Columns 16 to 18 relate to life investmeColumns 16 to 18 relate to life investment contracts.

Columns 16 to 18 relate to life investment contracts.

Column 16 Financial Instrument Profit

Financial Instrument Profit is determined as the sum of all cash flows relating to the financial instrument element of Life Investment Contracts, including investment earnings on the underlying assets, less the change in the value of the Life Investment Contract Liability (i.e. the financial instrument liability). Essentially, any profit arising from changes in fair values of Financial Instruments that are not matched by changes in fair values of the underlying assets.

Column 17 Management Services Profit

Management Services Profit is determined as the sum of all cash flows relating to the management service element of Life Investment Contracts, plus/(less) the change in the value of any asset/(liability) arising in respect of the management services element. Essentially fees less expenses for that component of the business, where fees include changes in deferred fee revenue and expenses include changes in deferred acquisition costs.

Column 18 Change in valuation methods and assumptions

Include one-off changes in the amortisation of deferred fee revenue and deferred acquisition costs

Column 19 Total Life Insurance Act Operating Profit After Income Tax

The number entered should equal the sum of all profit items above.

Column 20 Cumulative Losses Carried Forward at the end of the Year

This item is recorded for keeping track of total amounts of losses recognised and not reversed. Losses should be entered as negative numbers.