Final Results - Year Ended 31 Dec 1999, Part 3

St. James's Place Capital PLC
22 March 2000


Part 3 


17. SHARE OPTIONS


On the acquisition of  the remaining  share capital of J. Rothschild Assurance
Holdings plc, SJPC agreed to  issue further shares, up  to  a  maximum of 25.8
million, to satisfy the exercise of options held  over JRAH shares at the time
of  acquisition.  A  reserve  for  shares  to  be  issued  was  established in
recognition of the commitment  and 6.3 million shares  have still to be issued
from this reserve.

During the year  options over 4.8 million shares  have been granted at a range
of  prices between  £1.84 and £3.20.  Options outstanding  under the new share
option schemes at 31 December 1999 now amount to 34.1 million shares.


18. RESERVES


                                                        
                                                              £'Million       
                                                            
                                                        
                                                        
As at 1 January 1999                                              229.1
                                                        
Profit for the year                                               125.5
                                                         
Dividends                                                          (7.4)
                                                        
Currency translation and other movements                            0.6
                                                         
Transfer to Share capital                                          (1.0)
                                                                =======

                                                        
As at 31 December 1999                                            346.8
                                                                =======



19. PENSION TRANSFERS RESERVE

In  common with  many  life companies  in  the  United Kingdom, the  Group has
liabilities in  respect of Pension Transfers and Opt-out business.

During the year the Financial Services Authority published guidance on Phase 2
of  the  review.  In  the  light of  this,  the  Directors  of   J. Rothschild
Assurance  have  increased  the   reserve  in  respect  of   rectification and
review costs to £12.4 million (1998: £11.4 million), being their best estimate
of the costs of settlement.  Included in this is an allowance for compensation
to FSAVC policyholders.   The reserve is included  in  the  long-term business
provision in the Group's financial statements at 31 December 1999.


20. ENDOWMENT RESERVE

In common with  many  other companies, premiums on mortgage endowment policies
issued by J. Rothschild Assurance prior to 1995 where calculated on  the basis
of charges prescribed by the regulators rather than the Company's own charges.
This  had  led  to  the  prospect  of  some  policyholders  being  potentially
disadvantaged and the Directors have set aside £4.7 million to put them in the
same position they would have been  for  in  if  the Company's own charges had
been used.


21. UNAUDITED STATEMENTS

The results for  the  year ended  31 December 1999  are  unaudited.  Statutory
accounts  for the  year   ended   31 December 1998  have   been  delivered  to
the Registrar of Companies.  The auditors have made a report under section 235
of the  Companies Act 1985 on those statutory accounts which  was  unqualified
and  did   not   contain  a  statement  under  Section  237  (2) or (3) of the
Companies Act 1985.

22. ANNUAL REPORT

The Company's  Annual Report  and  Accounts for  the  year  ended  31 December
1999 is expected to  be  posted   to   the   shareholders  on  10  April 2000.
Copies  of   both  this announcement and the Annual Report  and  Accounts will
be  available  to   the  public  at   the  Company's   registered   office  at
J. Rothschild House,  Dollar Street,  Cirencester,  GL7 2AQ  and  through  the
Company's website at www.sjpc.co.uk.


SUPPLEMENTARY INFORMATION

The  following  information  is  provided for the combined 'embedded value' of
JRAH's life and unit trust business.


                                 Year Ended               Year Ended
                              31 December 1999        31 December 1998
                           =====================    ======================

Post tax profits         £'Million     £'Million    £'Million    £'Million
Profit from new business                                                      
      
Life                          21.8                        9.3
Unit trust                     5.4          27.2          4.9         24.2
                           =======                    =======
Unwind of discount rate                                                       
Life                          18.8                       15.3
Unit trust                     4.2          23.0          3.4         18.7
                           =======                    =======
Other                                                                         
Life                           3.3                        5.5
Unit trust                     0.6           3.9          3.7          9.2
                           =======                    =======
                                                                              
      
Basic operating profit                                                        
after taxation
Life                          43.9                       40.1
Unit trust                    10.2          54.1         12.0         52.1
                           =======                    =======
                                                                              
      
Change in bases                                                               
Life                            -                         5.4
Unit trust                      -              -          3.9          9.3
                           =======                    =======
                                                                              
      
Exceptionals                                                                  
Life                          (6.9)                      (5.3)
Unit trust                      -           (6.9)         -           (5.3)   
                             =======                    =======
                                                                              
      
Profit after taxation                                                         
Life                          37.0                       40.2
Unit trust                    10.2                       15.9
                           =======                    =======
                                                                              
     
                                         =======                   =======    
                                            47.2                      56.1
                                         =======                   =======


Notes

1.   The  figures show the earnings for  JRAH's life and unit trust businesses
     accounted for on  an embedded  value  basis.  The basis of calculation is
       described in note 11.

2.   The  figures  for  unit  trusts  include the  earnings on  a conventional
     accounting basis of £4.0 million after taxation (1998: £3.5 million).

3.   Inclusion of the unit trust value of  in  force would  increase Group net
     assets by £44.4 million (1998: £38.4 million).