Half Yearly Report - Part 5 of 5

RNS Number : 0655M

Standard Life plc

10 August 2011

Standard Life plc

Half Year Results 2011

Part 5 of 5

5 Independent auditors' review report

Introduction

We have been engaged by Standard Life plc (the Company) to review the financial information in the Half Year Results for the six months ended 30 June 2011, which comprises:

· The International Financial Reporting Standards (IFRS) condensed consolidated income statement, the IFRS consolidated

statement of comprehensive income, the IFRS condensed consolidated statement of financial position, the IFRS consolidated statement of changes in equity, the IFRS condensed consolidated statement of cash flows and associated notes prepared in accordance with the IFRS accounting policies set out in Note 3.1 (the IFRS financial information), and

· The European Embedded Value (EEV) consolidated income statement, the EEV earnings per share statement, the EEV

consolidated statement of comprehensive income, the EEV consolidated statement of financial position, and associated notes prepared on the EEV basis set out in Note 4.1 (the EEV financial information).

We have read the other information contained in the Half Year Results and considered whether it contains any apparent misstatements or material inconsistencies with either the IFRS or EEV financial information.

Directors' responsibilities

The Half Year Results, including the financial information contained therein, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Year Results in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in Note 3.1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The IFRS financial information included in the Half Year Results has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the European Union. The Directors are responsible for preparing the EEV financial information in accordance with the EEV basis set out in Note 4.1.

Our responsibility

Our responsibility is to express to the Company a conclusion on the IFRS financial information included in the Half Year Results based on our review. This report on the IFRS financial information, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose.

Our responsibility on the EEV financial information in the Half Year Results is to express to the Company a conclusion based on our review. This report on the EEV financial information, including the conclusion, has been prepared for and only for the Company in accordance with our engagement letter dated 6 May 2011 and for no other purpose.

We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that:

· the IFRS financial information in the Half Year Results for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority, and

· the EEV financial information in the Half Year Results report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with the EEV basis set out in Note 4.1.

PricewaterhouseCoopers LLP

Chartered Accountants

Edinburgh

10 August 2011

(a)	The maintenance and integrity of the Standard Life website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
(b)	Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

6 Supplementary information

6.1 Analysis of IFRS profit by segment

	UK	Canada	International	Global investment management¹	Other	Elimination	Total
30 June 2011	£m	£m	£m	£m	£m	£m	£m
Opening IFRS shareholder net assets							3,903
Fee based revenue	309	84	108	193	-	(83)	611
Spread/risk margin	52	155	-	-	-	-	207
Total income	361	239	108	193	-	(83)	818
Acquisition expenses	(85)	(39)	(18)	-	-	-	(142)
Maintenance expenses	(159)	(98)	(68)	(106)	(3)	83	(351)
Investment for transformation and growth	(34)	(17)	(4)	(20)	(5)	-	(80)
Group corporate centre costs	-	-	-	-	(20)	-	(20)
Capital management	4	18	1	-	14	-	37
India and China JV businesses	-	-	-	-	-	-	-
IFRS operating profit/(loss) before tax from continuing operations	87	103	19	67	(14)	-	262
Tax on operating profit	(10)	(19)	(12)	(17)	6	-	(52)
IFRS operating profit/(loss) after tax from continuing operations	77	84	7	50	(8)	-	210
Non-operating items	(64)	73	-	-	(14)	-	(5)
Tax on non-operating items	6	(15)	-	1	2	-	(6)
Profit/(loss) for the year from continuing operations	19	142	7	51	(20)	-	199
Profit from discontinued operations	-	-	-	-	-	-	-
IFRS profit/(loss) after tax attributable to equity holders	19	142	7	51	(20)	-	199
Other comprehensive income, dividends and other movements in equity							(135)
Closing IFRS shareholder net assets							3,967

¹ Global investment management fee based revenue includes share of profits from HDFC Asset Management Company Limited.

	UK	Canada	International	Global investment management¹	Other	Elimination	Total
30 June 2010	£m	£m	£m	£m	£m	£m	£m
Opening IFRS shareholder net assets							3,457
Fee based revenue	277	72	105	157	-	(76)	535
Spread/risk margin	83	115	-	-	-	-	198
Total income	360	187	105	157	-	(76)	733
Acquisition expenses	(87)	(33)	(12)	-	-	-	(132)
Maintenance expenses	(154)	(96)	(59)	(91)	-	76	(324)
Investment for transformation and growth	(31)	(16)	(8)	(17)	-	-	(72)
Group corporate centre costs	-	-	-	-	(30)	-	(30)
Capital management	(12)	20	2	-	17	-	27
India and China JV businesses	-	-	(20)	-	-	-	(20)
IFRS operating profit/(loss) before tax from continuing operations	76	62	8	49	(13)	-	182
Tax on operating profit	(18)	(14)	(4)	(14)	2	-	(48)
IFRS operating profit/(loss) after tax from continuing operations	58	48	4	35	(11)	-	134
Non-operating items	69	(4)	(2)	(1)	(4)	-	58
Tax on non-operating items	4	1	-	1	1	-	7
Profit/(loss) for the year from continuing operations	131	45	2	35	(14)	-	199
Loss from discontinued operations	(17)	-	-	-	-	-	(17)
IFRS profit/(loss) after tax attributable to equity holders	114	45	2	35	(14)	-	182
Other comprehensive income, dividends and other movements in equity							3
Closing IFRS shareholder net assets							3,642

¹ Global investment management fee based revenue includes share of profits from HDFC Asset Management Company Limited.

	UK	Canada	International	Global investment management¹	Other	Elimination	Total
31 December 2010	£m	£m	£m	£m	£m	£m	£m
Opening IFRS shareholder net assets							3,457
Fee based revenue	593	150	212	331	-	(155)	1,131
Spread/risk margin	148	222	-	-	-	-	370
Total income	741	372	212	331	-	(155)	1,501
Acquisition expenses	(172)	(64)	(31)	-	-	-	(267)
Maintenance expenses	(312)	(193)	(129)	(194)	-	155	(673)
Investment for transformation and growth	(61)	(35)	(15)	(34)	(4)	-	(149)
Group corporate centre costs	-	-	-	-	(50)	-	(50)
Capital management	(21)	30	1	-	17	-	27
Other	59	-	-	-	-	-	59
India and China JV businesses	-	-	(23)	-	-	-	(23)
IFRS operating profit/(loss) before tax from continuing operations	234	110	15	103	(37)	-	425
Tax on operating profit	(36)	(20)	(8)	(27)	2	-	(89)
IFRS operating profit/(loss) after tax from continuing operations	198	90	7	76	(35)	-	336
Non-operating items	33	78	(3)	3	(26)	-	85
Tax on non-operating items	9	(23)	-	-	5	-	(9)
Profit/(loss) for the year from continuing operations	240	145	4	79	(56)	-	412
Profit from discontinued operations	20	-	-	-	-	-	20
IFRS profit/(loss) after tax attributable to equity holders	260	145	4	79	(56)	-	432
Other comprehensive income, dividends and other movements in equity							14
Closing IFRS shareholder net assets							3,903

¹ Global investment management fee based revenue includes share of profits from HDFC Asset Management Company Limited.

6.2 EEV and EEV operating profit

	Covered
	UK (and HWPF TVOG)	Canada	International	Total non-covered	Group elimination	Total	Pence per share
30 June 2011	£m	£m	£m	£m	£m	£m	p
Opening EEV	3,581	1,758	732	1,205	45	7,321	322
Opening adjustments	-	-	-	-	-	-
Adjusted opening EEV	3,581	1,758	732	1,205	45	7,321
New business contribution	113	30	23	-	-	166
Contributions from in-force business	105	83	12	-	-	200
Non-covered business	-	-	-	10	-	10
EEV operating profit before tax from continuing operations	218	113	35	10	-	376

Tax on operating profit	(54)	(30)	(7)	(5)	-	(96)
EEV operating profit after tax from continuing operations	164	83	28	5	-	280	12

EEV non-operating profit/(loss) after tax and EEV profit after tax from discontinued operations	(48)	117	(11)	(11)	(6)	41	2
EEV profit/(loss) after tax	116	200	17	(6)	(6)	321

Non-trading adjustments	(359)	1	40	194	-	(124)
Closing EEV	3,338	1,959	789	1,393	39	7,518	324

6.2 EEV and EEV operating profit continued

	Covered
	UK (and HWPF TVOG)	Canada	International	Total non-covered	Group elimination	Total	Pence per share
30 June 2010	£m	£m	£m	£m	£m	£m	p
Opening EEV	3,054	1,553	658	1,163	7	6,435	288
Opening adjustments	-	-	-	-	-	-
Adjusted opening EEV	3,054	1,553	658	1,163	7	6,435
New business contribution	103	31	27	-	-	161
Contributions from in-force business	102	92	21	-	-	215
Non-covered business	-	-	-	(12)	-	(12)
EEV operating profit/(loss) before tax from continuing operations	205	123	48	(12)	-	364
Tax on operating profit	(59)	(32)	(9)	(12)	-	(112)
EEV operating profit/(loss) after tax from continuing operations	146	91	39	(24)	-	252	11
EEV non-operating (loss)/profit after tax and EEV profit after tax from discontinued operations	86	(18)	7	(23)	22	74	3
EEV profit/(loss) after tax	232	73	46	(47)	22	326
Non-trading adjustments	(5)	80	(17)	(20)	-	38
Closing EEV	3,281	1,706	687	1,096	29	6,799	302

	Covered
	UK (and HWPF TVOG)	Canada	International	Total non-covered	Group elimination	Total	Pence per share
31 December 2010	£m	£m	£m	£m	£m	£m	p
Opening EEV	3,054	1,553	658	1,163	7	6,435	288
Opening adjustments	-	-	-	-	-	-
Adjusted opening EEV	3,054	1,553	658	1,163	7	6,435
New business contribution	173	68	67	-	-	308
Contributions from in-force business	255	182	26	-	-	463
Non-covered business	-	-	-	16	-	16
EEV operating profit before tax from continuing operations	428	250	93	16	-	787
Tax on operating profit	(117)	(64)	(21)	(47)	-	(249)
EEV operating profit after tax from continuing operations	311	186	72	(31)	-	538	24
EEV non-operating profit/(loss) after tax and EEV profit after tax from discontinued operations	250	(33)	21	2	38	278	12
EEV profit/(loss) after tax	561	153	93	(29)	38	816
Non-trading adjustments	(34)	52	(19)	71	-	70
Closing EEV	3,581	1,758	732	1,205	45	7,321	322

6.3 Reconciliation of IFRS operating profit to EEV capital and cash generation

	UK	Canada	International	Investment management	Other	Total
30 June 2011	£m	£m	£m	£m	£m	£m
IFRS operating profit/(loss) before tax from continuing operations	87	103	19	67	(14)	262
Tax on operating profit	(10)	(19)	(12)	(17)	6	(52)
IFRS operating profit/(loss) after tax from continuing operations	77	84	7	50	(8)	210

Impact of different treatment of assets and reserves	4	(31)	(4)	-	-	(31)
DAC & DIR, intangibles, tax and other	14	4	(4)	-	-	14
Look through to investment management	25	2	2	(29)	-	-
EEV operating capital and cash generation from continuing operations	120	59	1	21	(8)	193

EEV operating profit after tax - PVIF	43	23	21	-	-	87
EEV operating profit/(loss) after tax from continuing operations	163	82	22	21	(8)	280

	UK	Canada	International	Investment management	Other	Total
30 June 2010	£m	£m	£m	£m	£m	£m
IFRS operating profit/(loss) before tax from continuing operations	76	62	8	49	(13)	182
Tax on operating profit	(18)	(14)	(4)	(14)	2	(48)
IFRS operating profit/(loss) after tax from continuing operations	58	48	4	35	(11)	134

Impact of different treatment of assets and reserves	(11)	23	5	-	-	17
DAC & DIR, intangibles, tax and other	24	(8)	(18)	-	-	(2)
Look through to investment management	17	2	1	(20)	-	-
EEV operating capital and cash generation from continuing operations	88	65	(8)	15	(11)	149

EEV operating profit after tax - PVIF	33	27	43	-	-	103
EEV operating profit/(loss) after tax from continuing operations	121	92	35	15	(11)	252

	UK	Canada	International	Investment management	Other	Total
31 December 2010	£m	£m	£m	£m	£m	£m
IFRS operating profit/(loss) before tax from continuing operations	234	110	15	103	(37)	425
Tax on operating profit	(36)	(20)	(8)	(27)	2	(89)
IFRS operating profit/(loss) after tax from continuing operations	198	90	7	76	(35)	336

Impact of different treatment of assets and reserves	(20)	4	2	-	-	(14)
DAC & DIR, intangibles, tax and other	(6)	12	(41)	-	-	(35)
Look through to investment management	47	3	2	(52)	-	-
EEV operating capital and cash generation from continuing operations	219	109	(30)	24	(35)	287

EEV operating profit after tax - PVIF	83	74	94	-	-	251
EEV operating profit/(loss) after tax from continuing operations	302	183	64	24	(35)	538

6.4 Group assets under administration and net flows

Group assets under administration (AUA) represent the IFRS gross assets of the Group adjusted to include third party AUA, which are not included in the statement of financial position. In addition, certain assets are excluded from the definition, for example deferred acquisition costs, intangibles and reinsurance assets.

Group assets under administration (summary)

Six months ended 30 June 2011

	Opening AUA at 1 Jan 2011	Gross inflows	Redemptions	Net inflows	Market and other movements	Closing AUA at 30 Jun 2011
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK	76.2	5.7	(3.9)	1.8	0.8	78.8
Institutional pensions	15.8	1.8	(1.0)	0.8	0.4	17.0
Conventional with profits (excluding annuities)	6.6	0.1	(0.7)	(0.6)	0.2	6.2
UK total	98.6	7.6	(5.6)	2.0	1.4	102.0
Canada	14.0	1.3	(1.0)	0.3	0.4	14.7
International (wholly owned)	11.1	1.3	(0.4)	0.9	0.3	12.3
Standard Life Investments third party	71.6	7.6	(4.7)	2.9	(2.9)	71.6
Consolidation/eliminations¹	(32.2)	(3.9)	2.2	(1.7)	(0.8)	(34.7)
Total fee business	163.1	13.9	(9.5)	4.4	(1.6)	165.9

Spread/risk
UK	13.4	0.3	(0.6)	(0.3)	0.3	13.4
Canada	10.1	0.5	(0.7)	(0.2)	(0.3)	9.6
Total spread/risk business	23.5	0.8	(1.3)	(0.5)	-	23.0

Assets not backing products	8.4	-	-	-	0.6	9.0
India and China JV businesses	1.2	0.2	(0.1)	0.1	-	1.3
Non-life assets	1.4	-	-	-	0.3	1.7
Other consolidation/eliminations¹	(0.8)	-	-	-	(0.1)	(0.9)
Group assets under administration	196.8	14.9	(10.9)	4.0	(0.8)	200.0

¹ In order to be consistent with the presentation of new business information, certain products are included in both life and pensions AUA and investment operations. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

Group assets under administration (summary)

Six months ended 30 June 2010

	Opening AUA at 1 Jan 2010	Gross inflows	Redemptions	Net inflows	Market and other movements	Closing AUA at 30 Jun 2010
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK	66.6	4.8	(3.7)	1.1	(0.2)	67.5
Institutional pensions	12.0	1.9	(0.6)	1.3	0.1	13.4
Conventional with profits (excluding annuities)	6.9	0.1	(0.5)	(0.4)	0.2	6.7
UK total	85.5	6.8	(4.8)	2.0	0.1	87.6
Canada	11.3	1.1	(0.8)	0.3	0.5	12.1
International (wholly owned)	9.1	0.9	(0.3)	0.6	(0.1)	9.6
Standard Life Investments third party	56.9	7.3	(2.6)	4.7	1.4	63.0
Consolidation/eliminations¹	(23.9)	(2.9)	1.0	(1.9)	(1.2)	(27.0)
Total fee business	138.9	13.2	(7.5)	5.7	0.7	145.3

Spread/risk
UK	13.1	0.3	(0.6)	(0.3)	0.8	13.6
Canada	9.2	0.5	(0.7)	(0.2)	1.0	10.0
Total spread/risk business	22.3	0.8	(1.3)	(0.5)	1.8	23.6

Assets not backing products	7.8	-	-	-	0.6	8.4
India and China JV businesses	0.8	0.2	(0.1)	0.1	0.1	1.0
Non-life assets	1.6	-	-	-	-	1.6
Other consolidation/eliminations¹	(1.3)	-	-	-	0.5	(0.8)
Group assets under administration	170.1	14.2	(8.9)	5.3	3.7	179.1

6.4 Group assets under administration and net flows continued

Group assets under administration (summary)

12 months ended 31 December 2010

	Opening AUA at 1 Jan 2010	Gross inflows	Redemptions	Net inflows	Market and other movements	Closing AUA at 31 Dec 2010
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK	66.6	9.4	(7.3)	2.1	7.5	76.2
Institutional pensions	12.0	3.6	(1.2)	2.4	1.4	15.8
Conventional with profits (excluding annuities)	6.9	0.2	(1.1)	(0.9)	0.6	6.6
UK total	85.5	13.2	(9.6)	3.6	9.5	98.6
Canada	11.3	2.2	(1.8)	0.4	2.3	14.0
International (wholly owned)	9.1	2.2	(0.8)	1.4	0.6	11.1
Standard Life Investments third party	56.9	12.4	(6.2)	6.2	8.5	71.6
Consolidation/eliminations¹	(23.9)	(6.7)	3.0	(3.7)	(4.6)	(32.2)
Total fee business	138.9	23.3	(15.4)	7.9	16.3	163.1

Spread/risk
UK	13.1	0.5	(1.1)	(0.6)	0.9	13.4
Canada	9.2	0.9	(1.3)	(0.4)	1.3	10.1
Total spread/risk business	22.3	1.4	(2.4)	(1.0)	2.2	23.5

Assets not backing products	7.8	-	-	-	0.6	8.4
India and China JV businesses	0.8	0.4	(0.1)	0.3	0.1	1.2
Non-life assets	1.6	-	-	-	(0.2)	1.4
Other consolidation/eliminations¹	(1.3)	-	-	-	0.5	(0.8)
Group assets under administration	170.1	25.1	(17.9)	7.2	19.5	196.8

Group assets under administration

Six months ended 30 June 2011

	Fee (F) - Spread/risk (S/R)	Opening AUA at 1 Jan 2011	Gross inflows	Redemptions	Net inflows	Market and other movements	Closing AUA at 30 Jun 2011
	Fee (F) - Spread/risk (S/R)	£bn	£bn	£bn	£bn	£bn	£bn
UK
Individual SIPP	F	15.1	1.9	(0.8)	1.1	0.2	16.4
Other individual pensions	F	23.6	0.4	(1.3)	(0.9)	0.8	23.5
Investment bonds	F	8.7	0.1	(0.6)	(0.5)	0.1	8.3
Mutual funds	F	5.3	1.0	(0.2)	0.8	(0.1)	6.0
Annuities	S/R	13.4	0.3	(0.6)	(0.3)	0.3	13.4
Legacy life	F	9.1	0.2	(0.8)	(0.6)	-	8.5
UK retail		75.2	3.9	(4.3)	(0.4)	1.3	76.1
Corporate pensions	F	21.0	2.2	(0.9)	1.3	-	22.3
Institutional pensions	F	15.8	1.8	(1.0)	0.8	0.4	17.0
UK corporate		36.8	4.0	(1.9)	2.1	0.4	39.3
Assets not backing products		7.2	-	-	-	0.1	7.3
UK long-term savings		119.2	7.9	(6.2)	1.7	1.8	122.7

Canada
Fee	F	10.7	0.9	(0.6)	0.3	0.1	11.1
Spread/risk	S/R	3.6	0.1	(0.2)	(0.1)	0.1	3.6
Group savings and retirement		14.3	1.0	(0.8)	0.2	0.2	14.7
Fee	F	1.7	0.3	(0.2)	0.1	0.1	1.9
Spread/risk	S/R	5.9	0.2	(0.3)	(0.1)	(0.3)	5.5
Individual insurance, savings and retirement		7.6	0.5	(0.5)	-	(0.2)	7.4
Group insurance	S/R	0.6	0.2	(0.2)	-	(0.1)	0.5
Mutual funds	F	1.6	0.1	(0.2)	(0.1)	0.2	1.7
Assets not backing products		1.2	-	-	-	0.5	1.7
Canada long-term savings		25.3	1.8	(1.7)	0.1	0.6	26.0

International
Ireland	F	6.0	0.9	(0.3)	0.6	0.1	6.7
Germany	F	5.0	0.4	(0.1)	0.3	0.2	5.5
Hong Kong	F	0.1	-	-	-	-	0.1
Wholly owned long-term savings		11.1	1.3	(0.4)	0.9	0.3	12.3
Joint ventures long-term savings		1.2	0.2	(0.1)	0.1	-	1.3
International long-term savings		12.3	1.5	(0.5)	1.0	0.3	13.6
Total worldwide long-term savings		156.8	11.2	(8.4)	2.8	2.7	162.3
Non-life assets		1.4	-	-	-	0.3	1.7
Standard Life Investments third party assets under management		71.6	7.6	(4.7)	2.9	(2.9)	71.6
Consolidation and elimination adjustments¹		(33.0)	(3.9)	2.2	(1.7)	(0.9)	(35.6)
Group assets under administration		196.8	14.9	(10.9)	4.0	(0.8)	200.0

Group assets under administration managed by:
Standard Life Group entities		164.0					165.5
Other third party managers		32.8					34.5
Total		196.8					200.0

¹In order to be consistent with the presentation of new business information, certain products are included in both life and pensions AUA and investment operations. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

6.4 Group assets under administration and net flows continued

Long-term savings operations net flows (regulatory basis)

Six months ended 30 June 2011

		Gross inflows	Redemptions	Net inflows	Gross inflows	Redemptions	Net inflows
	Fee (F) - Spread/risk (S/R)	6 months to 30 Jun 2011	6 months to 30 Jun 2011	6 months to 30 Jun 2011	6 months to 30 Jun 2010	6 months to 30 Jun 2010	6 months to 30 Jun 2010
	Fee (F) - Spread/risk (S/R)	£m	£m	£m	£m	£m	£m
UK
Individual SIPP¹	F	1,928	(849)	1,079	1,868	(810)	1,058
Other individual pensions	F	448	(1,279)	(831)	495	(1,368)	(873)
Investment bonds	F	116	(598)	(482)	115	(527)	(412)
Mutual funds¹	F	1,054	(211)	843	769	(208)	561
Annuities	S/R	217	(564)	(347)	287	(572)	(285)
Protection	S/R	39	(26)	13	42	(29)	13
Legacy life	F	155	(801)	(646)	178	(644)	(466)
UK retail		3,957	(4,328)	(371)	3,754	(4,158)	(404)
Corporate pensions¹	F	2,180	(915)	1,265	1,463	(690)	773
Institutional pensions	F	1,786	(974)	812	1,893	(627)	1,266
UK corporate		3,966	(1,889)	2,077	3,356	(1,317)	2,039
UK long-term savings²		7,923	(6,217)	1,706	7,110	(5,475)	1,635

Canada
Fee	F	858	(611)	247	757	(464)	293
Spread/risk	S/R	100	(216)	(116)	84	(208)	(124)
Group savings and retirement		958	(827)	131	841	(672)	169
Fee	F	271	(178)	93	218	(133)	85
Spread/risk	S/R	167	(267)	(100)	134	(323)	(189)
Individual insurance, savings and retirement		438	(445)	(7)	352	(456)	(104)
Group insurance	S/R	221	(178)	43	205	(165)	40
Mutual funds¹	F	120	(188)	(68)	182	(195)	(13)
Canada long-term savings		1,737	(1,638)	99	1,580	(1,488)	92

International
Ireland	F	859	(323)	536	562	(298)	264
Germany	F	389	(97)	292	376	(59)	317
Hong Kong	F	43	(13)	30	15	(4)	11
Wholly owned long-term savings		1,291	(433)	858	953	(361)	592
Joint ventures long-term savings³		211	(71)	140	183	(50)	133
International long-term savings		1,502	(504)	998	1,136	(411)	725
Total worldwide long-term savings		11,162	(8,359)	2,803	9,826	(7,374)	2,452

¹ The mutual funds net flows are also included within mutual funds net flows in the third party investment operations. In addition, an element of the UK non-insured SIPP is included within UK mutual funds net flows in the third party investment operations.

² UK long-term savings include a total net outflow of £1,030m in relation to conventional with profits business (2010: net outflow £862m). Of this, a net outflow of £422m is in relation to annuities business (2010: net outflow £433m).

³ Includes net flows in respect of Standard Life's share of the India and China JV businesses.

Long-term savings operations net flows (regulatory basis)

Three months ended 30 June 2011

		Gross inflows	Redemptions	Net inflows	Gross inflows	Redemptions	Net inflows
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2011	3 months to 30 Jun 2011	3 months to 30 Jun 2011	3 months to 30 Jun 2010	3 months to 30 Jun 2010	3 months to 30 Jun 2010
	Fee (F) - Spread/risk (S/R)	£m	£m	£m	£m	£m	£m
UK
Individual SIPP¹	F	936	(410)	526	868	(376)	492
Other individual pensions	F	250	(609)	(359)	270	(638)	(368)
Investment bonds	F	53	(286)	(233)	53	(251)	(198)
Mutual funds¹	F	532	(98)	434	346	(101)	245
Annuities	S/R	108	(283)	(175)	122	(288)	(166)
Protection	S/R	19	(11)	8	21	(14)	7
Legacy life	F	76	(463)	(387)	87	(340)	(253)
UK retail		1,974	(2,160)	(186)	1,767	(2,008)	(241)
Corporate pensions¹	F	1,145	(439)	706	787	(316)	471
Institutional pensions	F	864	(346)	518	1,046	(254)	792
UK corporate		2,009	(785)	1,224	1,833	(570)	1,263
UK long-term savings²		3,983	(2,945)	1,038	3,600	(2,578)	1,022

Canada
Fee	F	346	(256)	90	399	(223)	176
Spread/risk	S/R	45	(103)	(58)	41	(102)	(61)
Group savings and retirement		391	(359)	32	440	(325)	115
Fee	F	128	(83)	45	98	(64)	34
Spread/risk	S/R	71	(133)	(62)	62	(159)	(97)
Individual insurance, savings and retirement		199	(216)	(17)	160	(223)	(63)
Group insurance	S/R	112	(90)	22	108	(86)	22
Mutual funds¹	F	54	(75)	(21)	81	(93)	(12)
Canada long-term savings		756	(740)	16	789	(727)	62

International
Ireland	F	399	(157)	242	302	(148)	154
Germany	F	198	(46)	152	183	(32)	151
Hong Kong	F	26	(11)	15	9	(3)	6
Wholly owned long-term savings		623	(214)	409	494	(183)	311
Joint ventures long-term savings³		76	(38)	38	72	(28)	44
International long-term savings		699	(252)	447	566	(211)	355
Total worldwide long-term savings		5,438	(3,937)	1,501	4,955	(3,516)	1,439

² UK long-term savings include a total net outflow of £574m in relation to conventional with profits business (2010: net outflow £452m). Of this, a net outflow of £211m is in relation to annuities business (2010: net outflow £220m).

³ Includes net flows in respect of Standard Life's share of the India and China JV businesses.

6.4 Group assets under administration and net flows continued

Long-term savings operations net flows (regulatory basis)

15 months ended 30 June 2011

		Net flows
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2011	3 months to 31 Mar 2011	3 months to 31 Dec 2010	3 months to 30 Sep 2010	3 months to 30 Jun 2010
	Fee (F) - Spread/risk (S/R)	£m	£m	£m	£m	£m
UK
Individual SIPP	F	526	553	439	446	492
Other individual pensions	F	(359)	(472)	(411)	(375)	(368)
Investment bonds	F	(233)	(249)	(201)	(194)	(198)
Mutual funds	F	434	409	430	301	245
Annuities	S/R	(175)	(172)	(184)	(173)	(166)
Protection	S/R	8	5	8	7	7
Legacy life	F	(387)	(259)	(249)	(273)	(253)
UK retail		(186)	(185)	(168)	(261)	(241)
Corporate pensions	F	706	559	281	336	471
Institutional pensions	F	518	294	628	546	792
UK corporate		1,224	853	909	882	1,263
UK long-term savings		1,038	668	741	621	1,022

Canada
Fee	F	90	157	44	83	176
Spread/risk	S/R	(58)	(58)	(53)	(50)	(61)
Group savings and retirement		32	99	(9)	33	115
Fee	F	45	48	40	33	34
Spread/risk	S/R	(62)	(38)	(60)	(79)	(97)
Individual insurance, savings and retirement		(17)	10	(20)	(46)	(63)
Group insurance	S/R	22	21	18	21	22
Mutual funds	F	(21)	(47)	(19)	(7)	(12)
Canada long-term savings		16	83	(30)	1	62

International
Ireland	F	242	294	244	203	154
Germany	F	152	140	200	149	151
Hong Kong	F	15	15	17	7	6
Wholly owned long-term savings		409	449	461	359	311
Joint ventures long-term savings¹		38	102	61	60	44
International long-term savings		447	551	522	419	355
Total worldwide long-term savings		1,501	1,302	1,233	1,041	1,439

¹ Includes net flows in respect of Standard Life's share of the India and China JV businesses.

6.5 Analysis of new business

Long-term savings operations new business

Six months ended 30 June 2011

		Single premiums			New regular premiums		PVNBP
	Fee (F) - Spread/risk (S/R)	6 months to 30 Jun 2011	6 months to 30 Jun 2010	6 months to 30 Jun 2011		6 months to 30 Jun 2010	6 months to 30 Jun 2011	6 months to 30 Jun 2010	Change³	Change in constant currency³
	Fee (F) - Spread/risk (S/R)	£m	£m	£m		£m	£m	£m	%	%
UK
Individual SIPP¹	F	1,821	1,774	45		39	1,984	1,907	4%	4%
Other individual pensions	F	224	232	11		13	253	266	(5%)	(5%)
Investment bonds	F	105	91	-		-	105	91	15%	15%
Mutual funds	F	1,039	754	15		15	1,152	863	33%	33%
Annuities	S/R	147	209	-		-	147	209	(30%)	(30%)
Protection	S/R	-	-	-		-	1	1	-	-
Legacy life	F	-	-	-		-	-	-	-	-
UK retail		3,336	3,060	71		67	3,642	3,337	9%	9%
Corporate pensions¹	F	1,226	609	389		295	2,830	1,751	62%	62%
Institutional pensions	F	1,673	1,835	1		3	1,674	1,842	(9%)	(9%)
UK corporate		2,899	2,444	390		298	4,504	3,593	25%	25%
UK long-term savings		6,235	5,504	461		365	8,146	6,930	18%	18%

Canada
Fee	F	247	249	20		39	501	689	(27%)	(29%)
Spread/risk	S/R	34	19	3		6	70	84	(17%)	(17%)
Group savings and retirement		281	268	23		45	571	773	(26%)	(27%)
Fee	F	271	218	-		-	271	218	24%	23%
Spread/risk	S/R	113	79	1		2	131	100	31%	28%
Individual insurance, savings and retirement		384	297	1		2	402	318	26%	24%
Group insurance	S/R	2	1	30		19	486	308	58%	55%
Mutual funds	F	120	182	-		-	120	182	(34%)	(35%)
Canada long-term savings		787	748	54		66	1,579	1,581	-	(2%)

International
Ireland	F	817	530	5		4	836	545	53%	53%
Germany	F	17	12	11		11	162	154	5%	5%
Hong Kong	F	13	5	26		18	177	133	33%	41%
Wholly owned long-term savings		847	547	42		33	1,175	832	41%	42%
India²		29	19	44		55	212	233	(9%)	(6%)
China²		20	19	6		7	49	55	(11%)	(9%)
Joint ventures long-term savings		49	38	50		62	261	288	(9%)	(7%)
International long-term savings		896	585	92		95	1,436	1,120	28%	30%
Total worldwide long-term savings		7,918	6,837	607		526	11,161	9,631	16%	16%

¹ Included within non-insured SIPP is an element which is also included within UK mutual funds net flows in the third party investment operations figure.

² Standard Life's share of the joint venture company's new business.

³% change is calculated on the figures rounded to millions.

⁴ New business gross sales for overseas operations are calculated using average exchange rates. The principal average rates for the six months to 30 June 2011 were £1: C$1.58 (2010: £1: C$1.60) and £1: €1.15 (2010: £1: €1.15).

6.5 Analysis of new business continued

Investment operations

Six months ended 30 June 2011

		Opening AUM at 1 Jan 2011	Gross inflows	Redemptions	Net inflows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2011
		£m	£m	£m	£m	£m	£m	£m
UK	Mutual funds^1,2	9,179	2,766	(1,309)	1,457	197	1,654	10,833
	Private equity	3,437	9	(50)	(41)	63	22	3,459
	Segregated funds	13,979	154	(1,237)	(1,083)	271	(812)	13,167
	Pooled property funds	1,702	229	-	229	18	247	1,949
Total UK		28,297	3,158	(2,596)	562	549	1,111	29,408
Canada	Mutual funds^1,3	1,789	122	(191)	(69)	43	(26)	1,763
	Separate mandates	3,443	351	(140)	211	88	299	3,742
Total Canada		5,232	473	(331)	142	131	273	5,505
International	Europe	3,806	833	(317)	516	598	1,114	4,920
	India⁴	3,392	62	-	62	(206)	(144)	3,248
	Other	1,131	21	-	21	(24)	(3)	1,128
Total International		8,329	916	(317)	599	368	967	9,296

Total worldwide investment products excluding money market and related funds		41,858	4,547	(3,244)	1,303	1,048	2,351	44,209
	UK money market funds⁵	3,953	-	-	-	(3,900)	(3,900)	53
	India cash funds⁵	1,435	453	-	453	(161)	292	1,727
Total worldwide investment products		47,246	5,000	(3,244)	1,756	(3,013)	(1,257)	45,989

Total third party assets under management comprise the investment business noted above together with third party insurance contracts. New business relating to third party insurance contracts is disclosed as insurance business for reporting purposes. An analysis of total third party assets under management is shown below.

	Opening AUM at 1 Jan 2011	Gross inflows	Redemptions	Net inflows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2011
	£m	£m	£m	£m	£m	£m	£m
Third party investment products	47,246	5,000	(3,244)	1,756	(3,013)	(1,257)	45,989
Third party insurance contracts (new business classified as insurance products)	24,367	2,618	(1,433)	1,185	102	1,287	25,654
Total third party assets under management	71,613	7,618	(4,677)	2,941	(2,911)	30	71,643
UK money market funds and India cash funds⁵	5,388	453	-	453	(4,061)	(3,608)	1,780
Total third party assets under management excluding money market and related funds	66,225	7,165	(4,677)	2,488	1,150	3,638	69,863

Standard Life Investments - total assets under management	156,874						157,014

¹Included within mutual funds are cash inflows which have also been reflected in UK and Canada mutual funds new business sales and net flows for UK mutual funds, an element of UK non-insured SIPP and Canada mutual funds.

² In the six months to 30 June 2010, UK mutual funds gross inflows were £1,457m and net inflows were £713m.

³ In the six months to 30 June 2010, Canada mutual funds gross inflows were £178m and net outflows were £13m.

⁴ International gross inflows include India where, due to the nature of the Indian investment sales market, the new business is shown as the net of sales less redemptions. India cash funds are included as money market and related funds in the table.

⁵ Due to the nature of the UK money market funds and India cash funds, the flows are calculated using average net client balances. Other movements are derived as the difference between these average net inflows and the movement in the opening and closing AUM. Market and other movements includes the transfer of UK money market funds in Global Liquidity Fund to Deutsche Bank Asset Management, as a result of Standard Life Investments withdrawal from constant net asset value money market funds.

⁶Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 30 June 2011. Investment fund flows are translated at average exchange rates. Gains and losses arising from the translation of funds denominated in foreign currencies are included in the market and other movements column. The principal closing exchange rates used as at 30 June 2011 were £1: C$1.55 (31 December 2010: £1: C$1.56) and £1: €1.11
(31 December 2010: £1: €1.17). The principal average exchange rates for the six months to 30 June 2011 were £1: C$1.58 (2010: £1: C$1.60) and £1: €1.15
(2010: £1: €1.15).

Long-term savings operations new business

Three months ended 30 June 2011

		Single premiums		New regular premiums		PVNBP⁴
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2011	3 months to 30 Jun 2010	3 months to 30 Jun 2011	3 months to 30 Jun 2010	3 months to 30 Jun 2011	3 months to 30 Jun 2010	Change³	Change in constant currency³
	Fee (F) - Spread/risk (S/R)	£m	£m	£m	£m	£m	£m	%	%
UK
Individual SIPP¹	F	880	815	27	21	978	878	11%	11%
Other individual pensions	F	141	134	5	7	155	152	2%	2%
Investment bonds	F	51	45	-	-	51	45	13%	13%
Mutual funds	F	524	339	8	7	584	383	52%	52%
Annuities	S/R	74	82	-	-	74	82	(10%)	(10%)
Protection	S/R	-	-	-	-	1	1	-	-
Legacy life	F	-	-	-	-	-	-	-	-
UK retail		1,670	1,415	40	35	1,843	1,541	20%	20%
Corporate pensions¹	F	664	356	208	174	1,536	1,024	50%	50%
Institutional pensions	F	805	1,012	-	-	802	1,012	(21%)	(21%)
UK corporate		1,469	1,368	208	174	2,338	2,036	15%	15%
UK long-term savings		3,139	2,783	248	209	4,181	3,577	17%	17%

Canada
Fee	F	73	157	4	24	124	434	(71%)	(72%)
Spread/risk	S/R	14	9	1	4	22	49	(55%)	(54%)
Group savings and retirement		87	166	5	28	146	483	(70%)	(70%)
Fee	F	128	98	-	-	128	98	31%	33%
Spread/risk	S/R	45	34	-	1	54	46	17%	16%
Individual insurance, savings and retirement		173	132	-	1	182	144	26%	28%
Group insurance	S/R	1	1	9	8	162	140	16%	17%
Mutual funds	F	54	81	-	-	54	81	(33%)	(33%)
Canada long-term savings		315	380	14	37	544	848	(36%)	(36%)

International
Ireland	F	379	284	2	2	386	292	32%	30%
Germany	F	8	5	6	5	90	76	18%	15%
Hong Kong	F	7	3	11	9	78	69	13%	24%
Wholly owned long-term savings		394	292	19	16	554	437	27%	26%
India²		7	5	13	22	62	93	(33%)	(28%)
China²		9	9	3	4	23	29	(21%)	(16%)
Joint ventures long-term savings		16	14	16	26	85	122	(30%)	(25%)
International long-term savings		410	306	35	42	639	559	14%	15%
Total worldwide long-term savings		3,864	3,469	297	288	5,364	4,984	8%	8%

¹ Included within non-insured SIPP is an element which is also included within UK mutual funds net flows in the third party investment operations figures.

² Standard Life's share of the joint venture company's new business.

³ % change is calculated on the figures rounded to millions.

6.5 Analysis of new business continued

Investment operations

Three months ended 30 June 2011

		Opening AUM at 1 Apr 2011	Gross inflows	Redemptions	Net inflows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2011
		£m	£m	£m	£m	£m	£m	£m
UK	Mutual funds^1,2	9,936	1,295	(646)	649	248	897	10,833
	Private equity	3,519	10	(24)	(14)	(46)	(60)	3,459
	Segregated funds	13,099	40	(297)	(257)	325	68	13,167
	Pooled property funds	1,844	87	-	87	18	105	1,949
Total UK		28,398	1,432	(967)	465	545	1,010	29,408
Canada	Mutual funds^1,3	1,785	55	(77)	(22)	-	(22)	1,763
	Separate mandates	3,639	83	(83)	-	103	103	3,742
Total Canada		5,424	138	(160)	(22)	103	81	5,505
International	Europe	4,400	495	(266)	229	291	520	4,920
	India⁴	3,238	3	-	3	7	10	3,248
	Other	1,135	9	-	9	(16)	(7)	1,128
Total International		8,773	507	(266)	241	282	523	9,296

Total worldwide investment products excluding money market and related funds		42,595	2,077	(1,393)	684	930	1,614	44,209
	UK money market funds⁵	3,902	37	-	37	(3,886)	(3,849)	53
	India cash funds⁵	922	215	-	215	590	805	1,727
Total worldwide investment products		47,419	2,329	(1,393)	936	(2,366)	(1,430)	45,989

	Opening AUM at 1 Apr 2011	Gross inflows	Redemptions	Net inflows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2011
	£m	£m	£m	£m	£m	£m	£m
Third party investment products	47,419	2,329	(1,393)	936	(2,366)	(1,430)	45,989
Third party insurance contracts (new business classified as insurance products)	24,872	1,213	(589)	624	158	782	25,654
Total third party assets under management	72,291	3,542	(1,982)	1,560	(2,208)	(648)	71,643
UK money market funds and India cash funds⁵	4,824	252	-	252	(3,296)	(3,044)	1,780
Total third party assets under management excluding money market and related funds	67,467	3,290	(1,982)	1,308	1,088	2,396	69,863

Standard Life Investments - total assets under management	157,121						157,014

¹ Included within mutual funds are cash inflows which have also been reflected in UK and Canada mutual funds new business sales and net flows for UK mutual funds, an element of UK non-insured SIPP and Canada mutual funds.

² In the three months to 30 June 2010, UK mutual funds gross inflows were £869m and net inflows were £490m.

³ In the three months to 30 June 2010, Canada mutual funds gross inflows were £76m and net outflows were £13m.

⁶ Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 30 June 2011. Investment fund flows are translated at average exchange rates. Gains and losses arising from the translation of funds denominated in foreign currencies are included in the market and other movements column. The principal closing exchange rates used as at 30 June 2011 were £1: C$1.55 (31 March 2011: £1: C$1.56) and £1: €1.11 (31 March 2011: £1: €1.13). The principal average exchange rates for the six months to 30 June 2011 were £1: C$1.58 (2010: £1: C$1.60) and £1: €1.15 (2010: £1: €1.15).

Long-term savings operations new business

15 months ended 30 June 2011

		PVNBP
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2011	3 months to 31 Mar 2011	3 months to 31 Dec 2010¹	3 months to 30 Sep 2010	3 months to 30 Jun 2010
	Fee (F) - Spread/risk (S/R)	£m	£m	£m	£m	£m
UK
Individual SIPP	F	978	1,006	770	757	878
Other individual pensions	F	155	98	54	80	152
Investment bonds	F	51	54	62	49	45
Mutual funds	F	584	568	483	445	383
Annuities	S/R	74	73	60	72	82
Protection	S/R	1	-	-	-	1
Legacy life	F	-	-	-	-	-
UK retail		1,843	1,799	1,429	1,403	1,541
Corporate pensions	F	1,536	1,294	502	949	1,024
Institutional pensions	F	802	872	875	755	1,012
UK corporate		2,338	2,166	1,377	1,704	2,036
UK long-term savings		4,181	3,965	2,806	3,107	3,577

Canada
Fee	F	124	377	185	344	434
Spread/risk	S/R	22	48	26	48	49
Group savings and retirement		146	425	211	392	483
Fee	F	128	143	129	91	98
Spread/risk	S/R	54	77	76	48	46
Individual insurance, savings and retirement		182	220	205	139	144
Group insurance	S/R	162	324	174	125	140
Mutual funds	F	54	66	65	66	81
Canada long-term savings		544	1,035	655	722	848

International
Ireland	F	386	450	438	313	292
Germany	F	90	72	113	71	76
Hong Kong	F	78	99	124	59	69
Wholly owned long-term savings		554	621	675	443	437
India²		62	150	95	116	93
China²		23	26	41	21	29
Joint ventures long-term savings		85	176	136	137	122
International long-term savings		639	797	811	580	559
Total worldwide long-term savings		5,364	5,797	4,272	4,409	4,984

¹ The three month period to 31 December 2010 excludes the full impact of year end changes to non-economic assumptions. The effect of changes to year end non-economic assumptions was an increase in total PVNBP of £171m in the final PVNBP results published in the 2010 Preliminary results.

² Amounts shown reflect Standard Life's share of the joint venture company's new business.

6.6 Exposure to investment property and financial assets

Further information on the Group's exposure to investment property and financial assets is provided in this section, with additional details of the shareholder exposure. As explained in Note 3.1(a) - Accounting policies - Basis of preparation, there has been a reallocation between cash and cash equivalents and debt securities at 30 June 2010 and 31 December 2010. The information presented in this section reflects the position after the reallocation.

Group exposure to investment property and financial assets

The total Group external exposure to investment property and financial assets including discontinued operations has been segmented below based on the stakeholder sub-group with which the market and credit risk relating to those assets lies.

	Exposure
	Shareholder	Policyholder (participating)	Policyholder (unit linked)	TPICF and NCI¹	Total
30 June 2011	£m	£m	£m	£m	£m
Investments in associates and joint ventures	21	-	32	15	68
Investment property	920	2,171	4,275	1,303	8,669
Equity securities	582	10,653	49,647	2,370	63,252
Debt securities	11,120	28,553	21,443	3,527	64,643
Loans	2,850	195	137	-	3,182
Other financial assets	1,732	7,515	1,468	486	11,201
Cash and cash equivalents	1,445	1,704	4,552	1,051	8,752
Total	18,670	50,791	81,554	8,752	159,767

	Exposure
	Shareholder	Policyholder (participating)	Policyholder (unit linked)	TPICF and NCI¹	Total
30 June 2010	£m	£m	£m	£m	£m
Investments in associates and joint ventures	174	1,578	991	153	2,896
Investment property	843	2,295	3,771	998	7,907
Equity securities	478	7,761	40,305	1,578	50,122
Debt securities	10,274	30,482	16,581	1,275	58,612
Loans	2,627	196	123	-	2,946
Other financial assets	1,266	8,294	1,235	199	10,994
Cash and cash equivalents¹	2,034	592	3,489	258	6,373
Total	17,696	51,198	66,495	4,461	139,850

¹ At 30 June 2010, £6,361m of cash and cash equivalents related to continuing operations and £12m related to discontinued operations.

	Exposure
	Shareholder	Policyholder (participating)	Policyholder (unit linked)	TPICF and NCI¹	Total
31 December 2010	£m	£m	£m	£m	£m
Investments in associates and joint ventures	37	1,557	1,138	117	2,849
Investment property	862	2,297	4,147	1,104	8,410
Equity securities	564	9,335	48,449	1,959	60,307
Debt securities	10,595	29,883	18,596	2,290	61,364
Loans	2,823	207	106	-	3,136
Other financial assets	1,365	7,516	935	232	10,048
Cash and cash equivalents	1,634	221	3,527	423	5,805
Total	17,880	51,016	76,898	6,125	151,919

¹ Third party interest in consolidated funds and non-controlling interests.

Shareholder exposure to investment property and financial assets

The total shareholder exposure to investment property and financial assets of £18.7bn (30 June 2010: £17.7bn; 31 December 2010: £17.9bn) includes £11.4bn (30 June 2010: £10.8bn; 31 December 2010: £11.2bn) of assets held by non-segregated funds of the Group's Canada operations. The effective exposure of shareholders to assets of the non-segregated funds in Canada was significantly lower than the nominal level of exposure presented below because changes in the value of assets are typically accompanied by offsetting changes in the value of related liabilities. The shareholder exposure is limited to the net impact on the shareholder surplus and the value of any guarantees which may be triggered.

	Canada non-segregated funds exposure			Other shareholder exposure			Total shareholder exposure
	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Investments in associates and joint ventures	21	21	21	-	153	16	21	174	37
Investment property	920	843	862	-	-	-	920	843	862
Equity securities	458	382	459	124	96	105	582	478	564
Debt securities	6,412	6,334	6,359	4,708	3,940	4,236	11,120	10,274	10,595
Loans	2,842	2,587	2,811	8	40	12	2,850	2,627	2,823
Other financial assets	511	497	512	1,221	769	853	1,732	1,266	1,365
Cash and cash equivalents	202	139	184	1,243	1,895	1,450	1,445	2,034	1,634
Total	11,366	10,803	11,208	7,304	6,893	6,672	18,670	17,696	17,880

Shareholder exposure to debt securities excluding Canada non-segregated funds consists primarily of debt securities backing annuity liabilities and subordinated debt liabilities. The increase in exposure can be attributed to new annuity business written in the period as well as a change in the shareholder asset mix.

Group exposure to debt securities

The Group's exposure to debt securities has been further analysed in the tables below. The high quality of the debt security portfolio has been maintained, with 47% of debt securities rated AAA (30 June 2010: 55%; 31 December 2010: 51%) and 94% (30 June 2010: 95%; 31 December 2010: 95%) being rated as investment grade.

	Exposure
	Shareholder	Policyholder (participating)	Policyholder (unit linked)	TPICF and NCI¹	Total
30 June 2011	£m	£m	£m	£m	£m
Government	3,739	16,521	9,196	1,427	30,883
Corporate - financial institutions	3,714	8,800	7,369	1,328	21,211
Corporate - other	3,413	2,953	4,505	754	11,625
Other	254	279	373	18	924
Total	11,120	28,553	21,443	3,527	64,643

	Exposure
	Shareholder	Policyholder (participating)	Policyholder (unit linked)	TPICF and NCI¹	Total
30 June 2010	£m	£m	£m	£m	£m
Government	4,438	18,978	7,710	634	31,760
Corporate - financial institutions	2,844	7,792	5,470	357	16,463
Corporate - other	2,753	3,400	3,047	274	9,474
Other	239	312	354	10	915
Total	10,274	30,482	16,581	1,275	58,612

	Exposure
	Shareholder	Policyholder (participating)	Policyholder (unit linked)	TPICF and NCI¹	Total
31 December 2010	£m	£m	£m	£m	£m
Government	4,063	18,379	8,168	1,024	31,634
Corporate - financial institutions	3,281	8,013	6,062	709	18,065
Corporate - other	3,045	3,167	4,016	552	10,780
Other	206	324	350	5	885
Total	10,595	29,883	18,596	2,290	61,364

¹ Third party interest in consolidated funds and non-controlling interests.

6.6 Exposure to investment property and financial assets continued

Shareholder exposure to debt securities

At 30 June 2011, total shareholder exposure to debt securities was £11,120m (30 June 2010: £10,274m; 31 December 2010: £10,595m), of which 95% (30 June 2010: 94%; 31 December 2010: 95%) being rated as investment grade, showing the high quality of the debt securities held. £3,739m (30 June 2010: £4,438m; 31 December 2010: £4,063m) of the shareholder holdings in debt securities represents exposure to government securities, which represents 34% (30 June 2010: 43%; 31 December 2010: 38%) of the total shareholder exposure to debt securities. The shareholder has limited exposure to government securities issued by peripheral European countries which is restricted to £3m issued by the governments of Italy and Spain at 30 June 2011 (30 June 2010: £15m; 31 December 2010: £15m).

Shareholder exposure to debt securities by credit rating

		Credit rating
	AAA	AA	A	BBB	Below BBB or not rated	Total
30 June 2011	£m	£m	£m	£m	£m	£m
Government	1,048	1,390	1,296	-	5	3,739
Corporate - financial institutions	310	1,345	1,680	60	319	3,714
Corporate - other	333	249	2,142	612	77	3,413
Other	153	-	-	-	101	254
Total	1,844	2,984	5,118	672	502	11,120
Total %	16%	27%	46%	6%	5%	100%

	Credit rating
	AAA	AA	A	BBB	Below BBB or not rated	Total
30 June 2010	£m	£m	£m	£m	£m	£m
Government	1,578	1,518	1,342	-	-	4,438
Corporate - financial institutions	761	841	759	62	421	2,844
Corporate - other	300	232	1,632	506	83	2,753
Other	158	-	1	7	73	239
Total	2,797	2,591	3,734	575	577	10,274
Total %	27%	25%	36%	6%	6%	100%

	Credit rating
	AAA	AA	A	BBB	Below BBB or not rated	Total
31 December 2010	£m	£m	£m	£m	£m	£m
Government	1,166	1,519	1,378	-	-	4,063
Corporate - financial institutions	503	1,384	979	52	363	3,281
Corporate - other	290	232	1,928	517	78	3,045
Other	135	-	-	-	71	206
Total	2,094	3,135	4,285	569	512	10,595
Total %	20%	30%	40%	5%	5%	100%

Debt securities classified as corporate include securities issued by corporate entities which carry government guarantees. Debt securities classified as other consist primarily of securities issued by supranational institutions.

Shareholder exposure to government securities by country

	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m
UK	327	666	365
Canada	3,353	3,701	3,631
US	7	6	5
Germany	29	28	27
France	5	4	5
Portugal	-	-	-
Ireland	-	2	-
Italy	2	9	12
Greece	-	-	-
Spain	1	4	3
Other Europe	10	9	11
Rest of world	5	9	4
Total	3,739	4,438	4,063

Shareholder exposure to loans

Shareholders are directly exposed to loans of £2.9bn (30 June 2010: £2.6bn; 31 December 2010: £2.8bn) which primarily comprise the Canadian non-segregated funds commercial mortgage book. This mortgage book is deemed to be of very high quality.

	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m
Canada non-segregated funds commercial mortgage book	2,842	2,587	2,811
Other	8	40	12
Total	2,850	2,627	2,823

The Canada mortgage book has an average loan to value of 45% (30 June 2010: 46%; 31 December 2010: 45%).

6.7 Fair value hierarchy of financial instruments

To provide further information on the approach used to determine the fair value of certain financial assets and derivative financial liabilities measured as at fair value on the Group's IFRS statement of financial position, the fair value of these financial instruments has been categorised below to reflect the following fair value hierarchy:

Level 1: Fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Fair values measured using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3:Fair values measured using inputs that are not based on observable market data (unobservable inputs)

As explained in Note 3.1(a) - Accounting policies - Basis of preparation, there has been a reallocation between cash and cash equivalents and debt securities at 30 June 2010 and 31 December 2010. The information presented in this section reflects the position after the reallocation.

Total

	Fair value hierarchy
	Level 1			Level 2			Level 3			Total
	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Equity securities	61,976	48,963	59,059	-	28	40	1,276	1,131	1,208	63,252	50,122	60,307
Debt securities	24,012	26,911	25,147	39,038	30,218	34,731	1,593	1,483	1,486	64,643	58,612	61,364
Derivative financial assets	407	604	435	866	1,094	908	-	-	-	1,273	1,698	1,343
Derivative financial liabilities	(235)	(68)	(95)	(784)	(440)	(829)	-	-	-	(1,019)	(508)	(924)
Total	86,160	76,410	84,546	39,120	30,900	34,850	2,869	2,614	2,694	128,149	109,924	122,090

6.7 Fair value hierarchy of financial instruments continued

Level 1 financial instruments principally include equity securities listed on a recognised exchange, certain government and supranational institution bonds and exchange traded futures and options.

Level 2 financial instruments principally include certain government bonds, listed or publicly quoted corporate bonds, commercial paper, certificates of deposit and derivative instruments which are not exchange traded. Corporate bonds have generally been classified as level 2 as the composite price provided by external pricing providers may include, as an input, quotes provided by some banks that are not based on actual transaction prices.

Level 3 financial instruments principally include unlisted equity securities, being predominantly interests in private equity funds, listed or publicly quoted corporate bonds for which prices are not available from external pricing providers or where such prices are considered to be stale (including some asset backed securities) or are based on single broker indicative quotes and unquoted bonds where credit spreads, being a significant input to the valuation technique, are obtained from a broker or estimated internally.

Shareholder exposure

	Fair value hierarchy
	Level 1			Level 2			Level 3			Total
	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Equity securities	570	469	554	-	-	-	12	9	10	582	478	564
Debt securities	541	891	551	9,519	8,531	9,076	1,060	852	968	11,120	10,274	10,595
Derivative financial assets	-	-	-	312	336	298	-	-	-	312	336	298
Derivative financial liabilities	(4)	-	(2)	(29)	(29)	(30)	-	-	-	(33)	(29)	(32)
Total	1,107	1,360	1,103	9,802	8,838	9,344	1,072	861	978	11,981	11,059	11,425

Policyholder (participating) exposure

	Fair value hierarchy
	Level 1			Level 2			Level 3			Total
	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Equity securities	9,858	7,106	8,606	-	-	-	795	655	729	10,653	7,761	9,335
Debt securities	16,140	19,314	17,969	12,051	10,730	11,543	362	438	371	28,553	30,482	29,883
Derivative financial assets	285	506	334	237	461	271	-	-	-	522	967	605
Derivative financial liabilities	(16)	(18)	(8)	(164)	(57)	(122)	-	-	-	(180)	(75)	(130)
Total	26,267	26,908	26,901	12,124	11,134	11,692	1,157	1,093	1,100	39,548	39,135	39,693

Policyholder (unit linked) exposure

	Fair value hierarchy
	Level 1			Level 2			Level 3			Total
	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Equity securities	49,601	40,177	48,341	-	28	40	46	100	68	49,647	40,305	48,449
Debt securities	6,462	6,076	5,943	14,819	10,321	12,521	162	184	132	21,443	16,581	18,596
Derivative financial assets	83	79	72	220	252	263	-	-	-	303	331	335
Derivative financial liabilities	(145)	(41)	(62)	(414)	(304)	(507)	-	-	-	(559)	(345)	(569)
Total	56,001	46,291	54,294	14,625	10,297	12,317	208	284	200	70,834	56,872	66,811

Third party interest in consolidated funds and non-controlling interests exposure

	Fair value hierarchy
	Level 1			Level 2			Level 3			Total
	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010	30 Jun 2011	30 Jun 2010	31 Dec 2010
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Equity securities	1,947	1,211	1,558	-	-	-	423	367	401	2,370	1,578	1,959
Debt securities	869	630	684	2,649	636	1,591	9	9	15	3,527	1,275	2,290
Derivative financial assets	39	19	29	97	45	76	-	-	-	136	64	105
Derivative financial liabilities	(70)	(9)	(23)	(177)	(50)	(170)	-	-	-	(247)	(59)	(193)
Total	2,785	1,851	2,248	2,569	631	1,497	432	376	416	5,786	2,858	4,161

6.8 Investment for transformation and growth

	6 months to 30 Jun 2011	6 months to 30 Jun 2010	12 months to 31 Dec 2010	Movement
	£m	£m	£m	£m
Investment in operating cost base	80	72	149	8
Investment capitalised	16	5	36	11
Additional investment in joint venture businesses	23	12	16	11
Total investment for transformation and growth	119	89	201	30

7 Glossary

Acquisition costs

Expenses related to the procurement and processing of new business written, including a share of overheads.

Annuity

A periodic payment made for an agreed period of time (usually up to the death of the recipient) in return for a cash sum. The cash sum can be paid as one amount or as a series of premiums. If the annuity commences immediately after the payment of the sum, it is termed an immediate annuity. If it commences at some future date, it is termed a deferred annuity.

Assets under administration (AUA)

A measure of the total assets that the Group administers on behalf of customers and institutional clients. It includes those assets for which the Group provides investment management services, as well as those assets that the Group administers where the customer has made a choice to select an external third party investment manager. Assets under administration reflect the value of the IFRS gross assets of the Group adjusted, where appropriate, for consolidation adjustments, inter-company assets and intangible assets. In addition, the definition includes third party assets administered by the Group which are not included in the consolidated statement of financial position.

Assumptions

Variables applied to data used to project expected outcomes.

Back book management

We choose to analyse our EEV operating profit before tax in the three components which reflect the focus of our business effort - core, efficiency and back book management. Back book management includes all non-expense related operating variances and assumption changes for covered business plus those development costs directly related to back book management initiatives and, for non-covered business, specific costs attributed to back book management.

Board

The board of Directors of the Company.

Burnthrough costs

Burnthrough costs are an estimate of the value of the potential shareholder support that could be required to meet policyholder benefits in a participating fund. It is usually the case that shareholders participate in the profits or surpluses generated within a participating fund only to a limited extent. However, there could be unfavourable outcomes in the future when the assets of the participating fund are no longer sufficient to pay the benefits of the policyholders of that fund. This would be described as a 'burnthrough event' and could require some level of financial support from the shareholder. The burnthrough cost is normally calculated by projecting a large number of possible future economic outcomes, taking an average over all of these outcomes.

Capital resources (CR)

Capital resources include the assets in excess of liabilities, valued on a regulatory basis, and certain other components of capital.

Capital resources requirement (CRR)

A company must hold capital resources in excess of the capital resources requirement. The CRR represents the total of the individual capital resources requirements (ICRR) of each regulated company in the Group.

CFO Forum

A high-level discussion group formed and attended by the Chief Financial Officers of major European listed, and some non-listed, insurance companies.

Company

Standard Life plc.

Constant currency

Eliminates the effects of exchange rate fluctuations and is used when calculating financial performance on a range of measures.

Core

We choose to analyse our EEV operating profit before tax in the three components which reflect the focus of our business effort - core, efficiency and back book management. Core includes new business contribution, expected return and development costs for covered business, excluding those development costs directly related to back book management initiatives and, for non-covered business, IFRS operating profit excluding specific costs attributable to back book management.

Covered business

The business covered by the EEV methodology. This should include any contracts that are regarded by local insurance supervisors as long-term or life insurance business and may cover other long-term life insurance, short-term life insurance such as group risk business and long-term accident and health business. Where short-term healthcare is regarded as part of or ancillary to a company's long-term life insurance business, then it may be regarded as long-term business. For covered business within the Standard Life Group please refer to the EEV methodology within the EEV supplementary information.

Deferred acquisition costs (DAC)

The method of accounting whereby acquisition costs on long-term business are deferred in the statement of financial position as an asset and amortised over the life of those contracts. This leads to a smoothed recognition of up front expenses instead of the full cost in the year of sale.

Deferred income reserve (DIR)

The method of accounting whereby front end fees that relate to services to be provided in future periods are deferred in the statement of financial position as a liability and amortised over the life of those contracts. This leads to a smoothed recognition of up front income instead of the full income in the year of sale.

Development costs

Costs that are considered to be non-recurring and are reported separately from other expenses in the EEV movement analysis.

Director

A director of the Company.

Discounting

The reduction to present value at a given date of a future cash transaction at an assumed rate, using a discount factor reflecting the time value of money. The choice of a discount rate will usually greatly influence the value of insurance provisions, and may give indications on the conservatism of provisioning methods.

Dividend cover

This is a measure of how easily a company can pay its dividend from profit. It is calculated as IFRS operating profit after tax and minority interest divided by the total dividend for that financial period.

Earnings before interest and tax (EBIT)

EBIT is defined as earnings before interest, taxation, foreign exchange gains and losses, profit on partial disposal of investments in associates, divergence on financial guarantee costs, movement on contract for differences and restructuring costs.

EBIT margin

This is an industry measure of performance for investment management companies. It is calculated as EBIT divided by total revenue.

Earnings per share (EPS)

EPS is a commonly used financial metric which can be used to measure the profitability and strength of a company over time. EPS is calculated by dividing profit by the number of ordinary shares. Basic EPS uses the weighted average number of ordinary shares outstanding during the year. Diluted EPS adjusts the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares, for example share awards and share options awarded to employees.

Economic assumptions

Assumptions in relation to future interest rates, investment returns, inflation and tax. These assumptions, and variances in relation to these assumptions, are treated as non-operating profits/(losses) under EEV.

Efficiency

We choose to analyse our EEV operating profit before tax in the three components which reflect the focus of our business effort - core, efficiency and back book management. Efficiency includes covered business variances and assumption changes, which relate to maintenance expenses.

European Embedded Value (EEV)

The value to equity shareholders of the net assets plus the expected future profits on in-force business from a life assurance and pensions business. Prepared in accordance with the EEV Principles and Guidance issued in May 2004 by the CFO Forum and the Additional Guidance issued in October 2005. EEV reports the value of business in-force based on a set of best estimate assumptions, allowing for the impact of uncertainty inherent in future assumptions, the costs of holding required capital, the value of free surplus and TVOG.

EEV operating profit

Covered business EEV operating profit represents profit generated from new business sales and the in-force book of business, based on closing non-economic and opening economic assumptions. Covered business is defined above.

Non-covered business EEV operating profit represents IFRS operating profit. Non-covered business is defined below.

EEV operating profit capital and cash generation

This is a measure of the underlying shareholder capital and cash flow of the Group.

Covered business EEV operating capital and cash generation represents the EEV operating profit net worth (free surplus and required capital) on an after-tax basis.

Non-covered business EEV operating capital and cash generation represents EEV operating profit after tax (as defined above).

Expected return on EEV

Anticipated results based on applying opening assumptions to the opening EEV.

Experience variances

Current period differences between the actual experience incurred over the period and the assumptions used in the calculation of the embedded value, excluding new business non-economic experience variances which are captured in new business contribution.

Fee based business

Fee business is a component of IFRS operating profit and is made up of products where we generate income primarily from asset management charges (AMCs), premium based charges and transactional charges. AMCs are earned on products such as SIPP, corporate pensions and mutual funds, and are calculated as a percentage fee based on the assets held. Investment risk on these products rests principally with the customer, with the major indirect Group exposure to rising or falling markets coming from higher or lower AMCs.

Financial options and guarantees

Terms relating to covered business conferring potentially valuable guarantees underlying, or options to change, the level and nature of policyholder benefits and exercisable at the discretion of the policyholder, whose potential value is impacted by the behaviour of financial variables.

Free surplus

The amount of capital and any surplus allocated to, but not required to support, the in-force business covered by the EEV.

Global Absolute Return Strategy (GARS)
A type of fund provided by Standard Life Investments, which is proving to be very popular with investors. The fund's key objective is to deliver an average annual return to investors that is 5% above UK six month LIBOR (London Interbank Offer Rate).

Group capital surplus

This is a regulatory measure of our financial strength and compares the Group's capital resources to its capital resources requirements in accordance with the Insurance Groups Directive.

Group, Standard Life Group or Standard Life

Prior to demutualisation on 10 July 2006, SLAC and its subsidiaries and, from demutualisation on 10 July 2006, the Company and its subsidiaries.

Growth investment spend

Costs we incur investing in the future of our business, including product development, marketing and technology to support our growth.

Heritage With Profits Fund (HWPF)

The Heritage With Profits Fund contains all existing business - both with profits and non profit - written before demutualisation in the UK, Irish or German branches, with the exception of the classes of business which the Scheme of Demutualisation allocated to the Proprietary Business Fund. This HWPF also contains increments to existing business.

Individual Capital Assessment (ICA)

The process by which the Financial Services Authority (FSA) requires insurance companies to make an assessment of the regulated company's own capital requirements, which is then reviewed and agreed by the FSA.

In-force

Long-term business which has been written before the period end and which has not terminated before the period end.

Internal rate of return (IRR)

A measure of rate of return on an investment and so an indicator of capital efficiency. The IRR is equivalent to the discount rate at which the present value of the after-tax cash flows expected to be earned over the lifetime of new business written is equal to the capital invested to support the writing of the business.

International Financial Reporting Standards (IFRS)

International Financial Reporting Standards are accounting standards issued by the International Accounting Standards Board (IASB). The Group's consolidated financial statements are required to be prepared in accordance with IFRS.

IFRS operating profit

IFRS operating profit is calculated by adjusting profit attributable to equity holders before tax for the impact of short-term economic changes to asset and liability values. The Directors believe that by removing this volatility from operating profit, they are presenting a more meaningful indication of the long-term performance of the Group.

IFRS tangible equity per share

Total IFRS equity, less non-controlling interests and intangible assets, divided by the diluted number of issued shares at the end of the period.

Key performance indicators (KPI)

This is a measure by reference to which the development, performance or position of the business can be measured effectively.

Maintenance expenses

Expenses related to the servicing of the in-force book of business (including investment and termination expenses and a share of overheads).

Mutual fund

A collective investment vehicle enabling investors to pool their money, which is then invested in a diverse portfolio of stocks or bonds, enabling investors to achieve a more diversified portfolio than they otherwise might have done by making an individual investment.

Net flows

Net flows represent gross inflows less redemptions. For long-term savings business, gross inflows are premiums and deposits recognised in the period on a regulatory basis (excluding any switches between funds). Redemptions are claims and annuity payments (excluding any reinsurance transactions and switches between funds).

Net worth

The market value of shareholders' funds and the shareholders' interest in the surplus held in the non profit component of the long-term business funds, determined on a statutory solvency basis and adjusted to add back any non-admissible assets per regulatory returns.

New business contribution (NBC)

The expected present value of all future cash flows attributable to the equity holder from new business, as included within EEV operating profit.

New business strain (NBS)

Costs involved in acquiring new business (such as commission payments to intermediaries, expenses, reserves) affecting the insurance company's financial position at that point and where all of the income from that new business (including premiums and investment income) has not yet been received and will not be received until a point in the future. To begin with, therefore, a strain may be created where cash outflows exceed inflows.

NBS margin

New business strain as a percentage of PVNBP sales (see PVNBP).

Non-covered business

Mainly includes third party global investment management and other businesses not associated with the life assurance and pensions business. Non-covered business excludes the global investment management look through profits and the return on mutual funds which are recognised in covered business. Non-covered business is excluded from the EEV methodology and is included within the Group EEV on an IFRS basis.

Non-economic assumptions

Assumptions in relation to future levels of mortality, morbidity, persistency and expenses. These assumptions, and variances in relation to these assumptions, are included as operating profits/(losses) under EEV.

Non profit policy

A policy, including a unit linked policy, which is not a with profits policy.

Personal pension plan

An individual pension arrangement with particular tax advantages whereby individuals who are self-employed or those who are not members of employer-sponsored pension scheme arrangements can make provision for retirement or provide benefits for their dependents in a tax efficient manner.

Present value of in-force business (PVIF)

The present value of the projected future distributable profits after tax attributable to equity holders from the covered business in-force at the valuation date, adjusted where appropriate, to take account of TVOG.

Present value of new business premiums (PVNBP)

The industry measure of insurance new business sales under the EEV methodology. It is calculated as 100% of single premiums plus the expected present value of new regular premiums.

Proprietary Business Fund

The Proprietary Business Fund in Standard Life Assurance Limited (SLAL) contains, among other things, certain classes of business - pension contribution insurance policies, income protection plan policies and a number of SIPP policies written before demutualisation, as well as most new insurance business written after demutualisation in the UK, Ireland and Germany.

PVNBP margin

PVNBP margin is NBC expressed as a percentage of PVNBP. This measures whether new business written is adding value or eroding value.

Recourse cash flow (RCF)

Certain cash flows arising in the HWPF on specified blocks of UK and Irish business, which are transferred out of the fund on a monthly basis and accrue to the ultimate benefit of equity holders, as determined by the Scheme of Demutualisation.

Regular premium

A regular premium contract (as opposed to a single premium contract), is one where the policyholder agrees at inception to make regular payments throughout the term of the contract.

Required capital

The amount of assets, over and above the value placed on liabilities in respect of covered business, whose distribution to equity holders is restricted.

Return on EEV (RoEV)

The annualised post-tax operating profit on an EEV basis expressed as a percentage of the opening embedded value, adjusted for dividends paid to equity holders.

Scheme of Demutualisation (the Scheme)

The scheme pursuant to Part VII of, and Schedule 12 to, the Financial Services and Markets Act 2000, under which substantially all of the long-term business of SLAC was transferred to Standard Life Assurance Limited on 10 July 2006.

SICAV

A SICAV (société d'investissement à capital variable) is an open-ended collective investment scheme common in Western Europe. SICAVs can be cross-border marketed in the EU under the Undertakings for collective investment in transferable securities (UCITS) directive.

Single premium

A single premium contract (as opposed to a regular premium contract (see above)), involves the payment of one premium at inception with no obligation for the policyholder to make subsequent additional payments.

SIPP

A self invested personal pension which provides the policyholder with greater choice and flexibility as to the range of investments made, how those investments are managed, the administration of those assets and how retirement benefits are taken.

SLAC

The Standard Life Assurance Company (renamed The Standard Life Assurance Company 2006 on 10 July 2006).

Spread based business

Spread based business is a component of IFRS operating profit and comprises products where we provide a guaranteed level of income for our customers in return for an investment. A good example of this product line is annuities. The 'spread' referred to in the title primarily relates to the difference between the guaranteed amount we pay to customers and the actual return on the assets over the period of the contract.

Time value of options and guarantees (TVOG)

Represents the potential additional cost to equity holders where a financial option or guarantee exists which affects policyholder benefits and is exercisable at the option of the policyholder.

Total shareholder return

This is a measure of the overall return to shareholders and includes the movement in the share price and any dividends paid and reinvested.

Undiscounted payback period

A measure of capital efficiency that measures the time at which the value of expected undiscounted cash flows (after tax) is sufficient to recover the capital invested to support the writing of new business.

Unit linked policy

A policy where the benefits are determined by reference to the investment performance of a specified pool of assets referred to as the unit linked fund.

With profits policy

A policy where, in addition to guaranteed benefits specified in the policy, additional bonuses may be payable from relevant surplus. The declaration of such bonuses (usually annually) reflects, amongst other things, the overall investment performance of the fund of which the policy forms part. Also known as a 'participating' policy.

Wrap platform

An investment platform which is essentially a trading platform enabling investment funds, pensions, direct equity holdings and some life assurance contracts to be held in the same administrative account rather than as separate holdings.

8 Shareholder information

Registered office

Company registration number: SC286832

Standard Life House

30 Lothian Road

Edinburgh

EH1 2DH

Scotland

Phone: 0800 634 7474 or 0131 225 2552

For shareholder services call 0845 113 0045

Registrar:

Capita Registrars Limited

Auditors:

PricewaterhouseCoopers LLP

Solicitors:

Slaughter and May

Brokers:

JP Morgan Cazenove

Deutsche Bank

Shareholder services

We offer a wide range of shareholder services, some details of which are set out below. If you need any further information about any of these services, please:

· Contact our registrar, Capita, on 0845 113 0045 if calling from the UK. International numbers for Capita can be found on the last page of this report.

· Visit our share portal at www.standardlifeshareportal.com

You can choose to receive your shareholder communications electronically - registering is easy and free. Just go to www.standardlifeshareportal.com to find out how. Signing up means:

· You'll receive an email when documents like the Annual Report and Accounts, Summary Financial Report and AGM guide are available on our website. You can then read these online in an easy-to-use, searchable format instead of receiving paper copies in the post.

· Voting instructions for the Annual General Meeting will be sent to you electronically

· You can download your dividend tax vouchers when you need them

· You can view your Standard Life Share Account statement online

Any information you receive electronically will be the same as the paper version - but you'll help us save money, and conserve natural resources.

Preventing unsolicited mail

By law, the Company has to make certain details from its share register publicly available. Because of this, it is possible that some registered shareholders could receive unsolicited mail. You could also be targeted by fraudulent 'investment specialists' using high-pressure cold-calling sales techniques - these are sometimes called 'boiler room scams'. You can find more information about this at the Financial Services Authority website www.moneymadeclear.org.uk

If you are a certificated shareholder, your name and address may appear on a public register. Using a nominee company to hold your shares can help protect your privacy. You can transfer your shares into the Company-sponsored nominee - the Standard Life Share Account - by contacting Capita, or you could get in touch with your broker to find out about their nominee services.

If you want to limit the amount of unsolicited mail you receive generally, please contact:

Mailing Preference Service (MPS)

DMA House

70 Margaret Street

London

W1W 8SS

You can also register online at www.mpsonline.org.uk

Analysis of registered shareholdings as at 30 June 2011

Range of shares	Number of holders	% of total holders	Number of shares	% of total shares
1-1,000	64,538	54.56	30,802,355	1.32
1,001-5,000	47,025	39.75	99,831,966	4.29
5,001-10,000	3,931	3.32	26,937,266	1.16
10,001-100,000	2,293	1.94	49,636,837	2.13
*100,001+	510	0.43	2,120,870,836	91.10
Totals	118,297	100.00	2,328,079,260	100.00

* These figures include the Company-sponsored nominee - the Standard Life Share Account - which had 1,276,506 participants holding 1,046,715,807 shares, and the Unclaimed Asset Trust, which had 76,070 participants holding 28,743,291 shares.

Financial calendar for 2011

Ex-dividend date for 2011 interim dividend	17 August 2011
Record date for 2011 interim dividend	19 August 2011
Scrip reference price announced for 2011 interim dividend	24 August 2011
2011 Q3 trading results and interim management statement	2 November 2011
Interim dividend payment date	18 November 2011

Contact details

We want to make sure you have answers to all your questions.



UK and Ireland If you have any questions about voting at the Annual General Meeting, dividends or your shareholding, please contact our registrar:	www.standardlifeshareportal.com	questions@standardlifeshares.com Address: Standard Life Shareholder Services 34 Beckenham Road Beckenham Kent BR3 4TU	0845 113 0045 +44 (0)20 3367 8224 (01) 431 9829

Germany and Austria If you have any questions about voting at the Annual General Meeting, dividends or your shareholding, please contact our registrar:	www.standardlifeshareportal.com/de	fragen@standardlifeshares.de Address: Standard Life Aktionärsservice Postfach 20 01 43 60605 Frankfurt am Main Germany	+49 (0)6196 7693 130

Canada If you have any questions about voting at the Annual General Meeting, dividends or your shareholding, please contact our registrar:	www.standardlifeshareportal.com (English) www.standardlifeshareportal.com/fr (French Canadian)	questions@standardlifeshares.ca Address: Standard Life Shareholder Services PO Box 4636 Station A Toronto M5W 7A4	1-866-982-9939

This information is provided by RNS

The company news service from the London Stock Exchange

END

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