Just group PLC | Annual Report and accounts 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
4 OTHER OPERATING EXPENSES continued Fees payable for services provided by the Group’s auditor during the year, net of VAT and expenses , are as follows:
Year ended 31 December
Year ended 31 December
2022 £000 616
2021 £000 550
Fees payable for the audit of the Parent Company and consolidated accounts
Fees payable for other services: The audit of the Company’s subsidiaries pursuant to legislation
3,042
1,876
705
Audit-related assurance services
656
48
Other assurance services
65
1
–
Other non-audit services not covered above
Auditor remuneration
4,412 4,412
3,147 3,147
Total
Fees payable for the audit of the Company’s subsidiaries pursuant to legislation includes fees of £1.7m (2021: £0.45m) for audit activities related to the implementation of IFRS 17. Audit-related assurance services mainly include fees relating to the audit of the Group’s Solvency II regulatory returns and review procedures in relation to the Group’s interim results.
5 FINANCE COSTS
Year ended 31 December 2022 £m
Year ended 31 December 2021 £m
74.7 54.5
Interest payable on deposits received from reinsurers
78.7 55.6
Interest payable on subordinated debt
3.5
Other interest payable Total finance costs
2.5
132.7
136.8
The interest payable on deposits received from reinsurers is as defined by the respective reinsurance treaties and calculated with reference to the risk-adjusted yield on the relevant backing asset portfolio.
6 SEGMENTAL REPORTING Segmental analysis The operating segments from which the Group derives income and incurs expenses are as follows: • the writing of insurance products for distribution to the at- or in-retirement market and the DB de-risking market; • the arranging of guaranteed income for life contracts and lifetime mortgages through regulated advice and intermediary services and the provision of licensed software to financial advisers, banks, building societies, life assurance companies and pension trustees. The insurance segment writes insurance products for the retirement market – which include Guaranteed Income for Life Solutions, Defined Benefit De-risking Solutions, Care Plans and Protection − and invests the premiums received from these contracts in debt and other fixed income securities, gilts, liquidity funds and Lifetime Mortgage advances. The two revenue streams of the professional services business, HUB represents the other two operating segments. The HUB operating segments are not currently sufficiently significant to separate to disclose as a reportable segment. In the segmental profit table below, the single reportable segment for Insurance is reconciled to the total Group result by including an ‘Other’ column which includes the non-reportable segments plus the other companies’ results. This includes the Group’s corporate activities that are primarily involved in managing the Group’s liquidity, capital and investment activities. The Group operates in one material geographical segment which is the United Kingdom. The internal reporting used by the CODM includes segmental information regarding premiums and profit. Material product information is analysed by product line and includes shareholder funded DB, GIfL, DB Partnering, Care Plans, Protection, LTM and Drawdown products. Further information on the DB partnering transactions is included in the Business Review. The information on adjusted operating profit and profit before tax used by the CODM is presented on a combined product basis within the insurance operating segment and is not analysed further by product. Adjusted operating profit The Group reports adjusted operating profit as an alternative measure of profit which is used for decision making and performance measurement. Adjusted operating profit is the sum of the new business operating profit and in-force operating profit, operating experience and assumption changes, other Group companies’ operating results, development expenditure and reinsurance and financing costs. The Board believes it provides a better view of the longer-term performance of the business than profit before tax because it excludes the impact of short-term economic variances and other one-off items. It excludes the following items that are included in profit before tax: non-recurring and project expenditure, implementation costs for cost saving initiatives, investment and economic profits and amortisation and impairment costs of acquired intangible assets. In addition, it includes Tier 1 interest (as part of financing costs) which is not included in profit before tax.
148
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