Financial Statements

Notes to the consolidated accounts

32. Investment contracts

Movement in investment contracts liabilities	2007 £m	2006 £m
At 1 January	32,821	27,857
Premiums	6,014	5,725
Claims	(3,320)	(3,046)
Investment return, annual management charges and other expenses	1,751	2,285
At 31 December	37,266	32,821
Analysed as follows:
Unit-linked contracts	32,151	27,066
Policies with DPF	5,002	5,700
Other	113	55
Total investment contracts liabilities	37,266	32,821

None of the movement in liabilities is attributable to changes in credit risk of the liabilities.

Included in the carrying amount above, £35,574m (2006: £31,365m) is expected to be settled more than 12 months after the balance sheet date.

Unit-linked liabilities are based on the fair value of the underlying assets. Liabilities relating to policies with DPF are determined using methods and principles consistent with insurance contracts as set out in note 28. There is no significant difference between carrying values and maturity values of investment contract liabilities.