EQUITABLE LIFE
Profit and Loss Account
for the period ended 30 June 2003
 
Technical account - long-term business
 Half year Full year to
 ended 30 June 31 December
 2003 2002 2002
 Notes £m £m £m
Earned premiums, net of reinsurance
Gross premiums written 169 383 647
Outward reinsurance premiums (108) (214) (418)
 
 61 169  229
Investment income 2 625 1,164 2,134
Other technical income 1 1 2
 
  687 1,334 2,365
Claims incurred, net of reinsurance
Claims paid - gross amount 2,379 3,281 6,876
Reinsurers' share (330) (465) (906)
 
  2,049 2,816 5,970
Change in provision for claims 6 (37) (5) (19)
 
 4 2,012 2,811  5,951
Changes in other technical provisions,
net of reinsurance
Long-term business provision - gross 6 (1,366) (1,737) (4,346)
amount
Reinsurers' share (5) 9  (18)
 (1,371) (1,728) (4,364)
Technical provisions for linked 6 (103) (406) (927)
liabilities - gross amount
Reinsurers' share  118 405 959
 
 (1,356) (1,729) (4,332)
 
Net operating expenses 3 71 75 288
Investment expenses and charges 2 25 29 52
Unrealised losses on investments 2 36 863 941
Taxation attributable to the long-term 4 10 16
business
Transfers from the fund for future (105) (725) (551)
appropriations
 
 31 252 746
 
  687 1,334 2,365
Balance on the Technical Account - - -
 
All significant recognised gains and losses are dealt with in the Profit and Loss Account.
Exchange gains and losses arising on retranslation of overseas operations are taken
directly to the fund for future appropriations. All the amounts above are in respect of
continuing operations.
 
 
Balance sheet
as at 30 June 2003
 
 
Assets
  30 June 30 June 31 December
 2003 2002 2002
 Notes  £m £m £m
Investments
Land and buildings 5 1,504 1,866 1,676
Investments in group 132  76 133
undertakings
Other financial investments 5 14,583 18,397 16,089
 
 16,219 20,339 17,898
Assets held to cover linked 685 637 670
liabilities
 
Reinsurers' share of
technical provisions
Long-term business provision 416 384 411
Technical provisions for 2,257 2,930 2,375
unit-linked liabilities
 2,673  3,314 2,786
Debtors
Debtors arising out of 43 70 53
direct insurance operations
Debtors arising out of  7 8 22
reinsurance operations
Other debtors 196 73 54
 
 246  151 129
Other assets
Cash at bank and in hand 7 7 9
 
 7  7 9
Prepayments and accrued
income
Accrued interest 217 228 227
Deferred acquisition costs 9  38 18
Other prepayments and 3 6 5
accrued income
 229 272  250
 
 20,059 24,720 21,742
 
 
Liabilities
 30 June 30 June 31 December
  2003 2002 2002
 Notes £m £m £m
Subordinated liabilities 7.2 346 346 346
 
Fund for future appropriations 453 382 556
 
Technical provisions
Long-term business provision - gross amount 6 15,911 19,870 17,261
Claims outstanding 6 7 58 44
Technical provisions for linked liabilities 6 2,942 3,567 3,045
 
  18,860 23,495 20,350
 
 
Provisions for other risks and charges 8 87 - 87
 
Creditors
Creditors arising out of direct insurance 70 124 93
operations
Amounts owed to credit institutions 67 173 168
Other creditors including taxation and  150 166 90
social
security
 287 463 351
 
Accruals and deferred income 26  34 52
 
 20,059 24,720 21,742