Strategic Report | Governance | Financial Statements | 169
9. SEGMENTAL REPORTING continued Additional analysis of segmental profit or loss
Revenue, depreciation of property and equipment, and amortisation of intangible assets are materially all allocated to the insurance segment. The interest adjustment in respect of Tier 1 notes in the other segment represents the difference between interest charged to the insurance segment in respect of Tier 1 notes and interest incurred by the Group in respect of Tier 1 notes. Product information analysis Additional analysis relating to the Group’s products is presented below:
Year ended 31 December 2022 (restated) £m
Year ended 31 December 2023 £m
2,999
Defined Benefit De-risking Solutions (“DB”) Guaranteed Income for Life contracts (“GIfL”) 1 Retirement Income sales (shareholder funded) Defined Benefit De-risking partnering (“DB partnering”)
2,567
894
564
3,893
3,131
416
259
Retirement Income sales
4,309
3,390
(27)
Premium adjustments to in-force policies Net change in premiums receivable
–
212
(276)
Premium cash flows (note 26(c))
4,494
3,114
1 GIfL includes UK GIfL, South Africa GIfL and Care Plans.
Drawdown and Lifetime Mortgage (“LTM”) products are accounted for as investment contracts and financial investments respectively in the Consolidated statement of financial position. An analysis of the amounts advanced during the year for these products is shown below: Year ended 31 December 2023 £m Year ended 31 December 2022 £m LTM advances 186 538 Drawdown deposits and other investment products 12 14
10. INCOME TAX
Year ended 31 December 2022 (restated) £m
Year ended 31 December 2023 £m
Current taxation Adjustments in respect of prior periods
– –
9 9
Total current tax
Deferred taxation Deferred tax recognised for losses in the current period Origination and reversal of temporary differences
(2)
(129)
6 3
(4) (9)
Adjustments in respect of prior periods
34
Tax relief on the transitional adjustment on IFRS 17 implementation
– 1
2
Remeasurement of deferred tax – change in UK tax rate
Total deferred tax
43 43
(141) (132)
Total income tax recognised in profit or loss
Further disclosure of the tax impacts of the adoption of IFRS 17 on 1 January 2023 is disclosed in note 21. The deferred tax assets and liabilities at 31 December 2023 have been calculated based on the rate at which they are expected to reverse. On 3 March 2021, the Government announced an increase in the rate of corporation tax to 25% from 1 April 2023. The change in tax rate was substantively enacted in May 2021. A deferred tax asset of £341m has been recognised on the adoption of IFRS 17 Insurance Contracts on 1 January 2023, which is expected to be fully recoverable. Deferred tax has been recognised at 25%, reflecting the rate at which the deferred tax asset is expected to unwind. In accordance with Paragraph 4A of IAS 12 “Income taxes”, the Group has not recognised nor disclosed information about deferred tax assets and liabilities related to Pillar Two income taxes. The Group does not currently expect the effect of the Pillar Two legislation to have a material impact on the tax position in future periods.
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