*The asset allocation and investment return for these plans depend upon the product type held and the date the investment was made. The figures shown are averages for all types and dates.

N/A -The product was not available in that year.

The investment returns shown are after tax payable by us, unless indicated otherwise. All returns are before we have taken off investment expenses and any policy charges that might be applied on certain plans.

Please note that all investment returns are rounded to the nearest percent.

INVESTMENT MARKETS – A REVIEW OF THE LAST YEAR

Global economic recovery faced significant challenges during 2011. Consumer sentiment, particularly in the major economies, was weak due to high levels of unemployment, rising food and energy costs, and credit constraints, which curtailed retail spending. Countries such as China, India and Brazil continued to grow far more rapidly than major developed economies.

The Euro debt crisis continued to dominate financial markets. Three countries in the European Union are receiving a bail out; Portugal, Greece and Ireland.

2011 was also a turbulent year for investments. The biggest moves were concentrated in early August, when major equity markets fell between 10% and 20% in the space of a few days. One of the main catalysts was an announcement that US interest rates would remain at their current exceptionally low level for at least another two years. At about the same time, Standard & Poors downgraded US government debt for the first time in its history.

Most major central banks kept interest rates on hold throughout 2011, trying to stimulate investment in the economy. Equity markets lost ground through 2011, the FTSE 100 index returning –5.5% (excluding dividends).

The With Profits Fund is invested in a mix of investments which can help to reduce some of the short term ups and downs of investing. The Fund’s performance is a combination of the returns received from all the investments in the fund. In 2011, the Legal & General With Profits Fund has returned 1.7% before tax.

Our Board Report on Compliance gives more information on our investment policy and how we balance risk and return for policyholders. In June 2012, the Board of Directors will report to policyholders on compliance with the Principles and Practices of Financial Management (PPFM) for the period 1 January to 31 December 2011, and the updated report will be published here by 30 June 2012.