143
FINANCIAL STATEMENTS
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.
Movements in lease liabilities during the year were as follows:
Year ended 31 December 2020 £m
Year ended 31 December 2019 £m
12.4
At 1 January
–
–
Recognition of lease liabilities on initial application of IFRS 16
9.6
(4.3) (4.3)
(3.1) (3.1)
Lease payments
Financing cash flows
–
New lease
5.6
(1.5)
Disposal Interest
–
0.2
0.3 5.9
Non-cash movements
(1.3)
At 31 December
6.8
12.4
Lease liabilities are payable as follows:
Future minimum lease payments £m
Present value of minimum lease payments £m
Interest £m
At 31 December 2020 Less than one year
3.4 3.6 7.0
(0.1) (0.1) (0.2) (0.2) (0.2) (0.4)
3.3 3.5 6.8
Between one and five years
Total
At 31 December 2019 Less than one year
4.4 8.4
4.2 8.2
Between one and five years
Total
12.8
12.4
27 OTHER FINANCIAL LIABILITIES The Group has other financial liabilities which are measured at either amortised cost, fair value through profit or loss, or in accordance with relevant underlying contracts (“insurance rules”), summarised as follows:
2020 £m
2019 £m
Note
Fair value through profit or loss Derivative financial liabilities
512.7 377.4
(a) (a) (b) (b) (c) (d)
248.4
Obligations for repayment of cash collateral received
62.8
2,415.0
Deposits received from reinsurers
2,417.7
Liabilities measured using insurance rules under IFRS 4 Deposits received from reinsurers
– – –
772.6
Reinsurance finance
14.5
Reinsurance funds withheld
162.9
Total other liabilities
3,305.1
3,678.9
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 £2,213.4m (2019: £3,068.0m). (a) Derivative financial liabilities and obligations for repayment of cash collateral received The derivative financial liabilities 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 either unbundled from their reinsurance contract and recognised at fair value through profit or loss in accordance with IAS 39, Financial instruments: measurement and recognition; or they are recognised in accordance with IFRS 4, Insurance contracts. All 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. During the year the Group recaptured all of the business recognised in accordance with IFRS 4 resulting in a nil balance at the end of the year (see note 29).
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