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Income from the long term assurance business increased
£52m adjusting for the £75m provision for possible redress
to personal pension customers (non priority cases), which
was raised during 1999. The increase in 2000 benefited from
reductions in costs charged to the funds, a net £18m increase
from applying current actuarial assumptions and £5m from
the inclusion of Woolwich Life. Total provisions of £226m,
including £16m in The Woolwich, have been raised to date
for the cost of the redress for personal pension customers
for priority and non-priority cases, of which £97m remains
unutilised as at 31st December 2000. The result of the long
term assurance business is after charging costs borne directly
in the funds of £146m (1999 £165m).
Premium income on insurance underwriting increased to £126m
(1999 £102m), benefiting from improved volumes of consumer
lending, overdrafts, mortgages and credit card lending.
In 1999 other operating income was £40m lower than in 1998.
Increased premium income on insurance underwriting was
offset by the £75m charge in respect of the possible cost of
redress to personal pension customers (non-priority cases),
lower property rentals and reduced other income.
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