158 | Just Group PLC | Annual Report and Accounts 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
3. INSURANCE SERVICE RESULT continued (b) Insurance service expenses:
Year ended 31 December 2024 £m
Year ended 31 December 2023 £m
Note
Incurred expenses Claims
1,534
1,332
Personnel expenses and other Investment expenses and charges
8
149
127
71 85 33 13
93 75 23
Other costs Commission
Other acquisition costs
6 3 3 2
Impairment of intangible assets Amortisation of intangible assets
– 1 3
Depreciation of equipment
IFRS 17 treatment of acquisition costs Amounts attributable to insurance acquisition cash flows Amortisation of insurance acquisition cash flows
(215)
(183)
32
19
1,706
1,500
Represented by: Actual claims and maintenance expenses Amortisation of insurance acquisition cash flows
1,589
1,377
32
19
Insurance service expenses Other operating expenses
1,621
1,396
85
104
Total
1,706
1,500
Total expenses, including claims costs, recognised in profit and loss in the period amounted to £1,706m (2023: £1,500m), of which £1,621m (2023: £1,396m) are attributed to provision of insurance services, and £85m (2023: £104m) of other operating expenses. The actual insurance claims and expenses of £1,589m (2023: £1,377m) compared with an expected value of £1,589m (2023: £1,369m), included within insurance revenue. Insurance acquisition cash flows are deducted from CSM at point of sale and recognised in Insurance revenue and Insurance services expenses over the life of contracts. The total of £215m in 2024 increased compared with the prior year amount of £183m mainly reflecting growth in business volumes combined with higher investment acquisition costs as the Group has increased its investment in illiquid assets. Other operating expenses of £85m (2023: £104m) represent expenses of the Group’s non-insurance business of £40m (2023: £38m) and development and strategic expenses of £45m (2023: £34m). In the prior year, a further £32m of other costs are mainly investment acquisition related expenses attributed to in force insurance contracts. These figures are stated after adjustments for: • reduction of claims to exclude investment components and other non-insurance cash flows as noted above for insurance revenue; and • acquisition expenses incurred in the period are treated as a deduction when calculating the CSM, with only the portion related to the current period service provision included in profit or loss.
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