Operating Profit from Continuing Operations
 Review of Results
 Summarised Consolidated Profit and Loss Account – Achieved Profits Basis
 Earnings per Share – Achieved Profits Basis
 Statement of Total Recognised Gains and Losses – Achieved Profits Basis
 Summarised Consolidated Balance Sheet – Achieved Profits Basis
 Reconciliation of Movement in Shareholders’ Capital and Reserves – Achieved Profits Basis
Notes on the Achieved Profits Basis Supplementary Information
 1 Basis of Preparation
 2 Assumptions
3 Discount Rates
 4 Investment Return
 5 Tax
 6 Foreign Currency Translation
 7 Cost of Capital
 The Achieved Profits Basis of Financial Reporting
 Report of the Auditors on the Achieved Profits Basis Supplementary Information

 

 

 

 

3 Discount Rates

The shareholders’ interests in the future net of tax cash flows of the long-term businesses have been discounted to present values using the following discount rates:

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19981997
UK operations8.5%9.5%
Jackson National Life8.5%10.0%

These discount rates represent the best estimate of the shareholders’ long-term risk free rate of return on appropriate government securities plus a margin to allow for adverse fluctuations and the risks borne.

The unwind of the discount rate on the present value of future statutory profits is included in profit from business in force.

 

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