1 2 3 4 5 6 7 8 9 10 11 12 13

Notes to the Parent Company Financial Statements continued

for the year ended 31 December 2007

4 Other financial liabilities

  2007
£m
  2006
£m
Financial guarantee contracts 0.2   0.1

The fair values of financial guarantee contracts are calculated by discounted cash flow analysis based upon the probability of default of the underlying subsidiary undertaking and the expected loss to the Company arising upon default.