Pearl - Annual With-Profits Report

Release date: 22 April 2005

This report has been prepared by the Board of Pearl Assurance plc and covers the period 1 April 2004 to 31 December 2004.

The Board confirms that in the period covered by this report:

In its opinion, the with-profits fund has been managed in accordance with the Principles and Practices of Financial Management dated 1 April 2004.
There have been no changes to the Principles and Practices of Financial Management.

Furthermore, the Board believes that:

All significant discretionary actions described in the Principles and Practices of Financial Management have been appropriately exercised.
There have been no material conflicts of interest between the with-profits fund and other funds or sub-funds of the company or between groups of policyholders within the with-profits fund.

The Pearl With-Profits Committee has been appointed by the Board and includes individuals otherwise unconnected with Pearl Assurance plc. This is to ensure that the governance arrangements include some independent judgment in the assessment of compliance with the Principles and Practices of Financial Management. The Pearl With-Profits Committee has reviewed this report and supports the statements made.