Other movements

Unrealised value movements in the fair value of derivatives of £(78) million were recognised in the income statement for the first time, having adopted IFRS. £(75) million of this movement relates to the valuation of the equity derivative embedded in the €550 million 2008 Convertible Bond. The movement is the product of a number of factors, the most significant of which was the increase in the Company's share price of 40% in the year.

Exchange movements of £47 million arose in respect of the US dollar denominated investment portfolio. As the dollar strengthened relative to sterling, the currency risk relating to this portfolio is now substantially hedged.