2003 2002 2003 2002 GBP GBP % EUR EUR % INCOME BY PRODUCT SEGMENT Traditional life 1 12 (92) 2 19 (89) Life for account of policyholders 128 140 (9) 184 224 (18) Fee business 1 (6) 2 (10) LIFE INSURANCE 130 146 (11) 188 233 (19) of which general account 1 12 (92) 2 19 (89) of which policyholders account 1 129 134 (4) 186 214 (13) Income before tax 130 146 (11) 188 233 (19) Corporation tax (37) (34) 9 (53) (55) (4) NET INCOME 93 112 (17) 135 178 (24) REVENUES Life general account single premiums 189 172 10 274 273 0 Life general account recurring premiums 104 81 28 151 129 17 Life policyholders account single premiums 2,675 2,636 1 3,872 4,196 (8) Life policyholders account recurring premiums 1,159 1,153 1 1,677 1,835 (9) Total gross premiums 4,127 4,042 2 5,974 6,433 (7) Investment income insurance activities 2 95 92 3 137 147 (7) Fees and commissions 62 18 90 29 TOTAL REVENUES 4,284 4,152 3 6,201 6,609 (6) Investment income for account of policyholders 3,383 (2,680) 4,897 (4,266) GROSS MARGIN, COMMISSIONS AND EXPENSES Gross margin 572 460 24 828 733 13 Commissions and expenses 442 314 41 640 500 28 STANDARDIZED NEW PREMIUM PRODUCTION LIFE INSURANCE Single premiums 2,719 2,390 14 3,935 3,804 3 Recurring premiums annualized 363 349 4 525 556 (6) TOTAL RECURRING PLUS 1/10 SINGLE 635 588 8 919 936 (2) OFF BALANCE SHEET PRODUCTION Mutual funds and other managed assets 332 437 (24) 481 696 (31) TOTAL PRODUCTION OFF BALANCE SHEET 332 437 (24) 481 696 (31) $^{1}$Includes also fee business $^{2}$Of which indirect income on shares and real estate 0 0 0 0 AEGON GROUP ANNUAL REPORT 2003 129 UNITED KINGDOM Amounts in millions