Grainger currently owns full or part-equity in over 3,000 residential properties under home reversion plans in the UK. These products allow owners to sell part or all of their property, whilst retaining the right to occupy it for the rest of their lives and retaining responsibility for its upkeep.

We have acquired many of these properties by buying portfolios, notably AMP's stock of around 1,000 home reversions in 2004. The remainder have come to us from our Bridgewater subsidiary, one of the UK's leading specialists in home reversion products.

The growth in this market, fuelled by diminishing pension returns, interest rate uncertainty and new FSA regulation, encourages us to believe that we can double the size of our home reversion portfolio by 2007 through acquisition, through Bridgewater and through our distribution agreement with Norwich Union Home Reversions.