Strategic Report Governance
Financial Statements
199
(i) Credit ratings of financial assets The following table provides information regarding the credit risk exposure for financial assets of the Group, which are neither past due nor impaired at 31 December:
AAA £m
AA £m
A £m
BBB £m
BB or below £m
Unrated £m
Total £m
31 December 2024
Units in liquidity funds
1,792
– –
– –
– –
– –
–
1,792
Investment funds
–
399
399
Debt securities and other fixed income securities
986
3,960
5,452
5,490
122
– –
16,010
Deposits with credit institutions
– –
11
588
209
– – –
808 809 787
Loans secured by commercial mortgages
– –
–
–
809
157
241 242
389 799
– –
Long income real estate 1
Infrastructure loans
57
135
13 60
1,246
Other loans
– – – – – –
– –
– –
– –
135
195
Lifetime mortgages
– – – – –
5,637
5,637 2,756 3,951 1,930
Derivative financial assets
16
2,018
716
6 –
Gilts – subject to repurchase agreements
3,951
–
–
416
984
350
180
Reinsurance 2
Other receivables
–
–
–
49
49
Total
2,992
8,489
9,525
7,953
195
7,215 36,369
1 Includes residential ground rents of £157m rated AAA. 2 This is the reinsurance asset position excluding CSM.
AAA £m
AA £m
A £m
BBB £m
BB or below £m
Unrated £m
Total £m
31 December 2023
Units in liquidity funds
1,135
6 –
– –
– –
– –
–
1,141
Investment funds
–
495
495
Debt securities and other fixed income securities
927
2,283
4,521
5,763
160
– –
13,654
Deposits with credit institutions
– –
100
425
181
– – –
706 764 779
Loans secured by commercial mortgages
–
–
–
764
164
20
185 151
410 764
– –
Long income real estate 1
Infrastructure loans
64
121
13 41
1,113
Other loans
– – – – – –
– –
– –
– –
123
164
Lifetime mortgages
– – – – –
5,681
5,681 2,377 2,549 1,043
Derivative financial assets
28
1,686
649
14
Gilts – subject to repurchase agreements
2,549
–
–
–
264
193
387
199
Reinsurance 2
Other receivables
–
–
–
60
60
Total
2,290
5,371
7,161
8,154
214
7,336 30,526
1 Includes residential ground rents of £164m rated AAA and £12m rated AA. 2 This is the reinsurance asset position excluding CSM. There are no financial assets that are either past due or impaired. The amortised cost portfolio of gilts are investment grade and deemed low credit risk, as such lifetime expected credit losses are therefore considered immaterial. The credit rating for Cash available on demand at 31 December 2024 was between a range of A and BB (31 December 2023: between a range of AA- and A). The carrying amount of those assets subject to credit risk represents the maximum credit risk exposure.
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