6. Net Life Insurance Income

	Half Year to		Fav/ (unfav) change on	Year to		Fav/ (unfav) change on

	Sep 03 $m	Mar 03 $m	Mar 03 %	Sep 03 $m	Sep 02 $m	Sep 02 %

Ongoing operations
Premium and related revenue	446	503	(11.3)	949	1,134	(16.3)
Investment revenue	2,535	224	large	2,759	(988)	large

Life insurance income	2,981	727	large	3,708	146	large
Claims expense	(445)	(513)	13.3	(958)	(956)	(0.2)
Change in policy liabilities	(1,768)	250	large	(1,518)	1,637	large
Policy acquisition and maintenance expense	(369)	(344)	(7.3)	(713)	(751)	5.1
Investment management fees	(36)	(39)	7.7	(75)	(86)	12.8

Life insurance expenses	(2,618)	(646)	large	(3,264)	(156)	large

Net life insurance income	363	81	large	444	(10)	large

Interest expense - statutory funds	(8)	(12)	33.3	(20)	(11)	(81.8)

Profit of statutory funds before income tax	355	69	large	424	(21)	large
Income tax (expense)/benefit - statutory funds	(196)	70	large	(126)	248	large

Net profit of statutory funds before outside equity interest	159	139	14.4	298	227	31.3
Net (profit)/ loss attributable to outside equity interest	22	(6)	large	16	(6)	large

Net profit of statutory funds after outside equity interest	181	133	36.1	314	221	42.1

Reconciliation of net profit attributable to the sources of operating profit - statutory funds
Life company operating margins	139	117	18.8	256	226	13.3
Investment earnings on retained earnings	42	16	large	58	(5)	large

Net profit of statutory funds after outside equity interest	181	133	36.1	314	221	42.1

Net life insurance income is the profit before tax excluding net interest income of the life insurance and investments businesses of the statutory funds of the life insurance companies of the Group. Refer to note 57 of the Group's annual financial report 2003 for further details.

6. Net Life Insurance Income

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