160 | Just Group PLC | Annual Report and Accounts 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
4. NET INVESTMENT RESULT
Year ended 31 December 2024 £m
Year ended 31 December 2023 £m
Note
Investment return Interest income on assets: – at amortised cost – designated at FVTPL
135 869 213
54
806 244
– mandatorily measured at FVTPL: LTMs
1,217
1,104
Movement in fair value of financial assets: – designated at FVTPL – mandatorily measured at FVTPL: LTMs – mandatorily measured at FVTPL: Derivatives
(951) (212) (180)
424 278 365
(1,343)
1,067
Foreign exchange (losses)/gains on amortised cost assets
(2)
2
Investment return
(128)
2,173
(a)
Net finance income/(expenses) from insurance contracts Interest accreted Effect of changes in interest rates and other financial assumptions Effect of measuring changes in estimates at current rates and adjusting the CSM at rates on initial recognition Net finance income/(expenses) from insurance contracts Net finance (expenses)/income from reinsurance contracts Interest accreted Effect of changes in interest rates and other financial assumptions Effect of measuring changes in estimates at current rates and adjusting the CSM at rates on initial recognition Effect of changes in non-performance risk of reinsurers Net finance (expenses)/income from reinsurance contracts
(1,693)
(1,317)
2,142
(622)
31
(67)
480
(2,006)
(b)
99
34 32
(114)
(28)
49
(9)
(7)
(52)
108
(c)
Movement in investment contract liabilities
(2)
(2)
Net investment result
298
273
The Net investment result of £298m (2023: £273m) is the net impact on the Group from the return on investments offset by similar movements on insurance and investment contract liabilities. The principal driver over the period is the changes in the value of the investment assets and net insurance liabilities due to changes in long-term interest rates. These amounts will not completely offset for a number of reasons, including: • the term structures for financial investments held and net insurance liabilities are not identical; • the existence of surplus assets held on the balance sheet which do not back insurance liabilities and the value of which are subject to changes in interest rates; and • the deduction of a credit default allowance from the interest rate used to value insurance liabilities.
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