Consolidated Balance Sheet

For the year ended 31 December 2007

		2007	2006
ASSETS	Notes	£m	£m
Cash and cash equivalents	16	11.6	16.5
Financial investments at fair value through income	17	2,638.9	2,367.7
Reinsurance assets	18
– reinsurers share of outstanding claims		270.2	357.0
– reinsurers share of unearned premium		27.5	37.7
– debtors arising from reinsurance operations		319.2	300.6
Loans and receivables, including insurance receivables
– insurance receivables	19	183.1	216.3
– loans and receivables	19	36.8	51.6
Current income tax asset		4.0	6.3
Deferred tax assets	14	13.4	20.9
Property and equipment	20	5.8	6.2
Intangible assets	21	69.0	66.0
Total assets		3,579.5	3,446.8

EQUITY
Share capital	22	134.4	133.5
Share premium	24	230.8	347.6
Other reserves	24	(30.2)	(21.8)
Treasury shares	24	(2.1)	(0.6)
Retained earnings	24	719.0	477.4
Equity attributable to equity holders of the parent		1,051.9	936.1
Minority interest	24	0.4	0.3
Total equity and reserves		1,052.3	936.4

LIABILITIES
Insurance contracts	18
– outstanding claims		1,350.2	1,417.5
– unearned premium		501.8	545.5
– creditors arising from insurance operations		34.0	68.6
Trade and other payables	25	207.1	68.4
Current income tax liabilities		25.7	28.7
Borrowings	26	277.5	278.8
Retirement benefit obligations	27	2.8	7.5
Deferred tax liabilities	14	128.1	95.4
Total liabilities		2,527.2	2,510.4
Total equity, reserves and liabilities		3,579.5	3,446.8

The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2008. They were signed on its behalf by:

Roger Taylor Chairman Richard Hextall Finance Director