Consolidated Profit and Loss Account (Long-term Business Technical Account)

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Note	Year ended 31 December 1998		1998 £m	1997 £m
	Gross premiums written:
1		Continuing operations	10,640	9,641
9		Discontinued operations	423	665
	Total		11,063	10,306
	Outward reinsurance premiums		(70)	(54)
	Earned premiums, net of reinsurance		10,993	10,252
4	Investment income		8,516	6,211
	Unrealised gains on investments		3,842	5,668
	Claims paid:
		Gross amount	(9,079)	(8,526)
		Reinsurers’ share	59	66
	Net of reinsurance		(9,020)	(8,460)
	Change in the provision for claims:
		Gross amount	(12)	(42)
		Reinsurers’ share	(2)	1
	Net of reinsurance		(14)	(41)
	Claims incurred, net of reinsurance		(9,034)	(8,501)
	Change in long-term business provision:
		Gross amount	(8,422)	(8,063)
		Reinsurers’ share	27	22
	Net of reinsurance		(8,395)	(8,041)
	Change in provisions for linked liabilities, net of reinsurance		(1,439)	228
	Change in other technical provisions, net of reinsurance		(9,834)	(7,813)
6	Net operating expenses		(1,288)	(1,010)
7	Investment expenses and charges		(297)	(259)
8	Tax attributable to the long-term business		(686)	(574)*
	Allocated investment return transferred to the non-technical account		(5)	(21)*
	Transfers to the fund for future appropriations		(1,609)	(3,423)
	Balance on the long-term business technical account		598	530*
	Analysed between:
		Continuing operations	591	509
9		Discontinued operations	7	21
			598	530
	*Restated for altered basis of recognition of investment returns, as explained in note 3.