Principles and Practices of Financial Management

Since April 2004 the Financial Services authority has required all companies to set out the way in which they run their with-profits funds. We have produced a document called the Principles and Practices of Financial Management (PPFM), the purpose of this document is to help you to understand how we manage our with-profits business.

The Principles cover our high level approach to managing the with-profits fund. The Practices describe in detail how the Principles are applied.

The PPFMs are very detailed as it is designed to provide the necessary information to Financial Advisers and the Financial Services Authority to enable them to assess the way we manage our with-profits funds.

From the 31 December 2005, the Financial Services Authority requires companies to provide a shorter version of the PPFM. This document, which should be read with the full PPFM, covers the main points of the PPFM but in a more straightforward way.

Also available is:

An annual report from the Directors, together with a statement from our With Profits Actuary, confirming whether, throughout the financial year, we have complied with the PPFM, setting out the reasons for that belief. The report also looks at how account has been taken of the interests of with-profits policyholders.

To view our Equity Backing Ratio figures click here.