Clerical Medical is a subsidiary of HBOS plc.

HBOS 2007 investment business financial results
Underlying profit before tax in the Investment Business increased by 49% to £412 million (2006 £277 million) due to an increasing contribution from our growing in-force book and a good new business contribution. On a Full Embedded Value (EV) basis, profit increased by 21% to £652 million (2006 £539 million). Growth is stronger on an IFRS basis, relative to EV, as profits have historically been subdued by the new business strain on investment contract sales whereas we are now seeing the emergence of in-force profits on those contracts. A strong performance on insurance contracts contributed strongly to growth on both the EV and IFRS bases.

Intermediary

We are refocusing our strategy in the Intermediary channel around individual pensions and investment business, our core areas of strength. As a result, we ceased writing new Group Pensions business in April 2007. As expected, these changes have impacted sales in the short term with overall sales 2% lower at £3,942 million PVNBP (2006 £4,019 million). New business margins have also fallen with the reduction in sales during this transitional phase for the business resulting in higher unit costs. As we implement our revised strategy we remain positive as to the prospects for profitable growth in this channel.

For more information on HBOS 2007 financial results for the insurance and investment division.

Markets
Clerical Medical's business comes from financial advisers.

Clerical Medical is active in the offshore market and Clerical Medical International (CMI) is the largest cross-border company in Europe.

Total customers
Over 2 million (as at 30 June 2006)

Key offices
Bristol, Clevedon (customer service), Aylesbury (customer service), regional offices in Birmingham, Bristol, Glasgow, Leeds, London and Manchester. For locations, please see how to find us.