Strategic Report Governance
Financial Statements
159
During the year the following services were provided by the Group’s auditor at costs, which is included in other costs, as detailed below:
Year ended 31 December 2024 £000
Year ended 31 December 2023 £000
Auditor remuneration Fees payable for the audit of the Parent Company and consolidated accounts
697
676
Fees payable for other services The audit of the Company’s subsidiaries pursuant to legislation
1,910
2,555
Audit-related assurance services
822
792
Other assurance services
–
– 1
Other non-audit services not covered above
77
Total
3,506
4,024
Audit-related assurance services mainly include fees relating to the audit of the Group’s Solvency II regulatory returns and review procedures in relation to the Group’s interim results. In the prior year, fees payable for the audit of the Company’s subsidiaries pursuant to legislation includes fees of £789,000 for audit activities related to the implementation of IFRS 17. (c) Net expenses from reinsurance contracts: Year ended 31 December 2024 £m Year ended 31 December 2023 £m Contractual service margin recognised for services received 23 27 Change in risk adjustment for non-financial risk for risk expired 4 4 Expected net settlements and reinsurance expenses 46 27 Actual net settlements and reinsurance expenses (34) (17) Total 39 41 The CSM release for reinsurance contracts is recognised based on coverage units in a similar manner to the CSM in respect of the underlying contracts. For reinsurance swaps, the coverage units are calculated based on the cash flows of the floating (receiving) leg only. The contractual service margin (“CSM”) release on gross insurance contracts is detailed in note 3(a). On a net of reinsurance basis, the CSM release of £154m into profit (2023: £129m) represents 6.2% (2023: 6.2%) of the CSM balance immediately prior to release. The release in the current year reflects the inclusion of an additional year’s cohort of business, together with the movement in the reinsurance CSM balance in 2024 as a result of changes in estimates of future reinsurance cash flows following demographic assumption changes for longevity and updates to the calibration of the risk adjustment. The reinsurance risk adjustment is based on the floating leg cash flows, and hence the behaviour of the risk adjustment, including its release, is similar to the movement on the underlying contracts that are reinsured. Actual reinsurance claims and expenses of £34m (2023: £17m) were lower than the expected value of £46m (2023: £27m) as a result of reductions in longevity experience during the year.
Powered by FlippingBook