JUST GROUP PLC Annual Report and Accounts 2021
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF JUST GROUP PLC
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OUR AUDIT APPROACH Context
The Group is predominantly based in the United Kingdom and writes business across four main product lines, being Defined Benefit risk transfers, Individual Annuities, Lifetime Mortgages and Long-term Care Plans. The Group has two regulated insurance companies, Just Retirement Limited and Partnership Life Assurance Company Limited, in addition to other professional services companies. In planning our audit, we met with the Group Audit Committee and members of management across the Group to discuss and understand business developments during the year, and to understand their perspectives on associated business risks. We used this insight and our knowledge of the Group and our industry experience when forming our own views regarding the audit risks and as part of developing our planned audit approach to address those risks. Given the activities of the Group, we have built a teamwith the relevant industry experience and technical expertise. As a part of our audit we have made enquiries of management to understand the extent of the potential impact of climate change risk on the Group’s financial statements and the Group’s preparedness for this. We have performed a risk assessment of how the impact of commitments made by the Group in respect of climate change may affect the financial statements and our audit. There was no impact of this on our key audit matters. The COVID-19 pandemic has continued to have a significant global impact throughout 2021. In planning our audit, we have considered the impact of the pandemic on the Group’s business and the financial statements. Where necessary, we have utilised virtual technologies and collaborative workflow tools to obtain sufficient, appropriate audit evidence whilst working in this hybrid environment. Overview Audit scope • Our audit scope has been determined to provide coverage of all material financial statement line items. • Three reporting components were subject to full scope audits and we performed a limited scope audit covering specific financial statement line items for a further three components. Key audit matters • Valuation of insurance contract liabilities (Group) • Valuation of insurance contract liabilities – Annuitant mortality assumptions (Group) • Valuation of insurance contract liabilities – Credit default assumptions (Group) • Valuation of insurance contract liabilities – Expense assumptions (Group) • Valuation of investments classified as Level 3 under IFRS 13, including Lifetime Mortgages (Group) • Recoverability of the Company’s investments in Group undertakings (Company) Materiality • Overall Group materiality: £24,400,000 (2020: £24,900,000) based on 1% of Total equity. • Overall Company materiality: £12,574,000 (2020: £13,000,000) based on 1% of Total equity. • Performance materiality: £18,300,000 (2020: £18,700,000) (Group) and £9,430,000 (2020: £9,800,000) (Company). The scope of our audit As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
OPINION In our opinion, Just Group plc’s consolidated financial statements and Company financial statements (the “financial statements”): • give a true and fair view of the state of the Group’s and of the Company’s affairs as at 31 December 2021 and of the Group’s loss and the Group’s and Company’s cash flows for the year then ended; • have been properly prepared in accordance with UK-adopted international accounting standards; and • have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements, included within the Annual Report and Accounts (the “Annual Report”), which comprise: • the Consolidated statement of financial position and Statement of financial position of the Company as at 31 December 2021; • the Consolidated statement of comprehensive income for the year then ended; • the Consolidated statement of changes in equity and the Statement of changes in equity of the Company for the year then ended; • the Consolidated statement of cash flows and the Statement of cash flows of the Company for the year then ended; and • the notes to the financial statements, which include a description of the significant accounting policies.
Our opinion is consistent with our reporting to the Group Audit Committee.
SEPARATE OPINION IN RELATION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED PURSUANT TO REGULATION (EC) NO 1606/2002 AS IT APPLIES IN THE EUROPEAN UNION As explained in note 1 to the consolidated financial statements, the Group, in addition to applying UK-adopted international accounting standards, have also applied international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. In our opinion, the consolidated and Company financial statements have been properly prepared in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis We remained independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided. Other than those disclosed in note 4, we have provided no non-audit services to the Group in the period under audit. for our opinion. Independence
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