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Appendix 4

What's a with-profits policy?

A with profits plan is a long-term investment plan and can enjoy potentially
high returns via exposure to, for example, equity shares, whilst guaranteeing
a minimum level of return. Planholder premiums are held in a pooled fund that
is invested in a range of assets, with a significant proportion in equities and
property. The risk borne by the investor in such asset classes is limited by
guarantees, which usually increase over the lifetime of the policy. Firms will
often "smooth" out returns to policyholders in order to cushion policyholders
from the extremes of fluctuations in the property and equity markets.

Resolution Scheme of Arrangement

Standard's original offer for Resolution had been under a "scheme of
arrangement". Under that structure, even with the Resolution board's backing,
Standard needed 75 per cent of Resolution shareholders to approve the offer,
which meant Pearl could block the deal.

Focus on Change

The Focus on Change investment philosophy seeks to identify and
understand the most important factors that drive the market price of an
investment and the dynamics behind these drivers. This focus is
supplemented by analysis of what is priced into an investment - what are the
key drivers of the price and what expectations for these drivers are currently
'priced in'. The spotlight is put on what's changing and whether these changes
will lead to revised market expectations and hence to a revised share price.
Clearly, the best opportunities come in the investments where there are not
only the deepest insights but also the greatest conviction that market
expectations are going to change.

Our Focus on Change philosophy recognises that different factors drive
markets at different times in the investment cycle. It is not inherently growth or
value biased or necessarily momentum driven. This means that there is the
opportunity to outperform throughout the cycle.