THE EQUITABLE LIFE ASSURANCE SOCIETY
Profit and Loss Account
 
For the year ended 31 December 2004
 
 
Technical account - long-term business
 Group Group
  Notes 2004 2003
 £m £m
 
Earned premiums, net of reinsurance
Gross premiums written  2a 274.3 362.7
Outward reinsurance premiums 3 (128.7) (188.7)
 
  145.6 174.0
Investment income 4a 947.1 1,170.9
Unrealised gains on investments 4c 339.6  -
Other technical income 5a 7.5 14.5
 
 1,439.8 1,359.4
Claims incurred, net of reinsurance
Claims paid - gross amount 6 2,206.0 3,747.7
Reinsurers' share 3 (372.5) (545.8)
 
  1,833.5 3,201.9
Change in provision for claims - gross amount 6,17a 6.0 (42.9)
 
  1,839.5 3,159.0
 
Changes in other technical provisions, net of reinsurance
Long-term business provision - gross amount 17a (602.6) (2,472.5)
Reinsurers' share  3 (5.2) 41.6
 
 (607.8) (2,430.9)
Technical provisions for linked liabilities - gross amount 17a  (18.0) (17.3)
Reinsurers' share 3 34.3 27.1
 
 (591.5) (2,421.1)
Net operating expenses - non-exceptional 7a 54.0 69.6
Net operating expenses - exceptional 7b 71.8 43.7
Net operating expenses  125.8 113.3
Investment expenses including interest 4b 44.4 47.7
Unrealised losses on investments 4c  - 476.6
Other technical charges 5b 5.6 3.0
Taxation attributable to the long-term business 10a 11.4 (16.7)
Transfer to / (from) the fund for future appropriations 16 4.6 (2.4)
 
 191.8 621.5
  1,439.8 1,359.4
Balance on the Technical Account - -
 
 
 
Balance Sheets
 
As at 31 December 2004
 
 
Assets
 Group Society
 Notes 2004  2003 2004 2003
 £m £m £m £m
 
Investments
Land and buildings 11a 813.6 1,336.8 806.5 1,234.5
Investments in group undertakings 11b - - 19.2 118.0
Other financial investments 11c 13,678.0 13,921.7 13,625.5 13,869.5
 
  14,491.6 15,258.5 14,451.2 15,222.0
 
Assets held to cover linked 12 696.6 680.3 696.4 680.1
liabilities
 
Reinsurers' share of technical
provisions
 
Long-term business provision 374.6 369.4 374.6 369.4
Technical provisions for unit-linked
liabilities 2,313.8 2,348.1  2,313.8 2,348.1
 
 2,688.4 2,717.5 2,688.4 2,717.5
Debtors 13
Debtors arising out of direct 33.1 29.5 33.1 29.5
insurance operations
Debtors arising out of reinsurance 10.1 4.9 10.1 4.9
operations
Other debtors 203.4 44.2 238.7 58.6
 
 246.6 78.6 281.9 93.0
Other assets
Cash at bank and in hand 32.6 23.7 15.8 12.2
 
 32.6 23.7 15.8 12.2
Prepayments and accrued income
Accrued interest and rent 202.4  208.5 202.0 207.8
Other prepayments and accrued income 14 1.2 1.9 1.2 1.8
 
 203.6 210.4 203.2  209.6
 
Total assets 18,359.4 18,969.0 18,336.9 18,934.4
 
The notes on pages 23 to 49 form an integral part of these financial statements.
 
 
Balance Sheets
As at 31 December 2004
 
 
Liabilities
 Group Society
 
 Notes 2004 2003 2004 2003
  £m £m £m £m
 
Subordinated liabilities 15 170.3 348.3 167.1 346.2
 
Fund for future appropriations  16 556.4 552.0 547.4 542.2
 
Technical provisions 17a
Long-term business provision - gross 14,231.7 14,833.8 14,206.8 14,808.5
amount
Claims outstanding 7.0 1.0 7.0 1.0
Linked liabilities 3,010.4 3,028.4 3,010.2 3,028.2
 
  17,249.1 17,863.2 17,224.0 17,837.7
 
Provisions for other risks and charges 18 64.2 63.1 64.0 63.1
 
Creditors
Creditors arising out of direct insurance
operations 54.5 53.9 53.7 53.3
 
Amounts owed to credit institutions 19a 25.6 26.8 25.6 26.8
Other creditors including taxation and 
social security
 19b 200.9 25.8 228.1 41.6 
 
 
 281.0  106.5 307.4 121.7
 
Accruals and deferred income 38.4 35.9 27.0 23.5
 
Total liabilities 18,359.4 18,969.0 18,336.9 18,934.4