FINANCIAL STATEMENTS
STRATEGIC REPORT
GOVERNANCE
13 INTANGIBLE ASSETS
Acquired intangible assets
Present value of in-force business £m
Distribution network £m
Intellectual property £m
Goodwill £m
Brand £m
Software £m
Leases £m
PrognoSys™ £m
Software £m
Total £m
Year ended 31 December 2021
Cost At 1 January 2021
34.9 200.0
26.6 5.6
2.0
11.1 2.0
5.9 18.4 306.5
– –
– –
–
–
– –
–
–
– –
6.6 6.6
Additions Disposals
(26.6)
(5.6)
(11.1)
(2.0)
– (45.3)
At 31 December 2021
34.9 200.0
–
–
2.0
–
–
5.9 25.0 267.8
Amortisation and impairment At 1 January 2021
(0.8) (107.6)
(26.6)
(5.6)
(0.6)
(11.1)
(2.0)
(2.6)
(16.1) (173.0)
–
–
26.6 5.6
–
11.1 2.0
–
45.3
Disposals
– (17.8)
– – – –
– – – –
(0.1) (0.7)
– – – –
– – – –
(0.5) (3.1)
(2.0)
(20.4)
Charge for the year At 31 December 2021
(0.8) (125.4) 34.1 74.6 34.1 92.4
(18.1) (148.1)
Net book value at 31 December 2021 Net book value at 31 December 2020
1.3 1.4
2.8 6.9 119.7
3.3
2.3 133.5
Acquired intangible assets
Present value of in-force business £m
Distribution network £m
Intellectual property £m
Goodwill £m
Brand £m
Software £m
Leases £m
PrognoSys™ £m
Software £m
Total £m
Year ended 31 December 2020
Cost At 1 January 2020
34.9 200.0
26.6
5.6
2.0
11.1
2.0
5.9 18.3 306.4
Additions
–
–
–
–
–
–
–
–
0.1
0.1
At 31 December 2020
34.9 200.0
26.6
5.6
2.0
11.1
2.0
5.9 18.4 306.5
Amortisation and impairment At 1 January 2020
(0.8)
(89.7)
(26.6)
(5.6)
(0.5)
(11.1)
(2.0)
(2.1)
(13.6) (152.0)
Impairment
–
–
– –
– –
–
– –
– –
–
(1.1) (1.4)
(1.1)
Charge for the year At 31 December 2020
– (17.9)
(0.1) (0.6)
(0.5) (2.6)
(19.9)
(0.8) (107.6) 34.1 92.4 34.1 110.3
(26.6)
(5.6)
(11.1)
(2.0)
(16.1) (173.0) 2.3 133.5 4.7 154.4
Net book value at 31 December 2020 Net book value at 31 December 2019
– –
– –
1.4 1.5
– –
– –
3.3 3.8
The amortisation and impairment charge is recognised in other operating expenses in profit or loss. Impairment testing Goodwill is tested for impairment in accordance with IAS 36, Impairment of Assets, at least annually.
The Group’s goodwill of £34.1m at 31 December 2021 represents £1.0m recognised on the 2018 acquisition of HUB Pension Consulting (Holdings) Limited, £0.3m recognised on the 2016 acquisition of the Partnership Assurance Group and £32.8m on the 2009 acquisition by Just Retirement Group Holdings Limited of Just Retirement (Holdings) Limited, the holding company of Just Retirement Limited (“JRL”). The existing goodwill has been allocated to the insurance segment as the cash-generating unit. The recoverable amounts of goodwill have been determined from value-in-use. The key assumptions of this calculation are noted below: 2021 2020 Period on which management approved forecasts are based 5 years 5 years Discount rate (pre-tax) 10.5% 11.7% The value-in-use of the insurance operating segment is considered by reference to the latest business plans over the next five years, which reflect management’s best estimate of future cash flows based on historical experience, expected growth rates and assumptions around market share, customer numbers, expense inflation and mortality rates, including a temporary increase in mortality rates due to COVID-19. The discount rate was determined using a weighted average cost of capital approach, with appropriate adjustments to reflect a market participant’s view. The outcome of the impairment assessment is that the goodwill in respect of the insurance operating segment is not impaired and that the value-in-use is higher than the carrying value of goodwill.
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