Barclays 2007 Annual Report Download - page 185

3
Financial statements
Barclays PLC Annual Report 2007 183
4 Principal transactions
2007 2006 2005
£m £m £m
Rates related business 4,162 2,848 1,732
Credit related business (403) 766 589
Net trading income 3,759 3,614 2,321
Net gain from disposal of available for sale assets 560 307 120
Dividend income 26 15 22
Net gain from financial instruments designated at fair value 293 447 389
Other investment income 337 193 327
Net investment income 1,216 962 858
Principal transactions 4,975 4,576 3,179
Net trading income includes the profits and losses arising both on the purchase and sale of trading instruments and from the revaluation to market value,
together with the interest income and expense from these instruments and the related funding cost.
Of the total net trading income, a £756m loss (2006: £947m gain, 2005: £498m gain) was made on securities and £640m gain (2006: £480m,
2005: £340m) was earned in foreign exchange dealings.
The net gain on financial assets designated at fair value included within principal transactions was £78m (2006: £489m, 2005: £391m) of which losses
of £215m (2006: £42m gain, 2005: £2m gain) were included in net trading income and gains of £293m (2006: £447m, 2005: £389m)
were included in net investment income.
The net loss on financial liabilities designated at fair value included within principal transactions was £231m (2006: £920m, 2005: £666m) all of which
was included within net trading income.
The net gain from widening of credit spreads relating to Barclays Capital issued notes held at fair value was £658m (2006: £nil, 2005: £nil).
5 Insurance premiums and insurance claims and benefits
2007 2006 2005
£m £m £m
Gross premiums from insurance contracts 1,062 1,108 909
Premiums ceded to reinsurers (51) (48) (37)
Net premiums from insurance contracts 1,011 1,060 872
2007 2006 2005
£m £m £m
Gross claims and benefits incurred on insurance contracts 520 588 694
Reinsurers’ share of claims incurred (28) (13) (49)
Net claims and benefits incurred on insurance contracts 492 575 645
6 Other income
2007 2006 2005
£m £m £m
Increase in fair value of assets held in respect of linked liabilities
to customers under investment contracts 5,592 7,417 9,234
Increase in liabilities to customers under investment contracts (5,592) (7,417) (9,234)
Property rentals 53 55 54
Other income 135 159 93
Other income 188 214 147
Included in other income are sub-lease receipts of £18m (2006: £18m, 2005: £18m).
Included in other income in 2007 is a loss on the part disposal of Monument credit card portfolio and gains on reinsurance transactions in 2007 and 2006.