Strategic Report | Governance | Financial Statements | 195
26. INSURANCE CONTRACTS AND RELATED REINSURANCE continued (ii) Insurance contracts analysed by measurement component
Contractual service margin
Estimate of present value of future cash flows £m
Risk adjustment for non-financial risk £m
Contracts under FRA and GMM £m
Contracts under FVA £m
Total £m
Year ended 31 December 2023
Opening insurance contract liabilities balance (restated) Changes in the statement of comprehensive income Changes that relate to current service CSM recognised for service provided Change in risk adjustment for non-financial risk for risk expired
(17,030)
(674)
(589)
(1,354)
(19,647)
– –
–
47
109
156
11
– –
– –
11
(8)
–
(8)
Experience adjustments
Changes that relate to future service Contracts initially recognised in the year Changes in estimates that adjust the CSM
542 292 826
(162)
(380)
–
– –
(89)
(53)
(150)
Insurance service result
(240)
(386)
(41) (42)
159
(1,917)
(10)
(37)
(2,006)
Net finance expenses from insurance contracts
26
–
–
–
26
Exchange rate movement
Total changes in the statement of comprehensive income
(1,065)
(250)
(423)
(83)
(1,821)
Cash flows Premiums received
(4,494)
–
–
–
(4,494)
Claims and other insurance service expenses paid, including investment components
1,648
– – –
– – –
– – –
1,648
183
183
Insurance acquisition cash flows
Total cash flows
(2,663) (20,758)
(2,663) (24,131)
Closing insurance contract liabilities balance
(924)
(1,012)
(1,437)
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