i 224

Just Annual Report and Accounts 2024

Strategic Report Governance

Financial Statements

193

Insurance contract liabilities £m

Reinsurance contracts (net) held £m

Net insurance contract liabilities £m

Net impact on profit before tax £m

Valuation of assets £m

31 December 2023

FCF

1,970

(77)

1,893

– –

– –

Interest rate and investments + 1%

CSM P&L

–

–

–

1,970

(77)

1,893

(1,933)

(40)

FCF

(2,366)

100

(2,266)

– –

– –

Interest rate and investments -1%

CSM P&L

–

–

–

(2,366)

100

(2,266)

2,316

49

FCF

(30)

– – –

(30)

– –

– –

Maintenance expenses +10%

CSM P&L

31

31

1

1

(5)

(5)

FCF

(327)

196

(131)

– –

– –

Decrease in base mortality by 5%

CSM P&L

476 148

(293)

182

(97)

51

(14)

37

FCF

(178)

106

(72)

– –

– –

Mortality improvements rates +10%

CSM P&L

263

(172)

91 20

85

(66)

(3)

17

FCF

(46)

2 – 2 2 – 2 1 – 1 1 – 1 9 – 9

(44)

– –

– –

Immediate fall of 10% in house prices

CSM P&L

–

–

(46) (38)

(44) (36)

(68)

(113)

FCF

– –

– –

Future property price growth reduces by 0.5%

CSM P&L

–

–

(38) (18)

(36) (17)

(38)

(74)

FCF

– –

– –

Future property price volatility increase by 1%

CSM P&L

–

–

(18) (24)

(17) (23)

(27)

(44)

FCF

– –

– –

Voluntary redemptions increase by 10%

CSM P&L

–

–

(24)

(23)

19

(4)

FCF

(213)

(204)

– – –

– –

CSM P&L

–

–

Credit default allowance – increase by 10bps 1

(213)

(204)

(204)

1 Over that included in the discount rate section in note 22(b).

23. INVESTMENT CONTRACT LIABILITIES

Year ended 31 December 2024 £m

Year ended 31 December 2023 £m

At 1 January

35 13

33 12

Deposits received from policyholders Payments made to policyholders

(8)

(1) (9)

Change in contract liabilities recognised in profit or loss

2

At 31 December

42

35

(a) Terms and conditions of investment contracts The Group has written linked endowment contracts and term-certain GIfL contracts for the at-retirement market in South Africa which are classified as investment contracts. (b) Principal assumptions underlying the calculation of investment contracts The majority of the Group’s investment contract liabilities are linked endowment contracts and are deposit accounted for. Fair value is determined by reference to the value of the assets backing the liabilities.

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