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78 | FINANCIAL STATEMENTS | Notes to the Consolidated Financial Statements


18. Financial instruments continued


(ii) Fair value comparisons Set out below is a comparison by category of carrying amounts and fair values of all the Group’s financial instruments. Carrying amount


Financial assets Financial investments: available for sale


Financial investments: fair value through profit or loss Held for trading: stock of units and shares


Financial liabilities


Interest-bearing loans and borrowings: Fixed/Floating Rate Subordinated Notes 2016/2026 Guaranteed Fixed Rate Loan Notes 2016


Other financial liabilities: F&C REIT put options


Investment contract liabilities


(124.4) (149.4)


(45.3) (472.8)


(124.4) (149.3)


(54.0) (559.2) (80.5) (154.0) (45.3) (472.8) (92.0) (154.0) (54.0) (559.2)


The fair values of short-term ‘trade and other receivables’, ‘cash and cash equivalents’ and ‘trade and other payables’ have been excluded from the above table as their carrying amounts are a reasonable approximation of their fair value.


The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table:


Securities The fair value of listed investments is based on quoted bid market prices at the reporting date without any deduction for transaction costs. The fair value of unlisted investments has been valued in accordance with International Private Equity and Venture Capital Valuation Guidelines and in accordance with the underlying limited partnership agreements.


Interest-bearing loans and borrowings The fair value of the Subordinated Notes and Guaranteed Loan Notes is based on a quoted market price at the reporting date.


Unquoted investments Where discounted cash flow techniques are used, estimated future cash flows are based on management’s best estimates and the discount rate is a market-related rate for a similar instrument at the reporting date. Where other pricing models are used, inputs are based on market-related data at the reporting date.


Put options The fair value is based on an external valuation of the business, as detailed in note 28.


19. Reinsurance assets


31 December 31 December 2011 £m


2010 £m


Reinsurers’ share of insurance contract liabilities Total reinsurance assets – current assets


2.0 2.0


2.0 2.0


2010 £m


Fair value


31 December 31 December 31 December 31 December 2011 £m


2011 £m


1.7


454.4 0.9


3.5


548.7 0.1


1.7


454.4 0.9


3.5


548.7 0.1


2010 £m


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