Just Annual Report and Accounts 2023

164 | Just Group PLC | Annual Report and Accounts 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

3. INSURANCE SERVICE EXPENSES

Year ended 31 December 2022 (restated) £m

Year ended 31 December 2023 £m

Note

Incurred expenses Claims

1,332

1,153

Commission

127

Personnel expenses and other Investment expenses and charges Depreciation of equipment Impairment of intangible assets Amortisation of intangible assets

106

2 3 3 4

4 – 2 4

Audit costs Other costs

IFRS 17 treatment of acquisition costs Amounts attributable to insurance acquisition cash flows Amortisation of insurance acquisition cash flows Represented by: Actual claims and maintenance expenses Amortisation of insurance acquisition cash flows

(183)

(124)

1,500

1,289

1,377

1,188

Insurance service expenses Other operating expenses

1,396

1,196

104

Total

1,500

1,289

Total expenses, including claims costs, recognised in profit and loss in the period amounted to £1,500m (2022: £1,289m), of which £1,396m (2022: £1,196m) are attributed to provision of insurance services, and £104m (2022: £93m) of other operating expenses. The actual insurance claims and expenses of £1,377m (2022: £1,188m) compared with an expected value of £1,369m (2022: £1,184m), included within insurance revenue. Other operating expenses of £104m (2022 £93m) represent expenses of the Group’s non-insurance business of £38m (2022: £30m), development and strategic expenses of £34m (2022: £22m), and other costs of £32m (2022: £41m) which are mainly investment acquisition related expenses not attributed to insurance contracts in force. The reduction in commission costs and addition in investment expenses reflects the switch in investment strategy from LTMs towards other illiquid investments. These figures are stated after adjustments for: • reduction of claims to exclude investment components and other non-insurance cash flows as noted above for insurance revenue; and • acquisition expenses incurred in the period are treated as a deduction when calculating the CSM, with only the portion related to the current period service provision included in profit or loss.