Business overview  Results of operations – United Kingdom 54 Results 2013 United Kingdom 2013 net income of GBP 102 million is 27% lower than 2012 due to the impact  of business transformation costs, higher impairment charges and lower underlying  earnings before tax as the positive impact of higher equity markets was more than  offset by adverse persistency related to the Retail Distribution Review (RDR) and  investments in technology. New life sales increased by 13% to GBP 860 million  due to higher sales in group pensions and strong platform growth. Platform  assets reached GBP 1.3 billion by the end of 2013. Net income decreased to GBP 102 million compared to 2012.  The result was impacted by a GBP 18 million book loss on the  sale of Positive Solutions and business transformation costs of  GBP 51 million related to in-sourcing the platform servicing and  development as well as other restructuring costs. The loss on fair  value items was GBP 14 million, mainly driven by equity hedges  to protect the capital position. Realized gains on investments  and impairment charges amounted to GBP 41 million and GBP  26 million, respectively. 2013 included a tax benefit of GBP  79 million related to a reduction in the corporate tax rate.  Commissions and expenses Net income Commissions and expenses increased 6% compared to 2012 as  a consequence of higher operating expenses. Operating expenses  increased 22% compared to 2012 to GBP 328 million, as  expenses related to investments in technology and business  transformation costs of GBP 64 million were incurred. Excluding  these costs, expenses were 2% lower compared to 2012.  Commissions declined due to the sale of Positive Solutions and  the impact of the implementation of RDR on Pension business  commission. Underlying earnings before tax in the United Kingdom declined  6% to GBP 84 million compared to 2012. The positive impact of  higher equity markets was more than offset by adverse  persistency related to RDR and investments in technology. New life sales were up 13% to GBP 860 million compared  to 2012, reflecting strong platform growth and higher sales  in group pensions following the implementation of RDR on  January 1, 2013.  Platform assets reached GBP 1.3 billion by the end of 2013.  Gross deposits amounted to GBP 239 million, driven by platform  savings products, as the platform gained momentum in the  market.  Production Underlying earnings before tax ■ 2013 earnings from Distribution amounted to a loss of  GBP 2 million. Earnings from Distribution will no longer be  reported separately. Positive Solutions was sold, and Origen  was moved into the Pensions line of business. ■ Earnings from Life increased 26% to GBP 83 million  compared to 2012, driven by improved mortality in annuities,  lower operating expenses and a GBP 8 million benefit from  reserving changes for annuity products.  ■ Earnings from Pensions declined to GBP 2 million compared  to 2012. Adverse persistency amounted to GBP 19 million,  which the UK insurance industry experienced as a result of  the implementation of RDR. Earnings benefited from the  favorable impact of higher equity markets. This was offset by  GBP 13 million of expenses related to creating a digital  capability for the non-advised client group in order to  facilitate the upgrade to the platform.  Annual Report 2013