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LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables)
 12 Months Ended
Dec. 31, 2017
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items]  
Disclosure of types of insurance contracts [text block] Insurance contract and participating investment contract liabilities are comprised as follows:

   2017  2016
   Gross   Reinsurance1   Net   Gross   Reinsurance1   Net 
   £m   £m   £m   £m   £m   £m 
Life insurance (see (1) below):                              
Insurance contracts   89,157    (563)   88,594    79,793    (671)   79,122 
Participating investment contracts   13,673    –    13,673    13,984    –    13,984 
    102,830    (563)   102,267    93,777    (671)   93,106 
Non-life insurance contracts (see (2) below):                              
Unearned premiums   358    (13)   345    404    (14)   390 
Claims outstanding   225    –    225    209    –    209 
    583    (13)   570    613    (14)   599 
Total   103,413    (576)   102,837    94,390    (685)   93,705 
1 Reinsurance balances are reported within other assets (note 27).
Disclosure of insurance premium revenue [text block]

NOTE 8: INSURANCE PREMIUM INCOME


   2017
£m		   2016
£m		   2015
£m		 
Life insurance               
Gross premiums:               
Life and pensions   6,273    5,613    3,613 
Annuities   1,082    1,685    430 
    7,355    7,298    4,043 
Ceded reinsurance premiums   (168)   (88)   (122)
Net earned premiums   7,187    7,210    3,921 
Non-life insurance               
Net earned premiums   743    858    871 
Total net earned premiums   7,930    8,068    4,792 

Premium income in 2015 was reduced by a charge of £1,959 million relating to the recapture by a third party insurer of a portfolio of policies previously reassured with the Group.
Participating investment contracts [Member]  
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items]  
Disclosure of Life Insurance and Participating Contract Liabilities [text block] The movement in life insurance contract and participating investment contract liabilities over the year can be analysed as follows:

       Participating             
   Insurance   investment             
   contracts   contracts   Gross   Reinsurance   Net 
   £m   £m   £m   £m   £m 
At 1 January 2016   66,122    13,460    79,582    (629)   78,953 
New business   4,422    28    4,450    (5)   4,445 
Changes in existing business   9,214    496    9,710    (37)   9,673 
Change in liabilities charged to the income statement (note 10)   13,636    524    14,160    (42)   14,118 
Exchange and other adjustments   35    –    35    –    35 
At 31 December 2016   79,793    13,984    93,777    (671)   93,106 
New business   4,154    43    4,197    (21)   4,176 
Changes in existing business   5,224    (354)   4,870    129    4,999 
Change in liabilities charged to the income statement (note 10)   9,378    (311)   9,067    108    9,175 
Exchange and other adjustments   (14)   –    (14)   –    (14)
At 31 December 2017   89,157    13,673    102,830    (563)   102,267 
Disclosure of Liabilities for Insurance Contracts and Participating Investment Contracts [text block] Liabilities for insurance contracts and participating investment contracts can be split into with-profit fund liabilities, accounted for using the PRA’s realistic capital regime (realistic liabilities) and non-profit fund liabilities, accounted for using a prospective actuarial discounted cash flow methodology, as follows:

   2017  2016
   With-profit   Non-profit       With-profit   Non-profit     
   fund   fund   Total   fund   fund   Total 
   £m   £m   £m   £m   £m   £m 
Insurance contracts   8,946    80,211    89,157    9,147    70,646    79,793 
Participating investment contracts   8,481    5,192    13,673    8,860    5,124    13,984 
Total   17,427    85,403    102,830    18,007    75,770    93,777 
Unearned premiums [Member]  
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items]  
Disclosure of insurance premium revenue [text block] The movements in non-life insurance contract liabilities and reinsurance assets over the year have been as follows:

   2017   2016 
   £m   £m 
Provisions for unearned premiums          
Gross provision at 1 January   404    461 
Increase in the year   724    827 
Release in the year   (770)   (884)
Change in provision for unearned premiums charged to income statement   (46)   (57)
Gross provision at 31 December   358    404 
Reinsurers’ share   (13)   (14)
Net provision at 31 December   345    390 
Claims outstanding [Member]  
LIABILITIES ARISING FROM INSURANCE CONTRACTS AND PARTICIPATING INVESTMENT CONTRACTS (Tables) [Line Items]  
Disclosure of Insurance Claims Outstanding [text block] These provisions represent the liability for short-term insurance contracts for which the Group’s obligations are not expired at the year end.

   2017   2016 
   £m   £m 
Claims outstanding          
Gross claims outstanding at 1 January   209    251 
Cash paid for claims settled in the year   (321)   (408)
Increase/(decrease) in liabilities charged to the income statement 1   337    366 
    16    (42)
Gross claims outstanding at 31 December   225    209 
Reinsurers’ share   –    – 
Net claims outstanding at 31 December   225    209 
Notified claims   174    122 
Incurred but not reported   51    87 
Net claims outstanding at 31 December   225    209 
1 Of which an increase of £350 million (2016: £363 million) was in respect of current year claims and a decrease of £13 million (2016: an increase of £3 million) was in respect of prior year claims.