Transition to EEV

Lloyds TSB Group PLC
22 November 2006

136/06                                                          22 November 2006


  LLOYDS TSB GROUP - TRANSITION TO EUROPEAN EMBEDDED VALUE AT SCOTTISH WIDOWS


Lloyds TSB Group plc will be holding a presentation for analysts and investors
today at 2.00 p.m.  The focus of the briefing will be to provide an overview of
the financial impact of the transition to European Embedded Value ('EEV')
accounting for the supplementary reporting of the Scottish Widows business,
along with details of the EEV methodology adopted.


Lloyds TSB Group will continue to report its statutory accounts under IFRS with
only insurance policies and certain investment business accounted for on an
embedded value basis.  Going forward, these contracts will be accounted for on a
basis consistent with relevant EEV principles.  The impact on the Lloyds TSB
Group statutory accounts is minimal.  However, in line with industry best
practice, the Group intends to introduce supplementary financial reporting
relating to Scottish Widows on an EEV basis, with a bottom-up, market consistent
approach, from the 2006 year end.


For the year ended 31 December 2005, compared to Lloyds TSB Group's reported
IFRS accounts, the Scottish Widows supplementary EEV financial information show
that:


-  Scottish Widows' new business profit before tax under EEV is £131 million 
   higher at £254 million, reflecting the earlier timing of profit recognition,


-  Scottish Widows' profit before tax (excluding volatility, the strengthening 
   of annuitant mortality reserves and other items) is £72 million higher at 
   £727 million, as higher new business profit before tax is partially offset by 
   the consequent lower profit on existing business,


-  Scottish Widows' embedded value is £908 million higher at £6,386 million, 
   largely reflecting the inclusion of certain investment products under EEV.


Lloyds TSB Group believes that EEV reporting better reflects the economic value
of Scottish Widows' in-force business.


A live webcast of this event, together with a copy of the Transition to EEV
document, will be available on our website 
www.investorrelations.lloydstsb.com/presentationpage.asp and a recorded version 
available shortly after the event.


For further information:

Michael Oliver                                  [phone]

Director of Investor Relations

E-mail: [e-mail]


Sarah Pollard                                   [phone]

Senior Manager, Investor Relations

E-mail: [e-mail]


FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to the
business, strategy and plans of the Lloyds TSB Group and its current goals and
expectations relating to its future financial condition and performance.
Statements that are not historical facts, including statements about Lloyds TSB
Group's or management's beliefs and expectations, are forward looking
statements.  By their nature, forward looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future.  Lloyds TSB Group's actual future results may differ
materially from the results expressed or implied in these forward looking
statements as a result of a variety of factors, including UK domestic and global
economic and business conditions, risks concerning borrower credit quality,
market related risks such as interest rate risk and exchange rate risk in its
banking businesses and equity risk in its insurance businesses, inherent risks
regarding changing demographic developments, catastrophic weather and similar
contingencies outside Lloyds TSB Group's control, any adverse experience in
inherent operational risks, any unexpected developments in regulation or
regulatory actions, changes in customer preferences, competition, industry
consolidation, acquisitions and other factors.  For more information on these
and other factors, please refer to Lloyds TSB Group's Annual Report on Form 20-F
filed with the US Securities and Exchange Commission and to any subsequent
reports furnished by Lloyds TSB Group to the US Securities and Exchange
Commission or to the London Stock Exchange.  The forward looking statements
contained in this announcement are made as of the date hereof, and Lloyds TSB
Group undertakes no obligation to update any of its forward looking statements.


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