Statement of Directors' Responsibilities
in respect of the preparation of the Achieved Profits Basis Supplementary Information
The Guidance issued in December 2001 by the Association of British Insurers entitled “Supplementary Reporting for Long Term Insurance Business (the Achieved Profits Method)” (“the Guidance”) requires the directors to prepare supplementary information presented under the Achieved Profits Method.
In preparing the Achieved Profits Supplementary Information, the directors are required to:
- select suitable methodologies and then apply them consistently;
- determine assumptions on a realistic basis, having regard to past, current and expected future experience and to any relevant external data, and then apply them consistently;
- state whether applicable accounting standards have been followed in relation to the residual assets, subject to any material departures disclosed and explained in the supplementary information; and
- prepare the supplementary information on the going concern basis unless it is inappropriate to presume that the Company will continue in business.