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Notes to the consolidated fnancial statements (continued)

for the year ended 30 June 2011

8. Life – Specifc disclosures (continued)

8.7 Life – Net policy liabilities (continued)

8.7.2 Actuarial assumptions, judgements and estimates used in calculating policy liabilities (continued)

ASSUMPTION SLSL ALL ALLNZ

2011 %

2010 %

2011 %

2010 %

2011 %

2010 %

Investment earnings pre-tax for participating business 6.5–7.6 6.2–7.4 7.3 7.1 6.7 6.8

Investment earnings pre-tax for non‑participating business

4.7–6.1 4.2–5.6 4.7–5.7 4.5–5.6 2.9–6.4 3.8–6.4

Voluntary discontinuance 4–25 4–25 3–32 3–26 4–20 6–23

Mortality – individual risk products adjustment 70–170 70–170 59 62 85 95

Mortality – annuitants (M = Male, F = Female)

60% M = 60%

F = 70%

60% M = 55%

F = 55%

67% M = 68%

F = 68%

8.7.3 Net insurance contract policy liabilities

CONSOLIDATED

Current basis Previous basis 2011  4 2011  5 2010  6 $m $m $m

 

Insurance contract policy liabilities

Best estimate liability

Value of future policy benefts 1 4,354 4,448 4,510 Value of future expenses 2,084 2,151 2,027 Value of unrecouped acquisition expenses (177) (177) (182) Balance of future premiums (6,395) (6,661) (6,498) (134) (239) (143) Value of future profts

Policyowner bonuses 2 558 548 493 Shareholder proft margins 1,085 1,202 1,159 1,643 1,750 1,652 Total value of declared bonuses 3 110 110 75 Total net policy liabilities 1,619 1,621 1,584 Life insurance reinsurance ceded 339 341 327 Gross insurance contract liabilities 1,958 1,962 1,911 Policy liabilities subject to capital guarantee 1,345 1,356 1,345

Notes

1 Future policy benefts include bonuses credited to policyowners in prior periods but exclude current period bonuses (as set out in the consolidated statement of comprehensive income) and future bonuses. Where business is valued by other than projection techniques, future policy benefts include the account balance. 2 Future bonuses exclude current period bonuses.

3 Current year declared bonuses valued in accordance with the Actuarial Standard.

4 Based on actuarial methods and assumptions relevant at the current reporting date, on current in-force business as at 30 June 2011. 5 Based on actuarial methods and assumptions relevant at the previous reporting date, on current in-force business as at 30 June 2011. 6 Based on actuarial methods and assumptions relevant at the previous reporting date, on current in-force business as at 30 June 2010.