146 JUST GROUP PLC Annual Report and Accounts 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
25 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 2019 £m Year ended 31 December 2018 £m At 1 January – – Recognition of lease liabilities on initial application of IFRS 16 9.6 – Lease payments (3.1) – Financing cash flows (3.1) – New lease 5.6 – Interest 0.3 – Non-cash movements 5.9 – At 31 December 12.4 –
During the year the Group entered into a new three year lease on the relocation of its London office. Lease liabilities are payable as follows:
Present value of minimum lease payments £m
Future minimum lease payments £m
Interest £m
At 31 December 2019
Less than one year
4.4 8.4
(0.2) (0.2) (0.4)
4.2 8.2
Between one and five years
Total
12.8
12.4
26 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:
2019 £m
2018 £m
Note
Fair value through profit or loss Derivative financial liabilities
248.4
(a) (a) (b) (b) (c) (d)
178.3
62.8
Obligations for repayment of cash collateral received
3.4
2,417.7
Deposits received from reinsurers
2,443.5
Liabilities measured using insurance rules under IFRS 4 Deposits received from reinsurers
772.6
1,236.3
14.5
Reinsurance finance
30.6
162.9
Reinsurance funds withheld
171.2
Total other liabilities
3,678.9
4,063.3
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 £3,068.0m (2018: £3,730.4m). (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 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. (c) Reinsurance finance The reinsurance finance has been established in recognition of the loan obligation to the reinsurers under the Group’s reinsurance financing arrangements, the repayment of which are contingent upon the emergence of surplus under either the old Solvency I or IFRS valuation rules. (d) Reinsurance funds withheld Reinsurance funds withheld are measured and valued in accordance with the reinsurance contract, which takes into account an appropriate discount rate for the timing of expected cash flows.
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