FINANCIAL STATEMENTS
STRATEGIC REPORT
GOVERNANCE
26 LEASE LIABILITIES Lease liabilities are in respect of property assets leased by the Group recognised as right-of-use assets within Property, plant and equipment on the Consolidated statement of financial position. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of less than 12 months and leases of low value assets.
Movements in lease liabilities during the year were as follows:
Year ended 31 December 2021 £m
Year ended 31 December 2020 £m
6.9
At 1 January
12.4
(3.7) (3.7)
Lease payments
(4.3) (4.3)
Financing cash flows
0.6
Rent increase
–
–
Disposal Interest
(1.5)
0.1 0.7 3.9
0.2
Non-cash movements
(1.3)
At 31 December
6.8
Lease liabilities are payable as follows:
2021 £m
2020 £m
At 31 December 2021 Less than one year
3.0 1.0 4.0
3.4 3.6 7.0
Between one and five years
(0.1)
Interest
(0.2)
Total lease liability
3.9
6.8
27 OTHER FINANCIAL LIABILITIES The Group has the following other financial liabilities which are measured at fair value through profit or loss:
2021 £m
2020 £m
Note
394.7 326.2
Derivative financial liabilities
(a) (a) (b)
512.7 377.4
Obligations for repayment of cash collateral received
2,144.7 2,865.6
Deposits received from reinsurers
2,415.0 3,305.1
Total other liabilities
The amount of deposits received from reinsurers and reinsurance funds withheld that is expected to be settled more than one year after the Consolidated statement of financial position date is £1,952.7m (2020: £2,213.4m). (a) Derivative financial liabilities and obligations for repayment of cash collateral received Derivative financial liabilities and obligations for repayment of cash collateral received are classified at fair value through profit or loss. All financial liabilities at fair value through profit or loss are designated as such on initial recognition or, in the case of derivative financial liabilities, are classified as held for trading. (b) Deposits received from reinsurers Deposits received from reinsurers are unbundled from their reinsurance contract and recognised at fair value through profit or loss in accordance with IAS 39, Financial instruments: measurement and recognition. Deposits received from reinsurers are measured in accordance with the reinsurance contract and taking into account an appropriate discount rate for the timing of expected cash flows of the liabilities.
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