the fund

Name of insurer                        ROYAL LIVER ASSURANCE LTD

Global business

Financial year ended                   31st December 2004

With-profits fund                      Ordinary Branch 1
                                                                                     Company
                                                                                                                      Period ended
                                                                                     registration
                                                                                                    GL/UK/CM    day     month    year       Units
                                                                                     number

                                                                              R18         35           GL        31       12     2004       £000

                                                                                                    As at end of                  As at end of
                                                                                                    this financial             the previous year
                                                                                                         year
                                                                                                           1                            2

Regulatory excess capital

                     Long-term admissible assets of the fund                             11                 3098526
                     Implicit items allocated to the fund                                12
                     Mathematical reserves in respect of non-profit
                     insurance contracts written in the fund
                                                                                         13                  498245
Regulatory           Long-term admissible assets of the fund covering
                     the long-term insurance capital requirement
value of assets
                     allocated in respect of non-profit insurance contracts              14                    24871
                     written in fund
                     Long-term admissible assets of the fund covering
                     the resilience capital requirement allocated in
                     respect of non-profit insurance contracts written in                15                    15177
                     fund

                     Total (11+12-(13+14+15))                                            19                 2560233
                     Mathematical reserves (after distribution of surplus)
                     in respect of the fund's with-profits insurance                     21                 1914855
Regulatory           contracts
value of
liabilities          Regulatory current liabilities of the fund                          22                    84577
                     Total (21+22)                                                       29                 1999432
Long-term insurance capital requirement in respect of the fund's with-
profits insurance contracts                                                              31                    80779
Resilience capital requirement in respect of the fund's with-profits
insurance contracts                                                                      32                    84110
Sum of regulatory value of liabilities, long-term insurance capital
requirement and resilience capital requirement (29+31+32)
                                                                                         39                 2164321
Regulatory excess capital (19-39)                                                        49                  395912

Realistic excess capital

Realistic excess capital                                                                 51                  320565

Excess assets allocated to with-profits insurance business

Excess (deficiency) of assets allocated to with-profits insurance business
in fund (49-51)                                                                          61                    75347
Face amount of capital instruments attributed to the fund and included in
the capital resources (unstressed)                                                       62
Realistic amount of capital instruments attributed to the fund and
included in the capital resources (stressed)                                             63
With-profits insurance capital component for fund (if 62 exceeds 63,
greater of 61+62-63 and zero; else greater of 61 and zero)                               64                    75347




                                                                                    13
                                                                                                                                Form 19
                                                                                                                                (Sheet 1)
Realistic balance sheet
Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business
Financial year ended            31st December 2004
With-profits fund              Summary
                                                                        Company                               Period ended
                                                                        registration
                                                                                            GL/UK/CM    day     month    year       Units
                                                                        number

                                                               R19           35               GL         31       12     2004       £000
                                                                                                   As at end of             As at end of
                                                                                                this financial year       the previous year
                                                                                                         1                        2

Realistic value of assets available to the fund

Regulatory value of assets                                                             11              2560233
Implicit items allocated to the fund                                                   12
Value of shares in subsidiaries held in the fund (regulatory)                          13                  10869
Excess admissible assets                                                               21
Present value of future profits (or losses) on non-profit insurance
contracts written in the fund                                                          22                103391
Value of derivatives and quasi-derivatives not already reflected
in lines 11 to 22                                                                      23

Value of shares in subsidiaries held in the fund (realistic)                           24                  10869
Prepayments made from the fund                                                         25
Realistic value of assets of the fund (11+21+22+23+24+25-(12+13))                      26              2663624
Support arrangement assets                                                             27
Assets available to the fund (26+27)                                                   29              2663624

Realistic value of liabilities of fund
With-profits benefits reserve                                                          31              2189271
                 Past miscellaneous surplus attributed to with-
                 profits benefits reserve                                              32

                 Past miscellaneous deficit attributed to with-
                 profits benefits reserve                                              33

                 Planned enhancements to with-profits benefits
                 reserve                                                               34                  33987
                 Planned deductions for the cost of guarantees,
                 options and smoothing from with-profits benefits reserve              35                137797

                 Planned deductions for other costs deemed
                 chargeable to with-profits benefits reserve                           36                  83842
Future
policy           Future costs of contractual guarantees (other
related          than financial options)
                                                                                       41                295701
liabilities                                                                            42
                 Future costs of non-contractual commitments
                 Future costs of financial options                                     43                  9573
                 Future costs of smoothing (possibly negative)                         44                (94752)
                 Financing costs                                                       45
                 Any other liabilities related to regulatory duty to
                                                                                       46
                 treat customers fairly
                 Other long-term insurance liabilities                                 47                   6500
                 Total (32+34+41+42+43+44+45+46+47-(33+35+36))                         49                  29370
Realistic current liabilities of the fund                                              51                  84577
Realistic value of liabilities of the fund (31+49+51)                                  59              2303218




                                                                       14
                                                                                                                            Form 19
                                                                                                                            (Sheet 2)
Realistic balance sheet
Name of insurer              ROYAL LIVER ASSURANCE LTD
Global business

Financial year ended         31st December 2004
With-profits fund            Summary
                                                                    Company                               Period ended
                                                                    registration
                                                                                        GL/UK/CM    day     month    year       Units
                                                                    number

                                                             R19           35             GL         31       12     2004       £000
                                                                                               As at end of             As at end of
                                                                                            this financial year       the previous year
                                                                                                     1                        2


Realistic excess capital and additional capital available

Value of relevant assets before applying the most adverse scenario
other than present value of future profits arising from business outside           62              2343059
with-profits funds
Amount of present value of future profits (or losses) on long-term
insurance contracts written outside the fund included in the value of              63
relevant assets before applying most adverse scenario

Value of relevant assets before applying the most adverse scenario (62+
63)                                                                                64              2343059

Risk capital margin for fund (62-59)                                               65                 39841
Realistic excess capital for fund (26-(59+65))                                     66               320565
Realistic excess available capital for fund (29-(59+65))                           67               320565
Working capital for for fund (29-59)                                               68               360406
Working capital ratio for fund (68/29)                                             69                     0.14

Other assets potentially available if required to cover
the fund's risk capital margin

Additional amount potentially available for inclusion in line 62                   81
Additional amount potentially available for inclusion in line 63                   82




                                                                   15
                                                                                                                    Form 40

Long term insurance business : Revenue account

Name of insurer                 ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended            31st December 2004

Name and number of fund/Summary              Summary

                                  Company                                                                 No of     No of
                                  registration                 Period ended                               fund/     part of
                                  number         GL/UK/CM                         Units         OB/IB     Summary   Fund
                                                            day month     year

                          R40           35          GL      31     12     2004    £000          OB/IB         99              0

                                                                                          The financial      Previous year
                                                                                              year
Items to be shown net of reinsurance ceded
                                                                                               1                    2

Earned premiums                                                                  11            293502               291687

Investment income receivable before deduction of tax                             12             102359                  99712

Increase (decrease) in the value of non-linked assets brought into account       13             20000               142800

Increase (decrease) in the value of linked assets                                14


Other income                                                                     15                3417                 9815

Total income (11 to 15)                                                          19            419278               544014

Claims incurred                                                                  21            234632               230874

Expenses payable                                                                 22            101772

Interest payable before deduction of tax                                         23


Taxation                                                                         24           3797                      (3956)

Other expenditure                                                                25                                 113788

Transfer to (from) non technical account                                         26


Total expenditure (21 to 26)                                                     29            340201               340706

Increase (decrease) in fund in financial year (19-29)                            39             79077               203308

Fund brought forward                                                             49           2360619            2157311

Fund carried forward (39+49)                                                     59           2439696            2360619




                                                                  16
                                                                                                                     Form 40

Long term insurance business : Revenue account

Name of insurer                 ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended            31st December 2004

Name and number of fund/Summary              Ordinary Branch 1

                                  Company                                                                  No of     No of
                                  registration                  Period ended                               fund/     part of
                                  number          GL/UK/CM                         Units         OB/IB     Summary   Fund
                                                             day month     year

                          R40           35          GL       31     12     2004    £000          OB           1           1

                                                                                           The financial      Previous year
                                                                                               year
Items to be shown net of reinsurance ceded
                                                                                                1                    2

Earned premiums                                                                   11            225532               213484

Investment income receivable before deduction of tax                              12             71099               65324

Increase (decrease) in the value of non-linked assets brought into account        13             50000               128100

Increase (decrease) in the value of linked assets                                 14


Other income                                                                      15                2373                 6430

Total income (11 to 15)                                                           19            349004               413338

Claims incurred                                                                   21            123877               108350

Expenses payable                                                                  22             72264

Interest payable before deduction of tax                                          23


Taxation                                                                          24                3997                      (7)

Other expenditure                                                                 25                                 79344

Transfer to (from) non technical account                                          26


Total expenditure (21 to 26)                                                      29            200138               187687

Increase (decrease) in fund in financial year (19-29)                             39            148866               225651

Fund brought forward                                                              49           1609788            1384137

Fund carried forward (39+49)                                                      59           1758654            1609788




                                                                   17
                                                                                                                      Form 40

Long term insurance business : Revenue account

Name of insurer                 ROYAL LIVER ASSURANCE LTD

Global business

Industrial insurance business

Financial year ended            31st December 2004

Name and number of fund/Summary              Industrial Branch 1

                                  Company                                                                   No of     No of
                                  registration                   Period ended                               fund/     part of
                                  number           GL/UK/CM                         Units         OB/IB     Summary   Fund
                                                              day month     year

                          R40           35           GL       31     12     2004    £000             IB        1            2

                                                                                            The financial      Previous year
                                                                                                year
Items to be shown net of reinsurance ceded
                                                                                                 1                    2

Earned premiums                                                                    11             67970               78203

Investment income receivable before deduction of tax                               12             31260               34388

Increase (decrease) in the value of non-linked assets brought into account         13            (30000)              14700

Increase (decrease) in the value of linked assets                                  14


Other income                                                                       15                1044                 3385

Total income (11 to 15)                                                            19             70274               130676

Claims incurred                                                                    21            110755               122524

Expenses payable                                                                   22             29508

Interest payable before deduction of tax                                           23


Taxation                                                                           24                 (200)               (3949)

Other expenditure                                                                  25                                 34444

Transfer to (from) non technical account                                           26


Total expenditure (21 to 26)                                                       29            140063               153019

Increase (decrease) in fund in financial year (19-29)                              39            (69789)              (22343)

Fund brought forward                                                               49            750831               773174

Fund carried forward (39+49)                                                       59            681042               750831




                                                                    18
                                                                                                                               Form 41

Long term insurance business : Analysis of premiums and expenses

Name of insurer                        ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended                   31st December 2004
Name and number of fund/Summary                   Summary


                                          Company                                                                    No of     No of
                                          registration                  Period ended                                 fund/     part of
                                          number          GL/UK/CM   day month     year           Units    OB/IB     Summary   Fund

                                  R41            35          GL      31        12    2004         £000     OB/IB         99              0

                                                                                    Gross           Payable to or          Net of
                                                                                                  recoverable from      reinsurance
                                                                                                     reinsurers             (1-2)
                                                                                     1                    2                   3

                Life assurance and      Single premium               11               100417                                   100417
                general annuity
                contracts               Regular premium              12              153819                8285                145534

                Pension business        Single premium               13                  23913                                 23913
                contracts
                                        Regular premium              14                  22279               295               21984

                Permanent health        Single premium               15
Earned          contracts
                                        Regular premium              16                  2441                787                 1654
premiums in
the financial                                                        17
                                        Single premium
year            Other contracts
                                        Regular premium              18

                                        Single premium               19               124330                                   124330
                Total premiums
                                        Regular premium              29               178539                9367               169172

                Total premiums at       UK contracts                 31                  100044                                100044
                lines 19 and 29
                attributable to         Overseas contracts           32               202825                9367               193458
                Commission payable in connection with
                acquisition of business
                                                                     41                  7790                158                 7632

                Other commission payable                             42
              Management expenses in connection with
              acquisition of business
                                                                     43                  40529                                 40529
Expenses
payable in    Management expenses in connection with
the financial maintenance of business                                44                  45018                                 45018
year
              Other management expenses                              45                  8593                                    8593
                Total expenses (41 to 45)                            49                  101930                158             101772
                Total expenses at       UK contracts                 51                  53450                 91              53359
                line 49 attributable
                to                      Overseas contracts           52                  48480                 67              48413




                                                                          19
                                                                                                                              Form 41

Long term insurance business : Analysis of premiums and expenses

Name of insurer                        ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended                   31st December 2004
Name and number of fund/Summary                   Ordinary Branch 1


                                          Company                                                                   No of     No of
                                          registration                  Period ended                                fund/     part of
                                          number          GL/UK/CM   day month     year          Units    OB/IB     Summary   Fund

                                  R41            35          GL      31        12    2004        £000     OB           1          1

                                                                                    Gross          Payable to or          Net of
                                                                                                 recoverable from      reinsurance
                                                                                                    reinsurers             (1-2)
                                                                                     1                   2                   3

                Life assurance and      Single premium               11               100417                                  100417
                general annuity
                contracts               Regular premium              12                  85849             8285               77564

                Pension business        Single premium               13                  23913                                23913
                contracts
                                        Regular premium              14                  22279              295               21984

                Permanent health        Single premium               15
Earned          contracts
                                        Regular premium              16                  2441               787                 1654
premiums in
the financial                                                        17
                                        Single premium
year            Other contracts
                                        Regular premium              18

                                        Single premium               19               124330                                  124330
                Total premiums
                                        Regular premium              29               110569               9367               101202

                Total premiums at       UK contracts                 31                  71266                                71266
                lines 19 and 29
                attributable to         Overseas contracts           32               163633               9367               154266
                Commission payable in connection with
                acquisition of business
                                                                     41                  7790               158                 7632

                Other commission payable                             42
              Management expenses in connection with
              acquisition of business
                                                                     43                  38729                                38729
Expenses
payable in    Management expenses in connection with
the financial maintenance of business                                44                  18743                                18743
year
              Other management expenses                              45                  7160                                   7160
                Total expenses (41 to 45)                            49                  72422              158               72264
                Total expenses at       UK contracts                 51                  40107                91              40016
                line 49 attributable
                to                      Overseas contracts                               32315                67              32248
                                                                     52




                                                                          20
                                                                                                                              Form 41

Long term insurance business : Analysis of premiums and expenses

Name of insurer                        ROYAL LIVER ASSURANCE LTD

Global business

Industrial insurance business

Financial year ended                   31st December 2004
Name and number of fund/Summary                   Industrial Branch 1


                                          Company                                                                   No of     No of
                                          registration                  Period ended                                fund/     part of
                                          number          GL/UK/CM   day month     year          Units    OB/IB     Summary   Fund

                                  R41            35          GL      31        12    2004        £000      IB          1          2

                                                                                    Gross          Payable to or          Net of
                                                                                                 recoverable from      reinsurance
                                                                                                    reinsurers             (1-2)
                                                                                     1                   2                   3

                Life assurance and      Single premium               11
                general annuity
                contracts               Regular premium              12                  67970                                67970

                Pension business        Single premium               13
                contracts
                                        Regular premium              14

                Permanent health        Single premium               15
Earned          contracts
                                        Regular premium              16
premiums in
the financial                                                        17
                                        Single premium
year            Other contracts
                                        Regular premium              18

                                        Single premium               19
                Total premiums
                                        Regular premium              29                  67970                                67970

                Total premiums at       UK contracts                 31                  28778                                28778
                lines 19 and 29
                attributable to         Overseas contracts           32                  39192                                39192
                Commission payable in connection with
                                                                     41
                acquisition of business

                Other commission payable                             42
              Management expenses in connection with
              acquisition of business
                                                                     43                  1800                                   1800
Expenses
payable in    Management expenses in connection with
the financial maintenance of business                                44                  26275                                26275
year
              Other management expenses                              45                  1433                                   1433
                Total expenses (41 to 45)                            49                  29508                                29508
                Total expenses at       UK contracts                 51                  13343                                13343
                line 49 attributable
                to                      Overseas contracts                               16165                                16165
                                                                     52




                                                                          21
                                                                                                                           Form 42

Long term insurance business : Analysis of claims

Name of insurer               ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended          31st December 2004

Name and number of fund/Summary          Summary


                                 Company                                                                         No of     No of
                                 registration                  Period ended                                      fund/     part of
                                 number          GL/UK/CM                                 Units     OB/IB        Summary   Fund
                                                            day month     year

                        R42             35         GL       31         12    2004         £000        OB/IB          99              0
                                                                            Gross             Recoverable              Net of
                                                                                            from reinsurers         reinsurance
Claims incurred in the financial year                                                                                   (1-2)
                                                                             1                    2                       3

             On death                                        11                  50145                4015                 46130
             By way of lump sums on maturity                 12              103434                                        103434

            By way of annuity payments                       13                     690                                        690
Life
assurance By way of payments arising from other
                                                             14
and annuity insured events
contracts
            On surrender or partial surrender                15                  53207                                     53207
             Total life assurance and annuity
             claims (11 to 15)                               19              207476                   4015                 203461

             On death                                        21                  1626                    21                  1605
             By way of lump sums on vesting                  22                  17412                                     17412
Pension
business     By way of vested annuity payments               23                  6398                                        6398
contracts
             On surrender or partial surrender               24                  5132                                        5132
             Total pension business claims (21 to 24)        29                  30568                   21                30547
             By way of lump sums                             31                     624                                        624
Permanent
health       By way of periodical payments                   32
contracts
             Total permanent health claims (31+32)           39                     624                                        624
             By way of lump sums                             41
Other
             By way of periodical payments                   42
contracts
             Total claims (41+42)                            49

Total claims (19+29+39+49)                                   59               238668                   4036                234632

Total claims at line UK contracts                            61               133557                        20             133537
59 attributable to
                     Overseas contracts                      62              105111                   4016                 101095




                                                                  22
                                                                                                                          Form 42

Long term insurance business : Analysis of claims

Name of insurer               ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended          31st December 2004

Name and number of fund/Summary          Ordinary Branch 1


                                 Company                                                                        No of     No of
                                 registration                  Period ended                                     fund/     part of
                                 number          GL/UK/CM                                 Units     OB/IB       Summary   Fund
                                                            day month     year

                        R42             35         GL       31         12    2004         £000        OB           1          1
                                                                            Gross             Recoverable             Net of
                                                                                            from reinsurers        reinsurance
Claims incurred in the financial year                                                                                  (1-2)
                                                                             1                    2                      3

             On death                                        11                  14260                4015                10245
             By way of lump sums on maturity                 12                  46359                                    46359

            By way of annuity payments                       13                     690                                       690
Life
assurance By way of payments arising from other
                                                             14
and annuity insured events
contracts
            On surrender or partial surrender                15                  35412                                    35412
             Total life assurance and annuity
             claims (11 to 15)                               19                  96721                4015                92706

             On death                                        21                  1626                   21                  1605
             By way of lump sums on vesting                  22                  17412                                    17412
Pension
business     By way of vested annuity payments               23                  6398                                       6398
contracts
             On surrender or partial surrender               24                  5132                                       5132
             Total pension business claims (21 to 24)        29                  30568                     21             30547
             By way of lump sums                             31                     624                                       624
Permanent
health       By way of periodical payments                   32
contracts
             Total permanent health claims (31+32)           39                     624                                       624
             By way of lump sums                             41
Other
             By way of periodical payments                   42
contracts
             Total claims (41+42)                            49

Total claims (19+29+39+49)                                   59               127913                  4036                123877

Total claims at line UK contracts                            61                  69049                     20             69029
59 attributable to
                     Overseas contracts                      62                  58864                4016                54848




                                                                  23
                                                                                                                       Form 42

Long term insurance business : Analysis of claims

Name of insurer              ROYAL LIVER ASSURANCE LTD

Global business

Industrial insurance business

Financial year ended         31st December 2004

Name and number of fund/Summary         Industrial Branch 1


                                Company                                                                      No of     No of
                                registration                   Period ended                                  fund/     part of
                                number           GL/UK/CM                                Units     OB/IB     Summary   Fund
                                                            day month     year

                         R42            35         GL       31         12    2004        £000        IB         1          2
                                                                            Gross            Recoverable           Net of
                                                                                           from reinsurers      reinsurance
Claims incurred in the financial year                                                                               (1-2)
                                                                             1                   2                    3

             On death                                        11                  35885                                 35885
             By way of lump sums on maturity                 12                  57075                                 57075

            By way of annuity payments                       13
Life
assurance By way of payments arising from other
                                                             14
and annuity insured events
contracts
            On surrender or partial surrender                15                  17795                                 17795
             Total life assurance and annuity
             claims (11 to 15)                               19               110755                                   110755

             On death                                        21

             By way of lump sums on vesting                  22
Pension
business     By way of vested annuity payments               23
contracts
             On surrender or partial surrender               24

             Total pension business claims (21 to 24)        29

             By way of lump sums                             31
Permanent
health       By way of periodical payments                   32
contracts
             Total permanent health claims (31+32)           39

             By way of lump sums                             41
Other
             By way of periodical payments                   42
contracts
             Total claims (41+42)                            49

Total claims (19+29+39+49)                                   59               110755                                   110755

Total claims at line UK contracts                            61                  64508                                 64508
59 attributable to
                     Overseas contracts                      62                  46247                                 46247




                                                                  24
                                                                                                                                                                                       Form 43

Long term insurance business : Summarised balance sheet for internal linked funds

Name of insurer             ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended        31st December 2004                                               Company                                                                         No of     No of
                                                                                             registration                        Period ended                                fund/     part of
                                                                                             number            GL/UK/CM                              Units       OB/IB       Summary   Fund
                                                                                                                           day     month    year
Name and number of fund/Summary    Ordinary Branch 1
                                                                                     R43             35           GL       31        12     2004     £000        OB             1           1
                   Name of fund                  Directly held     Investment in           Total assets      Provision for tax       Secured and      Other liabilities        Net asset value
                                                    assets          other internal            (2+3)           on unrealised        unsecured loans                                (4-5-6-7)
                                                                  linked funds of                             capital gains
                                                                     the insurer


                        1                             2                  3                       4                  5                       6                7                         8

U.K Equity                                                34568                                      34568                 79                                            4                 34485

Global Equity                                               493                                       493                   4                                                               489

High Yield                                                13020                                      13020                318                                            1                 12701

International Equity                                      21307                                      21307                100                                            2                 21205

Fixed Interest                                            15642                                      15642                                                                                 15642

Money                                                     3005                                       3005                                                                                  3005

Managed                                                                      57566                   57566                                                                                 57566

Tax Exempt                                                16029                                      16029                                                               1                 16028

Stakeholder                                               38356                                      38356                                                               3                 38353

Safeguard                                                   213                                       213                                                                                   213

ROI Irish Equity                                          5441                                       5441                                                                1                  5440

ROI Intl Equity                                           5004                                       5004                                                                1                  5003

ROI Euro Equity                                           3241                                       3241                                                                                   3241

Total



                                                                                            25
                                                                                                                                                                                       Form 43

Long term insurance business : Summarised balance sheet for internal linked funds

Name of insurer            ROYAL LIVER ASSURANCE LTD

Global business

Ordinary insurance business

Financial year ended       31st December 2004                                                Company                                                                         No of     No of
                                                                                             registration                        Period ended                                fund/     part of
                                                                                             number            GL/UK/CM                              Units       OB/IB       Summary   Fund
                                                                                                                           day     month    year
Name and number of fund/Summary   Ordinary Branch 1
                                                                                     R43             35           GL       31        12     2004     £000        OB             1           1
                  Name of fund                  Directly held      Investment in           Total assets      Provision for tax       Secured and      Other liabilities        Net asset value
                                                   assets           other internal            (2+3)           on unrealised        unsecured loans                                (4-5-6-7)
                                                                  linked funds of                             capital gains
                                                                     the insurer


                       1                             2                   3                       4                  5                       6                7                         8

ROI Fixed Int                                             5924                                       5924                                                                1                 5923

ROI Money                                                 2661                                       2661                                                                                  2661

ROI Managed                                                                  15588                   15588                                                                                 15588




Total                                                    164904              73154               238058                   501                                         14               237543



                                                                                            26
                                                                                                                             Form 44

Long term insurance business : Aggregate revenue account for internal linked funds

Name of insurer                  ROYAL LIVER ASSURANCE LTD
Global business

Ordinary insurance business

Financial year ended             31st December 2004
Name and number of fund/Summary               Ordinary Branch 1
                                      Company                                                                      No of     No of
                                      registration                        Period ended                             fund/     part of
                                      number             GL/UK/CM                                  Units   OB/IB   Summary   Fund
                                                                       day   month     year

                             R44             35              GL        31         12   2004        £000    OB         1          1

Value of total creation of units                                                              11                              18198

Investment income attributable to the funds before deduction of tax                           12                               2986

Increase (decrease) in the value of investments in the financial year                         13                              11873

Other income                                                                                  14                                   19

Total income (11 to 14)                                                                       19                              33076

Value of total cancellation of units                                                          21

Charges for management                                                                        22                               1316

Charges in respect of tax on investment income                                                23                                 450

Taxation on realised capital gains                                                            24

Increase (decrease) in amount set aside for tax on capital gains not yet realised             25                                 121

Other expenditure                                                                             26

Total expenditure (21 to 26)                                                                  29                               1887

Increase (decrease) in funds in financial year (19-29)                                        39                              31189

Internal linked funds brought forward                                                         49                             133200

Internal linked funds carried forward (39+49)                                                 59                             164389




                                                                             27
                                                                                                                           Form 45

Long term insurance business : Supplementary information for internal linked funds

Name of insurer               ROYAL LIVER ASSURANCE LTD
Global business

Ordinary insurance business

Financial year ended          31st December 2004
Name and number of fund       Ordinary Branch 1
                                   Company                                                                   No of          No of
                                   registration                     Period ended                             fund           part of
                                   number           GL/UK/CM     day month     year        Units    OB/IB                   Fund

                             R45          35           GL        31      12    2004        £000     OB             1             1

                                                  Amount of        Percentage      Percentage       Liquidity            Valuation
                                                    taxable       provision for   provision for    percentage          price per unit
                                                   unrealised        tax on          tax on
               Name of fund                       capital gain     unrealised       realised
                                                    or loss       capital gains   capital gains

                       1                               2                 3             4               5                     6

UK Equity Fund - Life                                      367           17.03          22.00               3.17           1.35919

UK Equity Fund - Pen Cap                                                                                    3.17           0.76761

UK Equity Fund - Pen Acc                                                                                    3.17           1.54440

UK Equity Fund - Pen S . 2                                                                                  3.17           0.48414

UK Equity Fund - Life S .2                                  96           17.03          22.00               3.17           0.46838

Global Equity Fund - Life                                    7           22.00          22.00               3.98           0.78680

Global Equity Fund - Pen Cap                                                                                3.98           0.42833

Global Equity Fund - Pen Acc                                                                                3.98           0.85478

Global Equity Fund - Pen S . 2                                                                              3.98           0.53874

Global Equity Fund - Life S .2                              11           22.00          22.00               3.98           0.43768

High Yield Fund - Life                                     700           22.00          22.00               0.94           2.21455

High Yield Fund - Pen Cap                                                                                   0.94           1.46126

High Yield Fund - Pen Acc                                                                                   0.94           3.00426

High Yield Fund - Pen S . 2                                                                                 0.94           0.91804

High Yield Fund - Life S .2                                748           22.00          22.00               0.94           0.62293

International Equity Fund - Life                           400           20.77          22.00               5.56           1.18403

International Equity Fund - Pen Cap                                                                         5.56           0.66329

International Equity Fund - Pen Acc                                                                         5.56           1.34396

International Equity Fund - Pen S . 2                                                                       5.56           0.62817

International Equity Fund - Life S .2                       81           20.77          22.00               5.56           0.47101

Fixed Interest Fund - Life                                               20.00          20.00               0.83           1.28177

Fixed Interest Fund - Pen Cap                                                                               0.83           0.90177

Fixed Interest Fund - Pen Acc                                                                               0.83           1.80660




                                                                    28
                                                                                                                           Form 45

Long term insurance business : Supplementary information for internal linked funds

Name of insurer                ROYAL LIVER ASSURANCE LTD
Global business

Ordinary insurance business

Financial year ended           31st December 2004
Name and number of fund        Ordinary Branch 1
                                   Company                                                                   No of          No of
                                   registration                     Period ended                             fund           part of
                                   number           GL/UK/CM     day month     year        Units    OB/IB                   Fund

                           R45            35           GL        31      12    2004        £000     OB             1             1

                                                  Amount of        Percentage      Percentage       Liquidity            Valuation
                                                    taxable       provision for   provision for    percentage          price per unit
                                                   unrealised        tax on          tax on
               Name of fund                       capital gain     unrealised       realised
                                                    or loss       capital gains   capital gains

                       1                               2                 3             4               5                     6

Fixed Interest Fund - Pen S . 2                                                                             0.83           0.63287

Fixed Interest Fund - Life S .2                                          20.00          20.00               0.83           0.56514

Money Fund - Life                                                                                        99.96             1.13625

Money Fund - Pen Cap                                                                                     99.96             0.79323

Money Fund - Pen Acc                                                                                     99.96             1.60707

Money Fund - Pen S . 2                                                                                   99.96             0.63096

Money Fund - Life S .2                                                                                   99.96             0.55261

Managed Fund - Life                                                                                                        1.31104

Managed Fund - Pen Cap                                                                                                     0.77339

Managed Fund - Pen Acc                                                                                                     1.55971

Managed Fund - Pen S . 2                                                                                                   0.55224

Managed Fund - Life S .2                                                                                                   0.48358

Tax Exempt Fund - Life                                                                                   19.65             1.16524

Tax Exempt Fund - Life S .2                                                                              19.65             0.45956

Stakeholder - Pension                                                                                    20.92             0.53767

Safeguard - Life                                                                                         99.96             1.13694

ROI Irish Equity Fund - Life                                                                                7.54           0.85242

ROI Irish Equity Fund - Pension                                                                             7.54           0.79380

ROI International Equity Fund - Life                                                                        8.77           0.53411

ROI International Equity Fund - Pension                                                                     8.77           0.49751

ROI European Equity Fund - Life                                                                             8.67           0.55067

ROI European Equity Fund - Pension                                                                          8.67           0.51279

ROI Fixed Interest Fund - Life                                                                           99.24             0.90632




                                                                    29
                                                                                                                       Form 45

Long term insurance business : Supplementary information for internal linked funds

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Ordinary insurance business

Financial year ended        31st December 2004
Name and number of fund     Ordinary Branch 1
                                 Company                                                                  No of         No of
                                 registration                     Period ended                            fund          part of
                                 number           GL/UK/CM     day month     year        Units    OB/IB                 Fund

                           R45          35           GL        31      12    2004        £000     OB           1             1

                                                Amount of        Percentage      Percentage       Liquidity          Valuation
                                                  taxable       provision for   provision for    percentage        price per unit
                                                 unrealised        tax on          tax on
              Name of fund                      capital gain     unrealised       realised
                                                  or loss       capital gains   capital gains

                       1                             2                 3             4               5                   6

ROI Fixed Interest Fund - Pension                                                                      99.24           0.84399

ROI Money Fund - Life                                                                                  99.97           0.77752

ROI Money Fund - Pension                                                                               99.97           0.72379

ROI Managed Fund - Life                                                                                                0.68321

ROI Managed Fund - Pension                                                                                             0.63623




                                                                  30
                                                              IPRU (INS) Appendix 9.4


    Abstract of Actuarial Investigation

    Royal Liver Assurance Limited
    Appendix 9.4 of the Interim Prudential Sourcebook for Insurance
    Companies ("IPRU(INS)")



1. Valuation Date
          The date to which the investigation relates is 31 December 2004.
2. Previous Valuation Date
          The date of the previous investigation was 31 December 2003.
3. Conformity with PRU 7.3.10R
           The valuation has been made in conformity with rule 7.3.10 of the Integrated
           Prudential Sourcebook (PRU 7.3.10 R).
4. Non-Linked Business


    ORDINARY BRANCH BUSINESS

    4.1    a. Personal Pension Plan (UK) (closed to new business) and
              Retirement Annuities (ROI)
              These are deferred annuity contracts, approved under Part XIV, Chapter
              IV of the Income and Corporation Taxes Act 1988 in the UK and under
              Section 235 of the Income Tax Act 1967 in the Republic of Ireland.
              Each premium paid, less an explicit expense charge, purchases an
              amount of guaranteed fund. In the UK, the policy may accept premiums
              specified under Schedule I to the Social Security Act 1986 (as
              amended). The guaranteed fund accumulates with the addition of
              bonuses, less charges. The charges applied are as set out in paragraph f
              of the unit-linked Personal Pension Plan details of Section 5.1. At
              maturity, or on earlier death, the total accumulated fund is available for
              the benefit of the policyholder. The benefits at maturity in respect of
              premiums received under Schedule I to the Social Security Act 1986 (as
              amended) must be applied to purchase a "protected rights" annuity. The
              death benefits in respect of premiums received under Schedule I to the
              Social Security Act 1986 (as amended) must be paid in accordance with
              the provisions within the Schedule.
              i The Society may pay more or less than the identifiable current benefit
                  attributable to a policy where the policyholder elects either to take a
                  transfer value to another provider, switch policy benefits to unit
                  linked funds or to take retirement other than at the pre-selected
                  retirement age.




                                            31
                                                 IPRU (INS) Appendix 9.4


    Adjustments will be made in situations where the policy benefits
    differ from the policy asset share. Adjustments to surrender values
    may also be made if the volume of encashments from the fund rises
    significantly. No adjustment to the identifiable current benefit is
    made in determining policy charges. There is a guarantee on death
    and at the pre-selected retirement date that the payout will be at least
    equal to the identifiable current benefit.
ii Not applicable.
iii Not applicable.
iv Not applicable.
v The policyholder has the option to switch the value of the with
    profits fund and redirect premiums, into the Society's unit-linked
    funds (excluding the Tax Exempt Managed Fund). For Retirement
    Annuities sold in the ROI between 1986 and 1996, a minimum
    amount of annuity per £1,000 of policy proceeds is guaranteed.
    Sample rates are given in the table below:
                                     Amount of annuity per £1,000 of policy proceeds
      Attained age of annuitant          Male                          Female
           at benefit date                  £                              £
                 60                      94.70                        81.80
                 65                     110.30                        93.20
                 70                     135.20                       112.50

Personal Investment Plan

These are with profits whole of life contracts issued in the United
Kingdom, Jersey, Guernsey, Isle of Man and the Republic of Ireland.
The policy is available in single life and joint life forms. Each premium
paid, less an explicit expense charge, purchases an amount of guaranteed
fund. Regular withdrawals are allowed under this contract. The
guaranteed fund less any withdrawals made accumulates with the
addition of bonuses, less charges. In the event of death the total
accumulated fund is payable (subject to a minimum of the total
premiums paid reduced by the total withdrawals made).
i. The Society may pay more or less than the identifiable current
    benefit attributable to a policy where the policyholder elects to
    surrender, switch policy benefits to unit linked funds or withdraw
    part of his/her fund except at each tenth policy anniversary. The
    adjustment would also not apply on regular withdrawals less than
    5% per annum of the original investment.
    Adjustments will be made in situations where the policy benefits
    differ from the policy asset share. Adjustments to surrender values
    may also be made if the volume of encashments from the fund rises
    significantly. No adjustment to the identifiable current benefit is
    made in determining policy charges.




                              32
                                                IPRU (INS) Appendix 9.4


    There is a guarantee on the tenth policy anniversary and at each
    subsequent tenth anniversary that any full encashment will be at
    least equal to the identifiable current benefit. This also applies to
    partial encashments on a pro-rata basis. Also, there is a guarantee on
    death that the payout will be at least equal to the identifiable current
    benefit.
ii Not applicable.
iii Not applicable.
iv Not applicable.
 v The policyholder has the option to switch the value of the with
    profits fund and redirect premiums, into the Society's unit-linked
    funds (excluding the Tax Exempt Managed Fund). The policyholder
    is allowed to make one switch a year without charge. There will be
    a charge for each subsequent switch.

Caledonian With-Profits Bond

These are single premium with profits whole of life contracts issued in
the Republic of Ireland under the Caledonian brand. The policy is
available in single life and joint life forms. The single premium paid is
used to purchase an amount of guaranteed fund. Regular withdrawals
are allowed under this contract. The guaranteed fund less any
withdrawals made accumulates with the addition of bonuses, less
charges. A loyalty bonus is added to the accumulated fund on the first
policy anniversary. In the event of death the total accumulated fund is
payable (subject to a minimum of the total premiums paid reduced by
the total withdrawals made).

i.   The Society may pay more or less than the identifiable current
     benefit attributable to a policy where the policyholder elects to
     surrender or withdraw part of his/her fund except at the tenth policy
     anniversary and each subsequent fifth anniversary. The adjustment
     would also not apply on regular withdrawals of less than 7.5% per
     annum of the single premium.
     Adjustments will be made in situations where the policy benefits
     differ from the policy asset share. Adjustments to surrender values
     may also be made if the volume of encashments from the fund rises
     significantly. No adjustment to the identifiable current benefit is
     made in determining policy charges.
     There is a guarantee on the tenth policy anniversary and at each
     subsequent fifth anniversary that any full encashment will be at least
     equal to the identifiable current benefit. This also applies to partial
     encashments on a pro-rata basis. Also, there is a guarantee on death
     that the payout will be at least equal to the identifiable current
     benefit.




                              33
                                                  IPRU (INS) Appendix 9.4


    ii Not applicable.
    iii Not applicable.
    iv Not applicable.
     v. Not applicable.


b. Not applicable

c. Apart from the contracts listed below, policies issued by the Society are
   adequately described by their category in Form 51.

    Endowment Assurances With Profits

    Single premium policies have a guaranteed minimum surrender value
    equal to the single premium. New series single premium policies also
    have a guaranteed minimum death benefit of 110% of the basic sum
    insured and an option to take regular withdrawals (subject to a minimum
    remaining policy size).

    Endowment Plus Assurances With Profits (closed to new business)

    These are endowment assurances with an additional accident benefit or
    contingency supplement. In the event of death by accident at any time
    before the end of the term the sum assured, together with an additional
    accident benefit equal to the sum assured, will be payable. In the event
    of death from any other cause at any time prior to the final year of the
    term a contingency supplement will become payable in annual
    instalments of £200 per £1,000 sum assured. The total amount of
    contingency supplement payable is given below.

      Date of death                                    Amount of contingency
                                                        supplement for £1,000
                                                                sum assured
      More than 4 years before maturity                              £1,000
      More than 3 years but less than 4 years before maturity         £ 800
      More than 2 years but less than 3 years before maturity         £ 600
      More than 1 year but less than 2 years before maturity         £ 400

    In the event of non-accidental death within the final year of the term a
    contingency supplement of £200 will be payable once only at the same
    time as the sum assured.




                                34
                                              IPRU (INS) Appendix 9.4


Low Cost Endowment Assurances (closed to new business)

These are with profits endowment assurances with an additional death
benefit. The total amount payable on death during the term will not be
less than the minimum death benefit, which is a multiple of the sum
assured depending on the term. Policies issued at standard rates include
an option to effect further policies without evidence of insurability to
cover an increase in mortgage borrowing, subject to certain restrictions.

Endowment Term Assurances (closed to new business)

These are endowment assurances with additional death benefits. In the
event of death during the term the sum assured is payable together with
an extra benefit of one, two or three times the sum assured, according to
the type of contract.

Caledonian Endowment Plus Assurance With Profits (closed to new
business)

These are endowment assurances where the death benefit prior to
maturity is subject to a minimum of 15 times the annual premium.

Caledonian Guaranteed Cashback Endowment (closed to new
business)

These are endowment assurances with a guaranteed minimum payment
on maturity of total premiums paid.

Capital Growth Plan (closed to new business)

These policies consist of two elements, a pure endowment and a level
term assurance. The pure endowment participates in profits and on
survival to the end of the term the sum assured plus bonus is payable. In
the event of death during the term, the level sum assured is payable
together with a return of all premiums paid, without interest. In a later
version of the plan the pure endowment is replaced with an endowment
assurance.

Mortgage Protection Assurances With Profits (closed to new
business)

These are mortgage protection policies which incorporate a with profits
pure endowment of 20% of the initial sum assured, payable on survival
to the expiry date.




                            35
                                              IPRU (INS) Appendix 9.4


Caledonian Convertible Term Assurances

These are level term assurances where the policy may, at the option of
the policyholders, be converted to one of a different class of assurance
without further evidence of health.

Caledonian Dynamic Cover Plan (closed to new business)

These are term assurance contracts where the sum assured and premium
increases during the policy term. At the end of the contract term, the
policy may, subject to certain restrictions, be renewed without further
evidence of health.

Caledonian Family Income Benefit (closed to new business)

These are term assurance contracts providing a fixed annual amount on
the death of the life assured. The duration over which the benefit is
payable decreases during the lifetime of the contract.

Serious Illness Survival Cover

These are non-profit protection contracts that pay the sum assured on the
event of confirmed diagnosis, within the lifetime of the contract, of one
of 23 specified illnesses and conditions. Payment of the sum assured is
contingent on the policyholder surviving for 14 days after diagnosis.
The sum assured is also payable if the policyholder is diagnosed as
being totally and permanently disabled under the conditions of the
contract, with such disability having been established for the continuous
period of twelve months. On death within the term of the policy a
benefit of £100 is payable.

Caledonian Group Life

These are term assurance benefits in relation to pension scheme benefits.
Premiums are reviewed regularly. Subject to certain restrictions,
individual members may convert their policy to one of a different class
without evidence of health.

Caledonian Collective Life

These are term assurances written under group arrangements with
mortgage and loan providers that pay a lump sum on death of an amount
equal to the outstanding loan amount or the outstanding loan
repayments.




                             36
                                               IPRU (INS) Appendix 9.4


Caledonian Group Scheme for Borrowers (GSB) Assurances

These are term assurances written under group arrangements with
Building Societies providing a lump sum on death equal to the
outstanding mortgage amount. Policies may also be effected on the
basis of the benefit being payable on diagnosis, within the lifetime of the
contract, of specified illnesses and conditions. Under the "Convertible"
version of the plan, the policy may, subject to certain restrictions, be
converted to one of a different class without evidence of health. In
certain circumstances, the sum assured may be increased without further
evidence of health.

Retirement Annuities With Profits (closed to new business)

These are deferred annuity contracts approved under Section 226 of the
Income and Corporation Taxes Act 1970 in the UK. The sum assured
and bonus becomes available on the survival of the policyholder to the
maturity date. In the event of death before the maturity date an amount
equal to the total premiums paid together with interest at 4% pa
compound is payable. A minimum amount of annuity per £1,000 of
policy proceeds is guaranteed. Sample rates are given in the table
below:

 Attained age of annuitant             Amount of annuity per £1,000 of policy proceeds
 at benefit date                             Male                       Female
                                               £                           £
 60                                           94.70                     81.80
 65                                          110.30                     93.20
 70                                          135.20                    112.50



Personal Pension Plans (old Life and Pensions division) (closed to
new business)

These are with profits deferred annuity contracts approved under Part
XIV Chapter IV of the Income and Corporation Taxes Act 1988. The
sum assured and bonus becomes available on the survival of the
policyholder to the maturity date. In the event of the death of the
policyholder before the maturity date an amount not less than the total
premiums paid accumulated at 4% pa compound is payable.




                             37
                                               IPRU (INS) Appendix 9.4


Personal Pension Plans (Minimum Contribution)
(old Life and Pensions division) (closed to new business)

These are with profits deferred annuity contracts approved under Part
XIV Chapter IV of the Income and Corporation Taxes Act 1988. Only
contributions specified under Schedule I to the Social Security Act 1986
(as amended) are accepted under these contracts. The sum assured and
bonus becomes payable on the survival of the policyholder to the
maturity date. This sum must be applied to purchase a "protected rights"
annuity. In the event of death before the maturity date the policy value
is applied to provide benefits in accordance with Schedule 1 to the
Social Security Act 1986 (as amended).

Caledonian Pension Plans (closed to new business)

Personal Pension policies, VIP policies, Group Pension Plus policies,
Staff AVC policies and Group Chargeable Rates policies are all deferred
annuity contracts with a guaranteed cash option at vesting.
Sample rates are given in the table below:

                                                  Guaranteed cash option factor*
                         Attained age of
Contract type                                      Male                 Female
                           annuitant
Series 1                      60                     10                   11
                              65                      9                   10
                              70                      8                    9

Series 2 & 3                  60                     11                   12
                              65                     10                   11
                              70                      9                   10
* assuming a level annuity is taken at retirement.        The factors are
 increased if an escalating annuity is taken.

Caledonian Pension Assurances (closed to new business)

These are deferred annuity contracts with a guaranteed cash option at
the vesting date. With profits contracts carry a death benefit prior to the
vesting date equal to 10 times the basic prospective pension plus
attaching bonuses. Without profit contracts carry a death benefit equal
to the guaranteed cash option. This contract is included within the
"Miscellaneous Annuities" line of Form 51.




                             38
                                                IPRU (INS) Appendix 9.4


Permanent Health Insurance

A level benefit is payable during incapacity following an initial deferred
period of between one and twelve months. The Society has the right to
vary premiums at every fifth policy anniversary.

Progress – Mortgage Protection Menu

The Mortgage Protection Menu is a traditional (non-linked) regular
premium menu-based protection product. This is a single menu-based
protection product for mortgages, and different characteristics can be
achieved by selecting from the ‘key’ risk benefits.

Key Risk Benefits are

x Level term assurance
x Combined level term and critical illness
x Decreasing term assurance
x Combined decreasing term and critical illness
x Guaranteed income protection
x Reviewable income protection

Waiver of premium benefits can be linked to some combinations of the
above. For the plan to be in force, there must be at least one ‘key’ risk
benefit in force at all times (ie level term assurance, combined level term
and critical illness, decreasing term assurance, combined decreasing
term and critical illness, guaranteed income protection or reviewable
income protection). All other risk benefits are optional but rely on the
presence of specific ‘key’ benefits. After issue, risk benefits can be
added or removed within the product rules such that multiple instances
of the ‘key’ benefits can exist within a single plan if the need arises.

Over the lifetime of a protection plan, the basic shape of the plan can
change. For example, standalone level term assurance can have income
protection added as an alteration. Then at a later date, the original term
assurance can be removed, leaving the plan as standalone income
protection

A buyback option exists for term assurance but is only available at
policy commencement for the combined term and critical illness
benefits.




                              39
                                                        IPRU (INS) Appendix 9.4


        If there are multiple instances of income protection benefit for the same
        life assured they must all be of the same form – either guaranteed or
        reviewable, with or without escalation and for the same term and have
        different deferred periods

        Additional critical illness benefit cannot exist without an income
        protection benefit and must cover the same life assured and be for the
        same term as its associated income protection benefit. Additional
        critical illness benefit, together with its associated income protection
        benefit and a combined term and critical illness benefit can all exist
        within a single plan.

        Waiver of premium benefit can cover both lives on a joint life plan, but
        these will be set up as two single life benefits and the premium rate for
        each is reduced to reflect a joint life discount



INDUSTRIAL BRANCH BUSINESS

        Quinquennial Endowments with Endowment Assurance (closed to
        new business)

        These are endowment assurances maturing at age 65 which provide
        additional pure endowment payments on survival to each fifth policy
        anniversary. For policies issued under Table 8, a proportionate payment
        is made at the maturity date unless this falls at the end of a
        quinquennium.

       Septennial Endowments with Endowment Assurance (closed to new
       business)

        These are endowment assurances maturing at age 65 which provide
        additional pure endowment payments on survival to the seventh,
        fourteenth, twenty-first and twenty-eighth policy anniversaries.
        Premiums are payable for 28 years or until earlier death.

       Quinquennial Endowments with Whole Life Assurance (closed to
       new business)

       These are whole life assurances which provide additional pure endowment
       payments on survival to each fifth policy anniversary.




                                      40
                                                  IPRU (INS) Appendix 9.4


Septennial Endowments with Whole Life Assurance (closed to new
business)

These are whole life assurances which provide additional pure endowment
payments on survival to the seventh, fourteenth, twenty-first and (where
the age at entry is below 40) twenty-eighth policy anniversaries.
Premiums cease at the date of the final septennial payment.

Endowment Assurances with Periodical Endowments (closed to new
business)

These are with profits endowment assurances which provide additional
pure endowment payments equal to one quarter and one half of the sum
assured on survival to the fifth and tenth policy anniversaries respectively.
In the event of death before the maturity date, a sum equal to 1.75 times
the sum assured, plus bonuses, is payable.

Periodic Endowments - Free Policies

Where quinquennial and septennial endowments are converted to free
policies before periodic endowment payments have ceased, they become
endowment assurances maturing on the date of the next periodic
endowment payment.

Pure Endowments with Return of Premiums (closed to new business)

Premiums are returned without interest on death before the maturity date.

Endowment Assurances with Additional Death Benefits
(including the Double Cover Endowment)

These are endowment assurances under which twice the sum assured is
payable on death before the maturity date.

Flexible Endowment Assurances (closed to new business)

 These are 20 year endowment assurances with guaranteed minimum
 surrender values from the tenth policy anniversary onwards.




                                41
                                                     IPRU (INS) Appendix 9.4



     After year 10 there is a guaranteed minimum amount payable on surrender
     as set out below.

       Number of complete               Guaranteed amount payable on
         years in force                 surrender per £100 sum assured
              10                                       64
              11                                       72
              12                                       81
              13                                       90
              14                                       99
              15                                      109
              16                                      119
              17                                      129
              18                                      140
              19                                      152



Friends Provident Decennial Endowments with Whole Life Assurance
(closed to new business)

These are whole life assurances which provide additional pure endowment
payments on survival to each tenth policy anniversary. The decennial
payment can be taken as cash or it can be used to purchase additions to the
original sum assured.

Friends Provident "Rainbow Endowment" Endowment Assurance
(closed to new business)

These are endowment assurances with an accidental death cover. An option is
available after 10 years to extend the term for a further 10 years. A guaranteed
surrender value is available after 10 years.

Friends Provident Endowment Assurances with Additional Death Benefit
(closed to new business)

These are endowment assurances under which one tenth of the sum assured
multiplied by the number of years in-force, plus bonuses, is payable on death
before the maturity date.

Friends Provident "Protected Savings Plan" Endowment Assurances
closed to new business)

These are endowment assurances with an accidental death cover. A guaranteed
surrender value is available after 10 years.




                                   42
                                                       IPRU (INS) Appendix 9.4


Friends Provident "Protection Plus" Endowment Assurances (closed to
new business)

These are endowment assurances under which five times the sum assured, plus
bonuses, is payable on death before the maturity date. A cash in value is
available on or after the tenth policy anniversary.

 Friends Provident Endowment Assurances with Reduced Death Benefit
(closed to new business)

These are endowment assurances under which a proportion of the sum assured,
plus bonuses, is payable on death before the maturity date. A cash in value is
available on or after the tenth policy anniversary.

 Friends Provident Quinquennial Endowment with Endowment Assurances
(closed to new business)

These are endowment assurances with an accidental death cover which provide
additional pure endowment payments on survival to each fifth policy
anniversary.

Friends Provident High Life Cover Plan (closed to new business)

These are endowment assurances under which five times the sum assured, plus
bonuses, is payable on death before the maturity date.#

Friends Provident High Investment Minimum Life Cover Plan (closed to
new business)

These are endowment assurances under which the ratio of the number of years
in-force to the policy term times the sum assured, plus bonuses, is payable on
death.

Irish Life “Family Care” Endowment Assurances” (Table 915 closed to new
business)

These are 15-year endowment assurances. Eligible for reversionary bonuses
after five years. The Sum Assured (together with bonuses) is payable on
maturity. In the event of death before the maturity date the amount payable will
be the death benefit. A cash bonus is payable at the end of year 5 and is equal to
80.4 times the weekly premium. One prize bond is allocated to the policy for
every €1 four weekly premium.

Provided all premiums due have been paid, and the policy is in force, then the
policyholder has the option at the end of the 15-year term to effect a new ‘Home
Service Life Cover’ policy (subject to age criteria) without further evidence of
health for a maximum amount of €3,810. Premiums for the new policy will be at
the appropriate rate depending on the then age of the Life Assured. If, at the
option exercise date, the product is no longer open to new business then an
equivalent product will be chosen on the advice of the appointed actuary.




                                     43
                                                         IPRU (INS) Appendix 9.4



Irish Life “Cash Care (with 5 year cash bonus)” (Table 610 closed to new
business)

These are 10-year endowment assurances. Eligible for reversionary bonuses
after five years. The Sum Assured (together with bonuses) is payable on
maturity. In the event of death before the maturity date the amount payable will
be the death benefit. A cash bonus is payable at the end of year 5 and is equal to
200.16 times the initial weekly premium. One prize bond is allocated to the
policy for every €1 initial four weekly premium. There is an indexation option
which must be selected at the start of the policy. The indexation increases are as
follows.

        Duration           Increases to Basic            Increases to Basic Sum
                               Premium                          Assured
            1                    10%                              17%
            2                    10%                              15%
            3                    10%                              13%
            4                    10%                              11%
            5                    10%                               9%
            >5                    0%                               0%


 At the end of the 10-year term the policy may continue, with the same Death
 Benefit, at the premium applicable to that age without medical evidence
 (subject to age criteria). If, at the option exercise date, the product is no longer
 open to new business then an equivalent product will be chosen on the advice
 of the appointed actuary.

 Irish Life “Cash Care” (Table 710 closed to new business)

 These are 10-year endowment assurances. Eligible for reversionary bonuses
 after five years. The Sum Assured (together with bonuses) is payable on
 maturity. In the event of death before the maturity date the amount payable
 will be the death benefit. One prize bond is allocated to the policy for every €1
 initial four weekly premium. There is an indexation option which must be
 selected at the start of the policy. The indexation increases are as follows.

        Duration           Increases to Basic            Increases to Basic Sum
                        Premium & Basic Death                   Assured
                                Benefit
            1                    10%                                9%
            2                    10%                                8%
            3                    10%                                7%
            4                    10%                                6%
            5                    10%                                5%
            >5                    0%                                0%

 At the end of the 10-year term the policy may continue, with the same Death
 Benefit, at the premium applicable to that age without medical evidence




                                      44
                                                        IPRU (INS) Appendix 9.4


(subject to age criteria). If, at the option exercise date, the product is no longer
open to new business then an equivalent product will be chosen on the advice
of the appointed actuary.

Irish Life “Child Care” and “Family Care” (Table 415 closed to new
business)

These are 15-year endowment assurances. Eligible for reversionary bonuses
after five years. The Sum Assured (together with bonuses) is payable on
maturity. In the event of death before the maturity date the amount payable
will be the death benefit. One prize bond is allocated to the policy for every €1
four weekly premium. There is an indexation option which must be selected at
the start of the policy. The indexation increases are as follows.

                          Increases to Basic            Increases to Basic Sum
       Duration        Premium & Basic Death                   Assured
                               Benefit
           1                     5%                    Fixed annual amounts for
           2                     5%                       which the basic sum
           3                     5%                         assured increases
           4                     5%                      throughout the first 10
           5                     5%                   years of the policy being in
           6                     5%                     force. The fixed annual
           7                     5%                   amounts are dependant on
           8                     5%                           age at entry.
           9                     5%                    These are detailed in the
          10                     5%                            next table.
          >10                    0%

                   Age at       Annual Increases to Basic Sum
                   Entry          Assured per €1 4-weekly
                                          premium
                  1 to 18                   €3.70
                  19 to 23                  €1.40
                  24 to 25                  €1.20
                     26                     €1.10
                     27                     €1.00
                     28                     €0.90
                     29                     €0.80
                     30                     €0.70
                     31                     €0.60
                 32 and 33                  €0.50
                  34 to 44                  €0.40
                 45 and 46                  €0.30
                  47 to 50                  €0.20

At the end of the 15-year term the policy may continue, with the same Death
Benefit, at the premium applicable to that age without medical evidence
(subject to age criteria). If, at the option exercise date, the product is no longer




                                     45
                                                      IPRU (INS) Appendix 9.4


open to new business then an equivalent product will be chosen on the advice
of the appointed actuary.


Irish Life “Juvenile Endowment Assurance” (closed to new business)
(Tables C## & L20 closed to new business)

These are endowment assurances with a term of 11, 12, 13, 14, 15, 20 or 25
years. The Sum Assured (together with bonuses) is payable on maturity or on
death before the maturity date.

Irish Life “Adult Endowment Assurance” (closed to new business) (Tables
D## closed to new business)

These are endowment assurances with a term of 15, 20 or 25 years. The Sum
Assured is payable on maturity or on death before the maturity date.

Irish Life “Old Age Endowment Assurance with Prize Bond Benefits”
(closed to new business) (Tables E## closed to new business)

These are endowment assurances which mature at the policy anniversary prior
to either age 60 or 65. For a policy maturing at the policy anniversary prior to
age 60 the Sum Assured is payable on maturity or on death before the maturity
date. For a policy maturing at the policy anniversary prior to age 65 the Sum
Assured (together with bonuses) is payable on maturity or on death before the
maturity date. One prize bond is allocated to the policy for every €1.27 initial
four weekly premium.

Irish Life “Juvenile Endowment Assurance” (closed to new business)
(Tables H## closed to new business)

These are endowment assurances with a term of 15 or 20 years. The Sum
Assured is payable on maturity or on death before the maturity date.

Irish Life “Adult Endowment Assurance” (closed to new business) (Tables
115 closed to new business)

These are endowment assurances with a term of 15 years. The Sum Assured is
payable on maturity or on death before the maturity date.

Irish Life “Adult Endowment Assurance with Prize Bond Benefits”
(closed to new business) (Tables 120 & 125 closed to new business)

These are endowment assurances with a term of 20 or 25 years. The Sum
Assured (together with bonuses) is payable on maturity or on death before the
maturity date. One prize bond is allocated to the policy for every €1.27 initial
four weekly premium.




                                    46
                                                      IPRU (INS) Appendix 9.4


Irish Life “Adult Endowment with Prize Bond Benefits and Additional
Life Cover” (Tables N## closed to new business)

These are endowment assurances with a term of 10 or 15 years. The Sum
Assured (together with bonuses) is payable on maturity. On death before the
maturity date an amount equal to the greater of the Sum Assured (together with
bonuses) and the Guaranteed Minimum Death Benefit is payable. One prize
bond is allocated to the policy for every €1.27 initial four weekly premium.

Irish Life “Adult Endowment with Prize Bond Benefits” (Tables P##
except P75 closed to new business)

These are endowment assurances with a term of 20 or 25 years. The Sum
Assured (together with bonuses) is payable on maturity or on death before the
maturity date. One prize bond is allocated to the policy for every €1.27 initial
four weekly premium.

Irish Life “Adult Endowment with Prize Bond Benefits Payable to Age
75” (Table P75 closed to new business)

These are endowment assurances which mature at the policy anniversary prior
to age 75. The Sum Assured (together with bonuses) is payable on maturity or
on death before the maturity date. One prize bond is allocated to the policy for
every €1.27 initial four weekly premium.

Irish Life “Adult Endowment with Prize Bond Benefits and Family
Income Cover” (Tables Q## closed to new business)

These are endowment assurances with a term of 15, 20 or 25 years. The Sum
Assured (together with bonuses) is payable on maturity. On death the Sum
Assured (together with bonuses) and the Family Income Cover (which may be
commuted) will be payable. The income benefit is payable by yearly
instalments from the date of death until the end of the term with a final
proportional payment. As an alternative a lump sum benefit may be taken in
lieu of the regular payments. Neither the regular payments nor the alternative
lump sum are liable to income tax. One prize bond is allocated to the policy for
every €1.27 initial four weekly premium.

Irish Life “Adult Endowment with Recurring Cash Bonus every 5 years”
(Table R25 closed to new business)

These are 25-year endowment assurances. A cash bonus shall be payable every
five years equal to 25.1 times the four weekly premium. The Sum Assured is
payable on maturity. On death an amount is payable equal to the sum assured
plus all outstanding cash bonuses which would have been payable if the life
had survived to the end of the policy term.




                                    47
                                                       IPRU (INS) Appendix 9.4


Irish Life “Juvenile Endowment Assurance” (Tables V## closed to new
business)

These are endowment assurances with a term of 10 or 15 years. The Sum
Assured (together with bonuses) is payable on maturity. On death before the
maturity date an amount equal to the greater of the Sum Assured (together with
bonuses) and the Guaranteed Minimum Death Benefit is payable. One prize
bond is allocated to the policy for every €1.27 initial four weekly premium.

Irish Life “Juvenile Endowment Assurance maturing at Age 21 with Prize
Bond Benefits” (Tables W21 closed to new business)

These are endowment assurances maturing at the policy anniversary prior to
the attainment of age 21. The Sum Assured (together with bonuses) is payable
on maturity. On death before the maturity date an amount equal to the greater
of the Sum Assured (together with bonuses) and the Guaranteed Minimum
Death Benefit is payable. One prize bond is allocated to the policy for every
€1.27 initial four weekly premium.

Irish Life Juvenile Whole Life Assurance (closed to new business) (Tables
A## closed to new business)

These are with profits whole of life assurances with premiums payable to age
65,70,75, 80, 85, 86 or 99.

Irish Life Whole Life Assurance (closed to new business) (Tables B##
closed to new business)

These are with profits whole of life assurances with premiums payable for a
term of 10, 11, 12, 13, 14, 15, 25 or 30 years or until age 70, 75, 85, 86 or 99
or alternatively until death.

Irish Life Whole Life Assurance with cash bonuses (Tables F## closed to
new business)

These are with profits whole of life assurances with premiums payable until
death. Cash bonuses are paid every 5, 7, 8 or 10 years. Where the cash bonus
is paid every 5 years it is 21.2% of the sum assured Where the cash bonus is
paid every 7 or 8 years it is 26.4% of the sum assured Where the cash bonus is
paid every 10 years it is 25% of the sum assured

Irish Life Whole of Life Assurance with Prize Bond Benefits (Tables G##
closed to new business)

These are with profits whole of life assurances with premiums payable for 25,
28 or 30 years or until age 70, 75, 85 or 86.
One prize bond is allocated to the policy for every €1.27 initial four weekly
premium.




                                    48
                                                      IPRU (INS) Appendix 9.4


Irish Life “Double Two Plan” (Table J25 closed to new business )

These are with profits whole of life assurances with premiums payable for 25
years. There is double cover for the first three years. One prize bond is
allocated for each complete €0.64 premium. When the policy becomes paid up
the prize bond benefit ceases.
The additional life cover can be converted to a new policy the conditions
attaching are:
(a) No medical evidence required.
(b) The conversion can be made to all tables with the exception of table J itself
     subject to the attained age of the Life Assured being within the range of
     ages permitted under the chosen table.
(c) The initial life cover for the new policy must not exceed the sum assured
     under Table J. If the conversion is to a Table Q policy the maximum
     equivalent Table Q cover is calculated on the following basis:
     For each €127 of Sum Assured under Table J cover up to that purchased by
     a four-weekly premium of €0.17 can be obtained on Table Q.
 (d) If, at the option exercise date, the product is no longer open to new
     business then an equivalent product will be chosen on the advice of the
     appointed actuary.

Irish Life Whole of Life Assurance with Prize Bond Benefits (Table J75
closed to new business )

These are with profits whole of life assurances with premiums payable until
age 75, 85, 86 or 99. One prize bond is allocated to the policy for every €1.27
initial four weekly premium.

Irish Life Whole of Life Assurance with Prize Bond Benefits (Tables J##
closed to new business )

These are non profit whole of life assurances with premiums payable until age
85, 86 or 99. One prize bond is allocated to the policy for every €1.27 initial
four weekly premium.

Irish Life Whole of Life Assurance with Guaranteed Cash Bonuses
(Tables K## closed to new business )

These are without profits whole of life assurances with premiums payable until
death. Cash bonuses are paid every 5 or 7 years. Where the cash bonus is paid
every 5 years it is 40.4 times the four-weekly premium where the age at entry
is less than 39 and 26.7% of the sum assured where the age at entry is greater
than 39. Where the cash bonus is paid every 7 years it is 40.4 times the four-
weekly premium where the age at entry is less than 54 and 26.7% of the sum
assured where the age at entry is greater than 54. One prize bond is allocated
to the policy for every €1.27 initial four weekly premium.




                                   49
                                                                  IPRU (INS) Appendix 9.4


            Irish Life Whole of Life Assurance (Table S15 closed to new business)
            These are with profits whole of life assurances with premiums payable for 15
            years.

            Irish Life Whole of Life Assurance with Prize Bond Benefits (Table T25
            closed to new business )

            These are with profits whole of life assurances with premiums payable for 25
            years. One prize bond is allocated to the policy for every €1.27 initial four
            weekly premium.

            Irish Life Whole of Life Assurance with Cash Bonuses (Table X25 closed
            to new business )

            These are without profits whole of life assurances with premiums payable for
            25 years. Cash bonuses are payable every 5 years and cease after 25 years.
            Cash bonuses are 20.1% of the four-weekly premium.

            Irish Life Whole of Life Assurance “Life Care” with Prize Bonds (Tables
            599 closed to new business )

            These are without profits whole of life assurances with premiums payable until
            death. One prize bond is allocated to the policy for every €1 initial four weekly
            premium. There is an indexation option, which must be exercised at the start of
            the policy. The sum assured is indexed by the increase in funeral expenses
            (minimum 5% per annum) for life. The premium increase is based on the
            attained age of the life assured.


Linked Business


      ORDINARY BRANCH BUSINESS

      5.1     a. Maximum Investment Plan (Tables 181 and 182 -closed to new
              business)
              b. This is a 10 year, taxable, unit-linked endowment plan that is issued in
                  the United Kingdom only. The policy is available in single life and joint
                  life second death forms.
              c. Premiums are payable either monthly or annually throughout the policy
                  term.
              d. On maturity the bid value of the units is payable. On earlier death, the
                  amount payable is the greater of:
                  i 75% of total gross premiums payable up to age 56 at entry, reducing
                      by 2% for each year by which the age next birthday at entry of the
                      (younger) life assured exceeds 56 ("the guaranteed sum assured")
                      and
                  ii the bid value of units




                                                50
                                                      IPRU (INS) Appendix 9.4


     At maturity, in lieu of receiving the maturity proceeds, the policyholder
   may elect to continue the policy for a further 10 years with an
   unchanged guaranteed sum assured and premium.
e. There are no investment guarantees
f. The Society allocates premiums and deducts charges at the following
   levels:
   i An initial charge equal to 45% of the first annual premium, met by
       deducting units of equal value at bid price (3.54% of the first 12
       monthly premiums for monthly policies).
   ii A monthly administration charge is met by deducting units of equal
       value at bid price. The amount of the monthly charge for the year
       ending 31 December 2004 is determined according to the periodic
       premium from the following tables:


        Business issued prior to 1 October 1992

             Monthly                      Annual                    Administration
             premium                     premium                   charge per month
           £25 - £49.99               £250 - £499.99                    £1.95
           £50 - £74.99               £500 - £749.99                    £1.30
           £75 - £99.99               £750 - £999.99                    £0.65
            £100 plus                  £1,000 plus                       Nil



        Business issued after 30 September 1992

                 Monthly                     Annual                  Administration
                Premium                      premium                charge per month
             £30 - £59.99                £300 - £599.99                  £1.95
             £60 - £89.99                £600 - £899.99                  £1.30
             £90 - £119.99              £900 - £1,119.99                 £0.65
               £120 plus                  £1,200 plus                     Nil

    iii A monthly mortality charge is met by cancellation of units at the bid
        price
    iv An initial charge equal to 5% of the offer price is applied to each of
        the internal linked funds. A rounding adjustment, not exceeding 1%
        of the offer price plus 0.1 penny, is also made in deriving the
        published unit prices. The initial charge and rounding adjustments
        do not apply to investments by the Managed Fund in other internal
        funds.
    v A management charge is also deducted monthly from each of the
        internal funds, except for the Managed Fund, at the level of 0.75%
        per annum of the value of the assets of the fund.




                                 51
                                                   IPRU (INS) Appendix 9.4


     vi 102% of all basic premiums are applied to allocate life accumulation
         units. If the policy is continued beyond the maturity date, the
         allocation to units is increased to 104% of the basic premium.
g.   The administration charge is reviewed each year to take account of
     increases in administration costs. Other charges may be reviewed at any
     time.
h.   A surrender value equal to the bid value of the units allocated is
     available after two annual, or thirteen monthly, premiums have been
     paid. The policy may be made paid-up at any time after it has
     acquired a surrender value with a benefit on death or maturity equal to
     the bid value of units.
i.   Benefits may be linked to any of the Society's internal funds other than
     the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
     Safeguard Managed Fund or ROI Funds, subject to a minimum
     investment per fund.
j.   Not applicable.
k.   The contract was closed to new business during the year to 31 December
     2004.
l.   No charges have been increased during the year to 31 December 2004.

a. Maximum Investment Plan (Tables 450, 451, 453 and 454 -
   closed to new business)
b. This is a 10 year, taxable, unit-linked endowment plan that was issued in
   the United Kingdom only. The policy is available in single life and joint
   life second death forms.
c. Premiums are payable either monthly or annually throughout the policy
   term.
d. On maturity the bid value of the units is payable. On earlier death the
   amount payable is the greater of:
   i 75% of total gross premiums payable up to age 56 at entry, reducing
       by 2% for each year by which the age next birthday at entry of the
       (younger) life assured exceeds 56 ("the guaranteed sum assured")
       and
   ii the bid value of units
     At maturity, in lieu of receiving the maturity proceeds, the policyholder
     may elect to either:
   i continue the policy for a further 10 years with an unchanged
       guaranteed sum assured and premium; or
   ii pay a nominal annual premium and withdraw the value of units in
       full or in instalments at a later date.
e. There are no investment guarantees
f. The Society allocates premiums and deducts charges at the following
   levels:
   i An initial charge equal to 42½% of the first year's premium, met by
       deducting units of equal value at bid prices.



                                 52
                                                   IPRU (INS) Appendix 9.4


ii An administration charge is met by deduction from the premium.
   The amount of the charge for the year ending 31 December 2003 is
   determined according to the periodic premium from the following
   table:


       Monthly               Annual       Monthly administration   Annual administration
       premium              premium              charge                   charge
     £20 - £49.99        £0 - £499.99             £1.50                  £15.00
       £50 plus           £500 plus                Nil                    Nil

iii An initial charge equal to 5% of the offer price is applied to each of
    the internal linked funds. A rounding adjustment, not exceeding 1%
    of the offer price plus 0.1 penny, is also made in deriving the
    published unit prices. The initial charge and rounding adjustments
    do not apply to investments by the Managed Fund in other internal
    funds.
iv A management charge is also deducted monthly from each of the
    internal funds, except for the Managed Fund, at the level of 0.75%
    per annum of the value of the assets of the fund.
v The percentages of basic premiums which are applied to allocate
    units after meeting the initial charges are as follows:




   Single life (males)
   Age next birthday at entry           Investment premium as %
                                            of basic premium
   Up to 40                                     102
   41 – 47                                      101
   48 – 51                                      100
   52 – 55                                       99
   56 – 59                                       98
   60 – 63                                       97
   64 – 67                                       96
   68 – 70                                       95



   For female lives the investment premium is that applicable to a male
   life three years younger




                                53
                                                     IPRU (INS) Appendix 9.4


        Joint life second death
         Sum of ages next birthday        Investment premium as %
         at issue                             of basic premium
         Up to 110                                102
         111 – 120                                101
         121 – 130                                100
         131 – 140                                 99



        No adjustment is made to age for female lives when calculating the
        sum of the ages.

        The investment premium is increased by one percentage point for
        premiums in the range £80 - £149 per month (£800 - £1,499 per
        annum) and by two percentage points for premiums of £150 per
        month (£1,500 per annum) or more.

     If the policy is continued beyond the maturity date, the investment
     premium is increased to 104%.
g.   The administration charge is fixed. Other charges may be reviewed at
     any time.
h.   A surrender value equal to the bid value of the units allocated is
     available after two annual, or thirteen monthly, premiums have been
     paid. The policy may be made paid-up at any time after it has acquired a
     surrender value with a benefit on death or maturity equal to the bid
     value of units.
i.   Benefits may be linked to any of the Society's internal funds other than
     the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
     Safeguard Managed Fund or ROI Funds, subject to a minimum
     investment per fund.
j.   Not applicable.
k.   The contract was closed to new business during the year to 31 December
     2004.
l.   No charges have been increased during the year to 31 December 2004.

a. Flexible Investment Bond
b. This is a taxable whole of life assurance that is issued in the United
   Kingdom only. The policy is available in single life and joint life
   second death forms.
c. This is a single premium contract but additional premiums may be paid.
d. On death 101% of the bid value of the units collected is payable.
   A withdrawal facility is available subject to a minimum policy size
   remaining in force.
e. There are no investment guarantees.




                                     54
                                                 IPRU (INS) Appendix 9.4


f.   The Society allocates premiums and deducts charges at the following
     levels:
     i the following percentages of the initial premium and each additional
        premium are applied to allocate units at the offer price.
        Amount of single or                              Percentage of premium
        Additional premium                               Applied to allocate units
        Up to £9,999                                              100
        £10,000 to £24,999                                        101
        £25,000 to £49,999                                        102
        £50,000 to £99,999                                        102.5
        £100,000 and over                                         103

   ii An initial charge equal to 5% of the offer price is applied to each of
       the internal linked funds. A rounding adjustment, not exceeding 1%
       of the offer price plus 0.1 penny, is also made in deriving the
       published unit prices. The initial charge and rounding adjustments
       do not apply to investments by the Managed Fund in other internal
       funds.
   iii A management charge is also deducted monthly from each of the
       internal funds, except for the Managed Fund, at the level of 0.75%
       per annum of the value of the assets of the fund.
g. All charges may be reviewed at any time.
h. A surrender value equal to the bid value of the units allocated is
   available at any time.
i. Benefits may be linked to any of the Society's internal funds other than
   the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
   Safeguard Managed Fund or ROI Funds, subject to a minimum
   investment per fund.
j. Not applicable.
k. The contract was open to new business during the year to 31 December
   2004.
l. No charges have been increased during the year to 31 December 2004.

a. Tax-exempt Bond (closed to new business)
b. This is a single life 10 year, non-taxable, unit-linked endowment plan
   that was issued in the United Kingdom only.
c. Premiums are payable monthly or annually throughout the policy term.
d. The death benefit is the greater of:
   i 75% of total premiums payable up to age 56 at entry, reducing by
       2% for each year by which the age next birthday at entry of the life
       assured exceeds 56 ("the guaranteed sum assured") and
   ii the bid value of the units allocated.
   The amount payable at maturity is the bid value of the units allocated.
   The maturity proceeds may be withdrawn, left invested in the Society's




                                55
                                                   IPRU (INS) Appendix 9.4


     Tax Exempt Managed Fund or transferred to any of the Society's other
     tax exempt funds available at maturity.
e.   There are no investment guarantees.
f.   The Society allocates premiums and deducts charges at the following
     levels:
     i 100% of premiums are applied to allocate life accumulation units
         except in the first year when 35% of premiums are allocated.
     ii A monthly administration charge is met by deducting units of equal
         value at bid prices. The amount of the charge for the year ending 31
         December 2003 is £0.55 per month.
     iii A monthly mortality charge is met by cancellation of units at the bid
         price.
     iv An initial charge equal to 5% of the Tax Exempt Managed Fund
         offer price. A rounding adjustment of not exceeding 1% of the offer
         price plus 0.1 penny is also made in deriving the published unit
         prices.
     v A management charge is also deducted monthly from the Tax
         Exempt Managed Fund at the level of 0.75% per annum of the value
         of assets of the fund.
g.   The administration charge is reviewed each year to take account of
     increased administration costs. Other charges may be reviewed at any
     time.
h.   A surrender value equal to the bid value of units allocated is available
     after one full year's premiums have been paid.
     When a surrender value is available, the policy may be made paid-up.
     The benefit on death or maturity is then the bid value of the units
     allocated.
i.   Benefits are linked to the Tax Exempt Managed Fund, Series1
j.   Not applicable.
k.   The contract was closed to new business during the year to 31 December
     2004.
l.   No charges have been increased during the year to 31 December 2004.

a. Tax-exempt Bond – Revised terms, issued 1/3/2001
b. This is a single life 10 year, non-taxable, unit-linked endowment plan
   that is issued in the United Kingdom only.
c. Premiums are payable monthly or annually throughout the policy term.
d. The death benefit is the greater of:
   i 75% of total premiums payable up to age 56 at entry, reducing by
       2% for each year by which the age next birthday at entry of the life
       assured exceeds 56 ("the guaranteed sum assured") and
   ii the bid value of the units allocated.
   The amount payable at maturity is the bid value of the units allocated.
   The maturity proceeds may be withdrawn, left invested in the Society's




                                 56
                                                   IPRU (INS) Appendix 9.4


     Tax Exempt Managed Fund or transferred to any of the Society's other
     tax exempt funds available at maturity.
e.   There are no investment guarantees.
f.   The Society allocates premiums and deducts charges at the following
     levels:
     i 100% of premiums are applied to allocate life accumulation units
         except in the first two years when 85% of premiums are allocated.
     ii Not applicable
     iii A monthly mortality charge is met by cancellation of units at the bid
         price.
     iv An initial charge equal to 5% of the Tax Exempt Managed Fund
         offer price. A rounding adjustment of not exceeding 1% of the offer
         price plus 0.1 penny is also made in deriving the published unit
         prices.
     v A management charge is also deducted monthly from the Tax
         Exempt Managed Fund at the level of 1% per annum of the value of
         assets of the fund.
g.   The administration charge is reviewed each year to take account of
     increased administration costs. Other charges may be reviewed at any
     time.
h.   A surrender value equal to the bid value of units allocated is available
     after one full year's premiums have been paid.
     When a surrender value is available, the policy may be made paid-up.
     The benefit on death or maturity is then the bid value of the units
     allocated.
i.   Benefits are linked to the Tax Exempt Managed Fund, Series2.
j.   Not applicable.
k.   The contract was open to new business during the year to 31 December
     2004.
l.   No charges have been increased during the year to 31 December 2004.

a. Unit-Linked Personal Pension Plan (old Life and Pensions division –
   closed to new business)
b. This is a unit-linked pension endowment approved under Part XIV
   Chapter IV of the Income and Corporation Taxes Act 1988. The
   contract was sold in the United Kingdom only.
c. Premiums may be annual, monthly or single. Additional single
   premiums may be applied to existing contracts.
d. The contract provides a cash sum at a selected retirement date; part of
   this cash sum must be applied to purchase an annuity.
   On death before retirement the benefit payable is the bid value of the
   units allocated.
e. There are no investment guarantees.




                                 57
                                                   IPRU (INS) Appendix 9.4


f. The Society allocates premiums and deducts charges at the following
           levels:
   i 100% of each premium is applied to allocate units at the offer price.
       In the first two years of a regular premium contract, pension capital
       units are allocated. Thereafter, and for single premium policies,
       pension accumulation units are allocated.
   ii A monthly administration charge of £3.10 for regular premium
       policies and £1.85 for single premium or paid-up policies is met by
       cancelling pension accumulation units at bid price.                The
       administration charge is waived if the bid value of units is £7,800 or
       more for regular premium policies or £4,700 or more for single
       premium and paid-up policies. Before accumulation units are
       allocated the charge is accumulated as a debt on the policy.
   iii An initial charge equal to 5% of the offer price is applied to each of
       the internal linked funds. A rounding adjustment not exceeding 1%
       of the offer price plus 0.1 penny is also made in deriving published
       unit prices. The initial charge and rounding adjustments do not
       apply to investments by the Managed Fund in other internal funds.
   iv A management charge is deducted monthly from each of the internal
       funds, except for the Managed Fund, currently at the level of 0.75%
       per annum on accumulation units and 4.75% per annum on capital
       units of the value of the assets of the fund.
g. The administration charges and the charge band limits are reviewed each
   year. Other charges may be reviewed at any time.
h. A transfer value equal to the bid value of units allocated is available for
   regular premium policies when two years of regular premiums have
   been paid or at any time for single premium policies.
i. Benefits may be linked to any of the Society's internal funds other than
   the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
   Safeguard Managed Fund or ROI Funds, subject to a minimum
   investment per fund.
j. Not applicable.
k. The contract was closed to new business during the year to 31 December
   2004.
l. No charges have been increased during the year to 31 December 2004.

a. Unit-Linked Retirement Annuity (closed to new business)
b. This is a unit-linked pension endowment approved under Section 620 of
   the Income and Corporation Taxes Act 1988. The contract was sold in
   the United Kingdom only.
c. Premiums may be annual, monthly or single. Additional single
   premiums may be applied to existing contracts.
d. The contract provides a cash sum at a selected retirement date; part of
   this cash sum must be applied to purchase an annuity.




                                 58
                                                    IPRU (INS) Appendix 9.4


     On death before retirement the benefit payable is the bid value of the
     units allocated.
e.   There are no investment guarantees.
f.   The Society allocates premiums and deducts charges at the following
     levels:
     i 100% of each premium, less policy fee, is applied to allocate units at
         the offer price. In the first two years of a regular premium, contract
         pension capital units are allocated. Thereafter, and for single
         premium policies, pension accumulation units are allocated.
     ii An administration charge of £1.50 per month (£15.00 annually) is
         deducted from the premium if the premium is less than £50 per
         month (£500 per annum).
     iii An initial charge equal to 5% of the offer price is applied to each of
         the internal linked funds. A rounding adjustment not exceeding 1%
         of the offer price plus 0.1 penny is also made in deriving published
         unit prices. The initial charge and rounding adjustments do not
         apply to investments by the Managed Fund in other internal funds.
     iv A management charge is deducted monthly from each of the internal
         funds, except for the Managed Fund, currently at the level of 0.75%
         per annum on accumulation units and 4.75% per annum on capital
         units, of the value of the assets of the fund.
g.   The administration charge is fixed. Other charges may be reviewed at
     any time.
h.   A transfer value equal to the bid value of units allocated is available for
     regular premium policies.
i.   Benefits may be linked to any of the Society's internal funds other than
     the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
     Safeguard Managed Fund or ROI Funds, subject to a minimum
     investment per fund.
j.   Not applicable.
k.   The contract was closed to new business during the year to 31 December
     2004.
l.   No charges have been increased during the year to 31 December 2004.

a. Unit-Linked Personal Pension Plan (Minimum Contribution)
   (old Life and Pensions division - closed to new business)
b. This is a unit-linked pension endowment approved under Part XIV
   Chapter IV of the Income and Corporation Taxes Act 1988. The
   contract was sold in the United Kingdom only.
c. Only contributions specified under Schedule I to the Social Security Act
   1986 (as amended) are accepted under these contracts.
d. The contract provides a cash sum at State Pension Age which must be
   applied to purchase a "protected rights" annuity. On death before
   retirement the bid value of units allocated is payable.
e. There are no investment guarantees.




                                  59
                                                   IPRU (INS) Appendix 9.4


f. The Society allocates premiums and deducts charges at the following
   levels:
   i 100% of each premium is applied to allocate pension accumulation
       units at the offer price.
   ii A monthly administration charge of £3.10 is met by cancelling units
       at the bid price. The charge is waived if the bid value of units
       allocated is greater than £7,800. The monthly charge for a paid-up
       policy is £1.85 and is waived if the bid value of units allocated is
       greater than £4,700.
   iii An initial charge of £75 is met by cancelling units at the bid price.
       In addition an initial charge equal to 5% of the offer price is applied
       to each of the internal linked funds. A rounding adjustment not
       exceeding 1% of the offer price plus 0.1 penny is also made in
       deriving published unit prices. The initial charge and rounding
       adjustments do not apply to investments by the Managed Fund in
       other internal funds.
   iv A management charge is deducted monthly from each of the internal
       funds, except for the Managed Fund, currently at the level of 0.75%
       per annum on accumulation units.
g. The administration charge and initial charge and the levels above which
   they are waived are reviewed each year. Other charges may be
   reviewed at any time.
h. A transfer value equal to the bid value of allocated units is available at
   any time.
i. Benefits may be linked to any of the Society's internal funds other than
   the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
   Safeguard Managed Fund or ROI Funds, subject to a minimum
   investment per fund.
j. Not applicable.
k. The contract was closed to new business in the year to 31 December
   2004.
l. No charges have been increased during the year to 31 December 2004.

a. Unit-Linked Personal Pension Plan (1998) – UK (closed to new
    business)
b. This is a unit-linked pension endowment, approved under Part X!V
    Chapter IV of the Income and Corporate Taxes Act 1988. The contract
    is available in the United Kingdom only.
c. Premiums may be paid at any time. Contributions under Schedule I to
   the Society Security Act 1986 (as amended) are accepted.
d. The contract provides a cash sum at a selected retirement date; part of
   this cash sum must be applied to purchase an annuity. For contributions
   paid under Schedule I to the Social Security Act 1986 (as amended), the
   cash sum must be applied to purchase a “protected rights” annuity.
    On death before retirement the benefit payable is the bid value of the




                                 60
                                                    IPRU (INS) Appendix 9.4


    units allocated. For contributions paid under Schedule I of the Social
    Security Act 1986 (as amended), the policy proceeds must be applied to
    provide benefits in line with the Schedule.

e. There are no investment guarantees.
f. The Society allocates premiums and deducts charges at the following
   levels:
   i 100% of premiums are applied to allocate units in the internal funds.
   ii A rounding adjustment not exceeding 1% of the offer price plus 0.1
       penny is also made in deriving published unit prices. The initial
       charge and rounding adjustments do not apply to investments by the
       Managed Fund in other internal funds.
   iii A management charge is deducted monthly from each of the internal
       funds, except for the Managed Fund, currently at the level of 0.9%
       per annum of the value of the assets of the fund.
   iv A fund enhancement is applied at the end of each calendar year,
       dependent on the value of the policyholder's total pension benefits
       with the Society, as follows:

        Slice of fund                                          Enhancement
        Less than £25,000                                           0.0%
        £25,000 and over                                            0.4%

 g. The charges may be reviewed at any time.
 h. A transfer value equal to the bid value of units allocated is available at
    the policyholder's request.
i. Benefits may be linked to any of the Society's internal funds, other than
    the Tax Exempt Managed Fund, Stakeholder Pension Managed Fund,
    Safeguard Managed Fund or ROI Funds, subject to a minimum
    investment per fund.
 j. Not applicable.
 k. The contract was closed to new business during the year to 31
    December 2004.
 l. No charges have been increased during the year to 31 December 2004.




                                  61
                                                    IPRU (INS) Appendix 9.4



 a. Unit-Linked Personal Pension Plan (1998) – ROI
 b. This is a unit-linked pension endowment, approved by the Revenue
     Commissioners in the Republic of Ireland under Section 235 of the
     Income Tax Act 1967. The contract is available in the Republic of
    Ireland only.
c. Premiums may be paid at any time.
d. The contract provides a cash sum at a selected retirement date; part
     of this cash sum must be applied to purchase an annuity.
    On death before retirement the benefit payable is the bid value of
     the units allocated.
e. There are no investment guarantees.
f. The Society allocates premiums and deducts charges at the following
     levels:
     i Premiums are allocated at the following levels, dependant on the
         total pension contributions paid to the Society by the policyholder:
         Total contributions in calendar year                 Allocation rate
         Less than €1,500                                        94.0%
         €1,500 to €3,000                                        95.5%
         €3,000 to €6,250                                        97.0%
         €6,250 to €12,500                                       98.5%
         €12,500 and over                                       100.0%

    ii An initial charge equal to 5% of the offer price is applied to each of
        the internal linked funds. A rounding adjustment not exceeding 1%
        of the offer price plus 0.1 penny is also made in deriving published
        unit prices. The initial charge and rounding adjustments do not
        apply to investments by the Managed Fund in other internal funds.
    iii A management charge is deducted monthly from each of the internal
        funds, except for the Managed Fund, currently at the level of 1.5%
        per annum of the value of the assets of the fund.
    iv A fund enhancement is applied at the end of each calendar year,
        dependent on the value of the policyholder's total pension benefits
        with the Society, as follows:

        Slice of fund                                         Enhancement
        Less than €6,300                                            0.0%
        €6,300 to €12,675                                           0.5%
        €12,675 to €31,700                                          0.75%
        €31,700 and over                                            1.00%

g. The charges may be reviewed at any time.
h. A transfer value equal to the bid value of units allocated is available
   at the policyholder's request.
i. Benefits may be linked to any of the Society's internal ROI funds,




                                   62
                                                   IPRU (INS) Appendix 9.4


    subject to a minimum investment per fund.
 j. Not applicable.
k. The contract was open to new business during the year to 31 December
    2004.
l. The charges were not increased during the year to 31 December
    2004.

a.  Personal Investment Plan
b.  This is a taxable unit-linked whole life assurance that is issued in the
    United Kingdom, Jersey, Guernsey, Isle of Man and the Republic of
    Ireland. The policy is available in single life, joint life first death and
    joint life second death forms.
c.  Premiums may be paid at any time.
d. Regular withdrawals can be made within limits subject to a minimum
    premium size. On death the amount payable is the greater of:
    i. the total premiums paid less any withdrawals and
    ii. the bid value of units
e.  There are no investment guarantees.
f.  The Society allocates premiums and deducts charges at the following
    levels:
   i Premiums are allocated at the following levels, dependent on the
       total contributions paid to the Society by the policyholder. The
       allocation rate applies to each slice of the contribution:

        Total contributions                                  Allocation rate
        In calendar year

        Less than £2,500                                          90.0%
        £2,500 to £5,000                                          95.0%
        £5,000.01 and over                                       100.0%

        Total contributions                                  Allocation rate
        In calendar year

        Less than €3,150                                          90.0%
        €3,150 to €6,300                                          95.0%
        €6,300.01 and over                                       100.0%

     ii A rounding adjustment not exceeding 1% of the offer price plus 0.1
         penny is made in deriving published unit prices. The rounding
         adjustments do not apply to investments by the Managed Fund in
         other internal funds.
     iii A management charge is deducted monthly from each of the internal
         funds, except for the Managed Fund, currently at the level of 1% per
         annum of the value of the assets of the fund.




                                 63
                                                   IPRU (INS) Appendix 9.4


g.   The allocation rates are guaranteed for future premiums provided a
     premium is paid in each policy year. Other charges may be reviewed
     at any time.
h.   A surrender value equal to the bid value of units allocated is available
     at the policyholder's request.
i.   Benefits may be linked to any of the Society's internal funds, other
     than the Tax Exempt Managed Fund, Stakeholder Pension Managed
     Fund or Safeguard Managed Fund, subject to a minimum investment
     per fund.
j.   Not applicable.
k.   The contract was open to new business during the year to 31 December
     2004.
l.   The charges were not increased during the year to 31 December 2004.

a. Stakeholder
b. This is a unit-linked pension endowment, approved under Chapter IV
   Part XIV of the Income and Corporation Taxes Act 1988. The contract
   is available in the United Kingdom only.
c. Premiums may be made at any time.
d. The contract provides a cash sum, equal to the bid value of the units
   allocated, at any age between 50 and 75.
   For certain occupations or for ill health early retirement, benefits equal
   to the bid value of the units allocated may be taken below the age of 50.
   Partial vesting of an arrangement is allowed.
   On death before retirement, the benefit payable is the bid value of the
   units allocated.
e. There are no investment guarantees.
f. The Society allocates premiums and deduct charges at the following
   levels:
    i 100% of premiums are applied to allocate units in the internal funds.
    ii A rounding adjustment not exceeding 1% of the offer price plus 0.1
        penny is made in deriving published unit prices. The rounding
        adjustments do not apply to investments by the Managed Fund in
        other internal funds.
    iii A management is deducted monthly currently at the level of 0.9%
        per annum of the value of the assets of the fund.
g. The charges may be reviewed at any time.
h. A transfer value equal to the bid value of the units allocated is available
   at the policyholder's request.
i. Benefits may be linked to any of the Society's internal funds other than
   the Tax Exempt Managed Fund, Safeguard Managed Fund or ROI
   Funds.
j. Not applicable.




                                 64
                                                         IPRU (INS) Appendix 9.4


      k. The contract was open to new business during the year to 31 December
         2004.
      l. The charges were not increased during the year to 31 December 2004.

      a. Special Incentive Savings Scheme (SISS) (closed to new business)
      b. This is a single life, taxable, unit-linked whole life plan that was issued
         in the Republic of Ireland only.
      c. Premiums may be made at any time.
      d. Regular withdrawals can be made within certain limits. On death the
         amount payable is the greater of:
          i the total premiums paid less any withdrawals and
         ii the bid value of units.
      e. There are no investment guarantees.
      f. The Society allocates premiums and deduct charges at the following
         levels:
          i 95% of premiums are applied to allocate units in the internal funds.
          ii A rounding adjustment not exceeding 1% of the offer price plus 0.1
              penny is made in deriving published unit prices. The rounding
              adjustments do not apply to investments by the Managed Fund in
              other internal funds.
          iii A management charge is deducted monthly from each of the internal
              funds, except for the Managed Fund, currently at the level of 1% per
              annum of the value of the assets of the fund.
      g. The charges may be reviewed at any time.
      h. A surrender value equal to the bid value of units allocated is available at
         the policyholder's request.
      i. Benefits may be linked to any of the Society's internal ROI funds,
         subject to a minimum investment per fund.
      j. Not applicable.

      k. The contract was closed to new business during the year to 31 December
         2004.
      l. The charges were not increased during the year to 31 December 2004.

5.2   The unit-linked Personal Pension Plan (1998) contains options to switch the
      bid value of units, or redirect premiums, into the with profits fund. The
      benefits secured by doing so and the conditions attaching are given in 4.1a.
5.3   Not applicable.
5.4   The unit price within each internal linked fund is determined in the following
      manner:
      i    If the fund is expanding then the assets of the fund are valued using the
           market offer price, plus dealing costs. If the fund is contracting the
           assets are valued using the market bid price, less dealing costs.




                                       65
                                                              IPRU (INS) Appendix 9.4


      ii    The fund value as determined in i is adjusted to reflect the liabilities
            attributable to the fund. These liabilities include management charges,
            taxation on investment income where applicable (including a provision
            for tax on unrealised capital gains), investment management expenses
            and any charges on the investments held.
      iii The adjusted asset value in ii is used to determine the bid and offer
            prices for units in the fund by dividing by the number of units in
            existence. The bid and offer prices differ by up to 5% (depending on
            the contract charges) plus, in some funds, up to a further 1% for
            rounding.
            Units in each of the internal linked funds may be created or cancelled
            by transferring an amount into or out of the fund, with the amount
            being determined by the adjusted unit price described in 4ii above. In
            any fund, the number of units need not correspond to the number of
            units allocated to policies.
5.5    Where applicable, a provision is made for future capital gains tax on
       unrealised gains by discounting the expected future tax liability at a prudent
       rate of interest over the average expected term to sale of the assets. For
       realised gains in the year, the deduction for capital gains tax was at a rate of
       22% (20% for fixed interest assets) after indexation relief. Tax on
       unrealised indexed gains has been provided for at rates between 17% and
       22%.
5.6    One of the United Kingdom life and pension business funds invests in units
       of an Open Ended Investment Company administered by Royal Liver Asset
       Managers (RLAM) a fully owned subsidiary of Royal Liver Assurance
       Limited. The fund purchases these units with no initial or exit charge. No
       management charge is levied by this fund thus ensuring no double charges.

           In the internal linked funds that invest in externally managed funds, the
           Royal Liver Assurance may receive a negotiated of part of the external
           manager’s normal management charge. The amount of this rebate varies
           dependant on the external manager involved. Any commissions or
           discounts received are fully accounted for in the unit prices to the benefit of
           policyholders.

           Royal Liver Assurance Limited does not benefit from any other form of
           discount, commission or allowance on the purchase, sale or holding of units
           in collective investment schemes.

INDUSTRIAL BRANCH BUSINESS
Not Applicable




                                            66
                                                              IPRU (INS) Appendix 9.4


Valuation Principles and Methods
      ORDINARY BRANCH BUSINESS
      6.1   i Except where specified below, the valuation of non-linked with profits
               contracts, including accumulating with profits contracts, has been
               carried out using the gross premium valuation method. The valuation of
               non-linked without profits contracts has been carried out using the gross
               premium method.
               Low Cost Endowments have been valued as endowment assurances with
               an additional level term assurance benefit equal to the excess of the
               minimum death benefit over the sum assured and vested bonuses.
               Endowment Plus policies have been valued as endowment assurances
               with a total sum assured that includes the additional death benefit.
               Capital growth policies have also been valued as endowments but only
               for the basic sum assured.
               A further reserve equal to one year's premium for the additional death
               benefit has been included to provide for the liability in respect of that
               benefit.
               For Caledonian Deferred Annuity contracts the value of the benefits has
               been taken to be the larger of the present value of the deferred annuity
               and the present value of the guaranteed cash option (where available).
               For Caledonian Group Chargeable Rates Deferred Annuities, the
               liability has been taken as the value of the pension secured to date with
               no account being taken of future premiums or the pension associated
               with those premiums.
               For Permanent Health Insurance policies and Waiver of Premium riders,
               a reserve of one year's office premium has been established.
               For Caledonian Group Life assurances, the liability has been taken to be
               not less than one year's office premium for regular premium contracts
               and 90% of the premium paid for single premium contracts.
               For reassurance ceded, both on original terms and by risk premium
               (other than in relation to former Caledonian business) the reserve has
               been calculated as one half of the current basic annual reassurance
               premium.
               Reserves have been adjusted, where appropriate, to allow for the risk of
               default by a reinsurer.
            ii The valuation of unit-linked contracts has been carried out as follows:
               The unit liability for unit-linked assurances has been calculated as the
               product of the number of units allocated and the valuation price of the
               units as shown in Form 55.
               To determine the non-unit liability for unit-linked policies, cash flow
               projections were carried out on a policy-by-policy basis.
               For each future year of the term, the net cash flow was projected taking
               death benefits, expenses (net of tax relief where appropriate) and the
               investment of premiums in unit funds as cash outflows, and office
               premiums received and fund management charges as inflows of cash.




                                              67
                                                      IPRU (INS) Appendix 9.4


       Each year's net cash outflow was discounted back to the valuation date
       to produce a series of discounted cash flows for future years. For each
       possible value of n, the sum of the first n years' discounted cash flows
       was calculated. The highest of these summations (if positive)
       represented the required non-unit reserve.
iii    The valuation of accumulating with profits business has been carried out
       by taking the current benefit liability as the greater of (i) the current
       value of policy proceeds available on immediate withdrawal including
       allowance for both positive and negative adjustments and (ii) the present
       value of the guaranteed fund plus attaching bonuses payable at the next
       date in which the financial adjustments are guaranteed not to apply plus
       a suitable provision for future expenses.
       Extra reserving requirements for accumulating with profits business
       have been determined by performing cash flow projections, as described
       for unit-linked business.
iv     For any policy subject to an extra premium, an additional reserve equal
       to the annual amount of any such regular extra premium has been
       established. Where single premiums are payable the additional reserve
       has been taken to be 90% of the additional premium.
v      A reserve of £27.2 million has been established to cover miscellaneous
       contingencies.
vi     A reserve of £5.0 million has been established for compensation
       payments in respect of personal pension transfer and opt-out business
       written by the Society.
vii    A reserve of £1.5 million has been established for compensation
       payments in respect of mortgage endowment policies written by the
       Society.
viii   In respect of the former Caledonian business, the reserve for all types of
       temporary assurance is subject to a minimum of the proportion of the
       annual premium that corresponds to the unexpired risk.
ix     Provision has been made in the valuation for miscellaneous items
       relating to the former Caledonian business including outstanding initial
       commission, unreported claims, premium rate guarantees, surrender
       values, CMF tax credit, delays in reporting new business in respect of
       the group scheme for borrowers new business and uncertainties in
       Group Pensions data. The amount of this provision was £6.6 million.
       Other aspects of the methods employed in carrying out the valuation are
       described in the following paragraphs:
       a. The Society does not hold any derivative contracts.
       b. For non profit contracts, treating customers fairly requirement for
           valuation are assumed to extend simply to ensuring the benefits
           guaranteed under the policy are valued, allowing for any onerous
           options. For with-profits contracts, due allowance has been made for
           part accruals of bonus as set out under 6.1 e below. Other than this,
           no allowance has been made for future bonuses in computing
           mathematical reserves, as permitted under PRU 7.3.9R. The
           principles associated with fair treatment of with profits policyholders



                                    68
                                               IPRU (INS) Appendix 9.4


     in relation to future bonus practice are taken into account in
     computation of the with-profits insurance capital component.
c.   Not Applicable
d.    Negative reserves were eliminated policy by policy to ensure no
      contract of insurance is treated as an asset as required by PRU
      7.3.24R
e.   Where appropriate, reserves for with profit policies include a
     proportionate allowance for reversionary bonuses, at the rate
     declared at the valuation date, in respect of any part of a year for
     which premiums were paid prior to the valuation date but for which
     no bonus was declared on or before the valuation date. Apart from
     these allowances, no specific reserve has been established for future
     bonuses.
f.   No specific provision has been made in the valuation set out in
     Forms 51 to 58 for any prospective liability for tax on unrealised
     capital gains, since the fund has been brought into Form 58 at book
     value in accordance with Rule 9.10( c) of the Integrated Prudential
     Sourcebook..
g.   There are no investment performance guarantees on accumulating
     with profits contracts or on unit-linked contracts.
h.   The basis of the reserves made for guarantees and options were as
     follows:
     i     Guaranteed annuity and guaranteed cash options
      Reserves for guaranteed annuity options at retirement have been
      determined by comparing the current guaranteed sum assured plus
      attaching reversionary bonus to the capital value of the guaranteed
      annuity. The annuity was valued according to the policyholder's
      selected retirement age using the pension annuity bases shown in
      Form 51. The resultant amount was discounted to the valuation
      date.
      Similarly, for guaranteed cash options, the capital value of the
      deferred annuity has been compared to the capital value of the
      guaranteed cash option.
      The total reserve to provide for these guarantees amounted to £15.7
      million.
      ii Guaranteed Surrender Values
     The reserve is subject to a minimum of the amount of the guaranteed
     surrender value available in the next twelve months.
     iii Guaranteed insurability options
     A reserve equal to 2% of office premiums received in respect of Low
     Cost Endowment Assurances, accumulated with interest at 4% per
     annum, has been established. A total of £3.6 million is held within
     the reserves to provide for the exercising of these options.
     For conversion and further assurance options the additional
     prospective mortality cost arising from the exercise of such options
     has been assessed.



                              69
                                                          IPRU (INS) Appendix 9.4


              A total of £17.5 million is held within the reserves to provide for the
              exercising of these options in respect of former Caledonian business.

              iv Homeguard guarantee
              The expected cost of payments on death where the outstanding
              mortgage exceeds the guaranteed sum assured has been allowed for
              by calculating the guaranteed sum assured using a prudent rate of
              interest. A total reserve of £9.6 million has been held to cover the
              guarantee.

              v Guaranteed cash back
              The cost of additional payments at maturity where the total amount
              paid by way of premiums exceeds the sum assured and bonuses
              payable has been assessed.
              vi Mortgage endowment death benefit guarantee
              The expected cost of extra payments on death where the outstanding
              mortgage exceeds the current death benefit has been projected. An
              amount of £0.1 million has been established in this respect.

6.2   See 6.1(f)

INDUSTRIAL BRANCH BUSINESS

6.1   The valuation of Industrial Branch contracts has been carried out using the
      gross premium method.
      Other aspects of the methods employed in carrying out the valuation are
      described in the following paragraphs:
      a. The Society does not hold any derivative contracts.
      b. For non profit contracts, treating customers fairly requirement for
          valuation are assumed to extend simply to ensuring the benefits
          guaranteed under the policy are valued, allowing for any onerous
          options. For with-profits contracts, due allowance has been made for
          part accruals of bouns as set out under 6.1 e below. Other than this, no
          allowance has been made for future bonuses in computing mathematical
          reserves, as permitted under PRU 7.3.9R. The principles associated with
          fair treatment of with profits policyholders in relation to future bonus
          practice are taken into account in computation of the with-profits
          insurance capital component.
       c. Not Applicable
       d. Negative reserves were eliminated policy by policy to ensure no contract
          of insurance is treated as an asset as required by PRU 7.3.24R.




                                       70
                                                                  IPRU (INS) Appendix 9.4


               e.  Reserves for with profits (reversionary bonus) policies include an
                    allowance for one half of a year's reversionary bonus at the rate
                    declared at the valuation date, in respect of any part of a year for
                    which premiums were paid prior to the valuation date but for which
                    no bonus was declared on or before the valuation date. An allowance
                    has been made for future reversionary bonuses in respect of former
                    Irish Life contracts at 4%p.a. reflecting bonus expectations in
                    accordance with the scheme of transfer for that business. Apart from
                    this allowance, no specific reserve has been established for future
                    bonuses.
             f. No specific provision has been made in the valuation set out in Forms 51
                to 58 for any prospective liability for tax on unrealised capital gains, since
                the fund has been brought into Form 58 at book value in accordance with
                PRU 4.2.53R to PRU4.2.55R.
             g. Not applicable.
             h. A reserve equal to 5% of premiums received in respect of Flexible
               Endowment Assurances, accumulated with interest at 4% per annum, has
               been established to provide for surrender value guarantees.
               Additional reserves have also been established, where necessary, to ensure
               that reserves exceed potential guaranteed surrender values in the coming
               year for the former Friends Provident business.

      6.2   See 6.1(f)


Valuation basis and assumptions
      7.1    In performing the valuation the mortality and interest assumptions indicated
              in Form 51 and Form 52 were used. In the case of former Caledonian term
              assurances the following percentage weightings and age ratings were applied
              to the published mortality tables:

                                                       Male        Male         Female           Female
                                                    non-smokers   smokers     non-smokers        Smokers
                Percentage weightings
                Broker Term assurance                  75%         105%          90%             100%
                EBS Term assurance                     90%         160%          95%             115%
                Group Scheme for Borrowers             90%         160%          95%             115%

                Age ratings
                Broker Term assurance                    0           0             -4              -4
                EBS Term assurance                       0           0             -4              -4
                Group Scheme for Borrowers               0           0             -4              -4




                                               71
                                                       IPRU (INS) Appendix 9.4


 The rates of morbidity assumed in valuing the Serious Illness Survival
 Cover policies have not been published. Sample annual rates of the
 morbidity assumed are as follows:

United Kingdom

    Year of   Male – non-smoker        Male - smoker    Female - non-smoker   Female – smoker
     Age          Per mille              per mille           per mille           per mille
      20                0.4000                0.5565               0.4185            0.6095
      25                0.4250                0.6195               0.4860            0.7245
      30                0.5625                0.8295               0.7830            1.1730
      35                0.9875                1.4595               1.2690            1.9320
      40                1.9125                2.8455               1.9980            3.0015
      45                3.6625                5.4390               3.1455            4.6920
      50                6.5625                9.6915               5.0220            7.3715
      55               10.7500               15.8025               7.9380           11.5690
      60               16.8875               24.7170              12.7980           18.5380
      65               27.0500               35.1225              20.9790           27.3010
      70               40.8125               47.1870              32.3190           37.9270
      75               58.3750               60.6060              46.5885           49.8870
      80               78.0500               74.1195              70.7670           69.6555


Republic of Ireland

    Year of   Male – non-smoker        Male - smoker    Female - non-smoker   Female – smoker
     Age          Per mille              per mille           per mille           per mille
      20               0.44550               0.64400              0.47850           0.68750
      25               0.48600               0.71300              0.55100           0.82500
      30               0.63450               0.95450              0.87000           1.33750
      35               1.12050               1.67900              1.43550           2.20000
      40               2.16000               3.26600              2.24750           3.42500
      45               4.15800               6.25600              3.55250           5.35000
      50               7.45200              11.14350              5.65500           8.41250
      55              12.19050              18.17000              8.96100          13.20000
      60              19.15650              28.41650             14.44200          21.16250
      65              30.68550              40.39950             23.66400          31.16250
      70              46.29150              54.26850             36.43850          43.28750
      75              66.20400              69.70150             52.54800          56.93750
      80              88.51950              85.23800             79.82250          79.50000




                                  72
                                                              IPRU (INS) Appendix 9.4



      Sample annual rates for combined morbidity, mortality and total permanent
      disablement assumed for former Caledonian business are as follows:

          Year of    Male – non-smoker        Male - smoker    Female - non-smoker     Female – smoker
           Age           Per mille              per mille           per mille             per mille
            30                  0.987                 1.591                  1.002             1.664
            35                  1.281                 2.045                  1.427             2.517
            40                  1.901                 3.211                  2.192             3.937
            45                  3.112                 6.124                  3.413             6.138
            50                   4.96                10.797                  5.046             9.465
            55                   8.15                18.191                  7.459            15.049
            60                 13.515                30.435                 10.309            21.689
            65                 21.149                47.357                 14.906            31.615
            70                  30.35                70.706                 17.898            41.166

      The above rates were uplifted by 1% per annum for each year of the original
      term of the policy.
      The interest and mortality assumptions used in the valuation of unit-linked
      contracts are set out in paragraph 9.
      For former Caledonian deferred annuities and group pension contracts, the
      rates of interest and mortality tables shown in Form 51 are those in
      deferment.

       The basis in payment is set out in the table below:
                                                                                   Mortality Table
                                                                 Interest
        Contract                                                                 Male         Female
                                                                  Rate
                                                                                 lives         Lives
        Caledonian deferred annuity and group pensions           3.75%            70%         80%
                                                                                PMA92        PFA92
                                                                                C2010        C2010
                                                                                  long
                                                                                 cohort


      For the valuation of the industrial branch business, the mortality and interest
      assumptions indicated in Form 51 were used.

7.2   No unpublished tables were used except as set out in 7.1.
7.3   All commitments arise under business transacted in the UK, ROI or
      associate territories. Tables of experience are drawn from experience for the
      territory in question, or, in the case of ROI experience, from UK experience
      suitably adjusted. .
7.4   The tables used for annuitant mortality are adjusted so as to allow for
      improvements that have occurred since their preparation and also forecast
      improvements that may occur in future.




                                         73
                                                                IPRU (INS) Appendix 9.4


      7.5    In general, the mortality and morbidity assumptions are considered to contain
             sufficient margins to allow for a reasonable level of adverse deviation in
             mortality and morbidity experience. For the former Caledonian business
             explicit consideration has been given to the effect of AIDS on future
             mortality experience. Tests have been carried out on various assumptions as
             to the future course of AIDS. A provision has been included in the
             mathematical reserve such that in total the reserve is more than sufficient to
             provide against AIDS experience according to 33% (males) and 11%
             (females) of projection R6A of the Institute of Actuaries AIDS Working
             Party.
      7.6    The most onerous scenario for calculating the resilience capital requirement
             as required under PRU 4.2.16R was:
             A combination of:
              ƒ a fall in the value of equities of 10%,
              ƒ a rise in fixed interest risk-free yields of 20% of the appropriate long
                  term gilt yield (being 0.91% in respect of UK bond holdings);
              ƒ a fall in property values of 20%;
      7.7     The most onerous scenario for Euro assets for the purpose of calculating the
              resilience capital requirement was the same as in 7.6 above, but with a 20%
              rise in bond yields corresponding to a 0.80% fall in those yields.
      7.8     (a) The resilience capital requirement was £99.286m.
              (b) The aggregate amount of the long-temr liabilities fell by £186.136m
              under this scenario.
              (c) The aggregate amount of the assets held to match liabilities changed by
                       £275.494m under this scenario.

      7.9     The valuation rates of interest on overseas liabilities have been determined
              by reference to yields on currency matched assets.


Valuation basis and assumptions – non-linked business


      ORDINARY BRANCH BUSINESS
        a. Not Applicable.
        b. Explicit future expense provision has been made for contracts valued using
               the gross premium valuation method. The gross expenses per policy
               used are as follows:


                   Class of business                                 Annual expense allowance

                   Policies issued by Royal Liver:-
                   Regular premium policies (pa)                    £55.48 (UK) €78.37 (ROI)
                   Single/paid up policies (pa)                     £27.74 (UK) €39.18 (ROI)
                   Investment expenses                              0.25% of reserves




                                              74
                                                                IPRU (INS) Appendix 9.4


                  Policies issued by Caledonian:-
                  Whole of life assurances (pa)                      €49.49
                  Endowment assurances (pa)                          €49.49
                  Broker Term assurance (pa)                         €22.86
                  EBS Term assurance (pa)                            €23.09
                  VIP Deferred annuities (pa)                        €145.65
                  PPP Deferred annuities (pa)                        €138.34
                  WP Bond (pa)                                       €207.00
                  Annuities in payment                               3.50% of annuity
                  Investment expenses                                0.25% of reserves



             c.  A prospective method of valuation was used for all policies except as
                 indicated in paragraph 6 above. The exceptions are of minor
                 significance in relation to the valuation as a whole and no specific tests
                 of adequacy were considered necessary.
              d. Future premiums have been brought into account in accordance with
                 PRU 7.3.38R except as indicated in paragraph 6 above. The exceptions
                 are of minor significance in relation to the valuation as a whole and no
                 specific tests of adequacy were considered necessary.

      INDUSTRIAL BRANCH BUSINESS
            a. Not Applicable.
            b. Explicit future expense provision has been made for contracts valued
               using the gross premium valuation method. The gross expenses per
               policy used are as follows:
               17.5% of office premiums plus £8.28 (€11.70 ROI) per premium paying
               policy per annum plus £1.33 (€1.88 ROI) per non-premium paying
               policy per annum. 0.5% per annum fund-related expense.
               The assumed rate of tax relief on expenses was 20%.
            c. A prospective method of valuation was used for all policies.
            d. See description of tests under 6.1d.


Valuation basis and assumptions – linked business


      ORDINARY BRANCH BUSINESS

              a. The reserves for unit-linked policies were determined by the method
                 described in paragraph 6 above. The following assumptions were
                 employed in the cash flow projections used to calculate non-unit
                 reserves:




                                              75
                                                               IPRU (INS) Appendix 9.4


                 Initial value of units:             90% of unit reserve

                 Rate of unit price growth:          UK business
                 (before management charges)         6.00% gross of tax per annum for life policies,
                                                     5.50% per annum for pension policies.

                                                     ROI business
                                                     5.50% gross of tax per annum for life policies,
                                                     5.00% per annum for pension policies.

                 Future bonuses :                    For consistency with PRU 7.3, a zero future
                                                     annual bonus was assumed for all Royal Liver
                                                     accumulating with profits policies.

                 Interest earned on non-unit         3.75% gross of tax (3.25% net) per annum for UK
                 reserve:                            life policies, 3.75% per annum for UK pension
                                                     policies

                                                     3.50% gross of tax (3.00% net) per annum for ROI
                                                     life policies, 3.50% per annum for ROI pension
                                                     policies

                 Mortality:                          100% A67/70 Ultimate (Life)
                                                     90% A67/70 Ultimate (Pensions)
                                                     AM80/AF80 + 1 Caledonian With Profit Bond

                 Renewal expenses                    As described in paragraph 8
                 (before tax relief):
                 Tax relief on renewal expenses:     20% (where appropriate)

                 Rate of increase per policy         3.5% per annum
                 renewal expenses:

      INDUSTRIAL BRANCH BUSINESS
      Not Applicable
Valuation basis and assumptions – expenses


      10.1    The per policy expenses detailed in section 8 were assumed to inflate at
              3.5% per annum.
      10.2    The aggregate amount arising from the expense allowances in fulfilling
              contracts in force at the valuation date in the next twelve months is
              approximately £46.8 million gross of tax relief, with approximately £19.9
              million of the aggregate amount arising from expense allowances relating to
              ordinary branch business and approximately £26.9 million arising from
              expense allowances relating to industrial branch business.




                                               76
                                                                         IPRU (INS) Appendix 9.4


      10.3    The statutory surplus emerging on prudent assumptions is more than
              sufficient to meet the expected overrun on new business. A reserve to meet
              new business expense overruns was, therefore, considered unnecessary.
      10.4    A reserve to meet the contingency of closure was considered unnecessary.
              This was based on an analysis which demonstrated that potential savings in
              renewal expenses following closure outweigh the costs involved in closing
              the operation to new business.


Currency Matching


      11.1    The non-linked liabilities consist of policies written in the United Kingdom
              and the Republic of Ireland. The split of the Society's aggregate liabilities,
              including reserves for reversionary bonuses declared at 31 December 2004,
              but excluding unallocated reserves, is as follows :

                                                                £m                            %
                United Kingdom                                1,065                           47
                Republic of Ireland                           1,189                           53

              The assets available to back the liabilities are invested in the following
              locations:

                Location of liabilities   Location of allocated assets                        %

                United Kingdom            United Kingdom                                      100


                Republic of Ireland       Euro-zone                                          90.5
                                          United Kingdom                                      9.5

      11.2    Not applicable.


Reinsurance
      12.1    No policies have been reinsured on a facultative basis.

      12.2
              Swiss Re Life and Health Limited
              a. The Society has five reinsurance treaties with Swiss Re Life and Health
                 Limited.
              b. The reinsurer is authorised to carry on insurance business in the United
                 Kingdom.
              c. There is no connection between the Society and the reinsurer.




                                                  77
                                                 IPRU (INS) Appendix 9.4


d. The first and second treaties cover all ordinary branch individual life
   assurance risks on standard and substandard lives in excess of the
   Society's retention, other than those issued under the Caledonian brand.
   The third treaty covers a 90% quota share of all individual permanent
   health insurance risks. The fourth treaty covers Caledonian term
   assurances written prior to 1 January 1994 on an original terms basis
   with Caledonian Group Life assurances, Caledonian Whole Life
   assurances and Caledonian Endowment assurances being covered on a
   risk premium basis. The fifth treaty covers UK protection contracts on a
   quota share basis, with 75% of business being reinsured. Mortality and
   critical illness risks are covered under this treaty.
e. The premiums payable by the Society for the year ended 31 December
   2004 amounted to £269,922 under the first, second and fifth treaties,
   £157,281 under the third treaty and €129,656 under the fourth treaty.
f. There was no deposit back arrangement.
g. No provision has been made for liability to refund reinsurance
       commission.
h. The second treaty is closed to new business; the other three treaties
       remain open.

GE Frankona
a. The Society has two reinsurance treaties with GE Frankona Reassurance
   Limited.
b. The reinsurer is authorised to carry on insurance business in the United
   Kingdom.
c. There is no connection between the Society and the reinsurer.
d. The first treaty covers risks insured with the Society under the Serious
   Illness Survival Plans in excess of the Society's retention. The second
   treaty covers 80% of each sum assured in respect of Caledonian Group
   Scheme for Borrowers business written after 31 March 1998.
e. The premiums payable by the Society for the year ended 31 December
   2004 amounted to £277,369 under the first treaty and €4,572,320 under
   the second treaty.
f. There was no deposit back arrangement.
g. No provision has been made for liability to refund reinsurance
       commission.
h. The treaties are open to new business.

Guardian Assurance
a. The Society has one reinsurance treaty with Guardian Assurance plc.
b. The reinsurer is authorised to carry on insurance business in the United
   Kingdom.
c. Following the purchase of Caledonian Insurance Limited from Guardian
   and the subsequent transfer of Caledonian's business into Royal Liver,
   there is no further connection between the Society and the reinsurer.



                                78
                                                   IPRU (INS) Appendix 9.4


 d. The treaty covers Caledonian term assurances and Caledonian Group
    Scheme for Borrowers business written prior to 1 January 1994 and also
    Caledonian Whole Life assurances and Caledonian Endowment
    assurances on a risk premium basis.
 e. The premiums payable by the Society for the year ended 31 December
    2004 amounted to €1,155,267.
 f. There was no deposit back arrangement.
 g. No provision has been made for liability to refund reinsurance
    commission.
 h. The treaties are closed to new business.

Munich Reinsurance Company
a. The Society has five reinsurance treaties with Munich Reinsurance
       Company.
b. The reinsurer is authorised to carry on insurance business in the United
   Kingdom.
c. There is no connection between the Society and the reinsurer.
d. The first treaty covers 95% of the sum assured on Caledonian term
   assurances written after 31 December 1993 and Group Scheme for
   Borrowers business written from 1 January 1994 to 31 March 1998.
   The treaty is now closed to new business. The second treaty covers the
   business written on an original terms basis from 11 January 2001. The
   business under the second treaty was 75% reinsured until November
   2002 and 90% reinsured thereafter. The third treaty covers Caledonian
   Life escalating protection on an original terms basis. The business
   under the third treaty was 90% reinsured (with rates changing during
   September 2004). The fiourth treay was in respect of ROI (non
   Caledonian) protection policies and was effected on a net level
   reinsurance premium basis. The business was 75% reinsured. The fifth
   treaty covers the UK ‘Progress’ range of products distributed via IFAs
   (the cover was later extended to business sold via the direct sales force).
   The basis of reinsurance is net level reinsurance premium with 90% or
   75% of the business being reinsured dependent upon the nature of the
   cover provided.
e. The premiums payable by the Society for the year ended 31 December
   2004 amounted to €6,725,970 under the first, second and third treaty,
   €104,215 under the fourth treaty and £2,200 under the fifth treaty.
f. There was no deposit back arrangement.
g. No provision has been made for liability to refund reinsurance
   commission.
h. The treaty is open to new business.




                                 79
                                                               IPRU (INS) Appendix 9.4




With-Profits sub fund information

      13.         Not applicable.

Management of With Profits Business


      14.1   Reversionary and other bonuses may be allocated to eligible policies by the
             Committee of Management on the advice of the Society's Actuary in
             accordance with the Rules of the Society. In this context the term ‘Society’s
             Actuary’ is used to refer to the Appointed Actuary to 31st December 2004
             and, from 1st January 2005, the Actuarial Function Holder or With Profits
             Actuary as appropriate.
             The Society's With-Profits Guide includes general statements on recent
             bonus policy.       The Society’s Principles and Practice of Financial
             Management does set out factors taken into account in distributing profits
             among members, and is available on the Society’s website and referred to in
             with-profits literature.
             The basis of allocation of bonuses to business transferred from Irish Life,
             Friends’ Provident (being policies previously issued by London and
             Manchester Assurance) and Caledonian Life is also prescribed by the
             Principles of Financial Management associated with the schemes of transfer
             for this business.

      14.2   The Society operates separate Ordinary and Industrial Assurance funds
             backed by a common pool of non-linked assets.
             a. Both the Ordinary Assurance and Industrial Assurance funds are
                 maintained and accumulated as shown in Form 40. Expenses directly
                 related to Ordinary Branch business are allocated to the Ordinary
                 Assurance fund and expenses directly related to Industrial Branch
                 business are allocated to the Industrial Assurance fund. Overheads are
                 apportioned between the two benefit funds. Investment income is split
                 proportionately between the benefit funds with capital gains or losses
                 being credited to the Investments Reserve Fund. The mathematical
                 reserves shown on Forms 51 to 58 are allocated to the fund.
             b. Non-profits business is written in the fund and all profits arising from
                 this business may be allocated to eligible with-profits policyholders.
                 The nature and volume of such business is given in Form 51.
             c. The distribution of assets backing the with-profits fund at the valuation
                 date is shown in Form 13 and Form 48.
             d. The Principles and Practices underlying the determination of the level of
                 surplus to be retained by the Society are set out ni the Principles and
                 Practices of Financial Management document,




                                              80
                                                            IPRU (INS) Appendix 9.4


       e. The discretionary benefits allocated to policyholders are directly related
          to the performance of the with profits fund.
          i Asset shares are used to determine the total payouts to be made to
              policies becoming claims and hence in determining discretionary
              benefits. The base asset share for a policy is the amount of the
              premiums received in respect of that policy, accumulated at the
              investment returns achieved while the policy is in force; deductions
              are made for expenses, the cost of guaranteed benefits and taxation
              in respect of that policy. A discretionary allowance for profits from
              miscellaneous sources may be added to the base asset share by way
              of an adjustment to the actual investment return.
          ii The Society’s practice has been to smooth claim payouts by setting
              terminal bonuses to avoid undue volatility in the short term. There is
              no fully defined smoothing mechanism although, other than in
              exceptional circumstances, maturity payouts will not normally be
              varied by more than 10% between successive declarations.
          iii Reversionary bonus rates are determined having regard principally to
              expected future long-term investment returns and other experience,
              and the aim to enable part of the payout to be in the form of terminal
              bonus. Reversionary bonuses accrue to policyholders annually.
              Terminal bonus rates are determined by reference to accrued asset
              shares (subject to smoothing) and are payable on termination of the
              policy by death, maturity and, in many circumstances, on surrender.
          iv The use of the asset shares, as indicated above, should ensure that
              fairness is maintained between different categories of policy and
              different categories of policyholder and between policyholders
              collectively and the Society itself.
          v. The allocation of all discretionary benefits is subject to the
              overriding constraint of the maintaining the on-going statutory
              solvency of the Society.

       f.   With profits policyholders are entitled to 100% of the distributed profits.

14.3   Asset share investigations are performed at least annually to assist in
       achieving the aims set out in 14.2 above. Payouts are established by
       reference to asset shares for individual policies, subject to the smoothing
       referred to in 14.2.
14.4   Not applicable.
14.5   Not applicable




                                         81
                                                                  IPRU (INS) Appendix 9.4




Details of bonuses
      ORDINARY BRANCH BUSINESS
      15.1  Reversionary bonuses at the rates set out in Appendix A were declared as at
            31 December 2004 on the Society's conventional and accumulating with-
            profits policies.
      15.2  Not applicable.

      INDUSTRIAL BRANCH BUSINESS
      The reversionary bonus rates declared at 31 December 2004 are shown in the
             following paragraphs.
             i Reversionary bonuses at the following rates were declared as at 31
                  December 2004 on former Friends Provident with profit policies:
                  a. The reversionary bonus for premium paying policies, issued under
                     Tables other than Tables 1, 2, 3, 10 and 10R is in accordance with the
                     following table and should be applied to the basic sum assured only:

                Policy Type                                      Reversionary bonus per
                                                                      annum (%)

                Whole Lives
                Whole life policies dated after 5 April 1979               1.75

                Endowments
                Savings and Protection Plan                                2.50
                Investment Plan                                            2.50
                New series Protection Plan Plus                            2.50
                All other endowments                                       1.75

                All contracts issued after 4 January 2000                  1.50

                  b. The bonus for Tables 1,2 and 3 is 41 times the weekly premium.
                  c. The bonus for Tables 10 and 10R is 30 times the weekly premium.
                     Additional sum assured granted in lieu of decennial cash sum under
                     Table 10R does not participate in these bonuses.
             ii Reversionary bonuses at the following rates were declared as at 31
                    December 2004 on former Irish Life with profit policies:
                 a. 4.00% of the basic sum assured for policies written before 1964
                 b. 2.50% of the basic sum assured for policies written between 1964 and
                    1980
                 c. 4.00% of the basic sum assured for policies written after 1980




                                                  82
                                                            IPRU (INS) Appendix 9.4


       iii Reversionary bonuses at the following rates were declared as at 31
           December 2004 on other with profit policies on which a complete year's
           premium became due on or before that date and in respect of which no
           bonus had previously been declared, and also on policies which have
           become paid-up for the full amount originally assumed:
           a. 1.00% of the aggregate of the sum assured and previously declared
               bonuses on policies written after April 1993 (Tables 27U, 27R, 28U,
               28R, 31U, 31R, 34U and 34R). Such bonuses were also declared on
               policies under these tables which have been made paid-up with a
               reduced sum assured.
           b. 1.50% of the basic sum assured on policies written before April 1993.
           c. On additional sums assured arising under the LAPR arrangements for
               policies entered:

               i       before 6 April 1981          nil
               ii      after 6 April 1981           nil
         iv Rates of contingent reversionary bonus payable on policies becoming
           claims by death or maturity during 2004 (other than in respect of additional
           sums assured arising under the LAPR arrangements for policies entered
           before 6 April 1981, to which reduced rates apply), are expressed as
           percentages of the sum assured, and examples are given in the following
           table:

          Year of entry        Whole Life and endowment              Septennial Endowment
                                 (excluding with-profits –
                               reversionary bonus policies)
              1997                         11.5                                11.5
              1992                         22.5                                22.5
              1987                         38.5                                32.0
              1982                         53.5                                38.5
              1977                         67.0                                44.5
              1972                         77.0
              1967                         86.0
              1962                         95.0
              1957                        101.0
              1952                        107.0
              1947                        109.5
              1942                        112.0
              1937                        114.5
              1932                        117.0
         Contingent bonuses on quinquennial endowment payments due in 2004
         (except those in respect of policies issued under Table 13A) are at the rate of
         10% of such payments.

15.2   Not applicable.




                                          83
                                                                   IPRU (INS) Appendix 9.4


Details of bonuses
      ORDINARY BRANCH BUSINESS
      16.  Interim bonuses will be allotted to with profits policies becoming claims by
           death or maturity before the next declaration of bonus is made or, 31 January
           2006 if earlier, at the rates set out in Appendix A.
           In addition, terminal bonuses at the rates set out in Appendix B will be paid on
          with profits policies becoming claims by death or maturity before the next
          declaration of bonus is made, or 31 January 2006 if earlier.

      INDUSTRIAL BRANCH BUSINESS
              Interim bonuses will be allotted to with profit (reversionary bonus) policies
              becoming claims by death or maturity before the next declaration of bonus in
              respect of which a further complete year's premium has become due and has
              been paid since 31 December 2004, on policies which have become paid-up
              for the full amount originally assured, and also on policies written after April
              1993 that have been made paid-up with a reduced sum assured.
               Interim bonuses will be at the same rate as the reversionary bonuses declared
               at this valuation.
               In addition, the following terminal bonuses at the rates set out in Appendix
               A will be paid on with-profits policies becoming claims by death or maturity
               between 1 January 2005 and the date of the next declaration of bonus or 1
               January 2006 if earlier. Policies under Tables 1, 2, 3 and 8 of the former
               Friends Provident business that have been freed for their full sums assured
               and bonuses are also entitled to the terminal bonus.


Changes in long term business


      17.    See Form 46


Analysis of new business


      18.    See Form 47


Statement of Assets
      19.
             (1) See Forms 48 and 49
             (2) There were no derivative contracts in place at the valuation date which
                 would affect the assets under Form 48.
             (3) Not applicable
             (4) Not applicable.




                                                84
                                                                   IPRU (INS) Appendix 9.4


Statement of Unit liabilities
       20.
              (1) See Forms 51 to 55
              (2) There are no liabilities in respect of deposit back arrangements.
              (3) There are no specific fund links which are wholly reinsured.


Matching Rectangle
       21.
              (1) See Form 57.
              (2) No adjustment has been made to credit risk for approved fixed interest
                  securities. For all other fixed interest securities the yield for the purposes
                  of PRU 4.2.41R was subject to a maximum of 25bp above the
                  corresponding UK or ROI government fixed interest 15 year yields.
                  Hence this corresponded to a cap of 4.82% for the UK and 4.27% for the
                  ROI.
              (3) The valuation yield for equities was capped on a stock by stock basis to
                  introduce a prudent allowance for dividend or earning falls. This
                  subjected dividend and earnings yields to maximum of 1% above the
                  corresponding UK or ROI government fixed interest 15 year yields. This
                  corresponded to a maximum of 5.57% for UK and 5.02% for ROI.

                 For property a prudent allowance was introduced by subjecting yields to
                 a maximum of 2% above the corresponding 15 year government fixed
                 interest yields. Hence the maximum yield assumed was 6.57% for the UK
                 and 6.02% for the ROI.


Valuation Result


       22.   See Form 58


Capital Requirement


       23.   See Form 60.




                                                85
                                                            IPRU (INS) Appendix 9.4


Appendix A:     Reversionary and Interim Rates of Bonus – Ordinary Branch Business

                                                 Rate of reversionary   Rate of interim
Series                                                  bonus               bonus
                                                     (See note 1)        (See note 2)
                                                          (%)                 (%)

Life and General Annuity business

Former Caledonian Whole Life
   Simple                                                2.50                2.50
   Compound                                              1.25                1.25

Other Whole Life
    Old series                                           1.50                1.50
    New series (See note 3)                              1.25                1.25

Former Caledonian Endowments
   Simple                                                2.50                2.50
   Compound                                              1.25                1.25

Caledonian With Profit Bonds                             3.50                3.50

Other Endowments
    Old series                                           1.50                1.50
    New series (See note 3)                              1.25                1.25

Accumulating with-profits Whole Life                  2.75 (UK)           2.75 (UK)
(Personal Investment Plan)                            3.50 (ROI)          3.50 (ROI)


Pension business

Former Caledonian Pension Assurance (see                 2.50                2.50
note 5)
                                                         3.00                3.00
Former Caledonian SERP

Other former Caledonian deferred annuities:              3.50                3.50
    Series I                                             1.25                1.25
    Series II                                            1.75                1.75
    Series III

Other conventional with profits pensions:                1.50                1.50
    Old series                                           1.50                1.50
    New series
                                                         3.50                3.50
Accumulating with-profits pensions




                                            86
                                                                                         IPRU (INS) Appendix 9.4


Notes to Appendix A

Note 1: Bonuses were allocated to:

                  a.    Policies on which a complete year’s premium became due on or before 31 December 2004 and was paid
                        in respect of which the bonuses had previously been declared and

                  b.    New Policies which have yet to pay a complete year’s premium on or before 31 December 2004 and for
                        which no bonus had previously been declared. The bonuses are applied proportionately at the rates given
                        above with regard to the number and timing of the premium payments up to 31 December 2004; and

                  c.    Single Premium policies and policies which have been converted into paid up policies for the full amount
                        originally assured in respect of each complete year which commenced either before 31 December 2004
                        for which no bonus had previously been declared and

                  d.    New series and former Caledonian policies which have become paid up with a reduced sum assured or
                        revised policy value in respect of each complete year which commenced on or before 31 December 2004
                        and for which no bonus had previously been declared.

Note 2: Interim bonuses are applied proportionately for the period to the claim date.

Note 3: New series policies are policies issued after March 1996

Note 4: For accumulating with profit policies the bonus was applied to the accumulated guaranteed fund based on the period for
        which the policy was in force during the valuation year.

Note 5: For former Caledonian Pension Assurance policies the declared bonus rate was applied to the basic prospective pension
        plus existing bonuses.

Note 6: For Caledonian With Profits bond policies, the declared bonus should be applied to the guaranteed fund after the
        deduction of all charges.




                                                               87
                                                            IPRU (INS) Appendix 9.4


Appendix B:                           Terminal Bonus Rates – Ordinary Branch Business


                                       Life and General Annuity Business
                           Caledonian                           Other Business
Duration In force                                  Low Cost
                                                  Endowment          Other
                    Compound                       Regular          Regular       Single
                      Series     Simple Series     Premium         Premium       Premium
                       (%)           (%)             (%)              (%)          (%)

         1                                                            0              0
         2                                                            0              0
         3                                              1             0              0
         4                                              3             0              0
         5               0                              5             0              0
         6               0                              7             0              0
         7               0                              9             0              0
         8               0                             11             0              0
         9               0                             13             0              0
        10               0                             15             0              0
        11               2                             17             0             21
        12               4                             19             0             42
        13               6                             21             0             63
        14               8                             23             0             84
        15              10                             25             0            105
        16              17                             36             0            117
        17              24                             47             2            129
        18              31                             58            14            141
        19              38                             69            26            153
        20              45                             80            38            165
        21              55                             91            48            175
        22              65             90             102            58            185
        23              75            105                            67            195
        24              85            120                            77            205
        25              95            135                            86            215
        26             106            146                            97            226
        27             117            157                            107           237
        28             128            168                            118           248
        29             139            179                            128           259
        30             150            190                            138           270
        31             150            204                            138           270
        32             150            218                            138           270
        33             150            232                            138           270
        34             150            246                            138           270
        35             150            260                            138           270
        36             150            273                            138           270
        37             150            286                            138           270
        38             150            299                            138           270
        39             150            312                            138           270
       40+             150            325                            138           270




                                         88
                                                                         IPRU (INS) Appendix 9.4


Appendix B:           Terminal Bonus Rates

                                                          Other Pensions Business
                           Regular          Single
                          Premium         Premium
                         Retirement      Retirement        Regular         Single
                        Annuities and   Annuities and     Premium        Premium
                          Personal        Personal        Personal       Personal      Other      Other
                          Pensions        Pensions        Pensions       Pensions     Regular     Single
                        issued under    issued under    issued under   issued under   Premium    Premium
                           Table 50        Table 50      Tables 201     Tables 201    Personal   Personal
                            (1986)          (1986)         and 230        and 230     Pensions   Pensions
  Duration In Force          (%)             (%)             (%)            (%)         (%)         (%)

         0                   0               0               0               0           0          0
         1                   0               0               0               0           0          0
         2                   0               0               0               0           0          0
         3                   0               0               0               0           0          0
         4                   0               0               0               0           0          0
         5                   0               0               0               0           0          0
         6                   0               0               1               1           0          0
         7                   0               0               7               7           0          0
         8                   0               0              13              13           0          0
         9                   0               0              19              19           0          0
         10                  0               0              25              25           0          0
         11                  0              20              31              51           0         21
         12                  0              40              37              77           0         42
         13                  0              60              43              103          0         63
         14                  0              80              49              129          0         84
         15                  0              100             55              155          0         105
         16                  0              100             61              161          0         117
         17                  0              100             67              167          2         129
         18                  0              100                                         14         141
         19                  0              100                                         26         153
         20                                                                             38         165
         21                                                                             48         175
         22                                                                             58         185
         23                                                                             67         195
         24                                                                             77         205
         25                                                                             86         215
         26                                                                             97         226
         27                                                                             107        237
         28                                                                             118        248
         29                                                                             128        259
         30                                                                             138        270
         31                                                                             138        270
         32                                                                             138        270
         33                                                                             138        270
         34                                                                             138        270
         35                                                                             138        270




                                                   89
                                                                                 IPRU (INS) Appendix 9.4


Appendix B:               Terminal Bonus Rates

                                               Former Caledonian Pensions Business
                            Regular            Single         Regular            Single     Regular       Single
                            Premium          Premium         Premium           Premium      Premium      Premium
 Duration In force           Series I         Series I        Series II         Series II   Series III   Series III
                              (%)*             (%)*             (%)                (%)        (%)          (%)

          0                                                                                     0            0
          1                                                                                     0            0
          2                                                                                     0            0
          3                                                                                     0            0
          4                                                                                     0            0
          5                                                                        0            0            0
          6                                                       0               25            0            0
          7                                                       0               50
          8                                                       0               80
          9                                                       0               105
         10                                                       0               130
         11                                                       5               155
         12                     0                20               5               155
         13                     0                20
         14                     0                20
         15                     0                20
         16                     0                20
         17                     0                20
         18                     0                20
         19                     0                20
         20                     0                20
         21                    20                40
         22                    20                40
         23                See Note 3        See Note 4
         24                    80               100
         25                   100               120
         26                   110               130
         27                   120               140
         28                   130               150
         29                   140               160
        30+                   150               170



* rates apply to both VIP and PPP series I




                                                          90
                                                                                         IPRU (INS) Appendix 9.4


Notes to Appendix B

Note 1:   Terminal bonus rates are applied to the total existing reversionary and interim bonuses.

Note 2:   For former Caledonian Pension Assurances, no terminal bonus is payable.

Note 3:   For former Caledonian VIP and PPP Series I regular premium contracts, the rate of terminal bonus for post-April
          1982 policies with term 23 is 20% and the rate of terminal bonus for pre-April 1982 policies with term 23 is 60%.

Note 4:   For former Caledonian VIP and PPP Series I single premium contracts, the rate of terminal bonus for post-April
          1982 policies with term 23 is 40% and the rate of terminal bonus for pre-April 1982 policies with term 23 is 80%.

Note 5:   No final bonus applies for accumulating with profits life policies (PIP) or accumulating with profits pension policies.




                                                              91
                                                                  IPRU (INS) Appendix 9.4


Appendix C:           Terminal Bonus Rates - Industrial Branch Business



                            Former Friends Provident business

 Duration in-force as       Whole Lives and        Duration in-force as       Whole Lives and
 with-profits policy at      Endowment             with-profits policy at      Endowment
     date of claim                %                    date of claim                %

           1                                                 31                    175
           2                                                 32                    185
           3                                                 33                    200
           4                                                 34                    210
           5                                                 35                    220
           6                                                 36                    230
           7                                                 37                    245
           8                                                 38                    250
           9                                                 39                    260
          10                                                 40                    270
          11                      5                          41                    275
          12                      10                         42                    285
          13                      10                         43                    310
          14                      15                         44                    330
          15                      15                         45                    350
          16                      20                         46                    375
          17                      25                         47                    400
          18                      30                         48                    425
          19                      40                         49                    455
          20                      50                         50                    480
          21                      60                         51                    515
          22                      70                         52                    545
          23                      80                         53                    570
          24                      90                         54                    600
          25                     100                         55                    630
          26                     110                         56                    655
          27                     125                         57                    685
          28                     140                         58                    710
          29                     155                         59                    735
          30                     170                        60+                    760




                                              92
                                                                   IPRU (INS) Appendix 9.4


Appendix C:         Terminal Bonus Rates - Industrial Branch Business



                                    Former Irish Life Business

                                         Pre 1980                               Post 1980
                              Year of Entry    Year of Entry         Table 415            All Other
    Duration In Force            <1964*           >1963           Age at Entry > 18        Tables
                                                                         (%)                 (%)
                                   (%)               (%)

              1
              2
              3
              4
              5
              6                                                          14
              7                                                          28
              8                                                          42
              9                                                          56
             10                                                          70
             11                                                          84
             12                                                          98
             13                                                          112                 12
             14                                                          126                 26
             15                                                          140                 40
             16                                                          150                 50
             17                                                          150                 50
             18                                                          150                 50
             19                                                          150                 50
             20                                                          150                 50
             21                                                          150                 50
             22                                                          150                 50
             23                                                          150                 50
             24                                                          150                 50
             25                                                          150                 50
             26                                      400
             27                                      440
             28                                      480
             29                                      515
             30                                      545
             31                                      575
             32                                      605
             33                                      635
             34                                      665
             35                                      695
             36                                      725
             37                                      750
             38                                      750
             39                                      750
            40+                    655               750


*Note: For Year of Entry before 1964 Table E an amount of 10 times the monthly premium is
       payable in addition to the amount above




                                               93
                                                      IPRU (INS) Appendix 9.4


Appendix D:    Terminal Bonus Rates - Industrial Branch Business



                                  Other Business

   Duration In Force         With Profits Contracts   Contingent Reversionary Bonus
                                     (%)                        Contracts
                                                                   (%)

           1
           2
           3
           4
           5
           6
           7
           8
           9
          10
          11
          12
          13                           5
          14                          10
          15                          15
          16                          23                           12
          17                          31                           24
          18                          39                           36
          19                          47                           48
          20                          55                           60
          21                          78                           84
          22                          104                          108
          23                          130                          132
          24                          156                          156
          25                          182                          180
          26                          208                          203
          27                          234                          226
          28                          260                          249
          29                          286                          272
         30+                          312                          295




                                        94
Abstract of Actuarial Investigation

Royal Liver Assurance Limited

Narrative Information in Accordance with Appendix 9.4A of the
Interim Prudential Sourcebook for Insurance Companies
(“IPRU(INS)”)




Introduction

1    (1)    The date to which this investigation relates is the 31st December 2004.

     (2)    No previous formal investigations have been carried out.

     (3)    No previous formal interim investigations have been carried out..

Assets

2    (1)    The value of future profits or losses in relation to non-profit insurance
     contracts have been determined using the following assumptions:


               Assumption Type                  Economic assumption
                                                used at the end of the
                                                financial year (p.a.)
               Investment returns (gross):
                 Annuities (UK)                 4.5%
                 Non-profit business (UK)       4.5%
                 Unit linked business (UK)      6.5%
                 Annuities (ROI)                4.0%
                 Non-profit business (ROI)      3.75%
                 Unit-linked business (ROI)     6.0%
               Expense inflation                3.5%.
               Risk Discount rate               8.0%

     The value of the future profits or losses arising was computed by projecting the
     cashflows emerging on the statutory valuation bases and discounting these to
     their present value at the discount rate shown.

     (2)    not applicable

     (3)    not applicable




                                          95
        (4)    The differing economic assumptions for UK and ROI business are
               summarised above.

        (5)    The values of non profit future profits or losses exceed £20 million,
               hence assumptions used are shown above.

With-Profits Benefit Reserve Liabilities

3.      (1)     All classes of with-profits product have been valued using a
        retrospective method to compute the initial with-profits benefits reserve, except
        for certain former Caledonian Assurance pensions contracts and certain
        Industrial Branch whole of life contracts. The results by type of product / class
        of business are as follows:

Class of Business                            Valuation        Amount of      Amount of
                                             Method           the with-      future policy-
                                                              profits benefitrelated
                                                              reserve (£m)   liabilities
                                                                             (£m)
Ordinary Branch                              Retrospective             573.7             46.3
Conventional with profits
Ordinary Branch                              Retrospective               46.0               36.3
Conventional with profits
Former Caledonian Assurance pensions
Ordinary Branch                              Prospective                 26.6               (0.3)
Conventional with-profits
Former Caledonian Assurance pensions
Ordinary Branch                              Retrospective             390.7                 2.0
Unitised with-profits
Ordinary Branch                              Retrospective             217.6                 2.6
Unitised with profits
Caledonian with profits bond
Industrial Branch                            Retrospective             179.4                23.7
Conventional with-profits
Industrial Branch                            Retrospective               24.2               (4.1)
Contingent reversionary bonus
Industrial Branch                            Prospective               277.6            (46.5)
Contingent reversionary bonus
Industrial Branch                            Retrospective             364.4            (14.6)
Conventional with profits
Former Friends’ Provident Business
Industrial Branch                            Retrospective               89.1           (22.5)
Conventional with profits
Former Irish Life Business

Total                                                                 2189.3                22.9




                                             96
     Prospective methods were used for paid up former Caledonian Life pensions
     contracts, where premium histories were not sufficiently reliable to compute
     retrospective reserves.

     Prospective methods were used for whole of life contingent reversionary bonus
     Industrial Branch business where the past expense apportionment methods, in
     conjunction with small policy sizes and long periods in force gave rise to
     inappropriate variations in retrospectively computed with-profits benefit
     reserves.

     (2) These figures are consistent with the results shown at lines 31 and 49 of
         Form 19, except in respect of long-term insurance liabilities of £6.5m shown
         at line 47 to form 19.

     (3) This is identified within the table above.

With-profits benefit reserve – Retrospective method


4       (1) (a), (b) 100.0% of with-profits benefit reserves calculated using a
        retrospective method are computed on a policy by policy basis.

        (1) (c)Not applicable,

        (2) Not applicable

        (3)(a) The previous expense investigation was carried out as at 31st
        December 2004.

        (b) Expense investigations are carried out at least annually

        (c) The expenses allocated to the with-profits benefit reserve are as follows:

          Expense Type                          2004 Expenses
                                                 Amount (£m)
          (i) Initial Expenses for                       13.2
          with-profits
          (ii) Renewal expenses                          47.0
          for with profits
          Other expenses                                 60.2


            (iii) ‘Initial Expenses for with-profits’ reflect costs charged to with-
            profits benefits reserves in relation to
            - Product development and pricing
            - Marketing
            - Product acquisition
            - Sales commissions and sales remuneration
            - Costs of policy issue




                                           97
‘Renewal expenses for with-profits’ reflect costs charged to with-profits
benefit reserves in relation to
- Administration of in-force business
- Collection of premiums and claims payment
- Investment management costs

Expenses are charged to with profits benefits reserves as fixed amounts
per policy or proportionate to premiums or other policy size measure in
accordance with section 2.7 of the Principles and Practices of Financial
Management (PPFM) for the Society.

(iv) ‘Other expenses’ reflect expenses in relation to non profits contracts
transacted within the with-profits fund, and acquisition expense overruns
are also charged to that fund. They are not charged directly to the with-
profits benefit reserve.

(4)    Annual management charges deducted for the Caledonian with-
       profits bond both explicitly and through being taken into account
       in setting bonus and financial adjustment levels. This includes a
       0.75%pa deduction in respect of guarantees provided. This
       amounted to approximately £1.5m for 2004.

(5)   No charges are deducted for non insurance risk other than those
shown at (3) and (4) above.

(6)     The ratio of total claims payable on with-profits business to the
with-profits benefits reserves for those claims for each of the preceding
three years are as follows:
 Year                2002             2003               2004
 Ratio               120%             106%               95%

(7)     All with profits contracts within the Royal Liver Assurance with
profits fund are attributed the same investment return, before tax and
expenses are taken into account. The return applied for the period 31st
December 2003 to 31st December 2004 was 13.8% gross.

Returns in respect of contracts transferred from Friends’ Provident, Irish
Life or Caledonian are adjusted in accordance with the Principles of
Financial Management associated with the transfer of this business, and
described in section 2.1.1 of the PPFM.




                             98
With-profits benefit reserve – prospective method

5.     The assumptions used for prospective methods of valuation are summarised in
       the table below:

           Ref                                      Caledonian Pension RLA IB Contingent
                             Description            Applies to series 1 Applies to standard
                                                    paid-up and single   contingent WOL
                                                     premium policies        policies
           (a)             Discount Rate             1.5% (See notes       3% (note1)
                                                           1,2)
           (b)           Investment Return           1.5% (See notes       3% (note 1)
                                                           1,2)
           (c)           Expense Inflation                3.5%               3% p.a.

           (d)      Future reversionary bonuses         See note 2          1% p.a. simple
                      Future terminal bonuses           See note 1           See note 3

           (e)            Future Expenses            €145.65 for VIP         £6.94 p.a. for
                                                     €138.34 for PPP        premium paying

                                                                          £1.11 p.a. for paid-
                                                                                  up

                                                                           0.5% p.a. of fund
           (f)       Persistency assumptions at
                      quinquennial durations               none                   none


Note 1:-

The discount rate is set below the risk free rate for both UK and Irish liabilities,
reflecting margins for future terminal or reversionary bonuses other than those
explicitly assumed. The investment return has also been set at this level, lower than the
risk free rate, so no further risk adjustments are made.

Note 2:-

For Caledonian business valued using a prospective method, which is all single
premium or paid up, future bonuses are allowed for by deducting 2% from a base
valuation rate of 3.5%, therefore the discount rate has been set to 1.5%.

Note 3:-




                                             99
The scale of terminal bonuses applied for industrial branch business are in line with
scales set at the valuation date, namely:
______________________________________________________________________
_____
Term for which the policy has been in force (years)       Additional bonus
Less than or equal to 20                                  12n% - 180% (min 0%)
Between 21 and 25 inclusive                               24n% - 420%
Between 26 and 30 inclusive                               23n% - 395%
Between 31 and 33 inclusive                               13n% - 95%
Greater than 33                                                  348%




Costs of guarantees, options and smoothing

   6. (1) The total cost of guarantees, options and smoothing do exceed the minimum
   values for disclosure.

   (2) (a) The costs of guarantees, options and smoothing are valued for all classes of
   business on a grouped basis, aggregating retrospective asset shares or their
   prospectively calculated equivalents for individual contracts into sample model
   points, and projecting the costs arising using a market consistent stochastic model.

   (b) (i),(ii) All contracts are valued on a grouped basis.

   (iii) Contracts are grouped into model points for the purpose of modelling these
   costs, to enable computation. Contracts are grouped in order to reflect the main
   differentiating features of contracts in relation to benefit type, policyholder age,
   policy duration, date of maturity and policy size.

   A total of 1,794,170 with-profits contracts were valued. These were represented by
   a total of 12,260 model points.

   Validations of the suitability of the contract groupings have been determined by
   projection of both the aggregate asset shares for the individual contracts and the
   derived model points under a deterministic scenario and ensuring the costs arising
   are reasonably consistent. The choice of model point groupings is then reviewed and
   refined as part of this process.

   (c) Not applicable.

   (3) Not applicable

   (4) (a) (i)The following costs of guarantees, options and smoothing have been
       assessed

Guarantees – costs of providing benefits at a level equal to the guaranteed sum assured
and any accrued reversionary bonus under a contract, where this exceeds the with-
profits benefit reserve, whether on death or maturity. Costs of providing benefits in



                                             100
accordance with formula based surrender scales which take into account sums assured
and accrued bonuses where these result in a surrender value exceeding the with-profits
benefit reserve.

The extent to which maturity and death guarantees are in the money has been assessed
comparing guaranteed benefits with asset shares.

Endowment assurances have been analysed in groups of year of maturity.

The “in-the-money” ratio is much more meaningful when applied to policies maturing
in 2005. For later years, we are ignoring future premiums and investment growth,
which will be expected to make the asset share grow faster than the guaranteed benefits.
In general this makes the proportion of contracts “in-the-money” increasingly high for
later years of maturity.

Endowment assurances have different characteristics for different markets:
   x Former Friends Provident business maturing in 2005 is all out of the money.
     Typical in the money ratio values range from -110% to -10%.
   x 7% of Former Irish Life business maturing in 2005 is “in-the-money”. Typical
     in the money ratio values range from -20% to 10%.
   x 90% of Royal Liver IB business (excluding contingent policies) is “in-the-
     money”. Typical in the money ratio values range from -10% to 30%.
   x 70% of Royal Liver contingent IB business is “in-the-money”. Typical in the
     money ratio values range from -20% to 70%. Here the effect of looking at later
     years of maturity is less significant.
   x 95% of ordinary branch single premium contracts maturing in 2005 are “in-the-
     money”. Typical in the money ratio values range from 10% to 30%.
     Considering later years of maturity gives a range of values from 10% to 60%.
   x 70% of ordinary branch regular premium contracts maturing in 2005 are “in-the-
     money”. Typical in the money ratio values range from -50% to 50%.

Unitised with profits has low initial guarantees. Regular premium contracts almost
always support a terminal bonus at present. Single premium policies sold during 2000
and 2001 have market value adjustments (MVA) on surrender or transfer of up to 10%
at present. Savings endowments have a no MVA guarantee at the tenth policy
anniversary and personal pension contacts have a no MVA guarantee at the selected
retirement date.

Guaranteed annuity options are generally considerably in the money, but apply to
relatively few policies.

   Options – costs of providing guaranteed annuity options at retirement for pension
   contracts where the annuity provided is on more favourable terms than those
   implied by market interest rates. Costs of providing guaranteed cash options on
   deferred annuity pension contracts where the cash commutation is on more
   favourable terms than those implied by market interest rates.

   Smoothing – costs (which may be positive or negative) associated with smoothing
   with-profits payouts such that benefits payable, applying agreed bonus scales differ
   from the with-profits benefit reserve for the contract.



                                           101
   (ii) The asset model is a market consistent asset model. Equities and fixed interest
   (at various durations) are the asset classes directly modelled. Property is modelled
   as an equal proportion of equity and fixed interest. Cash is taken as zero duration
   fixed interest.

   Separate models are used for UK and Irish business. UK business uses an asset
   model calibrated to UK market data. Irish business uses an asset model calibrated to
   Euro investment market data.

   Initial interest rate curves are derived from zero coupon rates of various durations
   implied from traded prices of UK and Euro denominated government bonds as
   appropriate. The yield curve is adjusted by a positive yield spread of 10 basis points
   across all maturities.

   The model is then calibrated to the implied volatilities of at the money interest rate
   swaptions and at the money equity index put options. The calibration is chosen to
   minimise the sum of the weighted squared errors between actual and fitted swaption
   prices for swap tenors that approximate the maturity of the bulk of the aggregate
   UK and Irish guarantees. The forward rate volatilities were typically in the range
   15.7% to 11.4% for the UK and 17.8% to 8.1% for the Euro asset model.

   Equity volatility was calibrated to the at the money implied volatility for ten year
   put options on the FTSE 100 and DJ STOXX 50 (Euro) index as appropriate. This
   gave a volatility of 19.2% for both the Sterling and Euro models. Dividend yields
   are assumed to be a constant 3.1% for Sterling and 2.1% for Euro models.

   The correlation between fixed interest and equities was calibrated to result in a long
   term correlation of around 18% (Sterling) and 16% (Euro) between total equity
   returns and long term zero coupon bond yields.

   The assumptions used reflect market data for the main investment markets for the
   underlying business and reflect likely long term investment classes for the business.

(iii) Risk free rates from the model and values derived from the asset model in relation
to specific assets and options are shown on the following page:




                                            102
             Asset type (all UK assets)                                                                K=0.75                                                                  K=1                                                               K=1.5
     n                                                                           5              15                 25                 35               5              15                 25              35               5              15                 25              35
     r       Annualised compound equivalent of the risk free rate assumed            4.67%           4.70%              4.57%              4.43%       x               x                  x               x               x               x                  x               x
             for the period. (to two decimal places)

 1           Risk-free zero coupon bond                                       795,809.06     502,174.56         327,382.85         219,158.41          x               x                  x               x               x               x                  x               x

 2           FTSE All Share Index (p=1)                                       57,557.96      162,401.06      247,657.00         325,488.69         173,105.38      309,374.90         412,617.99      503,294.94      550,290.33      681,147.21         796,905.13      899,704.23
 3           FTSE All Share Index (p=0.8)                                     47,246.73      116,650.53      163,239.83         202,022.62         148,226.58      230,645.93         280,616.05      320,135.16      493,609.64      530,853.50         562,677.83      589,203.45
 4           Property (p=1)                                                     N/A             N/A             N/A                N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
 5           Property (p=0.8)                                                   N/A             N/A             N/A                N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
 6           15 year risk free zero coupon bonds (p=1)                         2,009.57        4,191.04        6,524.20          22,454.34          64,179.29       72,868.63          82,524.48      116,668.38      500,333.53      501,805.55         502,081.89      511,535.67
 7           15 year risk free zero coupon bonds (p=0.8)                         946.66          596.06          371.41           1,867.17          43,278.98       22,909.69          13,625.10       20,864.00      435,026.33      317,821.80         226,986.48      187,262.27
 8           15 year corporate bonds (p=1)                                      N/A             N/A             N/A                N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
 9           15 year corporate bonds (p=0.8)                                    N/A             N/A             N/A                N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
10           Portfolio of 65% FTSE All Share and 35% property (p=1)             N/A             N/A             N/A                N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
11           Portfolio of 65% FTSE All Share and 35% property (p=0.8)           N/A             N/A             N/A                N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
12           Portfolio of 65% equity and 35% 15 risk free zero coupon
             bonds (p=1)                                                      18,543.03       76,635.19      136,290.60         201,325.14         110,282.66      199,895.84         276,771.19      355,756.16      510,644.62      571,854.49         647,399.57      730,039.12
13           Portfolio of 65% equity and 35% 15 risk free zero coupon
             bonds (p=0.8)                                                    13,086.52       45,232.46         73,938.15       104,549.74          87,245.43      130,574.07         162,746.60      196,866.26      449,137.83      416,427.83         416,922.70      433,812.02
14           Portfolio of 40% equity, 15% property, 22.5% 15 year risk free     N/A             N/A               N/A              N/A                N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
             zero coupon bonds and 22.5% 15 year corporate bonds (p=1)

15           Portfolio of 40% equity, 15% property, 22.5% 15 year risk free     N/A             N/A               N/A                N/A              N/A             N/A                N/A             N/A             N/A             N/A                N/A             N/A
             zero coupon bonds and 22.5% 15 year corporate bonds (p=0.8)


                                                                                                      L=15                                                                     L=20                                                               L=25
16           Receiver swaptions                                                      6.35%        6.65%              5.49%              4.10%              7.97%           8.15%              6.64%           4.93%           9.40%           9.38%              7.55%           5.59%


     Portfolio worth £1,000,000 on valuation date
     K        Strike price
     p        risk free proportion
     n        expiry term




                                                                                                                             103
       Notes:

       The table above shows results for the UK asset model. As noted above a separate
       calibration is used for Euro asset modelling.

       The asset model does not distinguish property as a specific asset class. Accordingly, no
       values are provided for lines where property assets or options are valued. The asset
       model does not distinguish corporate bonds from risk free bonds. Accordingly, no
       values are provided for those lines requiring corporate bond valuation.

       (iv) The initial equity yield assumed was 3.10% for the Sterling and 2.10% for the Euro
       model. Within the asset models property is modelled in line with a combination of
       equity and fixed interest performance. Accordingly, no explicit property rental yield is
       assumed.

       (v) For Euro assets, the equivalent entries for lines 1 and 2 are (for K =1):

       n                                      5                15             25              35
                Risk Free Rate                3.24%             4.35%          4.69%           4.67%
       1        Risk-free zero            852,749.88        527,849.28     318,151.53      202,592.95
                coupon bond
       2        Eurostoxx 50 Index        174,166.73        313,023.43     414,258.98      497,496.89



       (vi) The following table shows the outstanding maturity duration for endowment
       business by business class:
                        2005 -   2010 -    2015 -   2020 -    2025 -     2030 -   2035 -
Maturity Years          2009     2014      2019     2024      2029       2034     2039      2040 +      Total

Ordinary Branch
Conventional            10.6%    16.3%      9.2%     4.7%       1.6%       0.7%     0.1%      0.0%       43.2%
Industrial Branch
Conventional            13.1%    12.1%      4.7%     1.0%                                                30.9%
Unitised With-profits
Life                             10.3%                                                                   10.3%
Unitised With-profits
pensions                 0.0%     0.0%      0.5%     1.7%       1.9%       2.3%     2.9%      6.3%       15.6%
Total                   23.7%    38.7%     14.4%     7.4%       3.5%       3.0%     3.0%      6.3%      100.0%

Amounts (£m)            528.1    863.8     321.5    165.2     78.7       66.5     67.8      139.9       2,231.5

       In addition to the amounts shown above, there are £575m outstanding guarantees on
       whole of life policies. In the table above, unitised with-profits life has maturity duration
       measured by reference to the first date at which values can be taken without financial
       adjustments being applied.

       The level of maturity guarantee shown is taken as the guaranteed benefit assured,
       including both basic sum assured and accrued reversionary bonus elements.

       The asset model was calibrated to implied volatility of at-the-money interest swaptions,
       with particular emphasis on calibrating to swaption maturities of 5-20 years and swap



                                                       104
 tenors of 10 to 20 years. The table below shows the calibration results for the UK asset
 model and sets out the fitting error as a percentage of the ATM market price for
 swaption maturities in the target range:

 Maturity in Years                                  Swap Tenor (in Years)
                                              10                               20
               5                           -1.28%                           2.41%
               10                          -2.08%                           3.45%
               15                          -0.66%                           2.48%
               20                          -2.15%                           -0.21%


 (vii) The model has been validated by tests including simulation of zero coupon bond,
 swaption and equity option prices to test replication of market prices. Deflated total
 returns on equities, cash and property were calculated equivalent to checking the market
 prices of cash, equities and property and testing the simulated deflator.

 (viii)Values were projected over a 30 year period. 2,500 projections were performed.
 Convergence of the results was confirmed by comparison of the results from sequential
 subsets of 250 simulations within the total results.

 (b) not applicable

 (c) not applicable

(5)   (a) Future management actions are assumed in relation to:
                 - the level of target estate required by the Society
                 - rate at which any excess estate is made available for enhancement of
                    benefits
                 - changes in the levels of reversionary bonuses declared
                 - changes in the level of terminal bonuses declared on death or
                    maturity (consistent with attribution of the estate)
                 - changes in the level of financial adjustment applied to unitised with
                    profits business on dates other than those where no financial
                    adjustment guarantees apply
                 - changes in the mix of investments held

      (b) The best estimates of future equity backing and bonus rates for future years are
      summarised as follows:

                          Based on forward      Based on forward        Based on forward
                          rates as at the       rates increased by      rates decreased by
                          valuation date        17.5%                   17.5%
 Proportion of fund       43%                   37%                     38%
 held as equities in 5
 years
 Future Bonus rates       2.5%                  3.25%                   1.75%
 in 5 years: gross
 business
 Proportion of fund       52%                   47%                     45%



                                              105
held as equities in 10
years
Future bonus rates in    2.5%                3.25%                  1.5%
10 years: gross
business

       Within the model the same rate of bonus is assumed for gross of tax life and
       pensions contracts.

       The projection model assumes property and equity investment in a 25:75 split.
       Hence for example based on forward rates the proportion of property held in 10
       years would be 17% in addition to the equities recorded above.

       There are no significant assumed equity derivative contracts or contracts having
       the effect of derivative contracts affecting the results in the table.

   (6) Persistency assumptions differ by type of business and elapsed duration in force.
       Sample lapse rates are summarised below:

                                      Lapse Rate as proportion of policies exiting per
                                      annum
Class of Business                     Duration 5    Duration 10         Duration 20
                                      years         years               years
Ordinary Branch                              4.0%              2.5%               0.5%
Conventional with profits
Ordinary Branch                              3.5%               3.5%             3.5%
Former Caledonian Assurance
pensions contracts
Ordinary Branch                              0.5%               0.5%             0.5%
Unitised with-profits
Ordinary Branch                              2.0%               2.0%             2.0%
Unitised with profits
Caledonian with profits bond
Industrial Branch                            5.0%               3.5%             1.0%
Issued by Royal Liver
Industrial Branch                            6.0%               6.0%             0.5%
Former Friends’ Provident Business
Industrial Branch                            3.0%               2.5%             1.5%
Former Irish Life Business

       Guaranteed annuity options are always assumed to be exercised, where the
       guarantee is in the money.


   (7) Where unitised with-profits contracts include a right to payment with no
       financial adjustment at specified durations, claim rates at that duration are
       assumed to increase on a sliding scale where the claim value available exceeds
       the with-profits benefit reserve.




                                           106
Financing Costs

7. No financing arrangements exist in relation to any with-profits fund.

Other Long-term Insurance Liabilities

8. There are no entries at line 46 of form 19. The entries at line 47 reflect a pensions
misselling reserve of £5.0m and a mortgage endowment reserve of £1.5m.

Realistic Current Liabilities

9. The current liabilities included in line 51 of Form 19 of £84.577m reflect current
liabilities relating to overdrawn bank balances, claims outstanding and other current
liabilities and provisions. They equal the regulatory current liabilities.

Risk Capital Margin

10. (a) The Risk capital margin was £33.3m.

(i) For the market risk scenario, equities were tested for a rise or fall of 20% in market
value. Real estate was tested for a 12.5% rise or fall. The same test was applied for both
United Kingdom and Eurozone assets. A fall in asset values was the most onerous in all
instances.

(ii) For the market risk scenario the nominal change in yields was a rise and fall of
0.91% for United Kingdom assets and 0.80% for Eurozone assets. This was equivalent
to a 17.5% change in the relevant long term fixed interest yield in each case. The fall in
yields was the most onerous test.

(iii) The average change in spread for bonds, weighted by value, for the credit spread
test was 56 basis points. The total percentage change in asset value resulting from the
credit test was 4.5% for bonds and nil for debts. There are no other reinsurance,
analogous non-reinsurance financing arrangements or other assets affected by this test.

(iv) The percentage change in the realistic value of liabilities arising from the
persistency risk scenario, assuming the market and credit risk scenarios have already
occurred is 0.7%.

(v) Not applicable.

(b) Management decisions are assumed to be taken annually, starting one year from the
start date, in accordance with the projected position of the Society at that time. No
further initial management actions have been assumed as at the commencement of the
projection under the risk capital margin calculation.

(c) (i) The assets held to cover the risk capital margin are assumed to consist of a mix of
equities, property, fixed interest and cash holdings in accordance with the overall
holdings of the with profits fund in relation to with-profits business. All these assets are
part of the with-profits fund.




                                             107
(ii) Not applicable.

Tax

11. Tax is computed for the with-profits contracts and corresponding assets within the
stochastic projections. Calculations take into account the different tax treatments
applicable in respect of UK and ROI business, and between life and pensions business.
Future tax rates are assumed to be in line with current rates.

Derivatives

12. There are no derivative positions held.

Analysis of working capital

13. Not applicable.

Optional disclosure

14. Not applicable.




                                              108
                                                                                                                                                           Form 46
Long term insurance business : Summary of changes in ordinary long term business

Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Non-linked

Financial year ended            31st December 2004

                                                              Company
                                                              registration                         Period ended
                                                              number               GL/UK/CM                                            Units       UK/OS      NL/LN
                                                                                                day month     year

                                                   R46             35                GL             31      12        2004         £000             UK          NL
                                      Life assurance and general        Pensions business                   Permanent health                   Other business
                                                annuity

                                         No of        Annual           No of          Annual               No of        Annual               No of          Annual
                                       contracts     premiums        contracts       premiums            contracts     premiums            contracts       premiums


                                          1              2               3                4                 5                6                 7                8


In force at beginning of year    11    117921           28281           42126             4419              2295                 683


New business and increases       12       9303           3301                709                            1017                 309

Net transfers and other
alterations 'on'                 13       3143               637             198              284               149              195

Total 'on' (12+13)               19     12446            3938                907              284           1166                 504


Deaths                           21         978              163             80                8


Other insured events             22


Maturities                       23       5343               940             527              147

Surrenders                       24       3691           1807                163              42


Forfeitures                      25       9418           2862                85               24                916              307

Conversions to paid-up
policies for reduced benefits    26                          40                                1

Net transfers, expiries and
other alterations 'off'          27         601              16               5               487                4                2


Total 'off' (21 to 27)           29     20031            5828                860              709               920              309

In force at end of year
(11+19-29)                       39    110336           26390           42173             3993              2541                 878




                                                                              109
                                                                                                                                                     Form 46
Long term insurance business : Summary of changes in ordinary long term business

Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Linked

Financial year ended            31st December 2004

                                                              Company
                                                              registration                         Period ended
                                                              number               GL/UK/CM                                      Units       UK/OS      NL/LN
                                                                                                day month     year

                                                   R46             35                GL             31      12       2004        £000         UK          LN
                                      Life assurance and general        Pensions business                   Permanent health             Other business
                                                annuity

                                         No of        Annual           No of          Annual               No of       Annual          No of          Annual
                                       contracts     premiums        contracts       premiums            contracts    premiums       contracts       premiums


                                          1              2               3                4                 5               6            7                8


In force at beginning of year    11     19385            4524           14771          10473


New business and increases       12       1061               315             791              461

Net transfers and other
alterations 'on'                 13         295              11              10           1079

Total 'on' (12+13)               19       1356               326             801          1540


Deaths                           21           96               8             18               19


Other insured events             22


Maturities                       23         221              108             114              205

Surrenders                       24       2310               206             106              115


Forfeitures                      25         496              145             186              162

Conversions to paid-up
policies for reduced benefits    26                            5

Net transfers, expiries and
other alterations 'off'          27                          255              4           2409


Total 'off' (21 to 27)           29       3123               726             428          2911

In force at end of year
(11+19-29)                       39     17618            4125           15144             9102




                                                                              110
                                                                                                                                                             Form 46
Long term insurance business : Summary of changes in ordinary long term business

Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Non-linked

Financial year ended            31st December 2004

                                                                Company
                                                                registration                         Period ended
                                                                number               GL/UK/CM                                            Units       UK/OS      NL/LN
                                                                                                  day month     year

                                                     R46             35                GL             31      12        2004         £000             OS          NL
                                      Life assurance and general          Pensions business                   Permanent health                   Other business
                                                annuity

                                         No of         Annual            No of          Annual               No of        Annual               No of          Annual
                                       contracts      premiums         contracts       premiums            contracts     premiums            contracts       premiums


                                          1                2               3                4                 5                6                 7                8


In force at beginning of year    11   1473287           93040             15962          11562                1656             1063


New business and increases       12     28803           12361                  790          1290                  640              194

Net transfers and other
alterations 'on'                 13       4142             8901                590          1577                  122               5

Total 'on' (12+13)               19     32945           21263              1380             2867                  762              199


Deaths                           21     20943                  987             71               22                 1


Other insured events             22           (52)


Maturities                       23     25507              4465                209              187

Surrenders                       24     15127              2828                58               23


Forfeitures                      25     16012              5352                459              424               455              145

Conversions to paid-up
policies for reduced benefits    26                        1270                                 250

Net transfers, expiries and
other alterations 'off'          27    308034              5186                219          2227                                   203


Total 'off' (21 to 27)           29    385571           20086              1016             3134                  456              348

In force at end of year
(11+19-29)                       39   1120661           94216             16326          11294                1962                 914




                                                                                111
                                                                                                                                               Form 46
Long term insurance business : Summary of changes in ordinary long term business

Name of insurer                 ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Linked

Financial year ended            31st December 2004

                                                              Company
                                                              registration                       Period ended
                                                              number             GL/UK/CM                                  Units       UK/OS      NL/LN
                                                                                              day month     year

                                                   R46             35              GL         31      12       2004        £000         OS          LN
                                      Life assurance and general        Pensions business             Permanent health             Other business
                                                annuity

                                         No of        Annual           No of        Annual           No of       Annual          No of          Annual
                                       contracts     premiums        contracts     premiums        contracts    premiums       contracts       premiums


                                          1              2               3              4             5               6            7                8


In force at beginning of year    11       5168           6609


New business and increases       12

Net transfers and other
alterations 'on'                 13            5             700

Total 'on' (12+13)               19            5             700


Deaths                           21           12             16


Other insured events             22


Maturities                       23


Surrenders                       24         144              103


Forfeitures                      25            5               4

Conversions to paid-up
policies for reduced benefits    26

Net transfers, expiries and
other alterations 'off'          27            2             419


Total 'off' (21 to 27)           29         163              541

In force at end of year
(11+19-29)                       39       5010           6768




                                                                             112
                                                                                                                         Form 46A
Long term insurance business : Summary of changes in industrial assurance business

Name of insurer                ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended           31st December 2004
                                                                       Company
                                                                       registration           Period ended
                                                                       number                                    Units         UK/NI
                                                                                         day    month    year

                                                                R46A         35           31      12     2004    £000           UK


                                                                                         Paying                     Paid up


                                                                         No of policies             Annual       No of policies
                                                                                                   premiums

                                                                                  1                     2                 3

In force at beginning of year                                     11              824976                 28995           1639718

                      Weekly business                             12
Taken up during
year
                      Monthly business                            13

Converted to paid-up policies during year                         14                                                          27777

Total 'on'                                                        19                                                          27777

                  Deaths                                          21                  20610                              345405

                  Maturities                                      22                  26185                                     535

                  Surrenders for cash                             23                  17127                                   4797
Discontinued
during year by    Terminations by return of premiums              24

                  Conversions to paid-up policies for full
                  sums assured
                                                                  25                  15685
                  Conversions to paid-up policies for
                  reduced sums assured                            26                  12092
                  Forfeitures without grant of paid-up policy
                  or cash surrender                               27                   223

Total 'off'                                                       29                  91922                              350737

In force at end of year                                           31              733054                 25651           1316758




                                                                   113
                                                                                                                            Form 46A
Long term insurance business : Summary of changes in industrial assurance business

Name of insurer                ROYAL LIVER ASSURANCE LTD
Global business

Northern Ireland business

Financial year ended           31st December 2004
                                                                       Company
                                                                       registration           Period ended
                                                                       number                                       Units       UK/NI
                                                                                         day    month    year

                                                                R46A         35           31      12     2004       £000         NI


                                                                                         Paying                        Paid up


                                                                         No of policies             Annual          No of policies
                                                                                                   premiums

                                                                                  1                     2                   3

In force at beginning of year                                     11                  48156                  1748           628842

                      Weekly business                             12
Taken up during
year
                      Monthly business                            13

Converted to paid-up policies during year                         14                                                            1621

Total 'on'                                                        19                                                            1621

                  Deaths                                          21                   957                                  284590

                  Maturities                                      22                  2333                                       104

                  Surrenders for cash                             23                   861                                       530
Discontinued
during year by    Terminations by return of premiums              24

                  Conversions to paid-up policies for full
                  sums assured
                                                                  25                   699
                  Conversions to paid-up policies for
                  reduced sums assured                            26                   922
                  Forfeitures without grant of paid-up policy
                  or cash surrender                               27                     2

Total 'off'                                                       29                  5774                                  285224

In force at end of year                                           31                  42382                  1176           345239




                                                                   114
                                                                                                                                                                     Form 47
                                                                                                                                                                    (Sheet 1)
Long term insurance business : Analysis of new ordinary long term business

Name of insurer                ROYAL LIVER ASSURANCE LTD

Global business
                                                                                                             Company
Financial year ended           31st December 2004                                                            registration                      Period ended
                                                                                                             number             GL/UK/CM    day month     year          Units

                                                                                                       R47          35             GL       31     12        2004       £000

                          Type of insurance                               Single premium contracts                                Regular premium contracts
                                                              No of contracts     Premiums       Sums assured,     No of contracts          Annual            Sums assured,
                                                                                                  annuities per                            premiums            annuities per
                                                                                                 annum or other                                               annum or other
                                                                                                  measures of                                                  measures of
                                                                                                    benefit                                                      benefit


                                   1                                2                 3                4                    5                  6                    7
UK DIRECT WRITTEN INSURANCE BUSINESS
Life Assurance & General Annuity Insurance Business
Non-Linked With-Profits Policies
Whole Life Assurance                                                                                                            2755                  754                   103
Endowment Assurance                                                        65              845                10                 451                  257                       25
Personal Investment Plan (see note)                                       315             7302                                  1543                1255

Sub total: Non-Linked With-Profits Policies                               380             8147                10                4749                2266                    128
Non-Linked Non-Profit Policies
Decreasing Term Assurance                                                                                                       1496                  369                  1109
Serious Illness Cover                                                                                                           1017                  309                   589
Term Assurance                                                                                                                  1971                  388                  1376
Level Term Assurance with Accelerated Critical Illness                                                                           234                    80
Decreasing Term Assurance with Accelerated Critical Illness                                                                      247                  110
Level Life Cover                                                                                                                  87                    31
Level Life Cover and CI                                                                                                           43                    22
Level Life Cover with Decreasing Life Cover                                                                                        2                    1
Level Life Cover and CI with Dec Life Cover and CI                                                                                 2                    1
Level Life Cover with Guaranteed IP                                                                                                1                    1
Level Life Cover and CI with Reviewable IP                                                                                         1
Decreasing Life Cover                                                                                                             22                    5
Decreasing Life Cover and CI                                                                                                      41                    16
Decreasing Life Cover with Dec Life Cover and CI                                                                                   1                    1



                                                                                    115
                                                                                                                                                                     Form 47
                                                                                                                                                                    (Sheet 2)
Long term insurance business : Analysis of new ordinary long term business

Name of insurer              ROYAL LIVER ASSURANCE LTD

Global business
                                                                                                              Company
Financial year ended         31st December 2004                                                               registration                      Period ended
                                                                                                              number             GL/UK/CM    day month     year         Units

                                                                                                      R47            35             GL       31     12       2004       £000

                         Type of insurance                               Single premium contracts                                   Regular premium contracts
                                                             No of contracts     Premiums       Sums assured,       No of contracts          Annual           Sums assured,
                                                                                                 annuities per                              premiums           annuities per
                                                                                                annum or other                                                annum or other
                                                                                                 measures of                                                   measures of
                                                                                                   benefit                                                       benefit


                                 1                                 2                 3                4                      5                  6                   7
Decreasing Life Cover and CI with Guaranteed IP                                                                                     3                    2
Reviewable IP                                                                                                                       7                    2
Guaranteed IP                                                                                                                       5                    4
Purchase Life Annuity                                                     11              175               20 pa

Sub total: Non-Linked Non-Profit Policies                                 11              175               20 pa                5180                1342                  3074
Index Linked Contracts
Tax Exempt Bond                                                                                                                  1061                  315                 2375

Sub total: Index Linked Contracts                                                                                                1061                  315                 2375

Total: Life Assurance & General Annuity Insurance Business               391             8322                 10                 10990               3923                  5577
                                                                                                            20 pa




                                                                                   116
                                                                                                                                                                     Form 47
                                                                                                                                                                    (Sheet 3)
Long term insurance business : Analysis of new ordinary long term business

Name of insurer             ROYAL LIVER ASSURANCE LTD

Global business
                                                                                                              Company
Financial year ended        31st December 2004                                                                registration                      Period ended
                                                                                                              number             GL/UK/CM    day month     year         Units

                                                                                                       R47           35             GL       31     12       2004       £000

                         Type of insurance                               Single premium contracts                                   Regular premium contracts
                                                             No of contracts     Premiums        Sums assured,      No of contracts          Annual           Sums assured,
                                                                                                  annuities per                             premiums           annuities per
                                                                                                 annum or other                                               annum or other
                                                                                                  measures of                                                  measures of
                                                                                                    benefit                                                      benefit


                                   1                               2                 3                 4                     5                  6                   7

Pension Insurance Business
Non-Linked With-Profits Policies
Personal Pension Plan (see note)                                          (1)               70

Sub total: Non-Linked With-Profits Policies                               (1)               70
Non-Linked Non-Profit Policies
Compulsory Purchase Annuity                                              710             7645              387 pa

Sub total: Non-Linked Non-Profit Policies                                710             7645              387 pa
Index Linked Contracts
Stakeholder Pension                                                      205             2555                                     586                  461

Sub total: Index Linked Contracts                                        205             2555                                     586                  461

Total: Pension Insurance Business                                        914             10270             387 pa                 586                  461

Total: UK Direct Written Insurance Business                             1305             18592                10                 11576               4384                  5577
                                                                                                           407 pa




                                                                                   117
                                                                                                                                                                        Form 47
                                                                                                                                                                       (Sheet 4)
Long term insurance business : Analysis of new ordinary long term business

Name of insurer               ROYAL LIVER ASSURANCE LTD

Global business
                                                                                                               Company
Financial year ended          31st December 2004                                                               registration                      Period ended
                                                                                                               number             GL/UK/CM    day month     year           Units

                                                                                                       R47            35             GL       31     12         2004       £000

                         Type of insurance                               Single premium contracts                                    Regular premium contracts
                                                             No of contracts     Premiums        Sums assured,       No of contracts          Annual             Sums assured,
                                                                                                  annuities per                              premiums             annuities per
                                                                                                 annum or other                                                  annum or other
                                                                                                  measures of                                                     measures of
                                                                                                    benefit                                                         benefit


                                  1                                2                 3                 4                      5                  6                     7
OVERSEAS DIRECT WRITTEN INSURANCE BUSINESS
Life Assurance & General Annuity Insurance Business
Non-Linked With-Profits Policies
Whole Life Assurance                                                                                                              2251                  564                   6126
Endowment Assurance                                                     1957             17116                196                 6499                3016                   12641
Low Cost Endowment                                                                                                                   (4)                  (1)
Personal Investment Plan (see note)                                      293             7078                                      464                3139
Caledonian With Profit Bond                                             1487             70040               71028

Sub total: Non-Linked With-Profits Policies                             3737             94234               71224                9210                6718                   18767
Non-Linked Non-Profit Policies
Decreasing Term Assurance                                                                                                          389                  112                    434
Serious Illness Cover                                                                                                              640                  194                    429
Term Assurance                                                                                                                    3056                  667                   2685
Caledonian Term Assurance                                                                                                         5169                2679                 1260051
Caledonian Group Homeguard                                                                                                        7242                2185                 1030571

Sub total: Non-Linked Non-Profit Policies                                                                                         16496               5837                 2294170

Total: Life Assurance & General Annuity Insurance Business              3737             94234               71224                25706              12555                 2312937




                                                                                   118
                                                                                                                                                                       Form 47
                                                                                                                                                                      (Sheet 5)
Long term insurance business : Analysis of new ordinary long term business

Name of insurer               ROYAL LIVER ASSURANCE LTD

Global business
                                                                                                               Company
Financial year ended          31st December 2004                                                               registration                      Period ended
                                                                                                               number             GL/UK/CM    day month     year          Units

                                                                                                       R47            35             GL       31     12        2004       £000

                         Type of insurance                               Single premium contracts                                    Regular premium contracts
                                                             No of contracts     Premiums        Sums assured,       No of contracts          Annual            Sums assured,
                                                                                                  annuities per                              premiums            annuities per
                                                                                                 annum or other                                                 annum or other
                                                                                                  measures of                                                    measures of
                                                                                                    benefit                                                        benefit


                                   1                               2                 3                 4                      5                  6                    7

Pension Insurance Business
Non-Linked With-Profits Policies
Personal Pension Plan (see note)                                             6            739                                      551                  839

Sub total: Non-Linked With-Profits Policies                                  6            739                                      551                  839
Non-Linked Non-Profit Policies
Dependant's Term Assurance
Compulsory Purchase Annuity                                               14              175                19 pa
Caledonian Deferred Annuity                                               77              641                56 pa                  63                  130                139 pa
Caledonian Pension Term Assurance                                                                                                   41                    23              8971 pa
Caledonian Annuities in Payment                                           38             2020              122 pa
Caledonian Group Life: Death in Service                                                                                                                 279           101591 pa
Widows Pension                                                                                                                                            19               231 pa

Sub total: Non-Linked Non-Profit Policies                                129             2836              197 pa                  104                  451           110932 pa

Total: Pension Insurance Business                                        135             3575              197 pa                  655                1290            110932 pa

Total: Overseas Direct Written Insurance Business                       3872             97809               71224                26361              13845                2312937
                                                                                                           197 pa                                                     110932 pa




                                                                                   119
                                                                                                                              Form 48

Long term insurance business : Expected income from admissible assets not held to match liabilities in respect
of linked benefits

Name of insurer             ROYAL LIVER ASSURANCE LTD

Global business

Financial year ended        31st December 2004

Category of assets          Total Long Term Business

                                                      Company
                                                      registration                        Period ended                       Category
                                                      number               GL/UK/CM    day month     year          Units     of assets


                                              R48           35               GL         31    12     2004          £000          10

                                                                           Value of                Expected                Yield %
                                                                         admissible              income from
                                                                       assets as shown            admissible
Type of asset
                                                                         on Form 13                 assets
                                                                              1                       2                      3


Land and buildings                                               11               399929                23145               5.79

                       Approved securities                       12               937753                34835               4.36
Fixed interest
securities
                       Other                                     13               273883                14454               5.38
Variable interest
and variable yield     Approved securities                       14
securities
(excluding items
                       Other                                     15
shown at line 16)
Equity shares and holdings in collective investment
schemes
                                                                 16             1123931                 53571               4.47

Loans secured by mortgages                                       17                   9057                  180             4.76

                       Producing income                          18               118538                    3863            3.26
All other assets
                       Not producing income                      19                   70535

Total (11 to 19)                                                 29             2933626               130048                4.54




                                                                     120
                                                                                                                                                                                     Form 49

Long term insurance business : Analysis of admissible fixed interest and variable interest and variable yield securities not held to match liabilities in respect of linked benefits

Name of insurer           ROYAL LIVER ASSURANCE LTD

Global business

Financial year ended                                                                                       Company
                          31st December 2004                                                               registration                           Period ended                        Category
                                                                                                                              GL/UK/CM                                   Units        of assets
                                                                                                           number                           day     month   year
Category of assets        Total Long Term Business
                                                                                                  R49             35             GL         31        12     2004        £000              10
                                                                                 Value of       Gross         Value of                         Value of            Gross            Value of
                                                                                admissible    redemption     admissible                       admissible         redemption        admissible
                                                                                assets as        yield     higher yielding                    assets as             yield        higher yielding
Redemption period in years                                                      shown on          %            assets                         shown on               %               assets
                                                                                 Form 13                                                       Form 13
                                                                                    1             2               3                               4                  5                 6

One year or less                                             11
More than one year but not more than five years              12                     13377        2.91
                                                                                                                             Variable
More than five years but not more than ten years             13                                                              interest and
                                                                  Fixed                                                      variable
More than ten years but not more than fifteen years          14   interest          23043        3.70                        yield
More than fifteen years but not more than twenty years       15   approved         106435        4.10              2566      approved
                                                                  securities                                                 securities
More than twenty years but not more than twenty five years   16                    166413        4.36                        excluding
                                                                                                                             equities
More than twenty five years                                  17                    628485        4.46
Irredeemable                                                 18
Total (11 to 18)                                             19                    937753        4.36              2566
One year or less                                             21
More than one year but not more than five years              22                        142       5.47
                                                                                                                             Other
More than five years but not more than ten years             23                      4531        6.19                        variable
                                                                                                                             interest and
More than ten years but not more than fifteen years          24   Other fixed       29041        5.97                        variable
                                                                  interest                                                   yield
More than fifteen years but not more than twenty years       25   securities        39032        5.38
                                                                                                                             securities
More than twenty years but not more than twenty five years   26                     39717        5.46                 271    excluding
                                                                                                                             equities
More than twenty five years                                  27                    151744        5.56
Irredeemable                                                 28                      9676

Total (21 to 28)                                             29                    273883        5.38                 271


                                                                                        121
                                                                                                                                                                                                                     Form 51
                                                                                                                                                                                                                    (Sheet 1)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                                 Company
                                                                                registration                                               Period ended                                          Type of           Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                 business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus         OB Taxable                                                 R51               35                GL        31        12     2004           £000           UK            L&GA                 11
                                                                             No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts          assured or                                            office         assured or                                      mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office      Net premiums
                                                                                                vested                                                               vested
                                             interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                         2              3              4                   5                  6              7                8                 9              10             11                12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Whole Life Assurances                       3.25%       110% AM92/             16222               51644              3469                                             27399           21009          11572             15827
                                                        AF92
Endowment Assurances                        3.25%       110% AM92/             47979              217663             12278                                            179575           69715          57111            122464
                                                        AF92
Endowment Plus Assurances                   3.25%       110% AM92/                1178                6339               148                                               5712            542              341          5371
                                                        AF92
Low Cost Endowment Assurances               3.25%       110% AM92/                4682             51652              2047                                             41116           14167          12508             28608
                                                        AF92
Endowment/Term Assurances                   3.25%       110% AM92/                828                 4206               212                                               3629          1030               845          2784
                                                        AF92
Capital Growth Plan                         3.25%       110% AM92/                 19                 251                  7                                               203             44               30              173
                                                        AF92
Mortgage Protection Assurances              3.25%       110% AM92/                     1                 1
                                                        AF92
Waiver of Premium Benefit                     n/a       see text                                                           4                                                 4                                                  4
Free Policies:- Whole Life Assurances       3.25%       110% AM92/                1795                3644                                                                 2310                         (550)            2860
                                                        AF92
Free Policies:- Endowment Assurances        3.25%       110% AM92/                806                 820                                                                  660                          (119)               779
                                                        AF92
Free Policies:- Low Cost Endowment          3.25%       110% AM92/                 34                 132                                                                    87                             (10)            97
Assurances                                              AF92
Additional ReservesMortality Options            0       see text                                                                                                           2856                                          2856
Additional ReservesExtra Risks                  0       see text                                                                                                           220                                              220
General Reserve for Contingencies                                                                                                                                                                                        2979



Sub total: With-Profits Policies                                               73544              336352             18165                                            263771          106507          81728            185022



                                                                                                              122
                                                                                                                                                                                                                  Form 51
                                                                                                                                                                                                                 (Sheet 2)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer               ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended          31st December 2004
                                                                                                 Company
                                                                                  registration                                             Period ended                                          Type of        Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                 business       of surplus
                              Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus           OB Taxable                                                 R51             35                GL        31        12     2004           £000           UK            L&GA              11
                                                                               No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums      Amount of
   Type of insurance or name of contract           Valuation basis           contracts        assured or                                            office         assured or                                   mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                  reserves
                                               Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                                vested                                                               vested
                                               interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                           2              3              4                 5                  6              7                8                 9              10             11             12

Non-Profit Policies
Whole Life Assurances                         3.25%       110% AM92/                3508              5754               149                                               3177          1460          (1086)         4263
                                                          AF92
Endowment Assurances                          3.25%       110% AM92/                131               372                  8                                               265             61                            265
                                                          AF92
Mortgage Protection Assurances                3.25%       110% AM92/                3776          228680                 850                                               8440          9191           6553          1887
                                                          AF92
Level Term Assurances                         3.25%       110% AM92/                8519          473251              1366                                             13328           14445            9374          3954
                                                          AF92
IFA Level Term Assurances                     3.25%       110% TM92/                 95            17361                  32                                                 64                                          106
                                                          TF92
IFA Decreasing Term Assurances                3.25%       110% TM92/                 31               3288                 7                                                 15                                          28
                                                          TF92
Level Term with CI (705)                      0.00%       see text                  213               4579                31                                               359             450                           7
Decreasing Term with CI (706)                 0.00%       see text                  234               5685                44                                               521             607
IFA Level Term with CI                        3.25%       120% CIBT93                50               1823                 9                                                 18                                          26
IFA Decreasing Term with CI                   3.25%       120% CIBT93                54               2969                12                                                 24                                          37
Waiver of Premium Benefit                       n/a       see text                                                        33                                                 33                                          33
IFA Waiver of Premium Benefit                 0.00%       0                                                               91                                                 91                                          91
Free Policies:- Whole Life Assurances         3.25%       110% AM92/                2332              1690                                                                 2031                                       2031
                                                          AF92
Free Policies:- Endowment Assurances          3.25%       110% AM92/                2443              3756                                                                 3409                                       3409
                                                          AF92


Immediate Annuities                           3.75%       70% PMA92 c.               93            176 pa                                                                  2019                                       2019
                                                          2010c/PFA92 c.
                                                          2010
Temporary Annuities                           3.75%       Compound                  373            105 pa                                                                  441                                           441
                                                          Interest




                                                                                                              123
                                                                                                                                                                                                                Form 51
                                                                                                                                                                                                               (Sheet 3)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                                 Company
                                                                                registration                                               Period ended                                        Type of        Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                               business       of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus         OB Taxable                                                 R51               35                GL        31        12     2004           £000           UK          L&GA              11
                                                                             No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract         Valuation basis           contracts          assured or                                            office         assured or                                 mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                reserves
                                             Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office    Net premiums
                                                                                                vested                                                               vested
                                             interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                         2              3              4                   5                  6              7                8                 9              10            11            12


CSAAS Immediate Annuities                   3.75%       70% PMA92 c.              107                 61 pa                                                                722                                         722
                                                        2010c/PFA92 c.
                                                        2010
CSAAS Temporary Annuities                   3.75%       70% PMA92 c.                   4               1 pa                                                                  2                                             2
                                                        2010c/PFA92 c.
                                                        2010
CSAAS Deferred Annuities                    3.75%       70% PMA92 c.               24                 75 pa                                                                721                                         721
                                                        2010c/PFA92 c.
                                                        2010

Sub total: Non-Profit Policies                                                 21987              749208              2632                                             35680           26214         14841         20042
                                                                                                  418 pa

Sub total: Direct Written Insurance                                            95531            1085560              20797                                            299451          132721         96569        205064
Business                                                                                          418 pa

REASSURANCE CEDED
Non-Profit Policies
Term Assurance                                  0       0                                          24004                 135                                                 67                                        64
Risk Premium                                    0       0                                              549                35                                                 17                                        16
Extra Risks                                     0       0                                                                 30                                                 30                                        29

Sub total: Non-Profit Policies                                                                     24553                 200                                               114                                         109

Sub total: Reassurance Ceded                                                                       24553                 200                                               114                                         109




                                                                                                              124
                                                                                                                                                                                                            Form 51
                                                                                                                                                                                                           (Sheet 4)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended       31st December 2004
                                                                                              Company
                                                                               registration                                            Period ended                                        Type of        Category
Type of business                                                                                                      GL/UK/CM                                   Units         UK/OS
                                                                                                                                                                                           business       of surplus
                           Life Assurance & General Annuity Insurance Business number
                                                                                                                                 day     month    year

Category of surplus        OB Taxable                                                 R51             35                GL       31        12     2004           £000           UK          L&GA              11
                                                                            No of       Amount of sums           Amount of annual           Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract        Valuation basis           contracts        assured or                                           office         assured or                                 mathematical
                                                                                          annuities per            premiums                                   annuities per
                                                                                        annum, including                                      premiums      annum, including                                reserves
                                            Rate of      Mortality or                                          Office      Net premiums      reserved for                        Office    Net premiums
                                                                                             vested                                                              vested
                                            interest    morbidity table                   reversionary       premiums                       expenses and      reversionary     premiums
                                                                                            bonuses                                             profits         bonuses


                      1                        2              3              4                 5                  6              7               8                 9              10            11            12

Net total: Life Assurance & General                                           95531          1061007              20597                                           299337          132721         96569        204955
Annuity Insurance Business                                                                     418 pa




                                                                                                           125
                                                                                                                                                                                                                  Form 51
                                                                                                                                                                                                                 (Sheet 5)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer              ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended         31st December 2004
                                                                                                Company
                                                                                                registration                              Period ended                                          Type of         Category
Type of business             Pension Insurance Business                                                                 GL/UK/CM                                    Units         UK/OS
                                                                                                number                              day     month    year                                       business        of surplus

Category of surplus          OB Taxable                                               R51               35                GL        31        12     2004           £000           UK            Pens               11
                                                                            No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums       Amount of
   Type of insurance or name of contract        Valuation basis           contracts          assured or                                            office         assured or                                    mathematical
                                                                                            annuities per            premiums                                    annuities per
                                                                                          annum, including                                       premiums      annum, including                                   reserves
                                            Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office      Net premiums
                                                                                               vested                                                               vested
                                            interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                              bonuses                                              profits         bonuses


                        1                      2              3              4                   5                  6              7                8                 9              10             11              12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Retirement Annuities                        3.75%      Compound                  943              13890                 177                                               8684          1546          (4279)         12963
Personal Pension Plan                       3.75%      Compound                       9              125                  1                                                 63            12               6             57
Personal Pension Plan (Minimum              3.75%      Compound                   27                 1052                                                                 489                                            504
Contribution)                                          Interest
Reserve in respect of Personal Pension      0.00%      see text                                                                                                           4735                                        4735
Transfer and Opt-out Business

Sub total: With-Profits Policies                                                 979              15067                 178                                           13971             1558          (4273)         18259
Non-Profit Policies

Dependant's Term Assurance                  3.75%      110% AM92/                774              17084                  64                                               727             740              23            704
                                                       AF92


Waiver of Premium Benefit                    n/a       see text                                                           1                                                 1                                                1


Annuities in payment                        3.75%      70% PMA92 c.              4084           2944 pa                                                               64658                                          64658
                                                       2010c/PFA92 c.
                                                       2010


CSAAS Annuities in payment                  3.75%      70% PMA92 c.              329              595 pa                                                                  9668                                        9668
                                                       2010c/PFA92 c.
                                                       2010


Reserve in respect of Personal Pension      0.00%      see text                                                                                                           265                                            265
Transfer and Opt-out Business



                                                                                                             126
                                                                                                                                                                                                               Form 51
                                                                                                                                                                                                              (Sheet 6)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                             Company
                                                                                             registration                              Period ended                                          Type of         Category
Type of business            Pension Insurance Business                                                               GL/UK/CM                                    Units         UK/OS
                                                                                             number                              day     month    year                                       business        of surplus

Category of surplus         OB Taxable                                               R51             35                GL        31        12     2004           £000           UK            Pens               11
                                                                           No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums       Amount of
   Type of insurance or name of contract       Valuation basis           contracts        assured or                                            office         assured or                                    mathematical
                                                                                         annuities per            premiums                                    annuities per
                                                                                       annum, including                                       premiums      annum, including                                   reserves
                                           Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                            vested                                                               vested
                                           interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                           bonuses                                              profits         bonuses


                      1                       2              3              4                 5                  6              7                8                 9              10             11              12

Sub total: Non-Profit Policies                                                  5187           17084                  65                                           75319               740              23        75296
                                                                                            3539 pa

Sub total: Direct Written Insurance                                             6166           32151                 243                                           89290             2298          (4250)         93555
Business                                                                                    3539 pa

Net total: Pension Insurance Business                                           6166           32151                 243                                           89290             2298          (4250)         93555
                                                                                            3539 pa




                                                                                                          127
                                                                                                                                                                                                                  Form 51
                                                                                                                                                                                                                 (Sheet 7)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer               ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended          31st December 2004
                                                                                               Company
                                                                                               registration                              Period ended                                          Type of          Category
Type of business              Permanent Health Insurance Business                                                      GL/UK/CM                                    Units         UK/OS
                                                                                               number                              day     month    year                                       business         of surplus

Category of surplus           OB Taxable                                               R51             35                GL        31        12     2004           £000           UK             PHI                11
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums        Amount of
    Type of insurance or name of contract        Valuation basis           contracts        assured or                                            office         assured or                                     mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                    reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                        1                       2              3              4                 5                  6              7                8                 9              10             11               12

DIRECT WRITTEN INSURANCE BUSINESS
Non-Profit Policies
Serious Illness Cover                        3.25%      see text                  2481          133205                 730                                               9693          9940            7594           2099
Decreasing Critical Illness                  0.00%      0                          37               1800                14                                               140             169              139                1
Level Term with CI (705)                     0.00%      0                                           6069                40                                               476             596              466            10
IFA Level Term with CI                       0.00%      0                                           3104                15                                                 31                                            45
Decreasing Term with CI (706)                0.00%      0                                           7536                59                                               690             805              690
IFA Decreasing Term with CI                  0.00%      0                                           2529                10                                                 21                                            32
Income Protection(inc IFA unemployment       4.00%      85% AM92/                  23                 21                10                                                 19                                            30
Cover)                                                  AF92


Sub total: Non-Profit Policies                                                    2541          154264                 878                                           11070           11510             8889           2217

Sub total: Direct Written Insurance                                               2541          154264                 878                                           11070           11510             8889           2217
Business

REASSURANCE CEDED
Non-Profit Policies
Permanent Health Insurance                      0       0                                           9 pa
Serious Illness Cover                           0       0                                                              173                                               104                                             104

Sub total: Non-Profit Policies                                                                      9 pa               173                                               104                                             104

Sub total: Reassurance Ceded                                                                        9 pa               173                                               104                                             104




                                                                                                            128
                                                                                                                                                                                                             Form 51
                                                                                                                                                                                                            (Sheet 8)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended       31st December 2004
                                                                                             Company
                                                                                             registration                              Period ended                                        Type of         Category
Type of business           Permanent Health Insurance Business                                                       GL/UK/CM                                    Units         UK/OS
                                                                                             number                              day     month    year                                     business        of surplus

Category of surplus        OB Taxable                                                R51             35                GL        31        12     2004           £000           UK            PHI              11
                                                                           No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums     Amount of
   Type of insurance or name of contract       Valuation basis           contracts        assured or                                            office         assured or                                  mathematical
                                                                                         annuities per            premiums                                    annuities per
                                                                                       annum, including                                       premiums      annum, including                                 reserves
                                           Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office    Net premiums
                                                                                            vested                                                               vested
                                           interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                           bonuses                                              profits         bonuses


                      1                       2              3              4                 5                  6              7                8                 9              10            11             12

Net total: Permanent Health Insurance                                           2541          154264                 705                                           10966           11510            8889         2113
Business                                                                                       (9) pa

Net total: United Kingdom Insurance                                        104238           1247422              21545                                            399593          146529        101208         300623
Business                                                                                    3948 pa




                                                                                                          129
                                                                                                                                                                                                                    Form 51
                                                                                                                                                                                                                   (Sheet 9)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                           Type of           Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         OB Taxable                                                 R51             35                GL        31        12     2004           £000           OS             L&GA                 11
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums          Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                       mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                      reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office       Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                      1                         2              3              4                 5                  6              7                8                 9              10              11                12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Whole Life Assurances                       3.00%       110% AM92/                685               2794               141                                               1715            826               454          1261
                                                        AF92
Whole Life Assurances (Gross Roll Up)       3.50%       110% AM92/                1038              5043               360                                               2192          2919            1909                283
                                                        AF92
Caledonian Whole Life Assurances: With      3.00%       AM80/AF80 +1               42               181                  2                                               132             18                 2              130
Simple Bonuses
Caledonian Whole Life Assurances: With      3.00%       AM80/AF80 +1              882               9664               293                                               5972          3050            2437             3535
Compound Bonuses
Endowment Assurances                        3.00%       110% AM92/             35827            298009             11015                                            241800           76654           66230            175570
                                                        AF92
Endowment Assurances (Gross Roll Up)        3.50%       110% AM92/             17654            178408              8082                                            142583           80411           70752             71831
                                                        AF92
Caledonian Endowment Assurances: With       3.00%       AM80/AF80 +1               16                 71                 1                                                 66               2               1              65
Simple Bonuses
Caledonian Endowment Assurances: With       3.00%       AM80/AF80 +1              5629           43133              3033                                             34366           19316           17321             17045
Compound Bonuses
Endowment Plus Assurances                   3.00%       110% AM92/                1271           11073                 264                                               9709          1185                909          8800
                                                        AF92
Low Cost Endowment Assurances               3.00%       110% AM92/             12328            118963              5125                                             92662           46797           40281             52381
                                                        AF92
Low Cost Endowment (Gross Roll Up)          3.50%       110% AM92/                565               7860               443                                               5031          5371            4882                149
                                                        AF92
Endowment/Term Assurances                   3.00%       110% AM92/                1678           10264                 501                                               8675          3029            2499             6176
                                                        AF92
Mortgage Protection Assurances              3.00%       110% AM92/                 29                 53                 1                                                 14               1               (1)            15
                                                        AF92
Waiver of Premium Benefit                     n/a       see text                                                         3                                                 3                                                   3
Free Policies:- Whole Life Assurances       3.00%       110% AM92/                 94               278                                                                  197                                               220
                                                        AF92




                                                                                                            130
                                                                                                                                                                                                                     Form 51
                                                                                                                                                                                                                   (Sheet 10)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                                 Company
                                                                                registration                                               Period ended                                          Type of           Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                 business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus         OB Taxable                                                 R51               35                GL        31        12     2004           £000           OS            L&GA                 11
                                                                             No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts          assured or                                            office         assured or                                      mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office      Net premiums
                                                                                                vested                                                               vested
                                             interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                         2              3              4                   5                  6              7                8                 9              10             11                12
Free Policies:- Endowment Assurances        3.00%       110% AM92/                717                 1524                                                                 1141                                          1312
                                                        AF92
Free Policies:- Endowment Assurances (      3.50%       110% AM92/                134                 156                                                                    99                                             149
Gross Roll Up)                                          AF92
Free Policies:- Low Cost Endowment          3.00%       110% AM92/                233                 543                                                                  343                                              425
Assurances                                              AF92
Free Policies:- Low Cost Endowment (        3.50%       110% AM92/                 20                   56                                                                   28                                             39
Gross Roll Up)                                          AF92
Additional ReservesMortality Options            0       see text                                                                                                           2199                                          2199
Additional ReservesExtra Risks                  0       see text                                                                                                             97                                             97
Additional ReservesCaledonian Business          0       see text                                                                                                       16208                                            16208
General Reserve for Contingencies                                                                                                                                                                                        3588

Sub total: With-Profits Policies                                               78842              688073             29264                                            565232          239579         207676            361481
Non-Profit Policies
Whole Life Assurances                       3.00%       110% AM92/                375                 1136                30                                               609             308              (53)            662
                                                        AF92
Caledonian Whole Life Assurances            3.00%       AM80/AF80 +1              391                 1490                27                                               989             274              129             860
Endowment Assurances                        3.00%       110% AM92/                 35                 147                  3                                               109             24                 4             105
                                                        AF92
Endowment Assurances (Gross Roll Up)        0.00%       0                              2                                                                                                                     (1)                1
Caledonian Endowment Assurances             3.00%       AM80/AF80 +1               24                 170                  5                                               155             12               10              145
Mortgage Protection Assurances              3.00%       110% AM92/                399                 7949                38                                               254             324              202             52
                                                        AF92
Mortgage Protection (Gross Roll Up)         3.50%       110% AM92/                775              72680                 231                                               3571          3131           2294             1277
                                                        AF92
Level Term Assurances                       3.00%       110% AM92/                4508            138576                 504                                               3414          4368           2408             1006
                                                        AF92




                                                                                                              131
                                                                                                                                                                                                                     Form 51
                                                                                                                                                                                                                   (Sheet 11)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                                 Company
                                                                                registration                                               Period ended                                           Type of          Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                  business         of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus         OB Taxable                                                 R51               35                GL        31        12     2004           £000           OS             L&GA                11
                                                                             No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts          assured or                                            office         assured or                                      mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office       Net premiums
                                                                                                vested                                                               vested
                                             interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                         2              3              4                   5                  6              7                8                 9              10              11               12
Term Assurances (Gross Roll Up)             3.50%       110% AM92/                7368            549017              1514                                             21463           20039           12519             8944
                                                        AF92
Caledonian PMPA Level Term Assurance        3.00%       TM80 SEL                  278                 4693                18                                               144             145               85             59
Caledonian Decreasing Term Assurance        3.00%       TM80 SEL               11489              395096              2060                                             18209           16581           14879             3330
Caledonian Decreasing Term (GRU)            3.50%       TM80 SEL               10587            1392079               2834                                             51284           38570           33991            17293
Caledonian Level Term Assurance             3.00%       TM80 SEL                  6173            372988              1703                                             19714           11801           10870             8844
Caledonian Level Term (Gross Roll Up)       3.50%       TM80 SEL                  2800            394052              1286                                             27901           15692           14404            13497
Caledonian Convertible Term Assurance       3.00%       TM80 SEL                  6359            470934              1538                                             22832           11736           10732            12100
Caledonian Convertible Term (GRU)           3.50%       TM80 SEL                  2132            357034                 809                                           19782             9898            8980           10802
Caledonian Increasing Term (GRU)            0.00%       0                          79              15915                  41                                               1952            918               862         1090
Caledonian Dynamic Cover Plan               3.00%       TM80 SEL                       8              1190                 8                                                 6                6               5                 1
Caledonian Family Income Benefit            3.00%       TM80 SEL                   69                 854                  5                                                 19            17                14                 5
Caledonian Collective Life Assurances       See text    0                              2          387783                 312                                               312                                              312
Caledonian GSB Life Cover                   3.00%       TM80 SEL               21135              732473              3006                                             29304           27164           23637             5667
Caledonian GSB Life Cover (GRU)             3.50%       TM80 SEL               24459            2162365               5209                                             90885           74280           64115            26770
Caledonian GSB Life & SI Cover              3.00%       see text                  896              51872                 213                                               2531          2456            2277               254
Caledonian GSB Life & SI Cover (GRU)        3.50%       see text                  2003            237249                 571                                               8684          7937            7261            1423
Waiver of Premium Benefit                     n/a       see text                                                           4                                                 4                                                  4
Caledonian Waiver of Premium Benefit          n/a       see text
Caledonian Fatal Accident Cover               n/a       see text
Free Policies:- Whole Life Assurances       3.00%       110% AM92/                240                 286                                                                  293                                              293
                                                        AF92
Free Policies:- Endowment Assurances        3.00%       110% AM92/                2100                5243                                                                 4494                                          4494
                                                        AF92




                                                                                                              132
                                                                                                                                                                                                              Form 51
                                                                                                                                                                                                            (Sheet 12)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                        Type of        Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                             business       of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         OB Taxable                                                 R51             35                GL        31        12     2004           £000           OS          L&GA              11
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                 mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office    Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                      1                         2              3              4                 5                  6              7                8                 9              10            11            12

Sub total: Non-Profit Policies                                               104686           7753271              21969                                            328914          245681        209624        119290

Sub total: Direct Written Insurance                                          183528           8441344              51233                                            894146          485260        417300        480771
Business

REASSURANCE CEDED
Non-Profit Policies
Term Assurance                                  0       0                                        13251                  99                                                 49                                          49
Caledonian Term Assurance (GRU)              3.50%       TM80 SEL               15772         1884491                                                                                                            35577
Risk Premium                                    0       0                                           4629                49                                                 25                                          25
Caledonian Risk Premium                         0       0                      63930          3473142                                                                                                            23753
Caledonian Group Life                           0       0                         237            40128                                                                                                            1171
Caledonian Group Life Risk Premium              0       0                         1444          142440                                                                                                               (115)
Extra Risks                                     0       0                                                               23                                                 23                                          23

Sub total: Non-Profit Policies                                                 81383          5558081                  171                                                 97                                    60483

Sub total: Reassurance Ceded                                                   81383          5558081                  171                                                 97                                    60483

Net total: Life Assurance & General                                          183528           2883263              51062                                            894049          485260        417300        420288
Annuity Insurance Business




                                                                                                            133
                                                                                                                                                                                                                   Form 51
                                                                                                                                                                                                                 (Sheet 13)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                                Company
                                                                                                registration                              Period ended                                          Type of          Category
Type of business            Pension Insurance Business                                                                  GL/UK/CM                                    Units         UK/OS
                                                                                                number                              day     month    year                                       business         of surplus

Category of surplus         OB Taxable                                                R51               35                GL        31        12     2004           £000           OS            Pens                11
                                                                            No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums        Amount of
   Type of insurance or name of contract        Valuation basis           contracts          assured or                                            office         assured or                                     mathematical
                                                                                            annuities per            premiums                                    annuities per
                                                                                          annum, including                                       premiums      annum, including                                    reserves
                                            Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office      Net premiums
                                                                                               vested                                                               vested
                                            interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                              bonuses                                              profits         bonuses


                      1                        2              3              4                   5                  6              7                8                 9              10             11               12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Caledonian Deferred Annuities -Premium      3.50%      Compound                  2785           9232 pa              4108                                             99609           34636          28953            70656
Paying                                                 Interest
Caledonian Deferred Annuities -Single       3.50%      Compound                  2700           4575 pa                                                               50495                                           53805
Premium / Paid Up                                      Interest
Caledonian Group Deferred Annuities -       3.50%      Compound                       4           131 pa                 38                                               1344            366              212         1132
Premium Paying                                         Interest
Caledonian Group Deferred Annuities -       3.50%      Compound                       6              49 pa                                                                497                                             507
Single Premium / Paid Up                               Interest
Caledonian Pension Assurances              See Text    0                              2                                                                                     5                                                 5

Sub total: With-Profits Policies                                                 5497         13987 pa               4146                                            151950           35002          29165           126105
Non-Profit Policies

Dependant's Term Assurance                  3.50%      110% AM92/                336                 9761                48                                               497             676              291            206
                                                       AF92


Caledonian Level Term Assurance             3.50%      TM80 SEL                  1080            106067                 441                                               6283          3707           3376            2907


Caledonian Convertible Term Assurance       3.50%      TM80 SEL                  769             104847                 408                                               8508          4127           3817            4691


Caledonian Widows' DIS Assurance            3.50%      TM80 SEL                   58                  256                20                                               1040            134              122            918




                                                                                                             134
                                                                                                                                                                                                                 Form 51
                                                                                                                                                                                                               (Sheet 14)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer               ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended          31st December 2004
                                                                                                 Company
                                                                                                 registration                              Period ended                                         Type of        Category
Type of business              Pension Insurance Business                                                                 GL/UK/CM                                    Units         UK/OS
                                                                                                 number                              day     month    year                                      business       of surplus

Category of surplus           OB Taxable                                               R51               35                GL        31        12     2004           £000           OS           Pens              11
                                                                             No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums     Amount of
   Type of insurance or name of contract         Valuation basis           contracts          assured or                                            office         assured or                                  mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                 reserves
                                             Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office     Net premiums
                                                                                                vested                                                               vested
                                             interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                       1                        2              3              4                   5                  6              7                8                 9              10            11             12
Annuities in Payment                         3.75%      70% PMA92 c.               41                 44 pa                                                                754                                          754
                                                        2010lc/PFA92 c.
                                                        2010lc
Caledonian Annuities in Payment              3.75%      70% PMA92 c.              1157           3559 pa                                                               46594                                        46594
                                                        2010lc/PFA92 c.
                                                        2010lc


Caledonian Deferred Annuities                3.50%      Compound                  106              100 pa                                                                  1414                                      1414
                                                        Interest
Caledonian Group Deferred Annuities          3.50%      Compound                   18                 76 pa                                                                844                                          844
                                                        Interest


Caledonian Group Life Assurances            See Text    0                          35             387783              1137                                                 1137                                      1137
Caledonian Group Dependants Annuities        0.00%      0                              2         1867 pa                 151                                               151                                          151
Waiver of Premium Benefit                     n/a       see text


Caledonian Delayed Annuity                   3.75%      70% PMA92 c.               19                 30 pa                                                                535                                          535
                                                        2010lc/PFA92 c.
                                                        2010lc
Caledonian Deferred Annuity                  3.75%      70% PMA92 c.              104              444 pa                                                                  7024                                      7024
                                                        2010lc/PFA92 c.
                                                        2010lc

Sub total: Non-Profit Policies                                                    3725            608714              2205                                             74781             8644          7606         67175
                                                                                                6120 pa

Sub total: Direct Written Insurance                                               9222            608714              6351                                            226731           43646         36771         193280
Business                                                                                       20107 pa




                                                                                                              135
                                                                                                                                                                                                           Form 51
                                                                                                                                                                                                         (Sheet 15)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended       31st December 2004
                                                                                             Company
                                                                                             registration                             Period ended                                        Type of        Category
Type of business           Pension Insurance Business                                                                GL/UK/CM                                   Units         UK/OS
                                                                                             number                             day     month    year                                     business       of surplus

Category of surplus        OB Taxable                                                R51             35                GL       31        12     2004           £000           OS           Pens             11
                                                                           No of       Amount of sums           Amount of annual           Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract       Valuation basis           contracts        assured or                                           office         assured or                                 mathematical
                                                                                         annuities per            premiums                                   annuities per
                                                                                       annum, including                                      premiums      annum, including                                reserves
                                           Rate of      Mortality or                                          Office      Net premiums      reserved for                        Office    Net premiums
                                                                                            vested                                                              vested
                                           interest    morbidity table                   reversionary       premiums                       expenses and      reversionary     premiums
                                                                                           bonuses                                             profits         bonuses


                      1                       2              3              4                 5                  6              7               8                 9              10            11            12

Net total: Pension Insurance Business                                           9222          608714              6351                                           226731           43646         36771        193280
                                                                                           20107 pa




                                                                                                          136
                                                                                                                                                                                                                Form 51
                                                                                                                                                                                                              (Sheet 16)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                              Company
                                                                                              registration                              Period ended                                         Type of          Category
Type of business            Permanent Health Insurance Business                                                       GL/UK/CM                                    Units         UK/OS
                                                                                              number                              day     month    year                                      business         of surplus

Category of surplus         OB Taxable                                                R51             35                GL        31        12     2004           £000           OS            PHI                11
                                                                            No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums       Amount of
    Type of insurance or name of contract       Valuation basis           contracts        assured or                                            office         assured or                                    mathematical
                                                                                          annuities per            premiums                                    annuities per
                                                                                        annum, including                                       premiums      annum, including                                   reserves
                                            Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office     Net premiums
                                                                                             vested                                                               vested
                                            interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                            bonuses                                              profits         bonuses


                        1                      2              3              4                 5                  6              7                8                 9              10            11               12

DIRECT WRITTEN INSURANCE BUSINESS
Non-Profit Policies
Serious Illness Cover                       3.00%      see text                  1962          118109                 566                                               8891          7947           6137           2754
Caledonian GSB Life & SI Cover              3.00%      see text                                 51872                  91                                               1085          1053              976            109
Caledonian GSB Life & SI Cover (GRU)        3.50%      see text                                167964                 257                                               3902          3566           3262              640

Sub total: Non-Profit Policies                                                   1962          337945                 914                                           13878           12566         10375             3503

Sub total: Direct Written Insurance                                              1962          337945                 914                                           13878           12566         10375             3503
Business

REASSURANCE CEDED
Non-Profit Policies
Serious Illness Cover                          0       0                                                              138                                                 69                                           69

Sub total: Non-Profit Policies                                                                                        138                                                 69                                           69

Sub total: Reassurance Ceded                                                                                          138                                                 69                                           69

Net total: Permanent Health Insurance                                            1962          337945                 776                                           13809           12566         10375             3434
Business

Net total: Overseas Insurance Business                                      194712           3829922              58189                                          1134589           541472        464446           617002
                                                                                            20107 pa




                                                                                                           137
                                                                                                                                                                                                                   Form 51
                                                                                                                                                                                                                 (Sheet 17)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                          Type of           Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                               business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         IB Taxable                                                 R51             35                GL        31        12     2004           £000           UK            L&GA                 12
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                      mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                        1                       2              3              4                 5                  6              7                8                 9              10             11                12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies

Whole Life Assurances                       3.00%       90% ELT15M                4765              8218               834                                               5254          2408           1909             3345
Former FP Whole Life Assurances             3.00%       90% ELT15M             44562             41887              3163                                             30175           17733          12909             17266
Former FP Whole Life Assuarances with       3.00%       90% ELT15M             34218             22215                 528                                           18993               579              (32)        19025


Endowment Assurances                        3.00%       90% ELT15M             19188             34311              2810                                             30516             9233           7461            23055
Former FP Endowment Assurances              3.00%       90% ELT15M           307333             220034             12712                                            201229           58569          40780            160449
Flexible Endowment Assurance                3.00%       90% ELT15M                2597              6336               272                                               5608          1399           1109             4499
Endowment Assurance with Periodical         3.00%       90% ELT15M                260               378                 44                                               359             83               68              291
Endowments
Former FP Endowment Assurance with          3.00%       90% ELT15M             26985             15696              1470                                             17086           12379            8841             8245
Double Cover Endowment                      3.00%       90% ELT15M                679               1128               117                                               1019            449              366             653


Free Policies:- Whole Life Assurances       3.00%       90% ELT15M                1555              1375                                                                 1057                                          1074
Free Policies:- Former FP Whole Life        3.00%       90% ELT15M             41005             13154                                                               11376                                            11606
Assurances

Free Policies:- Endowment Assurances        3.00%       90% ELT15M                1521              719                                                                  620                                              628
Free Policies:- Flexible Endowment          3.00%       90% ELT15M                 83                 45                                                                   33                                             34
Assurance
Free Policies:- Double Cover Endowment      3.00%       90% ELT15M                160                 53                                                                   46                                             46




                                                                                                            138
                                                                                                                                                                                                                   Form 51
                                                                                                                                                                                                                 (Sheet 18)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                          Type of           Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                               business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         IB Taxable                                                 R51             35                GL        31        12     2004           £000           UK            L&GA                 12
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                      mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                      1                         2              3              4                 5                  6              7                8                 9              10             11                12



Whole Life Assurances                       3.00%       90% ELT15M             51454             35669              2225                                             23907           13005            8362            15545


Endowment Assurances                        3.00%       90% ELT15M                3017              2847               163                                               2559            466              338          2221
Endowment Assurances with Additional        3.00%       90% ELT15M                3565              3108               225                                               2893            596              445          2448
Death Benefit

Quinquennial Endowment :- Whole Life        3.00%       90% ELT15M                1714              557                 36                                               560             383              134             426
Assurances                                                                                    101 omb
Quinquennial Endowment :- Endowment         3.00%       90% ELT15M                896               383                 20                                               367             156              72              295
Assurances                                                                                     55 omb


Septennial Endowment :- Whole Life          3.00%       90% ELT15M                2002              1771                49                                               1051            47               (40)         1091
Assurances                                                                                    105 omb


Free Policies:- Whole Life Assurances       3.00%       90% ELT15M                6887              2150                                                                 1883                                          1918
Free Policies:- Septennial Endowment :-     3.00%       90% ELT15M                1246              636                                                                  322                                              354
Whole Life Assurances



Sub total: With-Profits Policies                                             555692             412670             24668                                            356913          117485          82722            274514
                                                                                             261 omb




                                                                                                            139
                                                                                                                                                                                                             Form 51
                                                                                                                                                                                                           (Sheet 19)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                            Period ended                                        Type of        Category
Type of business                                                                                                       GL/UK/CM                                   Units         UK/OS
                                                                                                                                                                                            business       of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                  day     month    year

Category of surplus         IB Taxable                                                 R51             35                GL       31        12     2004           £000           UK          L&GA              12
                                                                             No of       Amount of sums           Amount of annual           Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                           office         assured or                                 mathematical
                                                                                           annuities per            premiums                                   annuities per
                                                                                         annum, including                                      premiums      annum, including                                reserves
                                             Rate of      Mortality or                                          Office      Net premiums      reserved for                        Office    Net premiums
                                                                                              vested                                                              vested
                                             interest    morbidity table                   reversionary       premiums                       expenses and      reversionary     premiums
                                                                                             bonuses                                             profits         bonuses


                      1                         2              3              4                 5                  6              7               8                 9              10            11            12

Non-Profit Policies
Free Policies:- Whole Life Assurances       3.00%       90% ELT15M                9221              1955                                                                1178                                     1363
Free Policies:- Former FP Whole Life        3.00%       90% ELT15M           231471                 8474                                                                6966                                     8409
Assurances
Free Policies:- Endowment Assurances        3.00%       90% ELT15M                3442              1126                                                                1005                                     1020
Free Policies:- Former FP Endowment         3.00%       90% ELT15M             43653             11012                                                                  9410                                     9670
Assurances

Sub total: Non-Profit Policies                                               287787              22567                                                              18559                                       20462

Sub total: Direct Written Insurance                                          843479             435237             24668                                           375472          117485         82722        294976
Business                                                                                     261 omb

Net total: Life Assurance & General                                          843479             435237             24668                                           375472          117485         82722        294976
Annuity Insurance Business                                                                   261 omb

Net total: United Kingdom Insurance                                          843479             435237             24668                                           375472          117485         82722        294976
Business                                                                                     261 omb




                                                                                                            140
                                                                                                                                                                                                                 Form 51
                                                                                                                                                                                                               (Sheet 20)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                          Type of         Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                               business        of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         IB Taxable                                                 R51             35                GL        31        12     2004           £000           OS            L&GA               12
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums       Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                    mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                   reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                        1                       2              3              4                 5                  6              7                8                 9              10             11              12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies

Whole Life Assurances                       2.75%       90% ELT15M             19983             32444              3632                                             21397           17501          14108            7289
Endowment Assurances                        2.75%       90% ELT15M             81400            153156             15681                                            132408           75969          62454           69954
Flexible Endowment Assurance                2.75%       90% ELT15M             14745             42989              2098                                             34138           18224          14708           19430
Endowment Assurance with Periodical         2.75%       90% ELT15M                247               323                 38                                               308             67               54            254
Endowments
Double Cover Endowment                      2.75%       90% ELT15M             11721             23048              2378                                             20473           16621          13647            6826


Former Irish Life Pre-1980: Whole Life      2.75%       90% ELT15M             12452                4198                76                                               2992            401         (1080)          4072
Assurances
Former Irish Life Pre-1980: Endowment       2.75%       90% ELT15M                3485              2589                49                                               2424            235              84         2340
Assurances
Former Irish Life Pre-1980: Whole Life      2.75%       90% ELT15M                5390              715                 17                                               703             115          (220)             923
Assurances With Recurring Cash Bonus
Former Irish Life Post-1980: Whole Life     2.75%       90% ELT15M             13467             14367                 628                                           11130             2100           1361           9769
Assurances
Former Irish Life Post-1980: Endowment      2.75%       90% ELT15M             14794             98629              1978                                             15425             9836           7709           7716
Assurances
Former Irish Life Post-1980: Indexed        2.75%       90% ELT15M             20099             38590              2801                                             25626           11355            9185          16441
Endowment Assurances
Former Irish Life Post-1980: Indexed        2.75%       90% ELT15M             16291             39949              2726                                             19809           10275            8426          11383
Endowment Assurances With Cash Bonus




                                                                                                            141
                                                                                                                                                                                                                      Form 51
                                                                                                                                                                                                                    (Sheet 21)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer               ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended          31st December 2004
                                                                                                   Company
                                                                                  registration                                               Period ended                                          Type of          Category
Type of business                                                                                                           GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                   business         of surplus
                              Life Assurance & General Annuity Insurance Business number
                                                                                                                                       day     month    year

Category of surplus           IB Taxable                                                 R51               35                GL        31        12     2004           £000           OS            L&GA                12
                                                                               No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums        Amount of
    Type of insurance or name of contract          Valuation basis           contracts          assured or                                            office         assured or                                     mathematical
                                                                                               annuities per            premiums                                    annuities per
                                                                                             annum, including                                       premiums      annum, including                                    reserves
                                               Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office      Net premiums
                                                                                                  vested                                                               vested
                                               interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                                 bonuses                                              profits         bonuses


                      1                           2              3              4                   5                  6              7                8                 9              10             11               12
Free Policies:- Whole Life Assurances          2.75%      90% ELT15M                3093                2176                                                                 1712                                         1748


Free Policies:- Endowment Assurances           2.75%      90% ELT15M                5063                2543                                                                 2192                                         2223


Free Policies:- Flexible Endowment             2.75%      90% ELT15M                930                 492                                                                  355                                             367
Assurance
Free Policies:- Double Cover Endowment         2.75%      90% ELT15M                1745                775                                                                  608                                             626
Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M             23235                  4075                                                                 3497                                         3632
Whole Life Assurances
Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M             27384                  2283                                                                 1912                                         2383
Amnesty Whole Life Assurances
Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M                1560                682                                                                  648                                             655
Amnesty Endowment Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M             14617               14873                                                                   7178                                         7654
Whole Life Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M                103                   77                                                                   52                                            54
Amnesty Whole Life Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M                     5                 4                                                                   2                                                 2
Amnesty Endowment Assurances



Whole Life Assurances                          2.75%      90% ELT15M             56452               46247              2986                                             30674           19375          12653            18021
Endowment Assurances                           2.75%      90% ELT15M                1777                2136               117                                               1911            395              297         1614
Endowment Assurances with Additional           2.75%      90% ELT15M                9452             11512                 785                                           10336             3242           2483            7853
Death Benefit




                                                                                                                142
                                                                                                                                                                                                                    Form 51
                                                                                                                                                                                                                  (Sheet 22)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer              ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended         31st December 2004
                                                                                                 Company
                                                                                 registration                                              Period ended                                          Type of          Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                 business         of surplus
                             Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus          IB Taxable                                                  R51             35                GL        31        12     2004           £000           OS            L&GA                12
                                                                               No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums        Amount of
    Type of insurance or name of contract          Valuation basis           contracts        assured or                                            office         assured or                                     mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                    reserves
                                               Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                                vested                                                               vested
                                               interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                           2              3              4                 5                  6              7                8                 9              10             11               12
Quinquennial Endowment :- Whole Life           2.75%      90% ELT15M                1777              460                 44                                               626             502              238            388
Assurances                                                                                      141 omb
Quinquennial Endowment :- Endowment            2.75%      90% ELT15M                465               200                 15                                               229             136              75             154
Assurances                                                                                       47 omb


Septennial Endowment :- Whole Life             2.75%      90% ELT15M                7768              8057               300                                               5405          1737               906         4499
Assurances                                                                                      720 omb
Septennial Endowment :- Endowment              2.75%      90% ELT15M                1143              1134                31                                               703             220              92             611
Assurances                                                                                       75 omb


Free Policies:- Whole Life Assurances          2.75%      90% ELT15M                5477              2081                                                                 1843                                         1871
Free Policies:- Septennial Endowment :-        2.75%      90% ELT15M                1677              741                                                                  491                                             521
Whole Life Assurances

Sub total: With-Profits Policies                                               377797             551545             36380                                            357207          188306         147180           211273
                                                                                               983 omb
Non-Profit Policies

Former Irish Life Pre-1980: Whole Life         2.75%      90% ELT15M             17270                3508               271                                               3902          2491               671         3231
Assurances with Recurring Cash Bonus
Former Irish Life Post-1980: Whole Life        2.75%      90% ELT15M                3680              4130               404                                               2773          3761           2541               232
Assurances
Former Irish Life Post-1980: Indexed Whole     2.75%      90% ELT15M             11539                9320            1319                                             12799           12668            9488            3311
Life Assurances
Former Irish Life Post-1980: Serious Illness   2.75%      90% ELT15M                588               5408                76                                               4300            606              484         3816



                                                                                                              143
                                                                                                                                                                                                                      Form 51
                                                                                                                                                                                                                    (Sheet 23)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer               ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended          31st December 2004
                                                                                                   Company
                                                                                  registration                                               Period ended                                          Type of          Category
Type of business                                                                                                           GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                   business         of surplus
                              Life Assurance & General Annuity Insurance Business number
                                                                                                                                       day     month    year

Category of surplus           IB Taxable                                                 R51               35                GL        31        12     2004           £000           OS            L&GA                12
                                                                               No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums        Amount of
    Type of insurance or name of contract          Valuation basis           contracts          assured or                                            office         assured or                                     mathematical
                                                                                               annuities per            premiums                                    annuities per
                                                                                             annum, including                                       premiums      annum, including                                    reserves
                                               Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office      Net premiums
                                                                                                  vested                                                               vested
                                               interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                                 bonuses                                              profits         bonuses


                      1                           2              3              4                   5                  6              7                8                 9              10             11               12


Quinquennial Endowment :- Whole Life           2.75%      90% ELT15M                3688                2565               222                                               2309            848              597         1712
Assurances
Quinquennial Endowment :- Endowment            2.75%      90% ELT15M                619                 383                 32                                               419             103              76             343
Assurances

Free Policies:- Whole Life Assurances          2.75%      90% ELT15M                8364                1689                                                                 1030                                         1220
Free Policies:- Endowment Assurances           2.75%      90% ELT15M                3224                1217                                                                 1057                                         1077


Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M             91713                  3491                                                                 5546                                         5801
Whole Life Assurances
Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M                4958                638                                                                  669                                             731
Amnesty Whole Life Assurances
Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M                5230                830                                                                  693                                             729
Endowment Assurances
Free Policies:- Former Irish Life Pre-1980:    2.75%      90% ELT15M
Amnesty Endowment Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M             12395                  3624                                                                 2202                                         2517
Whole Life Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M                 16                    5                                                                   6                                                 6
Amnesty Whole Life Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M             10617                  2349                                                                 2271                                         2311
Endowment Assurances
Free Policies:- Former Irish Life Post-1980:   2.75%      90% ELT15M                     6                 2                                                                   2                                                 2
Amnesty Endowment Assurances

Sub total: Non-Profit Policies                                                 173907                39159              2324                                             39978           20477          13857            27039




                                                                                                                144
                                                                                                                                                                                                            Form 51
                                                                                                                                                                                                          (Sheet 24)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended       31st December 2004
                                                                                              Company
                                                                               registration                                            Period ended                                        Type of        Category
Type of business                                                                                                      GL/UK/CM                                   Units         UK/OS
                                                                                                                                                                                           business       of surplus
                           Life Assurance & General Annuity Insurance Business number
                                                                                                                                 day     month    year

Category of surplus        IB Taxable                                                 R51             35                GL       31        12     2004           £000           OS          L&GA              12
                                                                            No of       Amount of sums           Amount of annual           Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract        Valuation basis           contracts        assured or                                           office         assured or                                 mathematical
                                                                                          annuities per            premiums                                   annuities per
                                                                                        annum, including                                      premiums      annum, including                                reserves
                                            Rate of      Mortality or                                          Office      Net premiums      reserved for                        Office    Net premiums
                                                                                             vested                                                              vested
                                            interest    morbidity table                   reversionary       premiums                       expenses and      reversionary     premiums
                                                                                            bonuses                                             profits         bonuses


                      1                        2              3              4                 5                  6              7               8                 9              10            11            12

Sub total: Direct Written Insurance                                         551704             590704             38704                                           397185          208783        161037        238312
Business                                                                                    983 omb

Net total: Life Assurance & General                                         551704             590704             38704                                           397185          208783        161037        238312
Annuity Insurance Business                                                                  983 omb

Net total: Overseas Insurance Business                                      551704             590704             38704                                           397185          208783        161037        238312
                                                                                            983 omb




                                                                                                           145
                                                                                                                                                                                                                   Form 51
                                                                                                                                                                                                                 (Sheet 25)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                                 Company
                                                                                registration                                               Period ended                                         Type of          Category
Type of business                                                                                                         GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                business         of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                     day     month    year

Category of surplus         OB Non Taxable                                             R51               35                GL        31        12     2004           £000           UK           L&GA                13
                                                                             No of         Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums       Amount of
   Type of insurance or name of contract         Valuation basis           contracts          assured or                                            office         assured or                                    mathematical
                                                                                             annuities per            premiums                                    annuities per
                                                                                           annum, including                                       premiums      annum, including                                   reserves
                                             Rate of      Mortality or                                            Office       Net premiums      reserved for                        Office     Net premiums
                                                                                                vested                                                               vested
                                             interest    morbidity table                     reversionary       premiums                        expenses and      reversionary     premiums
                                                                                               bonuses                                              profits         bonuses


                      1                         2              3              4                   5                  6              7                8                 9              10            11               12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Whole Life Assurances                        3.75%      110% AM92/                780                  595                 4                                               395             30          (305)              700
                                                        AF92
Endowment Assurances                         3.75%      110% AM92/                525                  722                 8                                               618             24          (109)              727
                                                        AF92

Sub total: With-Profits Policies                                                  1305                1317                12                                               1013            54          (414)           1427
Non-Profit Policies
Whole Life Assurances                        3.75%      110% AM92/                260                   98                 2                                                 59            17          (156)              215
                                                        AF92
Endowment Assurances                         3.75%      110% AM92/                     7                 3                                                                   2                             (5)                7
                                                        AF92
Free Policies:- Whole Life Assurances        3.75%      110% AM92/                599                  106                                                                 273                                            273
                                                        AF92
Free Policies:- Endowment Assurances         3.75%      110% AM92/                227                   64                                                                   91                                           91
                                                        AF92
CSAAS Immediate Annuities                    3.75%      70% PMA92 c.              120              328 pa                                                                  3859                                        3859
                                                        2010lc/PFA92 c.
                                                        2010lc
CSAAS Temporary Annuities                    3.75%      70% PMA92 c.                                  2 pa                                                                   8                                                8
                                                        2010lc/PFA92 c.
                                                        2010lc
CSAAS Deferred Annuities                     3.75%      70% PMA92 c.              136              111 pa                                                                  1312                                        1312
                                                        2010lc/PFA92 c.
                                                        2010lc

Sub total: Non-Profit Policies                                                    1349                271                  2                                               5604            17          (161)           5765
                                                                                                  441 pa




                                                                                                              146
                                                                                                                                                                                                              Form 51
                                                                                                                                                                                                            (Sheet 26)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended       31st December 2004
                                                                                              Company
                                                                               registration                                             Period ended                                         Type of        Category
Type of business                                                                                                      GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                             business       of surplus
                           Life Assurance & General Annuity Insurance Business number
                                                                                                                                  day     month    year

Category of surplus        OB Non Taxable                                             R51             35                GL        31        12     2004           £000           UK           L&GA              13
                                                                            No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums     Amount of
   Type of insurance or name of contract        Valuation basis           contracts        assured or                                            office         assured or                                  mathematical
                                                                                          annuities per            premiums                                    annuities per
                                                                                        annum, including                                       premiums      annum, including                                 reserves
                                            Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office     Net premiums
                                                                                             vested                                                               vested
                                            interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                            bonuses                                              profits         bonuses


                      1                        2              3              4                 5                  6              7                8                 9              10            11             12

Sub total: Direct Written Insurance                                              2654              1588                14                                               6617            71          (575)         7192
Business                                                                                       441 pa

Net total: Life Assurance & General                                              2654              1588                14                                               6617            71          (575)         7192
Annuity Insurance Business                                                                     441 pa

Net total: United Kingdom Insurance                                              2654              1588                14                                               6617            71          (575)         7192
Business                                                                                       441 pa




                                                                                                           147
                                                                                                                                                                                                                    Form 51
                                                                                                                                                                                                                  (Sheet 27)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                           Type of           Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         OB Non Taxable                                             R51             35                GL        31        12     2004           £000           OS             L&GA                 13
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums          Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                       mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                      reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office       Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                      1                         2              3              4                 5                  6              7                8                 9              10              11                12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Whole Life Assurances                        3.50%      110% AM92/                 29                 28                                                                   19               2              (16)            35
                                                        AF92
Endowment Assurances                         3.50%      110% AM92/                 99               130                  1                                               114                4              (18)            132
                                                        AF92
Whole Life Assurances                        3.50%      110% AM92/                 17                 16                                                                   14                                              15
                                                        AF92

Sub total: With-Profits Policies                                                  145               174                  1                                               147                6              (34)            182
Non-Profit Policies
Whole Life Assurances                        3.50%      110% AM92/                 19                  8                                                                   6                1              (10)            16
                                                        AF92
Whole Life Assurances                        3.50%      110% AM92/                 88                 16                                                                   36                                              36
                                                        AF92
Endowment Assurances                         3.50%      110% AM92/                 54                 14                                                                   21                                              21
                                                        AF92

Sub total: Non-Profit Policies                                                    161                 38                                                                   63               1              (10)            73

Sub total: Direct Written Insurance                                               306               212                  1                                               210                7              (44)            255
Business

Net total: Life Assurance & General                                               306               212                  1                                               210                7              (44)            255
Annuity Insurance Business

Net total: Overseas Insurance Business                                            306               212                  1                                               210                7              (44)            255




                                                                                                            148
                                                                                                                                                                                                                   Form 51
                                                                                                                                                                                                                 (Sheet 28)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                          Type of           Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                               business          of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         IB Non Taxable                                             R51             35                GL        31        12     2004           £000           UK            L&GA                 14
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                      mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office      Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                      1                         2              3              4                 5                  6              7                8                 9              10             11                12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies
Endowment Assurance                          3.50%      90% ELT15M                600                570                33                                               536             56               37              499
With-profits / Contingency Bonus:- Whole     3.50%      90% ELT15M           104010              12965                 774                                               8976          2773          (5787)           14763
Life Assurances
With-profits / Contingency Bonus:-           3.50%      90% ELT15M                1632               815                56                                               762             100              56              706
Endowment Assurance
Quinquennial Endowment :- Whole Life         3.50%      90% ELT15M           136084              17402              1025                                             15415             9267          (7238)           22653
Assurances                                                                                   2799 omb
Quinquennial Endowment :- Endowment          3.50%      90% ELT15M             28308                6287               257                                               5285          2253          (1050)            6335
Assurances                                                                                    691 omb
Septennial Endowment :- Whole Life           3.50%      90% ELT15M                762                419                14                                               256             12               (21)            277
Assurances                                                                                     30 omb
Free Policies:- Whole Life Assurances        3.50%      90% ELT15M           322375              15718                                                               13187                                            15558
Free Policies:- Septennial Endowment :-      3.50%      90% ELT15M                1831               482                                                                 300                                              334
Whole Life Assurances

Sub total: With-Profits Policies                                             595602              54658              2159                                             44717           14461          (14003)           61125
                                                                                             3520 omb
Non-Profit Policies
Free Policies:- Whole Life Assurances        3.50%      90% ELT15M           989579                 7444                                                                 5413                                         16180
Free Policies:- Endowment Assurances         3.50%      90% ELT15M                7517               664                                                                 465                                              591

Sub total: Non-Profit Policies                                               997096                 8108                                                                 5878                                         16771




                                                                                                            149
                                                                                                                                                                                                            Form 51
                                                                                                                                                                                                          (Sheet 29)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer            ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended       31st December 2004
                                                                                              Company
                                                                               registration                                            Period ended                                        Type of        Category
Type of business                                                                                                      GL/UK/CM                                   Units         UK/OS
                                                                                                                                                                                           business       of surplus
                           Life Assurance & General Annuity Insurance Business number
                                                                                                                                 day     month    year

Category of surplus        IB Non Taxable                                             R51             35                GL       31        12     2004           £000           UK          L&GA              14
                                                                            No of       Amount of sums           Amount of annual           Proportion of    Value of sums     Value of annual premiums    Amount of
   Type of insurance or name of contract        Valuation basis           contracts        assured or                                           office         assured or                                 mathematical
                                                                                          annuities per            premiums                                   annuities per
                                                                                        annum, including                                      premiums      annum, including                                reserves
                                            Rate of      Mortality or                                          Office      Net premiums      reserved for                        Office    Net premiums
                                                                                             vested                                                              vested
                                            interest    morbidity table                   reversionary       premiums                       expenses and      reversionary     premiums
                                                                                            bonuses                                             profits         bonuses


                      1                        2              3              4                 5                  6              7               8                 9              10            11            12

Sub total: Direct Written Insurance                                        1592698              62766              2159                                            50595           14461        (14003)        77896
Business                                                                                    3520 omb

Net total: Life Assurance & General                                        1592698              62766              2159                                            50595           14461        (14003)        77896
Annuity Insurance Business                                                                  3520 omb

Net total: United Kingdom Insurance                                        1592698              62766              2159                                            50595           14461        (14003)        77896
Business                                                                                    3520 omb




                                                                                                           150
                                                                                                                                                                                                                   Form 51
                                                                                                                                                                                                                 (Sheet 30)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                           Type of          Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                                business         of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         IB Non Taxable                                             R51             35                GL        31        12     2004           £000           OS             L&GA                14
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums         Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                      mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                     reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office       Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                        1                       2              3              4                 5                  6              7                8                 9              10              11               12

DIRECT WRITTEN INSURANCE BUSINESS
With-Profits Policies

With-Profits / Reversionary Bonus :-         3.25%      90% ELT15M                 77                 64                 4                                                 60               7              4              56
Endowment Assurance
With-Profits / Contingency Bonus:- Whole     3.25%      90% ELT15M             44635                5709               299                                               3789          1208           (3824)           7613
Life Assurances
With-Profits / Contingency Bonus:-           3.25%      90% ELT15M                352               171                 11                                               162             19                11             151
Endowment Assurance

Whole Life Assurances                        3.25%      90% ELT15M             33644                3474               309                                               4066          2897           (1255)           5321
                                                                                              965 omb
Endowment Assurnaces                         3.25%      90% ELT15M             14608                1984               106                                               1903          1174           (1152)           3055
                                                                                              330 omb
Whole Life Assurances                        3.25%      90% ELT15M                346               125                  7                                               104                9              (4)            108
                                                                                               17 omb
Endowment Assurances                         3.25%      90% ELT15M                136                 48                 1                                                 29               3              (6)            35
                                                                                                 3 omb


Free Policies:- Whole Life Assurances        3.25%      90% ELT15M             74402                4431                                                                 3705                                          4295
Free Policies:- Septennial Endowment :-      3.25%      90% ELT15M                913               238                                                                  162                                              178
Whole Life Assurances
Free Policies:- Whole Life Assurances        3.25%      90% ELT15M           206632                 1359                                                                 948                                           4543
Free Policies:- Endowment Assurances         3.25%      90% ELT15M                3611              162                                                                  112                                              189




                                                                                                            151
                                                                                                                                                                                                               Form 51
                                                                                                                                                                                                             (Sheet 31)
Long term insurance business : Valuation summary of non-linked contracts (other than accumulating with-profit policies)

Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended        31st December 2004
                                                                                               Company
                                                                                registration                                             Period ended                                         Type of        Category
Type of business                                                                                                       GL/UK/CM                                    Units         UK/OS
                                                                                                                                                                                              business       of surplus
                            Life Assurance & General Annuity Insurance Business number
                                                                                                                                   day     month    year

Category of surplus         IB Non Taxable                                             R51             35                GL        31        12     2004           £000           OS           L&GA              14
                                                                             No of       Amount of sums           Amount of annual            Proportion of    Value of sums     Value of annual premiums     Amount of
   Type of insurance or name of contract         Valuation basis           contracts        assured or                                            office         assured or                                  mathematical
                                                                                           annuities per            premiums                                    annuities per
                                                                                         annum, including                                       premiums      annum, including                                 reserves
                                             Rate of      Mortality or                                          Office       Net premiums      reserved for                        Office     Net premiums
                                                                                              vested                                                               vested
                                             interest    morbidity table                   reversionary       premiums                        expenses and      reversionary     premiums
                                                                                             bonuses                                              profits         bonuses


                      1                         2              3              4                 5                  6              7                8                 9              10            11             12
Additional Reserves:- Contingencies             0       see text                                                                                                                                                  20651
Additional Reserves:- Prize Bonds               0       see text                                                                                                                                                   7536

Sub total: With-Profits Policies                                             379356              17765                 737                                           15040             5317         (6226)        53731
                                                                                             1315 omb

Sub total: Direct Written Insurance                                          379356              17765                 737                                           15040             5317         (6226)        53731
Business                                                                                     1315 omb

Net total: Life Assurance & General                                          379356              17765                 737                                           15040             5317         (6226)        53731
Annuity Insurance Business                                                                   1315 omb

Net total: Overseas Insurance Business                                       379356              17765                 737                                           15040             5317         (6226)        53731
                                                                                             1315 omb




                                                                                                            152
                                                                                                                                                                                                                                     Form 52
                                                                                                                                                                                                                                    (Sheet 1)
Long term insurance business : Valuation summary of accumulating with-profit policies

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended                    31st December 2004
                                                                                                              Company
                                                                                                              registration                         Period ended                                                  Type of            Category
Type of business                        Life Assurance & General Annuity Insurance                                               GL/UK/CM                                       Units            UK/OS
                                                                                                              number                           day    month      year                                            business           of surplus
                                        Business
Category of surplus                     OB Taxable                                 R52                               35             GL          31        12     2004           £000              UK              L&GA                 11
        Type of                Valuation basis            No of       Amount of sums assured or annuities per      Amount of annual premiums   Proportion of   Liability in respect of current           Other liabilities           Amount of
                                                                    annum, including vested reversionary bonuses                                   office    benefits including vested bonuses                                      mathematical
     insurance or                                       contracts
       name of                                                                                                                                   premiums                                                                             reserves
                             Rate of     Mortality or                Guaranteed      Current on    Guaranteed        Office          Net                        Current           Discounted      Mortality and   Options and
                                                                                                                                                reserved for                                                    guarantees other
       contract              interest    morbidity                    on death         death       on maturity     premiums       premiums                                            value        expenses
                                                                                                                                               expenses and benefit value                                         than investment
                                           table                                                                                                   profits                                                          performance
                                                                                                                                                                                                                     guarantees

           1                    2             3            4              5              6              7              8             9               10              11              12                13               14              15
DIRECT WRITTEN
INSURANCE BUSINESS
Personal Investment Plan    3.25%        100% A67/          12151                         19030                           5579                                          20061                             3545                           23606
                                         70

Sub total: Direct Written                                   12151                         19030                           5579                                          20061                             3545                           23606
Insurance Business

Net total: Life Assurance                                   12151                         19030                           5579                                          20061                             3545                           23606
& General Annuity
Insurance Business




                                                                                                                        153
                                                                                                                                                                                                                                     Form 52
                                                                                                                                                                                                                                    (Sheet 2)
Long term insurance business : Valuation summary of accumulating with-profit policies

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended                    31st December 2004
                                                                                                              Company
                                                                                                              registration                         Period ended                                                  Type of            Category
Type of business                        Pension Insurance Business                                                                GL/UK/CM                                      Units            UK/OS
                                                                                                              number                           day    month      year                                            business           of surplus

Category of surplus                     OB Taxable                                                  R52              35             GL          31        12     2004          £000               UK              Pens                 11
        Type of                Valuation basis            No of       Amount of sums assured or annuities per      Amount of annual premiums   Proportion of   Liability in respect of current           Other liabilities           Amount of
                                                                    annum, including vested reversionary bonuses                                   office    benefits including vested bonuses                                      mathematical
     insurance or                                       contracts
       name of                                                                                                                                   premiums                                                                             reserves
                             Rate of     Mortality or                Guaranteed      Current on    Guaranteed        Office          Net                        Current           Discounted      Mortality and   Options and
                                                                                                                                                reserved for                                                    guarantees other
       contract              interest    morbidity                    on death         death       on maturity     premiums       premiums                                            value        expenses
                                                                                                                                               expenses and benefit value                                         than investment
                                           table                                                                                                   profits                                                          performance
                                                                                                                                                                                                                     guarantees

           1                    2             3            4              5              6              7              8             9               10              11              12                13               14              15
DIRECT WRITTEN
INSURANCE BUSINESS
Personal Pension Plan       3.75%        90% A67/70         36007                      307621 pa                           3716                                      311975                               2279                          314254
Waiver of Premium            N/A         see text                                                                            35                                                                             35                               35
Benefit

Sub total: Direct Written                                   36007                     307621 pa                           3751                                       311975                               2314                          314289
Insurance Business

Net total: Pension                                          36007                     307621 pa                           3751                                       311975                               2314                          314289
Insurance Business

Net total: United Kingdom                                   48158                        19030                            9330                                       332036                               5859                          337895
Insurance Business                                                                    307621 pa




                                                                                                                        154
                                                                                                                                                                                                                                       Form 52
                                                                                                                                                                                                                                      (Sheet 3)
Long term insurance business : Valuation summary of accumulating with-profit policies

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended                    31st December 2004
                                                                                                                Company
                                                                                                                registration                         Period ended                                                  Type of            Category
Type of business                        Life Assurance & General Annuity Insurance                                                  GL/UK/CM                                      Units            UK/OS
                                                                                                                number                           day    month      year                                            business           of surplus
                                        Business
Category of surplus                     OB Taxable                                 R52                                 35             GL          31        12     2004          £000               OS              L&GA                 11
        Type of                Valuation basis            No of         Amount of sums assured or annuities per      Amount of annual premiums   Proportion of   Liability in respect of current           Other liabilities           Amount of
                                                                      annum, including vested reversionary bonuses                                   office    benefits including vested bonuses                                      mathematical
     insurance or                                       contracts
       name of                                                                                                                                     premiums                                                                             reserves
                             Rate of     Mortality or                  Guaranteed      Current on     Guaranteed       Office          Net                        Current           Discounted      Mortality and   Options and
                                                                                                                                                  reserved for                                                    guarantees other
       contract              interest    morbidity                      on death         death        on maturity    premiums       premiums                                            value        expenses
                                                                                                                                                 expenses and benefit value                                         than investment
                                           table                                                                                                     profits                                                          performance
                                                                                                                                                                                                                       guarantees

           1                    2             3            4                5              6               7             8             9               10              11              12                13               14              15
DIRECT WRITTEN
INSURANCE BUSINESS
Personal Investment Plan    3.50%         100% A67/            1140                            9291                          3538                                         9665                                508                           10173
                                         70
Caledonian With Profits     3.50%        AM80/AF80             4627                         199073                                                                     209252                               3905                          213157
Bond                                     +1

Sub total: Direct Written                                    5767                          208364                           3538                                       218917                               4413                          223330
Insurance Business

Net total: Life Assurance                                    5767                          208364                           3538                                       218917                               4413                          223330
& General Annuity
Insurance Business




                                                                                                                          155
                                                                                                                                                                                                                                     Form 52
                                                                                                                                                                                                                                    (Sheet 4)
Long term insurance business : Valuation summary of accumulating with-profit policies

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended                    31st December 2004
                                                                                                              Company
                                                                                                              registration                         Period ended                                                  Type of            Category
Type of business                        Pension Insurance Business                                                                GL/UK/CM                                      Units            UK/OS
                                                                                                              number                           day    month      year                                            business           of surplus

Category of surplus                     OB Taxable                                                  R52              35             GL          31        12     2004           £000              OS              Pens                 11
        Type of                Valuation basis            No of       Amount of sums assured or annuities per      Amount of annual premiums   Proportion of   Liability in respect of current           Other liabilities           Amount of
                                                                    annum, including vested reversionary bonuses                                   office    benefits including vested bonuses                                      mathematical
     insurance or                                       contracts
       name of                                                                                                                                   premiums                                                                             reserves
                             Rate of     Mortality or                Guaranteed      Current on    Guaranteed        Office          Net                        Current           Discounted      Mortality and   Options and
                                                                                                                                                reserved for                                                    guarantees other
       contract              interest    morbidity                    on death         death       on maturity     premiums       premiums                                            value        expenses
                                                                                                                                               expenses and benefit value                                         than investment
                                           table                                                                                                   profits                                                          performance
                                                                                                                                                                                                                     guarantees

           1                    2             3            4              5              6              7              8             9               10              11              12                13               14              15
DIRECT WRITTEN
INSURANCE BUSINESS
Personal Pension Plan       3.50%        90% A67/70          7104                       36164 pa                          4943                                          23245                            11492           10315           45052
Waiver of Premium             N/A        see text                                                                             9                                                                              9                                   9
Benefit

Sub total: Direct Written                                    7104                      36164 pa                           4952                                          23245                            11501           10315           45061
Insurance Business

Net total: Pension                                           7104                      36164 pa                           4952                                          23245                            11501           10315           45061
Insurance Business

Net total: Overseas                                         12871                        208364                           8490                                       242162                              15914           10315          268391
Insurance Business                                                                      36164 pa




                                                                                                                        156
                                                                                                                                                                                                                                     Form 53
                                                                                                                                                                                                                                    (Sheet 1)
Long term insurance business : Valuation summary of property linked contracts

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended                    31st December 2004
                                                                                                                Company
                                                                                                                registration                       Period ended                                                 Type of             Category
Type of business                        Life Assurance & General Annuity Insurance                                                   GL/UK/CM                                   Units         UK/OS
                                                                                                                number                          day month     year                                              business            of surplus
                                        Business
Category of surplus                     OB Taxable                                 R53                                 35              GL       31         12    2004           £000           UK                L&GA                  11
        Name of                Valuation basis            No of       Amount of sums assured or annuities per    Amount of annual premiums      Category of             Unit liability                Other liabilities              Amount of
        contract                                        contracts   annum, including vested reversionary bonuses                                 unit link                                                                          mathematical
                                                                                                                                                                                                               Options and            reserves
                             Rate of     Mortality or                Guaranteed       Current on      Guaranteed       Office           Net                       Current        Discounted    Mortality and
                             interest    morbidity                    on death       death/current    on maturity    premiums        premiums                   benefit value       value       expenses     guarantees other
                                                                                                                                                                                                                  than investment
                                           table                                      payable per                                                                                                                   performance
                                                                                        annum                                                                                                                        guarantees

           1                    2             3             4             5                6               7             8              9            10              11              12               13               14               15
DIRECT WRITTEN
INSURANCE BUSINESS
Non-Profit Policies

Maximum Investment          3.25%         100% A67/          1555             5794             6369                            779              Internal                5065                                12                               5077
Plan                                     70
Flexible Investment Bond    3.25%        100% A67/           3526                           20641                                               Internal              20436                                439                              20875
                                         70
Personal Investment Plan    3.25%        100% A67/                                          19266                                               Internal              19136                            2383                                 21519
                                         70
Waiver of Premium            N/A         see text                                                                               4                                                                           4                                    4
Benefit


Sub total: Non-Profit                                        5081             5794          46276                              783                                    44637                            2838                               47475
Policies


Sub total: Direct Written                                    5081             5794          46276                              783                                    44637                            2838                               47475
Insurance Business


Net total: Life Assurance                                    5081             5794          46276                              783                                   44637                             2838                               47475
& General Annuity
Insurance Business




                                                                                                                         157
                                                                                                                                                                                                                                      Form 53
                                                                                                                                                                                                                                     (Sheet 2)
Long term insurance business : Valuation summary of property linked contracts

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended                    31st December 2004
                                                                                                                  Company
                                                                                                                  registration                      Period ended                                                 Type of             Category
Type of business                        Pension Insurance Business                                                                    GL/UK/CM                                   Units         UK/OS
                                                                                                                  number                         day month     year                                              business            of surplus

Category of surplus                     OB Taxable                                                      R53              35             GL        31        12    2004           £000           UK                Pens                  11
        Name of                Valuation basis            No of        Amount of sums assured or annuities per    Amount of annual premiums       Category of            Unit liability                Other liabilities              Amount of
        contract                                        contracts    annum, including vested reversionary bonuses                                  unit link                                                                         mathematical
                                                                                                                                                                                                                Options and            reserves
                             Rate of     Mortality or                 Guaranteed       Current on       Guaranteed       Office          Net                       Current        Discounted    Mortality and
                             interest    morbidity                     on death       death/current     on maturity    premiums       premiums                   benefit value       value       expenses     guarantees other
                                                                                                                                                                                                                   than investment
                                           table                                       payable per                                                                                                                   performance
                                                                                         annum                                                                                                                        guarantees

           1                    2             3             4              5                6                7             8             9             10             11              12               13               14               15
DIRECT WRITTEN
INSURANCE BUSINESS
Non-Profit Policies

Retirement Annuity          3.75%        90% A67/70             74                          424 pa                                8              Internal                  424                              42                                466
Personal Pension Plan (     3.75%        90% A67/70              7                              13 pa                                            Internal                   13                               1                                 14
Old Life & Pensions
Division)
Personal Pension Plan (     3.75%        90% A67/70                                       39861 pa                                               Internal              39861                            1282                               41143
1998)
Stakeholder Pension Plan    3.75%        90% A67/70         15038                         38367 pa                             9093              Internal              38367                            8327                               46694
Personal Pension Plan (     3.75%        90% A67/70             25                          248 pa                                               Internal                  248                              25                                272
Minimum Contribution -
Old Life & Pensions
Division)


Sub total: Non-Profit                                       15144                         78913 pa                             9101                                    78913                            9677                               88589
Policies


Sub total: Direct Written                                   15144                         78913 pa                             9101                                    78913                            9677                               88589
Insurance Business


Net total: Pension                                          15144                         78913 pa                             9101                                   78913                             9677                               88589
Insurance Business


Net total: United                                           20225              5794         46276                             9884                                   123550                            12515                              136064
Kingdom Insurance
Business                                                                                 78913 pa




                                                                                                                           158
                                                                                                                                                                                                                                      Form 53
                                                                                                                                                                                                                                     (Sheet 3)
Long term insurance business : Valuation summary of property linked contracts

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended                    31st December 2004
                                                                                                                Company
                                                                                                                registration                        Period ended                                               Type of               Category
Type of business                        Life Assurance & General Annuity Insurance                                                    GL/UK/CM                                   Units         UK/OS
                                                                                                                number                           day month     year                                            business              of surplus
                                        Business
Category of surplus                     OB Taxable                                 R53                                 35               GL       31         12    2004           £000           OS                 L&GA                 11
        Name of                Valuation basis            No of        Amount of sums assured or annuities per    Amount of annual premiums      Category of             Unit liability                Other liabilities              Amount of
        contract                                        contracts    annum, including vested reversionary bonuses                                 unit link                                                                          mathematical
                                                                                                                                                                                                                Options and            reserves
                             Rate of     Mortality or                 Guaranteed     Current on       Guaranteed       Office            Net                       Current        Discounted    Mortality and
                             interest    morbidity                     on death     death/current     on maturity    premiums         premiums                   benefit value       value       expenses     guarantees other
                                                                                                                                                                                                                   than investment
                                           table                                     payable per                                                                                                                     performance
                                                                                       annum                                                                                                                          guarantees

           1                    2             3             4              5              6                7             8               9            10              11              12               13               14               15
DIRECT WRITTEN
INSURANCE BUSINESS
Non-Profit Policies

Special Incentive Savings   3.50%         100% A67/           5010                            20235                            6768              Internal               20235                               2471                             22706
Scheme                                   70
Personal Investment Plan    3.50%         100% A67/                                           1268                                               Internal                1242                               309                               1551
                                         70

Sub total: Non-Profit                                        5010                          21503                             6768                                      21477                            2780                               24257
Policies


Sub total: Direct Written                                    5010                          21503                             6768                                      21477                            2780                               24257
Insurance Business


Net total: Life Assurance                                    5010                          21503                             6768                                     21477                             2780                               24257
& General Annuity
Insurance Business




                                                                                                                         159
                                                                                                                                                                                                                                   Form 53
                                                                                                                                                                                                                                  (Sheet 4)
Long term insurance business : Valuation summary of property linked contracts

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

Overseas business

Financial year ended                    31st December 2004
                                                                                                             Company
                                                                                                             registration                       Period ended                                                  Type of             Category
Type of business                        Pension Insurance Business                                                              GL/UK/CM                                     Units         UK/OS
                                                                                                             number                          day month     year                                               business            of surplus

Category of surplus                     OB Taxable                                                 R53              35            GL          31        12    2004           £000           OS                 Pens                  11
        Name of                Valuation basis            No of       Amount of sums assured or annuities per    Amount of annual premiums   Category of             Unit liability                Other liabilities               Amount of
        contract                                        contracts   annum, including vested reversionary bonuses                              unit link                                                                           mathematical
                                                                                                                                                                                                            Options and             reserves
                             Rate of     Mortality or                Guaranteed     Current on     Guaranteed       Office         Net                         Current        Discounted    Mortality and
                             interest    morbidity                    on death     death/current   on maturity    premiums      premiums                     benefit value       value       expenses     guarantees other
                                                                                                                                                                                                                than investment
                                           table                                    payable per                                                                                                                   performance
                                                                                      annum                                                                                                                        guarantees

           1                    2             3             4             5              6              7             8            9               10             11              12               13                14               15
DIRECT WRITTEN
INSURANCE BUSINESS
Non-Profit Policies

Personal Pension Plan (     3.50%        90% A67/70                                       766 pa                                             Internal                  766                              278                                1044
1998)


Sub total: Non-Profit                                                                    766 pa                                                                        766                              278                               1044
Policies


Sub total: Direct Written                                                                766 pa                                                                        766                              278                               1044
Insurance Business


Net total: Pension                                                                       766 pa                                                                        766                              278                               1044
Insurance Business


Net total: Overseas                                          5010                         21503                          6768                                     22243                             3058                                25301
Insurance Business
                                                                                         766 pa




                                                                                                                      160
                                                                                                                                                                                                                                  Form 53
                                                                                                                                                                                                                                 (Sheet 5)
Long term insurance business : Valuation summary of property linked contracts

Name of insurer                         ROYAL LIVER ASSURANCE LTD
Global business

United Kingdom business

Financial year ended                    31st December 2004
                                                                                                                Company
                                                                                                                registration                      Period ended                                               Type of             Category
Type of business                        Life Assurance & General Annuity Insurance                                                  GL/UK/CM                                   Units         UK/OS
                                                                                                                number                         day month     year                                            business            of surplus
                                        Business
Category of surplus                     OB Non Taxable                             R53                                 35             GL        31        12    2004           £000           UK              L&GA                  13
        Name of                Valuation basis            No of       Amount of sums assured or annuities per    Amount of annual premiums     Category of             Unit liability                Other liabilities            Amount of
        contract                                        contracts   annum, including vested reversionary bonuses                                unit link                                                                        mathematical
                                                                                                                                                                                                              Options and          reserves
                             Rate of     Mortality or                Guaranteed        Current on     Guaranteed       Office          Net                       Current        Discounted    Mortality and
                             interest    morbidity                    on death        death/current   on maturity    premiums       premiums                   benefit value       value       expenses     guarantees other
                                                                                                                                                                                                               than investment
                                           table                                       payable per                                                                                                               performance
                                                                                         annum                                                                                                                    guarantees

           1                    2             3             4             5                 6              7             8             9             10             11              12               13             14               15
DIRECT WRITTEN
INSURANCE BUSINESS
Non-Profit Policies

Tax Exempt Bond             3.75%        100% A67/          12537             24524          27913                           3341              Internal              16228                            6206                               22434
                                         70

Sub total: Non-Profit                                       12537             24524          27913                           3341                                    16228                            6206                             22434
Policies


Sub total: Direct Written                                   12537             24524          27913                           3341                                    16228                            6206                             22434
Insurance Business


Net total: Life Assurance                                   12537             24524          27913                           3341                                   16228                             6206                             22434
& General Annuity
Insurance Business


Net total: United                                           12537             24524          27913                          3341                                    16228                             6206                             22434
Kingdom Insurance
Business




                                                                                                                         161
                                                                                                                                                                                                                     Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                                     (Sheet 1)
                                 ROYAL LIVER ASSURANCE LTD

Global business

United Kingdom business

Financial year ended             31st December 2004
Category of surplus              Ordinary Branch                                        Company
                                                                                        registration                          Period ended                                                      Category
                                                                                                              GL/UK/CM                                              Units           UK/OS                           IL/DH
                                                                                        number                             day month     year                                                   of surplus
Internal linked fund
                                                                              R55              35                   GL      31         12         2004              £000            UK                 15             ILH
          Name of fund link or           Name of unit       Valuation        Total actual      Value of total        Value of actual          Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                              held assets and           deemed allocated to contracts
           directly held asset              type          price per unit   number of units     actual units in        units held by         actual units in force                                              units or directly
                                                             or asset         in force or     force or directly       other internal        excluding those held                                                 held assets
                                                                            directly held       held assets           linked funds            by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                                linked funds                                   ceded
                                                                                assets                                                              (5-6)

                  1                            2                3                 4                     5                  6                         7                        8                    9                  10
U.K EQUITY                             Life                    1.359190          8330062                 11322                 9040                      2282                     1399                                      883
                                       Accumulation
U.K EQUITY                             Pension Capital         0.767610               85519                   66                 50                          16                       7                                      9
U.K EQUITY                             Pension Series 2        0.484140         40853422                 19779                 18570                     1209                     1175                                      34
U.K EQUITY                             Life Series 2           0.468380          6349802                     2974              2241                        733                      726                                      7
U.K EQUITY                             Pension                 1.544400           221325                     342                 248                         94                      65                                     29
                                       Accumulation
Sub total: U.K EQUITY                                                                                    34483                 30149                     4334                     3372                                      962


GLOBAL EQUITY                          Life                    0.786800           159656                     126                                           126                      122                                      4
                                       Accumulation
GLOBAL EQUITY                          Pension                 0.854780               8348                     7                                              7                       6                                      1
                                       Accumulation
GLOBAL EQUITY                          Pension Capital         0.428330               6891                     3                                              3                       2                                      1
GLOBAL EQUITY                          Pension Series 2        0.538740           303535                     164                                           164                      162                                      2
GLOBAL EQUITY                          Life Series 2           0.437680           431559                     189                                           189                      188                                      1
Sub total: GLOBAL EQUITY                                                                                     489                                           489                      480                                      9




                                                                                                       162
                                                                                                                                                                                                                    Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                                    (Sheet 2)
                                 ROYAL LIVER ASSURANCE LTD

Global business

United Kingdom business

Financial year ended             31st December 2004
Category of surplus              Ordinary Branch                                        Company
                                                                                        registration                          Period ended                                                     Category
                                                                                                              GL/UK/CM                                             Units           UK/OS                           IL/DH
                                                                                        number                             day month     year                                                  of surplus
Internal linked fund
                                                                              R55              35                   GL      31        12         2004              £000            UK                 15             ILH
          Name of fund link or           Name of unit       Valuation        Total actual      Value of total        Value of actual         Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                             held assets and           deemed allocated to contracts
           directly held asset              type          price per unit   number of units     actual units in        units held by        actual units in force                                              units or directly
                                                             or asset         in force or     force or directly       other internal       excluding those held                                                 held assets
                                                                            directly held       held assets           linked funds           by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                               linked funds                                   ceded
                                                                                assets                                                             (5-6)

                  1                            2                3                 4                     5                  6                        7                        8                    9                  10
HIGH YIELD                             Life                    2.214550          2366112                     5240                                       5240                     5230                                      10
                                       Accumulation
HIGH YIELD                             Pension                 3.004260               8017                    24                                            24                      22                                      2
                                       Accumulation
HIGH YIELD                             Pension Capital         1.461260               5344                     8                                             8                       7                                      1
HIGH YIELD                             Pension Series 2        0.918040          1993162                     1830                                       1830                     1829                                       1
HIGH YIELD                             Life Series 2           0.622930          8988165                     5599                                       5599                     5598                                       1
Sub total: HIGH YIELD                                                                                    12701                                          12701                    12686                                     15


INT'L EQUITY                           Life                    1.184030          6118531                     7245              5608                     1637                       605                                    1032
                                       Accumulation
INT'L EQUITY                           Pension                 1.343960           125708                     169                 154                        15                       3                                     12
                                       Accumulation
INT'L EQUITY                           Pension Capital         0.663290               64218                   43                 31                         12                       2                                     10
INT'L EQUITY                           Pension Series 2        0.628170         19539396                 12274                 11483                      791                      766                                     25
INT'L EQUITY                           Life Series 2           0.471010          3130277                     1474              1377                         97                      93                                      4
Sub total: INT'L EQUITY                                                                                  21205                 18653                    2552                     1469                                     1083




                                                                                                       163
                                                                                                                                                                                                                     Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                                     (Sheet 3)
                                 ROYAL LIVER ASSURANCE LTD

Global business

United Kingdom business

Financial year ended             31st December 2004
Category of surplus              Ordinary Branch                                        Company
                                                                                        registration                          Period ended                                                      Category
                                                                                                              GL/UK/CM                                              Units           UK/OS                           IL/DH
                                                                                        number                             day month     year                                                   of surplus
Internal linked fund
                                                                              R55              35                   GL      31         12         2004              £000            UK                 15             ILH
          Name of fund link or           Name of unit       Valuation        Total actual      Value of total        Value of actual          Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                              held assets and           deemed allocated to contracts
           directly held asset              type          price per unit   number of units     actual units in        units held by         actual units in force                                              units or directly
                                                             or asset         in force or     force or directly       other internal        excluding those held                                                 held assets
                                                                            directly held       held assets           linked funds            by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                                linked funds                                   ceded
                                                                                assets                                                              (5-6)

                   1                           2                3                 4                     5                  6                         7                        8                    9                  10
FIXED INTEREST                         Life                    1.281770          2209445                     2832              2024                        808                      805                                      3
                                       Accumulation
FIXED INTEREST                         Pension                 1.806600               33767                   61                 57                           4                       1                                      3
                                       Accumulation
FIXED INTEREST                         Pension Capital         0.901770               15260                   14                 12                           2                                                              2
FIXED INTEREST                         Pension Series 2        0.632870          7260867                     4595              4338                        257                      255                                      2
FIXED INTEREST                         Life Series 2           0.565140         14403750                     8140                513                     7627                     7624                                       3
Sub total: FIXED INTEREST                                                                                15642                 6944                      8698                     8685                                      13


MONEY                                  Life                    1.136250           746466                     848                 534                       314                      310                                      4
                                       Accumulation
MONEY                                  Pension                 1.607070               11218                   18                 15                           3                                                              3
                                       Accumulation
MONEY                                  Pension Capital         0.793230               4923                     4                  3                           1                                                              1
MONEY                                  Pension Series 2        0.630960          2151512                     1358              1133                        225                      222                                      3
MONEY                                  Life Series 2           0.552610          1405952                     777                 135                       642                      642
Sub total: MONEY                                                                                             3005              1820                      1185                     1174                                      11




                                                                                                       164
                                                                                                                                                                                                                  Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                                  (Sheet 4)
                                    ROYAL LIVER ASSURANCE LTD

Global business

United Kingdom business

Financial year ended                31st December 2004
Category of surplus                 Ordinary Branch                                      Company
                                                                                         registration                          Period ended                                                  Category
                                                                                                               GL/UK/CM                                          Units           UK/OS                           IL/DH
                                                                                         number                             day month     year                                               of surplus
Internal linked fund
                                                                                 R55            35                   GL      31     12         2004              £000            UK                 15             ILH
             Name of fund link or           Name of unit       Valuation        Total actual     Value of total       Value of actual      Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                           held assets and           deemed allocated to contracts
              directly held asset              type          price per unit   number of units    actual units in       units held by     actual units in force                                              units or directly
                                                                or asset         in force or    force or directly      other internal    excluding those held                                                 held assets
                                                                               directly held      held assets          linked funds        by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                             linked funds                                   ceded
                                                                                   assets                                                        (5-6)

                     1                            2                3                 4                   5                  6                     7                        8                    9                  10
MANAGED                                   Life                    1.311040         13123652               17206                                       17206                    17030                                     176
                                          Accumulation
MANAGED                                   Pension                 1.559710           304746                   475                                       475                      474                                      1
                                          Accumulation
MANAGED                                   Pension Capital         0.773390           123637                    96                                         96                      94                                      2
MANAGED                                   Pension Series 2        0.552240         64328073               35525                                       35525                    35451                                     74
MANAGED                                   Life Series 2           0.483580          8822771                   4267                                    4267                     4265                                       2
Sub total: MANAGED                                                                                        57569                                       57569                    57314                                     255



Sub total:


TAX EXEMPT MANAGED FUND                   Life                    1.165240          9670888               11269                                       11269                    11269
                                          Accumulation
TAX EXEMPT MANAGED FUND                   Life Series 2           0.459560         10354987                   4759                                    4759                     4759
Sub total: TAX EXEMPT MANAGED                                                                             16028                                       16028                    16028
FUND




                                                                                                        165
                                                                                                                                                                                                               Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                               (Sheet 5)
                                    ROYAL LIVER ASSURANCE LTD

Global business

United Kingdom business

Financial year ended                31st December 2004
Category of surplus                 Ordinary Branch                                    Company
                                                                                       registration                         Period ended                                                  Category
                                                                                                            GL/UK/CM                                          Units           UK/OS                           IL/DH
                                                                                       number                            day month     year                                               of surplus
Internal linked fund
                                                                               R55            35                  GL      31     12         2004              £000            UK                 15             ILH
             Name of fund link or           Name of unit     Valuation        Total actual     Value of total      Value of actual      Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                        held assets and           deemed allocated to contracts
              directly held asset              type        price per unit   number of units    actual units in      units held by     actual units in force                                              units or directly
                                                              or asset         in force or    force or directly     other internal    excluding those held                                                 held assets
                                                                             directly held      held assets         linked funds        by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                          linked funds                                   ceded
                                                                                 assets                                                       (5-6)

                     1                              2            3                 4                   5                 6                     7                        8                    9                  10
SAFEGUARD MANAGED FUND                    Life                  1.136940           187448                   213                                      213                      213
Sub total: SAFEGUARD MANAGED                                                                                213                                      213                      213
FUND


Sub total:


STAKEHOLDER PENSION MANAGED               Pension               0.537670         71332185               38353                                      38353                    38353
FUND
Sub total: STAKEHOLDER PENSION                                                                          38353                                      38353                    38353
MANAGED FUND




                                                                                                      166
                                                                                                                                                                                                                   Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                                   (Sheet 6)
                                 ROYAL LIVER ASSURANCE LTD

Global business

Overseas business

Financial year ended             31st December 2004
Category of surplus              Ordinary Branch                                      Company
                                                                                      registration                          Period ended                                                      Category
                                                                                                            GL/UK/CM                                              Units           UK/OS                           IL/DH
                                                                                      number                             day month     year                                                   of surplus
Internal linked fund
                                                                            R55              35                   GL      31         12         2004              £000            OS                 15             ILH
          Name of fund link or           Name of unit     Valuation        Total actual      Value of total        Value of actual          Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                            held assets and           deemed allocated to contracts
           directly held asset              type        price per unit   number of units     actual units in        units held by         actual units in force                                              units or directly
                                                           or asset         in force or     force or directly       other internal        excluding those held                                                 held assets
                                                                          directly held       held assets           linked funds            by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                              linked funds                                   ceded
                                                                              assets                                                              (5-6)

                   1                            2             3                 4                     5                  6                         7                        8                    9                  10
ROI IRISH EQUITY                       Life Units            0.852418          6108182                     5207              4504                        703                      702                                      1
ROI IRISH EQUITY                       Pension Units         0.793798           293273                     233                 177                         56                      55                                      1
Sub total: ROI IRISH EQUITY                                                                                5440              4681                        759                      757                                      2


ROI INT'L EQUITY                       Life Units            0.534110          8990110                     4802              4123                        679                      674                                      5
ROI INT'L EQUITY                       Pension Units         0.497508           403175                     201                 162                         39                      38                                      1
Sub total: ROI INT'L EQUITY                                                                                5003              4285                        718                      712                                      6


ROI EURO EQUITY                        Life Units            0.550669          5616750                     3093              2311                        782                      779                                      3
ROI EURO EQUITY                        Pension Units         0.512793           288828                     148                 91                          57                      57
Sub total: ROI EURO EQUITY                                                                                 3241              2402                        839                      836                                      3


ROI FIXED INTEREST                     Life Units            0.906322          6350056                     5755              3705                      2050                     2047                                       3
ROI FIXED INTEREST                     Pension Units         0.843993           199308                     168                 146                         22                      21                                      1
Sub total: ROI FIXED INTEREST                                                                              5923              3851                      2072                     2068                                       4


ROI MONEY                              Life Units            0.777522          3393911                     2639                355                     2284                     2281                                       3
ROI MONEY                              Pension Units         0.723795               30512                   22                 14                           8                       7                                      1
Sub total: ROI MONEY                                                                                       2661                369                     2292                     2288                                       4




                                                                                                     167
                                                                                                                                                                                                            Form 55

Long term insurance business : Analysis of units in internal linked funds and direct holdings of assets matching liabilities in respect of property linked benefits

Name of insurer                                                                                                                                                                                            (Sheet 7)
                                 ROYAL LIVER ASSURANCE LTD

Global business

Overseas business

Financial year ended             31st December 2004
Category of surplus              Ordinary Branch                                    Company
                                                                                    registration                         Period ended                                                  Category
                                                                                                         GL/UK/CM                                          Units           UK/OS                           IL/DH
                                                                                    number                            day month     year                                               of surplus
Internal linked fund
                                                                            R55            35                  GL      31     12         2004              £000            OS                 15             ILH
          Name of fund link or           Name of unit     Valuation        Total actual     Value of total      Value of actual      Value of directly       Value of units or directly held assets   Value of surplus
                                                                                                                                     held assets and           deemed allocated to contracts
           directly held asset              type        price per unit   number of units    actual units in      units held by     actual units in force                                              units or directly
                                                           or asset         in force or    force or directly     other internal    excluding those held                                                 held assets
                                                                          directly held      held assets         linked funds        by other internal             Gross           Reinsurance            (7-8+9)
                                                                                                                                       linked funds                                   ceded
                                                                              assets                                                       (5-6)

                  1                             2             3                 4                   5                 6                     7                        8                    9                  10
ROI MANAGED                            Life Units            0.683207         21951306               14997                                      14997                    14995                                      2
ROI MANAGED                            Pension Units         0.636234           926588                   590                                      590                      589                                      1
Sub total: ROI MANAGED                                                                               15587                                      15587                    15584                                      3


Total: Ordinary Branch                                                                              237543                73154              164389                  162019                                       2370




                                                                                                   168
                                                                                                                              Form 57
                                                                                                                             (Sheet 1)
Long-term insurance business - analysis of valuation interest rates

Name of insurer                 ROYAL LIVER ASSURANCE LTD

Financial year ended            31st December 2004

Category of surplus             Ordinary Branch

                                                  Company
                                                  registration                          Period ended                       Category
                                                                      GL/UK/CM                                 Units
                                                  number                          day     month    year                    of surplus

                                           R57          35               GL        31       12     2004        £000              15

                   Product group                           Net                      Net                  Gross         Risk adjusted
                                                       mathematical              valuation             valuation          yield on
                                                         reserves                 interest              interest         matching
                                                                                    rate                  rate             assets

                           1                                     2                   3                     4                 5

UK With Profit Taxable                                               181875                 3.25                                      3.71

UK With Profit Non Taxable                                            1431                                     3.75                   4.57

UK Non Profit Taxable                                                16029                  3.25                                      3.34

UK Non Profit Non Taxable                                              586                                     3.75                   4.05

UK General Annuity Business                                           9084                  3.75                                      4.09

UK With Profit Pensions Traditional                                  18396                                     3.75                   4.57

UK Non Profit Pension                                                75296                                     3.75                   4.05

UK PHI (excluding Income Protection)                                  2041                  3.25                                      3.34

ROI With Profit (Non GRU) Taxable                                    271555                 3.00                                      3.25

ROI Non Profit (Non GRU) Taxable                                     14348                  3.00                                      3.06

ROI With Profit (Non GRU) Non Taxable                                  183                                     3.50                   3.79

ROI Non Profit (Non GRU) Non Taxable                                    73                                     3.50                   3.53

ROI With Profit (GRU)                                                73957                  3.50                                      3.79

ROI Non Profit (GRU)                                                 44464                  3.50                                      3.53

ROI With Profit Pensions                                             128119                                    3.50                   3.79

ROI Pensions Annuities                                               54906                                     3.75                   4.06

ROI Other Non Profit Pensions                                        12269                                     3.50                   3.53

ROI PHI (Non GRU)                                                     2797                  3.00                                      3.06

ROI PHI (GRU)                                                          639                  3.50                                      3.53

UK Life Unitised With Profit                                         24081                  3.25                                      3.71

UK Pensions Unitised With Profit                                     324811                                    3.75                   4.75

ROI Life Unitised With Profit                                        228784                 3.50                                      3.79

ROI Pensions Unitised With Profit                                    46250                                     3.75                   3.79

UK Life Unitised Non Profit Taxable                                  47475                  3.25                                      3.34

UK Life Unitised Non Profit Non Taxable                              22434                                     3.75                   4.05

UK Pensions Unitised Non Profit                                      88590                                     3.75                   4.05




                                                                       169
                                                                                                                              Form 57
                                                                                                                             (Sheet 2)
Long-term insurance business - analysis of valuation interest rates

Name of insurer                ROYAL LIVER ASSURANCE LTD

Financial year ended           31st December 2004

Category of surplus            Ordinary Branch

                                                 Company
                                                 registration                           Period ended                       Category
                                                                      GL/UK/CM                                 Units
                                                 number                           day     month    year                    of surplus

                                          R57          35                GL        31       12     2004        £000              15

                   Product group                          Net                       Net                  Gross         Risk adjusted
                                                      mathematical               valuation             valuation          yield on
                                                        reserves                  interest              interest         matching
                                                                                    rate                  rate             assets

                          1                                     2                    3                     4                 5

ROI Life Unitised Non Profit                                         24257                  3.50                                      3.53

ROI Pensions Unitised Non Profit                                      1044                                     3.50                   3.53

Miscellaneous                                                        56344                                                            4.18



Total: Ordinary Branch                                              1772118




                                                                       170
                                                                                                                               Form 57
                                                                                                                              (Sheet 3)
Long-term insurance business - analysis of valuation interest rates

Name of insurer                ROYAL LIVER ASSURANCE LTD

Financial year ended           31st December 2004

Category of surplus            Industrial Branch

                                                   Company
                                                   registration                          Period ended                       Category
                                                                       GL/UK/CM                                 Units
                                                   number                          day     month    year                    of surplus

                                           R57           35               GL        31       12     2004        £000              16

                   Product group                            Net                      Net                  Gross         Risk adjusted
                                                        mathematical              valuation             valuation          yield on
                                                          reserves                 interest              interest         matching
                                                                                     rate                  rate             assets

                           1                                      2                   3                     4                 5

UK With Profit Taxable                                                276672                 3.00                                      3.46

UK Non Profit Taxable                                                 20462                  3.00                                      3.09

UK With Profit Non Taxable                                            61132                                     3.50                   4.36

UK Non Profit Non Taxable                                             16770                                     3.50                   3.99

ROI With Profit Taxable                                               213313                 2.75                                      3.00

ROI Non Profit Taxable                                                27043                  2.75                                      2.81

ROI With Profit Non Taxable                                           20812                                     3.25                   3.54

ROI Non Profit Non Taxable                                             4732                                     3.25                   3.28



Total: Industrial Branch                                              640936




                                                                        171
                                                                                                                               Form 58
Long term insurance business : Valuation result and distribution of surplus

Name of insurer              ROYAL LIVER ASSURANCE LTD
Global business
                                                               Company
Financial year ended         31st December 2004                registration                     Period ended                   Category
                                                               number           GL/UK/CM                              Units    of surplus
                                                                                           day    month    year
Category of surplus          Ordinary Branch
                                                     R58             35            GL      31       12         2004   £000        15

                    Fund carried forward                                                             11                       1758654
                    Bonus payments made to policyholders in anticipation of a surplus                12                        10298
                                                   Transfer to non-technical account                 13
                    Transfers out of fund/
                    parts of fund
                                                  Transfer to other funds/parts of funds             14

                    Net transfer out of funds/parts of funds (13+14)                                 15

Valuation result    Total (11+12+15)                                                                 16                       1768952

                    Mathematical reserves for accumulating with profit policies                      17                       606286
                    Mathematical reserves for other non linked contracts                             18                       925072
                    Mathematical reserves for property linked contracts                              19                       183799
                    Mathematical reserves for index linked contracts                                 20

                    Total (17 to 20)                                                                 21                       1715157
                    Surplus including contingency and other reserves held towards the
                    solvency margin (deficiency) (16-21)                                             29                        53795
                    Balance of surplus brought forward unappropriated from last valuation            31                          4751

                    Transfers into fund/part       Transfer from non-technical account               32
                    of fund
                                                   Transfer from other funds/parts of fund           33
Composition of
surplus             Net transfer into fund/part of fund (32+33)                                      34

                    Surplus arising since the last valuation                                         35                        49044
                    Total (31+34+35)                                                                 39                        53795

                    Bonus payments made to policyholders in anticipation of a surplus                41                        10298
                                                   Cash bonuses                                      42

                    Allocated to                   Reversionary bonuses                              43                        28824
                    policyholders by way of
                                                   Other bonuses                                     44

Distribution of                                    Premium reductions                                45
surplus             Total allocated to policyholders (41 to 45)                                      46                        39122
                    Net transfer out of fund/part of fund                                            47

                    Total distributed surplus (46+47)                                                48                        39122
                    Balance of surplus (including contingency and other reserves held
                    towards the solvency margin) carried forward unappropriated
                                                                                                     49                        14673
                    Total (48+49)                                                                    59                        53795
Percentage of distributed surplus allocated to policyholders of fund/part of fund                    61                        100.00
Corresponding       Latest      (year of valuation 2003 )                                            62                        100.00
percentage at
three immediately   Earlier     (year of valuation 2002 )                                            63                        100.00
previous
valuations          Earliest    (year of valuation 2001 )                                            64                        100.00




                                                                       172
                                                                                                                              Form 58
Long term insurance business : Valuation result and distribution of surplus

Name of insurer              ROYAL LIVER ASSURANCE LTD
Global business
                                                               Company
Financial year ended         31st December 2004                registration                     Period ended                  Category
                                                               number           GL/UK/CM                              Units   of surplus
                                                                                           day    month    year
Category of surplus          Industrial Branch
                                                     R58             35            GL      31       12         2004   £000       16

                    Fund carried forward                                                             11                       681042
                    Bonus payments made to policyholders in anticipation of a surplus                12                       25178
                                                   Transfer to non-technical account                 13
                    Transfers out of fund/
                    parts of fund
                                                  Transfer to other funds/parts of funds             14

                    Net transfer out of funds/parts of funds (13+14)                                 15

Valuation result    Total (11+12+15)                                                                 16                       706220

                    Mathematical reserves for accumulating with profit policies                      17

                    Mathematical reserves for other non linked contracts                             18                       664915
                    Mathematical reserves for property linked contracts                              19

                    Mathematical reserves for index linked contracts                                 20

                    Total (17 to 20)                                                                 21                       664915
                    Surplus including contingency and other reserves held towards the
                    solvency margin (deficiency) (16-21)                                             29                       41305
                    Balance of surplus brought forward unappropriated from last valuation            31                         7766

                    Transfers into fund/part       Transfer from non-technical account               32
                    of fund
                                                   Transfer from other funds/parts of fund           33
Composition of
surplus             Net transfer into fund/part of fund (32+33)                                      34

                    Surplus arising since the last valuation                                         35                       33539
                    Total (31+34+35)                                                                 39                       41305

                    Bonus payments made to policyholders in anticipation of a surplus                41                       25178
                                                   Cash bonuses                                      42

                    Allocated to                   Reversionary bonuses                              43                         4204
                    policyholders by way of
                                                   Other bonuses                                     44

Distribution of                                    Premium reductions                                45
surplus             Total allocated to policyholders (41 to 45)                                      46                       29382
                    Net transfer out of fund/part of fund                                            47

                    Total distributed surplus (46+47)                                                48                       29382
                    Balance of surplus (including contingency and other reserves held
                    towards the solvency margin) carried forward unappropriated
                                                                                                     49                       11923
                    Total (48+49)                                                                    59                       41305
Percentage of distributed surplus allocated to policyholders of fund/part of fund                    61                       100.00
Corresponding       Latest      (year of valuation 2003 )                                            62                       100.00
percentage at
three immediately   Earlier     (year of valuation 2002 )                                            63                       100.00
previous
valuations          Earliest    (year of valuation 2001 )                                            64                       100.00




                                                                       173
                                                                                                                           Form 60
Long term insurance capital requirement
Name of insurer             ROYAL LIVER ASSURANCE LTD
Global business
Financial year ended        31st December 2004               Company
                                                             registration                             Period ended
                                                             number                 GL/UK/CM                                  Units
                                                                                                day     month       year

                                                   R60               35               GL         31       12        2004      £000

                                          LTICR      Gross             Net            Reinsurance          LTICR            LTICR
                                          factor   reserves /       reserves /           factor           Financial        Previous
                                                   capital at       capital at                              year             year
                                                      risk             risk

                                           1          2                 3                  4                   5              6

Insurance death risk capital component
Classes I, II and IX                 11 0.1%          389826              389826                                     195

Classes I, II and IX                 12 0.15%             15571             15571          0.50000                    12

Classes I, II and IX                 13 0.3%         9492000           3970642                                     14238
Classes III, VII and VIII            14 0.3%              6466              6466           1.00000                    19

Total                                15              9903863           4382505                                     14467

Insurance health risk capital component
Class IV and supplementary           21                                                                              155
classes 1 and 2

Insurance expense risk capital component
Classes I, II and IX                 31    1%        2284346           2224918             0.97399                 22249
Classes III, VII and VIII
                                     32    1%                                              0.00000
(investment risk
Classes III, VII and VIII                             183800              183800               1.00                1838
                                     33    1%
(expenses fixed 5 yrs +)
Classes III, VII and VIII
(other)                              34   25%

Class IV                             35    1%             5719               4382          0.85000                    49

Class V                              36    1%
Class VI                             37    1%                                              0.00000

Total                                38                                                                            24136

Insurance market risk capital component
Classes I, II and IX                 41    3%        2284346           2224918             0.97399                 66748

Classes III, VII and VIII                                                                  0.00000
                                     42    3%
(investment risk
Classes III, VII and VIII
(expenses fixed 5 yrs +)             43    0%         183800              183800

Classes III, VII and VIII
(other)                              44    0%

Class IV                             45    3%             5719               4382              0.85                  146

Class V                              46    0%
Class VI                             47    3%                                              0.00000

Total                                48              2473865           2413100                                     66892



Long term insurance
                                     51                                                                         105650            96426
capital requirement




                                                           174
Supplementary Notes

Royal Liver Assurance

Financial Year Ended 31st December 2004


0201    Section 148 waiver modifying provisions of the Accounts and Statement
        Rules
        No waiver under section 148 has been issued

0202    Section 148 waiver relating to implicit items on long-term insurance
        business
        No section 148 waiver has been issued to the Society in respect of implicit
        items.



0301    Reconciliation of net admissible assets to total capital resources after
        deductions


                                                                          2004
                                                                          £000

Form 13 Line 89 (Long Term)                                                      3098526
Less:
Form 14, Line 11                                                              (2413100)
Form 14, Line 12                                                                      0
Form 14, Line 49                                                                (84577)
Additional capital resources attributable to related insurance                     2644
undertakings
Subtotal                                                                         603493
Equals:
Total Capital Resources (Form3, Line 79)                                         603493


0310    Valuation Differences

        Positive valuation differences included within line 14 in respect of liabilities
        where valuation in PRU is lower than the valuation used for external
        financial reporting purposes amounted to £6019000. These valuation
        differences related to mathematical reserves.

        Positive valuation differences included within line 14 in respect of assets
        where valuation in PRU is higher than the valuation used for external
        financial reporting purposes amounted to £970000. These valuation




                                           175
       differences related to investments in related undertakings.


1100   Form 11
       There is no comparative information for previous years as the volume of
       business was below the de-minimis limit for producing form 11 at 31
       December 2003

1200   Form 12
       There is no comparative information for previous years as the volume of
       business was below the de-minimis limit for producing form 12 at 31
       December 2003

1308   Unlisted Assets
       Line 41 contains £4,558,518 of unlisted assets in respect of venture capital
       Line 46 contains £7,536,495 of unlisted assets in respect of prize bonds.



1311   Maximum counterparty Limit
       The maximum amount the Society was permitted to be exposed to in respect
       of any one counterparty was £133m. There have been no breaches of these
       limits during the year.


1316   Amount of Tangible Leased Assets
       Line 80 includes leased assets with a value of £5,395,000


1401   Provision for Adverse changes
       No provision for adverse charges is required as the Society does not use
       derivatives in the management of its investment portfolio.

1402   Long Term Business Assets and Liabilities

              (a) There are no charges over assets.
              (b) The potential liability, and amount provided for, in respect of
                  potential capital gains tax is £ 8,661,000
              (c) During the year the Society continued to address issues arising
                  from past inappropriate selling practices. Provision for liabilities
                  continues to be made and is reviewed regularly. It is not possible
                  to predict with any certainty the extent and timing of the financial
                  impact of these liabilities. However, the Directors consider they
                  have made prudent provision for meeting such liabilities and the
                  Society has adequate resources to meet such liabilities as and
                  when they arise.
              (d) There are no other contingent liabilities other than those arising in
                  the normal course of business.
              (e) The Society guarantees the liabilities of its subsidiaries. There are
                  no other guarantees, indemnities or other contractual




                                        176
                   commitments effected other than in the normal course of business


1404    No Provision for adverse charges is required


1500    Form 15
        All entries, including comparatives would be nil

1600    Form 16
        Form 16 has been omitted. All entries, including comparatives would be nil.

1700    Form 17
        Form 17 has been omitted. All entries, including comparatives would be nil.
        There are no variation margins on any of the funds and no quasi-derivatives
        were used by the Society.



4002    Other Income and Expenditure

Details of Management expenses
                                    To year ending 31          To year ending 31
                                    December 2004              December 2003
                                    £’000                      £’000
OB business                         72,264                     79,344
IB business                         29,508                     34,444*

* includes an adjustment of £52k in respect of formerly Irish Life business

Details of currency adjustments
                                    To year ending 31          To year ending 31
                                    December 2004              December 2003
                                    £’000                      £’000
OB business                         2,373                      6,430
IB business                         1,044                      3,385




4005    Basis of Foreign currency conversion
        Transactions in foreign currency are translated into Sterling at the average
        rate of exchange for the year, other than remittances which are converted at
        the rate ruling on the day.


4006    Apportionment of Long Term Funds
        Investment income is allocated between the Industrial Assurance Fund and
        the Ordinary Assurance Fund based upon the mean of the average funds
        invested.




                                          177
       Expenses are allocated directly where possible or by using an activity based
       approach using appropriate cost drivers.

       ROI taxation is calculated separately for each fund. UK taxation is allocated
       on the basis of investment income and expenses of each fund.



4301   Valuation of linked Assets
       Listed securities are valued at middle market price. Unit trust holdings are
       valued at bid price.

4302   Derivative Contract / Rights and Liabilities
       As at 31 December 2004, the Society had no derivative holdings.




4402   Other income and Other expenditure
       Other income as at line 14 represents a £18,989 rebate of internal unit trust
       management charges.



4501   Valuation Price
       The valuation prices per unit are not the published prices but are the result of
       dividing the value of the fund by the total number of units in force in that
       fund.


4601   Non-Linked Contracts
       There were 77 Caledonian group contracts with an estimated 20,000
       members in force as at 31 December 2003. Two of these contracts relate to
       Life and General annuity business with the remainder relating to Pensions
       business. Theses contracts and their associated premiums have been
       excluded from the figures presented in Form 46.

4602   Balancing item
       As a result of a data cleansing exercise a significant number of extremely old
       policies were identified. Policies were removed from the data in cases where
       the main life assured had an age in excess of 100 years or where the maturity
       payment was significantly overdue.



4801   Accrued interest
       The amounts of accrued interest in lines 12, 13 and 17 were £10,607,551,




                                         178
       £4,567,580 and £5,891,000 respectively.

4802   Derivative Contracts
       No derivative contracts were held by the Society either during the year or at
       the end of the year. The results in Form 48 and Form 49 are therefore
       unaffected by:
           (i)     the exercising of options at the year end, and
           (ii)    the exercising of options at any time during the year.



5101   Number of Contracts: UK contracts
       Where appropriate, some polices have been treated as more than one
       contract. As a result these policies were counted twice and the number of
       contracts shown as being in force at the end of the year therefore exceeds the
       number of policies in force as follows:

       UK Taxable Assurance Business with participation in profits: 120
       UK Taxable Assurance Business without participation in profits: 3,198
       UK Pensions Business: 113
       Temporary Annuity policies: 4

5102   Number of Contracts: Overseas Contracts
       Where appropriate, some polices have been treated as more than one
       contract. As a result these policies were counted twice and the number of
       contracts shown as being in force at the end of the year therefore exceeds the
       number of policies in force as follows:

       Overseas Taxable Assurance Business with participation in profits: 123
       Overseas Taxable Assurance Business without participation in profits: 418
       Overseas Caledonian business: 35
       Overseas Pensions Business: 37

5103   Endowment Plus Assurances
       For Endowment Plus Assurances, the first amount shown in column 5 is the
       amount payable at maturity. The payable on accidental death is shown in
       italics.

5104   Low Cost Endowment Assurances
       For Low Cost Endowment Assurances, Endowment/Term Assurances and
       Capital Growth Plans, the first amount shown in column 5 is the amount
       payable at maturity. The amount payable on earlier death is shown in italics.

5105   Mortgage Protection Assurances
       For Mortgage Protection Assurances the first amount shown in column 5 is
       the amount payable on death. The amount payable at maturity is shown in
       italics.


5106   Subdivision of Policies




                                        179
       The subdivision of policies into taxable and non-taxable categories has been
       made according to the tables under which they have been written. The
       designation of tables as taxable or non-taxable reflects that tax status of the
       policies if written in the United kingdom and is not necessarily indicative of
       the tax treatment of policies written overseas.

5107   Value of Annual Premiums
       For without profits business (premium paying policies) the amount in column
       11 is the value of office premiums less the amount reserved for future
       expenses.
       For without profits business (free policies) the amount in column 9 is the
       amount reserved for future expenses.




5201   Number of Contracts: UK Accumulating With-Profits Life Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is shown above.

       As at 31 December 2004, 6,035 policyholders had with profits benefits only,
       5,005 policyholders had unit-linked benefits only, and 1,111 policyholders
       had with-profits and unit linked benefits and are thus duplicated.


       As at 31 December 2004, an annualised premium amount of £2,607,392 was
       being directed to the with-profits funds and an annualised premium amount if
       £2,971,695 was being directed to the unit-linked funds.

5202   Number of Contracts: UK Accumulating With-Profits Pensions Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is shown above.

       As at 31 December 2004, 29,876 policyholders had with profits benefits
       only, 4,974 policyholders had unit-linked benefits only, and 1,154
       policyholders had with-profits and unit linked benefits and are thus
       duplicated.

       As at 31 December 2004, an annualised premium amount of £2,700,352 was
       being directed to the with-profits funds and an annualised premium amount if
       £1,015,972 was being directed to the unit-linked funds

5203   Number of Contracts: UK Accumulating With-Profits Pensions Business
       There were 2,080 waiver of premium benefit riders-in-force at the valuation
       date which were treated as separate policies and were thus duplicated.

5204   Number of Contracts: Overseas Accumulating With-Profits Life
       Business




                                         180
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is shown above.

       As at 31 December 2004, 600 policyholders had with profits benefits only,
       381 policyholders had unit-linked benefits only, and 159 policyholders had
       with-profits and unit linked benefits and are thus duplicated..

       As at 31 December 2004, an annualised premium amount of £3,245,398 was
       being directed to the with-profits funds and an annualised premium amount if
       £292,283 was being directed to the unit-linked funds.

5205   Number of Contracts: Overseas Accumulating With-Profits Pensions
       Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is shown above.

       As at 31 December 2004, 6,479 policyholders had with profits benefits only,
       299 policyholders had unit-linked benefits only, and 326 policyholders had
       with-profits and unit linked benefits and are thus duplicated..

       As at 31 December 2004, an annualised premium amount of £4,477,776 was
       being directed to the with-profits funds and an annualised premium amount if
       £464,948 was being directed to the unit-linked funds

5206   Number of Contracts: Overseas Accumulating With-Profits Pensions
       Business
       There were 405 waiver of premium benefit riders-in-force at the valuation
       date which were treated as separate policies and were thus duplicated.



5301   Number of Contracts: UK Life and General Annuity Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is as follows:

       As at 31 December 2004, 6,035 policyholders had with profits benefits only,
       5,005 policyholders had unit-linked benefits only, and 1,111 policyholders
       had with-profits and unit linked benefits and are thus duplicated.

       As at 31 December 2004, an annualised premium amount of £2,607,392 was
       being directed to the with-profits funds and an annualised premium amount if
       £2,971,695 was being directed to the unit-linked funds

5302   Number of Contracts: UK Life and General Annuity Business
       There were 223 waiver of premium benefit riders-in-force at the valuation
       date which were treated as separate policies and were thus duplicated.




                                        181
5303   Number of Contracts: UK Pensions Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is as follows:

       As at 31 December 2004, 29,876 policyholders had with profits benefits
       only, 4,974 policyholders had unit-linked benefits only, and 1,157
       policyholders had with-profits and unit linked benefits and are thus
       duplicated.

       As at 31 December 2004, an annualised premium amount of £2,700,352 was
       being directed to the with-profits funds and an annualised premium amount if
       £1,015,972 was being directed to the unit-linked funds

5304   Number of Contracts: Overseas: Life and General Annuity Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is as follows:

       As at 31 December 2004, 600 policyholders had with profits benefits only,
       381 policyholders had unit-linked benefits only, and 159 policyholders had
       with-profits and unit linked benefits and are thus duplicated.

       As at 31 December 2004, an annualised premium amount of £3,245,398 was
       being directed to the with-profits funds and an annualised premium amount if
       £292,283 was being directed to the unit-linked funds

5305   Number of Contracts: Overseas Pensions Business
       Policyholders under the PIP contact have the options to freely switch and re-
       direct premiums between with-profits funds and linked funds. The number
       of contracts and total premium in force is as follows:

       As at 31 December 2004, 6,479 policyholders had with profits benefits only,
       299 policyholders had unit-linked benefits only, and 326 policyholders had
       with-profits and unit linked benefits and are thus duplicated.

       As at 31 December 2004, an annualised premium amount of £4,477,776 was
       being directed to the with-profits funds and an annualised premium amount if
       £464,948 was being directed to the unit-linked funds.



5400   Form 54 has been omitted. All entries, including comparatives would be nil.

5600   Form 56 has been omitted. All entries, including comparatives would be nil.




                                        182
Returns under the Accounts and Statements Rules
Statement required by Rule 9.29 of the Interim Prudential Sourcebook: Insurers (Accounts and
Statements Rules)
Name of company                    The Royal Liver Assurance Limited
Global business
Financial year ended               31 December 2004



Derivative Contracts

The Company’s policy during the year was not to invest in derivative contracts. Any change of policy
requires approval of the board of directors.

At the end of the financial year the Company had no outstanding derivative contracts. The Company did
not invest in derivative contracts during the year.




                                                183
Returns under the Accounts and Statements Rules
Statement required by Rule 9.30 of the Interim Prudential Sourcebook: Insurers (Accounts and
Statements Rules)
Name of company                    The Royal Liver Assurance Limited
Global business
Financial year ended               31 December 2004



Shareholder controllers

The following additional information is provided pursuant to Rule 9.30 of the Interim Prudential
Sourcebook: Insurers (Accounts and Statements Rules)

The Society is a mutual company and therefore has no shareholder controllers.




                                                 184
Returns under the Accounts and Statements Rules
Information on the actuary appointed to perform the with-profits actuary function
Name of company                    The Royal Liver Assurance Limited
Global business
Financial year ended               31 December 2004



Pursuant to Rule 9.36 of the Interim Prudential Sourcebook for Insurers, the Royal Liver Assurance
Limited (the Society) has made a request to Mr David Ford, who was the actuary appointed to perform
the with-profits actuary function throughout 2004, to furnish to it the particulars specified in paragraph
(1) of the aforesaid Rule. The following are the particulars identified pursuant to that request:

         a.   The actuary appointed to perform the with-profits actuary function had at no time in the
              year any interest in any shares in, or debentures of, any subsidiary of the Society (the
              Society itself is a mutual company).

         b.   The actuary appointed to perform the with-profits actuary function had no interest at any
              time in the year in any transaction between himself and the Society, or a subsidiary
              thereof..

         c.   The aggregate amount of the remuneration paid to the actuary appointed to perform the
              with-profits actuary function in 2004 and the value of other benefits granted to him,
              excluding pension fund contributions, was £96,000.

         d.   The only other pecuniary benefit was membership of the Royal Liver Superannuation
              Scheme under the normal terms applicable to a member of the Society’s staff.




                                                   185
Returns under the Accounts and Statements Rules
Directors’ Certificate pursuant to Rule 9.34 and Appendix 9.6 of the Interim Prudential Sourcebook:
Insurers (Accounts and Statements Rules)
Name of Company                               Royal Liver Assurance Limited
Global business
Financial year ended                          31st December 2004


We certify that:

(a)      the return has been properly prepared in accordance with the requirements in IPRU(INS) and
         PRU, and

(b)      we are satisfied that:

         (i)       throughout the financial year, the Society has complied in all material respects with
                   the requirements in SYSC and PRIN as well as the provisions of IPRU(INS) and
                   PRU; and

         (ii)      it is reasonable to believe that the Society has continued so to comply subsequently
                   and will continue so to comply in future;

(c)      in our opinion premiums for contracts entered into during the financial year and the resulting
         income earned are sufficient, under reasonable actuarial methods and assumptions, and taking
         into account the other financial resources of the Society that are available for the purpose, to
         enable the Society to meet its obligations in respect of those contracts and, in particular to
         establish adequate mathematical reserves;


(d)      the sum of the mathematical reserves and the deposits received from reinsurers as shown in
         Form 14, together with any amount shown at line 63 of Form 14 (being part of the excess of
         the value of the admissible assets representing the long-term insurance funds over the amount
         of those funds shown in Form 14), constitute proper provision at the end of the financial year
         in question for the long-term insurance business liabilities (including all liabilities arising from
         deposit back arrangements, but excluding other liabilities which had fallen due before the end
         of the financial year) including any increase in those liabilities arising from a distribution of
         surplus as a result of an actuarial investigation as at that date into the financial condition of the
         long-term insurance business;

(e)      the with-profits fund has been managed in accordance with the Principles and Practices of
         Financial Management, as established, maintained and recorded under COB 6.10; and

(f)      we have, in preparing the return, taken and paid due regard to:

         (i)       advice in preparing the return from every actuary appointed by the Society to perform
                   the actuarial function in accordance with SUP 4.3.13R; and

         (ii)      advice from every actuary appointed by the Society to perform the with-profits
                   actuary function in accordance with SUP 4.3.16R.




                                                                                             Steve Burnett
                                                                                     Group Chief Executive



                                                                                        George McGregor
                                                                                    Group Finance Director



                                                                                          William Connolly
                                                                                                  Secretary




                                                    186
Auditor’s report: Regulatory Return for a directive friendly society undertaking life insurance business

Royal Liver Assurance Limited

       Global business

       Financial year ended 31 December 2004

       Report to the Committee of Management pursuant to Rule 9.35 of the Interim Prudential
       Sourcebook for Insurers

       We have examined the following documents prepared by the Society pursuant to the Accounts and
       Statements Rules set out in part I and Part IV of chapter 9 to the Interim Prudential Sourcebook for
       Insurers and PRU the Integrated Prudential Sourcebook (“the Rules”) made by the Financial Services
       Authority under section 138 of the Financial Services and Markets Act 2000:-

           x   Forms 2, 3, 13, 14, 17, 18, 19, 40 to 45, 48, 49, 56, 58 and 60, (including the supplementary
               notes) on pages 175 to 182 (“the Forms”);

           x   the statement required by rule 9.29 on page 183 (“the Statement”);

           x   the methods and assumptions determined by the Society and used to perform the actuarial
               investigation as set out in the valuation report required by rule 9.31 (a) (“the methods and
               assumptions included in the valuation report”) on pages 31 to 94; and

           x   the statements, analysis and reports required by rule 9.31 (b) (“the realistic valuation report”) on
               pages 95 to 108 except as set out below (“the relevant parts of the realistic valuation report”).

       We are not required to examine and do not express an opinion on:-

           x   Forms 46 to 47A, 51, to 55 and 57 (including the supplementary notes) on pages 109 to 171;
           x   the statements required by rules 9.30 and 9.36 on pages 184 to 185;
           x   the directors’ certificate signed in accordance with rule 9.34(a) on page 186 (“the directors’
               certificate”);
           x   the valuation report required by the rule 9.31 (a) except as set out above; and
           x   the information contained in the realistic valuation report required by paragraph 4(6) of
               Appendix 9.4(A) and shown at paragraph 4(6) of the realistic valuation report.

       Respective responsibilities of the Society and its auditors

       The Society is responsible for the preparation of an annual return (including the Forms, the Statement,
       the valuation report, and the realistic valuation report, the forms and statements not examined by us and
       the directors’ certificate under the provisions of the Rules. Under rule 9.11 the Forms, the Statement,
       valuation report, the realistic valuation report, the forms and statements not examined by us and the
       directors’ certificate are required to be prepared in the manner specified by the Rules and to state fairly
       the information provided on the basis required by the Rules.

       The methods and assumptions determined by the Society and used to perform the actuarial investigation
       as set out in the valuation report and the realistic valuation report, prepared in accordance with rule 9.31
       are required to reflect appropriately the requirements of PRU 7.3 and 7.4.

       It is our responsibility to form an independent opinion s to whether the Forms, the Statement and the
       relevant parts of the realistic valuation report and the methods and assumptions included in the valuation
       report meet these requirements, and to report our opinions to you. We also report to you if, in our
       opinion, the Society has not kept proper accounting records or if we have not received all the
       information we require for our examination. This report has been prepared for the Committee of
       Management of Royal Liver Assurance Limited to comply with their obligations under rule 9.35 and for
       no other purposes. We do not, in providing this report, accept or assume responsibility for any other
       purpose save where expressly agreed by our prior consent in writing.


                                                  187
Basis of opinion

We conducted our work in accordance with Practice Note 24 ‘The audit of friendly societies in the
United Kingdom’ and Bulletin 2004/6 issued by the Auditing Practices Board. Our work included
examination, on a test basis, of evidence relevant to the amounts and disclosures in the Forms, the
Statement and the relevant parts of the realistic valuation report, and the methods and assumptions
included in the valuation report. The evidence included that previously obtained by us relating to the
audit of the financial statements of the Society for the financial year. It also included an assessment of
the significant estimates and judgements made by the Society in the preparation of the Forms, the
Statement and the realistic valuation report and in determining the methods and assumptions included in
the valuation report.

We planned and performed our work so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the
Forms, the Statement and the relevant parts of the realistic valuation report and the methods and
assumptions included in the valuation report are free from material misstatement, whether caused by
fraud or other irregularity or error and comply with rule 9.11.

In accordance with rule 9.35(1A), to the extent that any document, Form, Statement, analysis or report to
be examined under rule 9.35(1) contains amounts or information abstracted from the actuarial
investigation performed pursuant to rule 9.4, we have obtained and paid due regard to advice from a
suitably qualified actuary who is independent of the Society.

Opinion

In our opinion:-

 (i)    the Forms, the Statement and the relevant parts of the realistic valuation report fairly state the
        information provided on the basis required by the Rules and have been properly prepared in
        accordance with the provisions of those Rules; and

(ii)    the methods and assumptions determined by the Society and used to perform the actuarial
        investigation as set out in the valuation report and the relevant parts of the realistic valuation
        report prepared in accordance with rule 9.31 appropriately reflect the requirements of PRU 7.3
        and 7.4.




PricewaterhouseCoopers LLP.,
8 Princes Parade,
St. Nicholas Place,
Liverpool,
L3 1QJ.

Registered Auditor.

13 July, 2005.




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