TIDMELLA
RNS Number : 2963T
Ecclesiastical Insurance Office PLC
16 March 2023
Ecclesiastical Insurance Office plc announces results for the
year ended 31 December 2022
Ecclesiastical Insurance Office plc ("Ecclesiastical"), the
specialist financial services group, today announces its full year
2022 results. A copy of the results will be available on the
Company's website at www.ecclesiastical.com
Group overview
-- Driven by our purpose to contribute to the greater good of
society, Ecclesiastical continued to give to good causes in 2022,
amounting to GBP22.7m. We are now proud to be the third largest
corporate donor in the UK(1) .
-- Despite the challenging external environment, our businesses
performed strongly in 2022. Gross Written Premiums (GWP) grew 15%
from GBP486m to GBP559m, driven by new business wins, strong
retention and rate strengthening, along with the impacts from the
inflationary environment.
-- Strong underwriting profit of GBP27.4m, a significant
increase on the previous year of GBP8.8m.
-- Operating performance was offset by fair value losses on our
investment portfolio due to stock market falls and higher interest
rates which was partially offset by the impact of discounting on
reserves, leading to an overall group loss before tax of GBP4.8m
(2021: GBP79.2m profit).
-- We remain in a strong capital position and our credit rating
agencies affirmed our excellent and strong credit ratings in the
second half of 2022. We recently exited our relationship with
S&P and added Moody's to join AM Best as our agencies.
-- We continue to lead the industry in service with 98% of
customers satisfied with the service they receive from
Ecclesiastical. For a second year running, independent research
consultancy Gracechurch put Ecclesiastical ahead of all other
insurers for claims service.
-- We continued to receive external awards, recognising the
Group as a trusted and specialist financial services organisation.
This included being named as the UK's most trusted home insurer for
the 16th time by independent ratings agency Fairer Finance, and our
Canadian team was named one of the Top Employers for Young People
for the ninth consecutive year.
Mark Hews, Group Chief Executive Officer of Ecclesiastical,
said:
"Last year was a transformational year for our Ecclesiastical
Group family. We launched a new brand, prepared for a new Group
structure, new strategy, new governance framework, new systems, and
strengthened our leadership. Our immediate owner, Ecclesiastical
Insurance Group, became Benefact Group, heralding an exciting new
chapter for our family of businesses, united by a common goal to
give all available profits to good causes.
"Despite the challenging external environment, our businesses
performed strongly in 2022. In general insurance we saw excellent
premium growth of 15%, driven by new business wins, strong
retention and inflationary pressures. The GI Underwriting result
was GBP27.4m, a significant increase on the previous year of
GBP8.8m, which was lower due to strengthening of PSA reserves. This
gives a combined operating ratio of 91%(2) , which compares
favourably in the insurance market.
"Our strong operating performance was offset by fair value
losses on our investment portfolio, caused by volatility on the
stock markets. In addition to these fair value losses, the results
include a credit from a fair value gain on an equity investment and
a credit arising from a change to our discounting accounting
policy. This led to an overall group loss before tax of GBP4.8m
(2021: GBP79.2m profit).
"We were able to give a further GBP22.7m to charitable causes in
2022. Our combined giving with Benefact Trust has helped thousands
of charities in recent years, changing countless lives and
communities for the better. Many of those charities, along with His
Majesty King Charles III, joined us at Westminster Abbey last
summer for a Service of Thanksgiving to celebrate our GBP100m
giving milestone. It was a proud moment for our business, and we
have therefore raised our ambition, and have set a new cumulative
target to give GBP250m to good causes by the end of 2025. We are
now the third largest corporate donor in the UK, with an ambition
to be first.
"Inspired by the impact of our giving on so many, we are
extremely ambitious for the future. This year will see continued
investment in new systems, helping to deliver even better service
and value for our customers and brokers. We will pursue growth
opportunities, both in our existing sectors and in new niches where
we can leverage our specialist expertise. We will make significant
investment in digital propositions, helping to build our
distribution capability and reach, as we seek to find ways to meet
our customers' changing needs. We will also continue to prioritise
risk management innovation, exploring new ways to protect our
customers from losses, particularly from the growing threat of
climate change.
"On behalf of the Board and thousands of our beneficiaries, we
say a heartfelt, sincere "thank you" to all our customers, business
partners and dedicated colleagues for their exceptional support.
With a new brand, a clear strategy for growth and a renewed sense
of confidence, we go into 2023 energised and inspired to work
together for our customers and society."
(1.) Directory of Social Change Guide to UK Company Giving
2023/24
(2.) Alternative performance measure, refer to note 9 to this
announcement for further explanation
ECCLESIASTICAL INSURANCE OFFICE PLC
ANNUAL FINANCIAL REPORT FOR THE YEARED 31 DECEMBER 2022
The Company has now approved its annual report and accounts for
2022.
This Annual Financial Report announcement contains the
information required to comply with the Disclosure and Transparency
Rules, and extracts of the Strategic Report and Directors' Report
forming part of the full financial statements.
The financial information set out below does not constitute the
Company's statutory accounts for the year ended 31 December 2022.
The annual report and accounts will be available on or before 28
April 2023 on the Company's website at www.ecclesiastical.com .
Copies of the audited financial statements are also available from
the registered office at Benefact House, 2000 Pioneer Avenue,
Gloucester Business Park, Brockworth, Gloucester GL3 4AW.
A copy of the Company's statutory accounts for the year ended 31
December 2022 will be submitted to the National Storage Mechanism
and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
Chair's statement
Despite the challenging environment, 2022 was a year of
celebration for Ecclesiastical Insurance. We marked the achievement
of giving GBP100m to good causes over the past five years, with a
service of thanksgiving at Westminster Abbey - an incredible moment
in the company's 136-year history that saw hundreds of
beneficiaries and supporters, among them King Charles III, come
together to celebrate our movement for good.
It also saw the successful launch of the Benefact brand,
providing not just a new name for Ecclesiastical's parent Group and
Trust, but a renewed sense of energy and focus on our purpose to
contribute to the greater good of society. Speaking to customers
and brokers over the past few months, it's clear the new name
resonates and has landed well in our markets. It's a fantastic
achievement that we should all be proud of.
Of course, 2022 also brought its challenges. The return to
prosperity that many of us hoped for after the pandemic failed to
materialise as economic and political events pushed us into a cost
of living crisis, while the devastating war in Ukraine continues to
take its toll on innocent lives. In these difficult times, our
mission to help those most in need in society is more important
than ever.
In response to both challenges, our charitable owner the
Benefact Trust moved swiftly to support charities on the frontline.
In March it announced GBP1m of funding to give immediate and
longer-term support to people fleeing the devastating conflict in
Ukraine. In December, the Trust announced a GBP500,000 funding
package to support charities working to keep people safe and warm
this winter.
This giving is only possible thanks to the customers, brokers
and colleagues that support Ecclesiastical Insurance Office Group,
which gives all its available profits to charities and good causes.
I'm pleased to say we granted GBP20m to Benefact Trust in 2022.
Alongside this we gave GBP2.7m through our direct giving programmes
in the UK, Ireland and Canada, helping thousands of charities to
make a difference in their communities.
This combined giving brings us closer to our ambition of being
the UK's biggest corporate donor with a cumulative target of giving
GBP250m to good causes by the end of 2025.
Results
Despite the challenging economic conditions, our businesses
performed well in 2022. We continued to attract and retain
prestigious customers across all divisions, which helped to drive
double-digit premium growth. We also reported an improved
underwriting result, with a profit of GBP27.4m. We reported an
overall loss before tax of GBP4.8m as our results were affected by
investment losses, due to falls in global markets.
Achievements and reflections
I'm now in my fourth year as Chairman and I'm delighted with the
progress we've made as a business. We've invested considerably over
the past few years, from launching new brands for the General
Insurance business and the Group, a new head office, and new
systems and technology to improve the broker and customer
experience. The launch of our new General Insurance system last
year was a major milestone and an incredible achievement by
everyone involved in the project.
I'm also pleased that we announced our climate commitments in
spring last year, outlining our roadmap to achieve net zero by
2040. In my report last year, I talked about the importance of
responding to the issues of sustainability and climate change and
as a responsible business, we are committed to making a positive
environmental impact in the world. Much work has taken place over
the past 12 months to understand our climate impact and identify
the measures we need to take to reduce our carbon emissions. This
has included training sessions for the Board, which have helped
deepen our understanding of how we can do the right thing as a
business.
None of our achievements would be possible without the
commitment of our colleagues and I want to thank them for all their
efforts in 2022. Our customer satisfaction and Net Promoter Scores
remain high and the Group again achieved Best Companies two-star
status, demonstrating outstanding employee engagement. It's always
pleasing to see this commitment and effort is recognised by others
and this was reflected in 18 awards last year including products,
service quality, risk management, marketing and customer
engagement.
I was fortunate to visit our offices in Australia and Ireland
and spent time with our excellent teams, learning how they're
working hard to improve our services to our brokers and
customers.
Looking ahead
While some companies are retrenching in the face of economic
difficulties, Ecclesiastical has set itself an ambitious target to
double in size. The strategy announced last year provides a clear
roadmap to achieve this stretching goal and I'm excited by the
potential within the business to grow.
Across our businesses, we have identified new areas of growth,
both in existing segments and in new ones, and we have the ambition
and capacity to benefit from these opportunities.
This year will see continued investment in new systems to
improve the customer and broker experience, and we will continue to
invest in new technology to drive innovation and growth to enable
yet more giving to charities and communities. In particular, we
will continue to invest in our risk management offering so that we
can help to protect our customers from new and emerging
threats.
We will also continue to invest in our people as we seek to
become a world-class employer. We want to build a workplace where
everyone feels welcome and can realise their full potential, while
helping to make a difference to the lives of our customers and
communities.
Board activity
For the first time since I became Chairman, there have been no
changes to the board in the past 12 months. It is a genuine
pleasure to work with such a talented group of individuals who
bring a range of different experience and perspectives. I would
like to thank all of them for their service over the past year.
The future
It is an immense privilege to be a part of a business with such
a special purpose of contributing to the greater good of society.
With the new strategy in place, I believe we are well positioned to
grow our business so that we can give more to help those most in
need.
Chief executive's statement
For over 135 years, Ecclesiastical has understood what matters
most to our customers and communities.
Trusted to protect and preserve much of the nation's
irreplaceable heritage and history, we're distinguished in the
financial services industry by our specialist expertise, our caring
approach and our unique charitable purpose. Unlike many other
businesses, we prefer to measure success not in sales or profits
but in the amount we give to communities to help transform lives
for the better. Guided by this purpose, we are driven to grow the
business, so that we may give even more to good causes.
Last year was a transformational year for our Ecclesiastical
Group family. We launched a new brand, prepared for a new Group
structure, new strategy, new governance framework, new systems, and
strengthened our leadership.
In particular, our immediate owner, Ecclesiastical Insurance
Group, became Benefact Group, and our ultimate parent, Allchurches
Trust, became Benefact Trust.
The launch of the Benefact brand is a momentous occasion for our
charity-owned Group and at the start of 2023 Benefact Group
announced a simplified structure to build on this to help us
realise our growth ambitions. This new structure, which aligns our
businesses to our three divisions - specialist expert Insurance,
responsible and sustainable Investment Management and Broking &
Advisory - provides the foundation for our family of businesses to
grow even more, to give even more.
By simplifying and streamlining the Benefact Group structure, we
have created dynamic, empowered businesses with clarity of focus, a
compelling purpose, and the ideal operating environment for each of
our new operating divisions to thrive. This is in stark contrast to
some other business models where decision making can be
centralised, slow and prioritise profits ahead of customer's
interests.
Ecclesiastical Insurance is now proudly part of the Benefact
Group, a family of financial services businesses with a common goal
to give all available profits to good causes. We are here to
protect communities and transform lives.
Building a movement for good
A few years ago we set ourselves (and subsequently met) a
stretching ambition to give GBP100m to charity. This level of
giving means that Benefact Group is now the third largest corporate
donor to charity in the UK. An amazing achievement when you
consider that there are over five million companies.
It means that our ultimate parent company, Benefact Trust, is
now one of the biggest grant making charities in the UK and is able
to provide transformative funding to charities both in the UK and
abroad as, for example, they did in response to the crisis in
Ukraine. We thank the Trust enormously for the outstanding work
they undertake.
Indeed, our combined giving has helped more than 10,000
charities in recent years, changing countless lives and communities
for the better. Many of those charities, along with His Majesty
King Charles III, joined us at Westminster Abbey last summer for a
Service of Thanksgiving to celebrate our GBP100m giving milestone.
It was a proud moment for our business and, for me, a rare moment
to reflect on our incredible progress.
Hearing moving testimonials about the life changing work of the
charities we support, and taking inspiration from the Parable of
the Good Samaritan, we would like to go further and hold out a hand
to many, many more.
We have therefore raised our ambition, and have set a new
cumulative target to give GBP250m for good causes by the end of
2025.
Delivering for our customers
Our giving is only possible thanks to the support of our
brokers, customers, investors, business partners, and the
tremendous efforts of our colleagues. For generations, we have been
trusted to protect many of the UK's iconic treasures, from palaces,
castles and stately homes to cathedrals, churches and schools.
Today we insure world-renowned buildings such as St Pauls
Cathedral, Royal Albert Hall, Chatsworth House and Westminster
Abbey, the home of the coronation. We pride ourselves on our
specialist expertise in our markets and our commitment to customer
service.
As an insurance company, our goal is to protect our customers
through our specialist risk-management advice and insurance cover.
But as a trusted expert committed to creating a movement for good,
our dedication to our customers goes beyond that.
Many of our church and charity customers have seen their incomes
fall due to the challenging economic climate and we recognise the
difficulties they face. We have established resources to help these
organisations raise much-needed funds and we invest significantly
in our risk management services to help customers reduce the risk
of losses occurring. And if the worst happens, our expert claims
team are always there for our customers when they need us most.
As the UK's leading insurer of Grade I listed buildings, we are
passionate about protecting Britain's heritage. We know the key to
protecting our built environment from climate change is adaptation
and resilient repairs. However, the challenge for heritage
buildings, compared to modern properties, is that adaptation can be
more complicated to do sensitively. We are working to be at the
forefront of this issue and collaborating with partners like
English Heritage to research and understand this important issue
better. The threat of climate change is one of the biggest
challenges facing our customers and communities. We are committed
to making a positive environmental impact and we recognise the
importance of reducing our own climate impact as well as supporting
our customers to reduce theirs. Last year we announced our climate
commitments to achieve net zero by 2040 and we are making good
progress against our targets, which are detailed in our Responsible
Business Report.
Providing exceptional service
Our customers tell us that our expert service and our compassion
makes us stand out in the insurance industry. In the UK,
Ecclesiastical retained its top spot in the Fairer Finance Home
Insurance league table for a record sixteenth time and remains the
UK's most trusted home insurance provider. It was also named Risk
Management Specialist Company of the Year - Large in the CIR
Risk-Management Awards. Ecclesiastical Canada was named one of
Canada's Top Employers for Young people for the 10th consecutive
year and won Excellence in Claims Service in the Insurance Business
Canada Awards.
Also, for a second year, I'm delighted the independent research
consultancy, Gracechurch, put Ecclesiastical ahead of all other
insurers for claims service. In addition, an incredible 98% of
customers are satisfied with the service they receive from
Ecclesiastical, whether that is making a claim or experiencing our
risk management service. The Net Promoter Score, which measures how
likely a customer is to recommend a company's products and
services, for Ecclesiastical Insurance puts us ahead of many
well-known and respected brands.
Financial performance
Despite the challenging external environment, our businesses
performed strongly in 2022. In general insurance we saw excellent
premium growth of 15%, driven by new business wins, strong
retention and inflationary pressures. In Investment Management we
saw record gross inflows of over GBP1.2bn as we launched new funds;
net inflows place us well inside the top 10 fastest growing asset
managers in 2022.
Given our overall financial strength and excellent solvency
position, we hold a significant portion of our investment portfolio
in real assets such as property and infrastructure. Whilst we
expect this to lead to positive real returns over the long term, it
can introduce some volatility into annual reported results.
With our long term approach we look through and beyond this
short term volatility, however it did mean that, in 2022, our
strong operating performance was offset by fair value losses from
our assets of around GBP94.1m on our investment portfolio, leading
to an overall Group loss before tax of GBP4.8m (2021: GBP79.2m
profit). In addition to these fair value losses, the results
include a total credit of GBP30m from a fair value gain on an
equity investment and a credit arising from a change to our
discounting accounting policy. More detail on these items is
included within the Chief Financial Officer's Report.
The GI Underwriting result was a profit of GBP27.4m, a
significant increase on the previous year of GBP8.8m, which was
lower due to strengthening of PSA reserves. This gives a combined
operating ratio of 91%, which compares favourably in the insurance
market.
We were able to give a further GBP22.7m to charitable causes,
including Benefact Trust, in 2022. This takes our cumulative giving
to GBP198.2m against our GBP250m target.
We remain in a strong capital position and I'm pleased that our
credit rating agencies affirmed our excellent and strong credit
ratings in the second half of 2022. In line with normal business
practice, we routinely review our rating agencies and we have now
appointed Moody's to join AM Best as our two agencies for the next
period.
Strategic ambitions
To paraphrase T.S. Eliot...
It is only when one tries to go too far, that one finds out how
far it is possible to go.
Inspired by the impact of our giving on so many, we are
extremely ambitious for the future. We have launched an exciting
new strategy to invest, energise and grow our Group across all our
divisions and all our territories. With a strengthened rate
environment, tightened insurance capacity and an increasing market
focus on Environmental, Social and Governance (ESG) performance,
the timing to push for growth has arguably never been better.
This year will see continued investment in new systems, helping
to deliver even better service and value for our customers and
brokers. We will pursue growth opportunities, both in our existing
sectors and in new niches where we can leverage our specialist
expertise. We will make significant investment in digital
propositions, helping to build our distribution capability and
reach, as we seek to find ways to meet our customers' changing
needs. We will also continue to prioritise risk management
innovation, exploring new ways to protect our customers from
losses, particularly from the growing threat of climate change.
To achieve all of this we need to be at our best personally and
professionally and we will continue to foster a culture where all
our colleagues have the space to grow and perform to their full
potential.
For a second year running, we were named an "Outstanding"
company to work for by Best Companies following the results of our
annual engagement survey. Our ambition is to become a world-class
employer, attracting, retaining and developing the best talent in
the industry by creating career opportunities for every colleague,
no matter what their background.
On behalf of the Board and thousands of our beneficiaries, we
say a heartfelt, sincere "thank you" to all our customers, business
partners and dedicated colleagues for their exceptional support. I
very much hope that they are inspired when they look back at what
has been achieved, and the positive impact that they have had. I
certainly am.
Join our movement for good
With a new brand, a clear strategy for growth and a renewed
sense of confidence, we go into 2023 energised and inspired to work
together for our customers and society.
To those who are reading about Benefact Group for the first
time, I invite you to join us, whether as a colleague, customer or
business partner, and experience for yourself how it is possible to
do business differently. There is no doubt that, together, we are
creating something very special - a movement for good that touches
and transforms lives in our homes, in our communities, in this
country and abroad.
As we said when we filled Westminster Abbey in the presence of
His Majesty King Charles III in June last year... "Individually we
can all make a difference. Together, we can perform miracles."
Chief Financial Officer's Report
The Group reported a loss before tax of GBP4.8m (2021: GBP79.2m
profit), largely due to fair value investment losses resulting from
the challenging economic environment, with the net investment
return of GBP4.1m being GBP98.8m lower than in 2021.
There were a number of specific items affecting the results,
both before and after tax. Before tax, and included within the net
investment return, a credit of GBP66.9m (2021: GBP14.5m) arose from
an increase in the discount on general insurance liabilities. A
fair value gain was also recognised for GBP16.8m (2021: GBP9.3m) on
an unlisted equity investment benefiting from the buoyant
reinsurance market, and fair value losses of GBP21.2m (2021:
GBP20.2m gains) were recognised on investment properties.
During the year, the Group changed its approach to discounting
to include all general insurance liabilities. This change in
discounting accounting policy ensured the effects of higher
interest rates and high inflation were being reflected across both
our short and longer term insurance liabilities and so as to more
consistently match the effects of changes in interest rates on both
insurance liabilities and the assets held to match them. This
contributed GBP13.2m towards the total 2022 impact of discounting
and GBP2.6m in the prior year, which has been restated. More
information on these items is included in the investments section
below.
In December 2022 and January 2023 the Group made a number of
structural changes to support the wider Benefact Group's alignment
of businesses across its three main divisions. The impact from
these structural changes, including the results of these
businesses, was a profit of GBP13.7m and is presented after tax.
Further information on these changes can be found below.
We have continued and will continue to manage our businesses
with a long-term view of risk. As a result we have a strong capital
position that can withstand short term volatility and our excellent
and strong credit ratings with AM Best and S&P was reaffirmed
during the year. Following a routine review of our credit rating
agencies, we added Moody's alongside AM Best as our agencies, who
have also affirmed our excellent credit rating. Given that
businesses of our size and type would typically have two rating
agencies, we agreed with S&P to exit our relationship with
them. S&P reiterated an exit rating of A- (stable). Our
Solvency II regulatory capital position remains above regulatory
requirements and risk appetite.
Structural changes
Ecclesiastical is part of the Benefact Group, a charitably owned
financial services group. Across this wider Benefact Group we have
made a number of changes to the legal entity structure to better
align and optimise our businesses to the way in which we manage and
achieve our growth ambitions across our specialist insurance,
investment management and broking and advisory divisions.
On 30 December 2022, Ecclesiastical disposed of South Essex
Insurance Holdings Limited and its wholly owned subsidiary SEIB
Insurance Brokers Limited (together 'SEIB') to the Lloyd &
Whyte Group Limited (Lloyd & Whyte) for GBP45.2m, recognising a
gain after tax of GBP14.3m. Lloyd & Whyte is an associate of
the Benefact Group in whom we are taking an increased share of
ownership over time, with full ownership expected to occur in 2026.
They provide a range of expert financial planning and specialist
insurance services. This disposal took us another step closer to
our longer term growth ambitions for our broking and advisory
division and will provide synergies and opportunities for closer
co-operation in the areas these businesses operates in.
On 3 January 2023 two wholly-owned subsidiaries, EdenTree
Investment Management Limited (EdenTree) and Ecclesiastical
Financial Advisory Services Limited (EFAS) were transferred to the
Benefact Group. The assets and liabilities of these businesses are
presented in the Group's balance sheet as amounts held for
distribution and represented net assets transferred of GBP4.5m.
The results of SEIB, EdenTree and EFAS contributed a net loss
before tax of GBP0.2m (2021: profit of GBP0.5m) and are presented
within the Group's financial statements as discontinued operations
in the current and prior year after tax. The gain on disposal of
SEIB is also presented within discontinued operations.
General insurance
The Group's underwriting businesses have performed in line with
expectations in most territories, resulting in a Group Combined
Operating Ratio(1) (COR) of 91.0% (2021: 96.8%). We have delivered
steady underwriting profits despite adverse flooding and freeze
events across territories, and some unusually large claims in the
UK. Prior year releases have been modest overall as we have
strengthened reserves for latent claims. Our strategy to focus on
profitable growth opportunities has continued to deliver, with new
business of GBP34.7m contributing to almost half of our overall GWP
growth of 15% to GBP559m (2021: GBP486m). The strong growth also
reflects targeted rate increases as well as strong retention and
excellent service delivered to brokers and customers.
Our programme of investment has continued, particularly across
our technology platforms and with our colleagues. Our investments
in these platforms are an important part in supporting the growth
of our business and our customers' needs for the long term.
United Kingdom and Ireland
In the UK and Ireland, underwriting profits fell slightly to
GBP24.2m (2021: GBP25.0m) resulting in a COR of 86.7% (2021:
85.3%). GWP grew by 16.0% to GBP344.8m (2021: GBP297.2m). The
current year performance was profitable despite a run of weather
events and large claims which affected the UK and Ireland in
2022.
Heritage, Real Estate and Schemes were particularly strong
growth areas in 2022 as pricing remained robust in these areas,
partly due to reduced insurance capacity and strong propositions in
these markets, and we continued to focus on consistent service and
delivery of expertise across the business. We expect trading
conditions to become more competitive in 2023 with the outlook
becoming increasingly unpredictable. Inflationary pressures in the
economy, the Ukrainian war, global economics, and the potential for
more frequent and intense weather events due to climate change all
contribute to this uncertainty. However, our Net Promoter Scores
across brokers and customers are robust and provide resilience
enabling us to carry positive rate change where appropriate and
contribute to the high levels of retention experienced. GWP in
respect of our Faith business remained in line with prior year
reflecting a good result in challenging competitive conditions
specific to this market.
Our strategy over the medium term is to deliver GWP growth,
while maintaining our strong underwriting discipline, as our
philosophy is to seek only profitable growth. We will continue to
deepen our specialist capabilities through investment in technology
and innovation together with the propositions, specialism, and
excellent service that our customers value.
Ansvar Australia
Our Australian business reported an underwriting loss of
AUD$5.1m resulting in a COR of 107.3% (2021: AUD$24.4m loss, COR of
156.9%). GWP grew by 3.9% in local currency to AUD$177.8m (2021:
AUD$171.2m) with strong rate increases combined with moderate new
business growth offset by a lower retention rate. The performance
of the underlying business in the current year has been good and
continues to improve in light of positive underwriting actions. The
underwriting result for 2022 was impacted by a very high level of
catastrophe claims and the strengthening of prior year casualty
reserves. The level of historic physical and sexual abuse (PSA)
claims being notified stabilised in 2022, following increases in
previous years. This risk is internally reinsured within the Group
(reported on below). The overall result in the prior year had been
adversely impacted by PSA reserve strengthening.
The Australia operation contributed an underwriting loss of
GBP1.0m (2021: GBP10.0m) to the Group internal reinsurance
portfolio, with the relative improvement reflecting the levelling
of PSA claims reporting.
Canada
Our Canadian business continued its track record of delivering
double digit premium growth, reporting GWP of CAD$175.4m (2021:
CAD$158.0m), an 11.0% increase, which was supported by strong
retention and rate increases as well as new business.
Canada reported an underwriting profit of CAD$11.3m resulting in
a COR of 90.6% (2021: CAD$12.2m profit, COR of 88.6%). Despite an
increase in the number of large losses and Hurricane Fiona, the
property book performed well due to lighter than expected
attritional losses. The performance of the liability book was
impacted by adverse development on prior year claims and the
resultant strengthening of the reserves provision.
Investments
Our results include fair value losses of GBP94.1m (2021:
GBP58.3m gains) on our investment portfolio, which contributed to a
lower net investment gain of GBP4.1m (2021: GBP102.9m). Investment
income of GBP32.1m (2021: GBP30.9m) stood up well and comparably
with prior year.
Investment markets have been impacted by macroeconomic
disruptions, exacerbated by the geopolitical turmoil in Ukraine and
the cost of living crisis shadowing the economic outlook. Higher
food and energy prices are pushing inflation to a 40 year high in
the UK and other parts of the world, as central banks respond with
tighter monetary policy in an effort to bring this under control.
Whilst we may have now passed a peak in inflation, the outlook
drove down financial asset prices compared to last year.
The past three years highlights the impact economic and
political uncertainty can have on the performance of our
investments, however, we remain confident in our long-term
investment philosophy, and are well-diversified and relatively
defensively positioned.
Fair value losses on financial instruments of GBP72.9m (2021:
GBP38.1m gains) included a gain on an unlisted equity investment of
GBP16.8m (2021: GBP9.3m). We recognised fair value losses of
GBP21.2m (2021: GBP20.2m gains) on our investment properties,
driven by a fall in the value of industrial sector capital values
in the portfolio, as investors continue to adjust to the new
reality of higher interest rates.
The Group's investment strategy includes the objective of
matching assets with insurance liabilities when managing exposure
to interest rate risk. Insurance liabilities expected future cash
flows are discounted at an interest rate which is set to reflect
the risk free yields available on a suitable portfolio of illiquid
assets. During the year, an upward movement in interest rates led
to an increase in the discount applied to insurance liabilities.
This resulted in an overall gain of GBP66.9m (2021: GBP14.5m) which
is recognised within the net investment return. Whilst the majority
of this arose from our longer term liabilities, GBP13.2m related to
our shorter term liabilities.
We recognise the importance of our role in tackling climate
change and that we have a duty to invest responsibly. Our
responsible and sustainable investment policy plays an important
part in how we invest responsibly, informing our investment
strategy and helping understand and mitigate the risks of climate
change. Our strategy includes a focus on responsible investment and
encompasses action to respond to climate risk and operations,
investing in ways that support the transition to a low-carbon
economy. The Group is expected to be aligned with the Sustainable
Development Scenario by 2050, representing a temperature increase
of 1.5 degrees by 2050, well ahead of the 3.1 degree benchmark.
More information on the Group's approach to responsible investment
including actions we take to mitigate the risks of transitioning to
a low carbon economy can be found in our Responsible Business
Report.
Long-term business
Our life business, Ecclesiastical Life Limited, reopened to
business during 2021, launching a new product providing guaranteed
funeral planning products sold by Ecclesiastical Planning Services,
a business within the wider Benefact group. The legacy book within
our life insurance business remains closed to new business. Profit
before tax was GBP3.6m for the year (2021: GBP1.1m), driven by a
reduction in liabilities due primarily to an increase in interest
rates. Assets and liabilities in relation to the life insurance
business remain well matched.
IFRS 17
The new IFRS 17 insurance accounting standard has been adopted
by the Group and was effective from January 2023. This new
accounting standard will make the financial statements of public
insurance companies more comparable and transparent. The Group's
first set of results reported under IFRS 17 will be published in
Autumn within the Group's 2023 interim results. Further information
about the application of this new accounting standard is included
within the notes to the financial statements.
Outlook
Despite the challenges faced during the year and as inflation
accelerates across many countries, the underlying resilience of our
businesses means we will continue to grow sustainably and invest
for the future. It also enabled us to give over GBP22m to Benefact
Trust and other charities in the year. As part of the Benefact
Group, we have many exciting opportunities ahead as we look to
achieve our ambition of giving GBP250m cumulatively since 2014 to
charitable causes by the end of 2025.
(1) The Group uses APMs to help explain performance. More
information on APMs is included in note 8 to this announcement.
Directors' Report
Principal activities
The Group operates principally as a provider of general
insurance in addition to offering a range of financial services,
with offices in the UK, Ireland, Canada, and Australia
Ownership
At the date of this report, the entire issued Ordinary share
capital of the Company and 4.35% of the issued 8.625%
Non-Cumulative Irredeemable Preference Shares of GBP1 each
('Preference shares') were owned by Benefact Group plc. In turn,
the entire issued Ordinary share capital of Benefact Group plc was
owned by Benefact Trust Limited, the ultimate parent of the
Group.
Dividends
Dividends paid on the Preference shares were GBP9,181,000 (2021:
GBP9,181,000).
The directors do not recommend a final dividend on the Ordinary
shares (2021: GBPnil), and no interim dividends were paid in 2022
and 2021. An interim dividend in specie of the entire issued share
capital of EdenTree Investment Management Limited of GBP4,651,000
and Ecclesiastical Financial Advisory Services Limited of
GBP572,000 was made on 3 January 2023.
Charitable and political donations
Charitable donations made in the year amounted to GBP22.7
million (2021: GBP23.5million).
It is the Company's policy not to make political donations. No
political donations were made in the year (2021: GBPnil).
Principal risks and uncertainties
The directors have carried out a robust assessment of the
principal risks facing the Group including those that threaten its
business model, future performance, solvency and liquidity. The
principal risks and uncertainties, together with the financial risk
management objectives and policies of the Group are included in the
Risk Management section of this announcement.
Going concern
The Group has considerable financial resources: financial
investments of GBP870.7m, 84% of which are liquid (2021: financial
investments of GBP883.8m, 90% liquid) and cash and cash equivalents
of GBP104.7m (2021: GBP114.0m) to withstand economic pressures.
Liquid financial investments consist of listed equities and
open-ended investment companies, government bonds and listed
debt.
The Group has a strong risk management framework and solvency
position, is well placed to withstand significant market disruption
and has proved resilient to stress testing. The Group has
considered its capital position, liquidity and expected
performance. The Group and its businesses have sufficient levels of
cash and other liquid resources and has expectations it can meet
its cash commitments over its planning horizon. The Group and its
businesses expect to continue to meet regulatory requirements.
Despite the continuing and expected economic pressures and
challenges, given the Group's operations, robust capital strength,
liquidity and in conjunction with forecast projections and stress
testing, which were considered severe but plausible downside
scenarios, the directors have a reasonable expectation that the
Group has adequate resources and is well placed to manage its risks
successfully and continue in operational existence for at least 12
months from the date of this report. Accordingly, they continue to
adopt the going concern basis in preparing the Annual Report and
Accounts.
Risk Management Report
Introduction
Strong governance is fundamental to what we do and drives the
ongoing embedding of our Enterprise-Wide Risk Management Framework.
This provides the tools, guidance, policies, standards and defined
responsibilities that enable us to achieve our strategy and
objectives, whilst ensuring that individual and aggregated risks to
our objectives are identified and managed on a consistent
basis.
The Risk Management Framework is integrated into the culture of
the Group and is owned by the Board. Responsibility
for facilitation of the implementation and oversight is
delegated via the Group Chief Executive to the Group Risk Function,
led by the Group Chief Risk and Compliance Officer.
The Risk Management process demands accountability and is
embedded in performance measurement and reward,
thus promoting clear ownership for risk and operational
efficiency at all levels. On an annual basis, the Group Risk
Committee ("GRC"), on behalf of the Board, carries out a formal
review of the key strategic risks for the Group with input from the
Group Management Board ("GMB") and the Strategic Business Units
(SBUs). The GRC allocates responsibility for each of the risks to
individual members of the Group's Executive Management team. Formal
monitoring of the key strategic risks is undertaken quarterly,
which includes progress of Risk Management actions and is overseen
by Executive Risk Committees.
Ecclesiastical has clearly defined the accountabilities, roles
and responsibilities of all key stakeholders in implementing and
maintaining its Risk Management Framework. These are defined,
documented and implemented through the Terms of Reference of Board
Sub Committees, Management and Executive Forums, Statement of
Responsibilities and Functional Charters.
The Group's Risk Management Framework is part of a wider
Internal Control Framework. Systems of internal control are
designed to manage rather than eliminate the risk of failure to
achieve business objectives, and provide reasonable, but not
absolute, assurance as to the prevention and detection of financial
misstatements, errors, fraud or violation of law or
regulations.
Key to the successful operation of the internal control
framework is the deployment of a strong Three Lines of Defence
Model whereby:
-- 1st Line (Business Management) is responsible for strategy
execution, performance and identification and management of risks
and application of appropriate controls;
-- 2nd Line (Reporting, Oversight and Guidance) is responsible
for assisting the Board in formulating risk appetite, establishing
minimum standards, developing appropriate risk management tools,
providing oversight and challenge of risk profiles and risk
management activities within each of the business units and
providing risk reporting to Executive Management and the Board.
-- 3rd Line (Assurance) provides independent and objective
assurance of the effectiveness of the Group's systems of internal
control. This activity principally comprises the Internal Audit
function, which is subject to oversight and challenge by the Group
Audit Committee.
We seek to develop and improve our Risk Management Framework and
strategy on an ongoing basis to ensure it continues to support the
delivery of our strategy and objectives.
The Group Risk Appetite defines the level of risk-taking that
the Board considers to be appropriate for the Group as we pursue
our business objectives. It is defined in line with the different
categories of risk that the Group faces, and provides the backdrop
against which the business plan is developed and validated. This
ensures that the risk profile resulting from the business plan is
in line with the risk-taking expectations of the Board. Compliance
with the risk appetite is formally monitored every quarter and
reported to GRC at each meeting.
The risk appetite is formally reviewed annually with approval
and sign-off by the Board and there are ongoing assessments to
ensure its continued appropriateness for the business.
The Own Risk and Solvency Assessment (ORSA) process is carried
out at least once a year and is a key part of the business
management and governance structure. This integrates the risk
management, business planning and capital management activities and
ensures that risk, capital and solvency considerations are built
into the development and monitoring of the Group's business
strategy and plans and all key decision making.
The Group has Regulatory approval for the use of an Internal
Model to determine our Regulatory Capital requirement. In addition,
the Internal Model's capability to quantify material risks and
assess the impacts on Capital requirements across a range of
scenarios allows us to gain a deeper insight into the relationship
between Risk and Capital Management.
The Internal Model is used extensively to inform key business
decisions across the Group, including setting business strategies
and objectives, producing risk profiles and capital requirements
for different scenarios, informing risk taking guidelines,
informing and defining the Group Risk Appetite and Investment
Strategy, determining risk mitigation mechanisms and responses to
regulatory capital requirements.
Risk environment
The Risk environment is monitored on an ongoing basis and key
areas of concern are escalated to GRC.
Whilst we felt significant pressure on the cost and availability
of reinsurance, we were able to complete our placement effectively,
despite this background. Although inflation predictions have
settled more recently, this will be a continuing area of focus
across the business into 2023.
With market volatility throughout the year, we maintained our
existing investment approach and made no material changes to our
asset mix, holding a diversified portfolio of assets including
equities and property held for prospects of long-term returns.
Consequently, we continue to choose to take a relatively high level
of market risk, which is well understood and closely monitored and
managed.
The profitable management of our insurance businesses on a
portfolio basis in hardening markets continues to be a key area of
focus for the Group; ensuring that the business written and
retained is profitable and sustainable. Competitor activity remains
a risk across all our business operations and chosen niches and
2022 was no exception. Our strategy remains to achieve controlled
and profitable growth within our defined specialist markets. During
2022 we have maintained our strong underwriting discipline and risk
appetite.
The potential for adverse development of long-tail liability
claims, particularly in respect of PSA claims, remains a key risk
that we continue to actively manage. A further report was issued in
relation to the Independent Inquiry into Child Sexual Abuse in the
UK in October 2022. Continued elevated claims volumes in Australia
and a combination of greater frequency and a higher assumed
severity of claims in Canada has led to increases in levels of
reserves held in both of those territories. We continue to monitor
the experience and claims environment in all of the territories in
which we operate.
The impact of the Covid-19 pandemic continued into the start of
2022 and the wide-ranging impacts, both direct and indirect,
continued on the Group, and especially in regards the economic
environment in which we operate. Although there were reduced
implications on the Group's operations through 2022, there were
continued impacts on the insurance policies written by Group
companies and on the Group's investment assets. These were further
impacted by the inflationary pressures felt across the economy.
The Covid-19 pandemic was the trigger for a high volume of
regulatory guidance issued in all territories during the prior
years, some other elements of regulatory change had therefore been
delayed. However, focus in 2022 has been heavily on Consumer Duty
across the group. Management of change in the regulatory
environment will
remain a key focus area to ensure that we operate within
relevant legal, regulatory and consumer protection requirements and
guidelines and that our people maintain the highest standards of
conduct with continued commitment to placing customers at the
centre of everything we do.
Cyber risk remains a constantly evolving threat due to the
threat of zero day attack. We hold customer data, and therefore any
event involving a significant loss of such data could result in
harm to the data subjects, significant operational disruption and
an impact on our service to customers, as well as sizeable
regulatory fines and reputational damage. The increased societal
focus on data security and appropriateness of use, together with
regulations such as GDPR, results in increased scrutiny and
prominence. Hybrid working continues, and this is seen as an
exploitable opportunity for external attackers, and there continues
to be a general increase in social engineering and phishing attacks
across the financial sector.
Employee awareness and vigilance is therefore highly important
at this time, and the Group operates an ongoing programme of
training and awareness exercises for its staff.
The Group aims to be the most trusted, specialist insurer and
therefore maintaining a positive reputation is critical. Our
reputation could potentially be damaged as a result of a range
of factors including poor business practices and behaviours. High
standards of conduct are a core part of the Group's brand, values
and culture and there is an ongoing focus on ensuring this is
maintained.
Climate change presents increasing levels of risk to our
businesses and our customers. Whilst the greatest impacts of these
risks are expected to materialise in the medium to long-term, it is
important that we take actions to mitigate and manage these risks
now. Our exposures to climate change risk include transition risk,
primarily related to our investment portfolio, and physical risk
that additionally affects the insurance risks that we cover.
Principal risks
There is an ongoing risk assessment process which has identified
the current principal risks for the Group as follows:
Insurance risk
The risk that arises from the fluctuation in the timing,
frequency and severity of insured events relative to the
expectations of the firm at the time of underwriting.
Risk detail Key mitigants Change from last year
Underwriting risk There have not been
The risk of failure to * A robust pricing process is in place material changes to
price insurance this risk during the
products adequately year, with soft market
and failure to * The Underwriting Licencing process has been refreshed conditions
establish appropriate continuing in all
underwriting territories, though
disciplines. The * A documented underwriting strategy and risk appetite the impact of
premium charged must is in place together with standards and guidance and increased claims
be appropriate for the monitored by SBUs inflation has needed
nature of the cover careful management.
provided and the risk
presented to the * This is supported by formally documented authority
Group. Disciplined levels for all underwriters which must be adhered to.
underwriting is vital Local checking procedures ensure compliance
to ensure
that only business
within the Company's * Monitoring of rate strength compared with technical
risk appetite and rate is undertaken on a regular basis within SBUs
desired niches is
written.
* There are ongoing targeted nderwriting training
programmes in place
* A portfolio management framework is in place to
ensure clear understanding and allow targeted actions
to be taken
------------------------------------------------------------------ ------------------------
Reserving risk
Reserving risk is the * Claims development and reserving levels are closely This risk is not
risk of actual claims monitored by the Group Reserving team considered to have
payments exceeding the changed materially
amounts we are holding during the year, with
in reserves. This * For statutory and financial reporting purposes, inflationary impacts
arises primarily from prudential margins are added to a best estimate being a key
our long-tail outcome to allow for uncertainties consideration in the
liability business. reserving process
Failure to interpret during
emerging experience or * Claims reserves are reviewed and signed-off by the 2022. A rise in
fully understand the Board acting on the advice and recommendations of the numbers of Physical
risks written could Group Chief Actuary following review by the Reserving and Sexual Abuse
result in the Group Committee claims in the
holding Australian and
insufficient reserves Canadian
to meet our * An independent review is also conducted by the businesses over the
obligations. Actuarial Function Director with reporting to the past year has led to
Board an increase in
reserves.
------------------------------------------------------------------ ------------------------
Catastrophe risk
The risk of large * Modelling is undertaken to understand the risk There have been no
scale extreme events profile and inform the purchase of reinsurance material changes to
giving rise to this risk. We continue
significant insured to monitor our
losses. Through * There is a comprehensive reinsurance programme in aggregations
our general insurance place to protect against extreme events. All and exposures to such
business we are placements are reviewed and approved by the Group events and ensure
exposed to significant Reinsurance Board careful management
natural catastrophes utilising appropriate
in the territories protections.
in which we do * Exposure monitoring is undertaken on a regular basis
business.
* A Catastrophe Risk Management Group provides
oversight and sign off of reinsurance modelling
* The Group Risk Appetite specifies the reinsurance
purchase levels and retention levels for such events
* Local risk appetite limits have been established to
manage concentrations of risk and these are monitored
by SBUs
------------------------------------------------------------------ ------------------------
Reinsurance risk The level of this risk
The risk of failing to * We take a long-term view of reinsurance relationships has not materially
access and manage to deliver sustainable capacity changed, however
reinsurance capacity reinsurance markets
at a reasonable price. have experienced
Reinsurance * A well-diversified panel of reinsurers is maintained increasing challenges
is a central component for each element of the programme in recent years due to
of our business model, the impact of Covid-19
enabling us to insure claims and global
a portfolio of large * A Group Reinsurance Board approves all strategic catastrophe
risks reinsurance decisions events, as well as the
in proportion to our volatile economic
capital base. challenges in 2022.
This has resulted in
tightening of criteria
and capacity in
certain areas.
We continue to take a
long-term approach to
our reinsurance
relationships.
------------------------------------------------------------------ ------------------------
Other financial risks
The risk that proceeds from financial assets are not sufficient
to fund the obligations arising from insurance contracts.
Risk detail Key mitigants Change from last year
Market and
investment * An investment strategy is in place which is reviewed
risk at least annually and signed off by the Finance and
The risk of Investment Committee (F&I). This includes
adverse consideration of the Group's liabilities and capital
movements in requirements
net asset
values arising
from a change * A Market and Investment Risk Committee is in place
in interest and provides oversight and challenge of these risks
rates, and the agreed actions. There is a formalised
equity and escalation process to GMB and F&I in place
property
prices, credit
spreads and * There are risk appetite metrics in place which are
foreign agreed by the Board and include limits on Asset /
exchange Liability Matching and the management of investment
rates. This assets
principally
arises
from * Derivative instruments are used to hedge elements of
investments market risk, notably equity and currency. Their use
held by the is monitored to ensure effective management of risk
Group. We
actively take
such risks to * There is tracking of risk metrics to provide early
seek enhanced warning indicators of changes in the market
returns on environment
these
investments.
-----------------------------------------------------------
The Group's The Pension Scheme Trustee Board has an Investment Committee that
balance sheet oversees the market risks
is also exposed in the pension fund. The company, as employer sponsor of the fund
to market risk maintains regular communication
within the with this committee. Overall the market risk profile has not materially changed
defined benefit and we remain invested for the
pension Further information on this risk is given in note 4 to this long term. We continue to monitor market conditions and
fund. announcement. the socio-political environment.
------------------------------------------------------------------ -----------------------------------------------------------
Credit risk
The risk that * Strict ratings criteria are in place for the
a reinsurers that we contract with and a Reinsurance The level of this risk has remained broadly similar to
counterparty, Security Committee approves all of our reinsurance the previous year, although we are
for example a partners cognisant to the challenges of the current cost of
reinsurer, living crisis, and the potential knock-on
fails to impacts.
perform its * Group Reinsurance monitors the market to identify
financial changes in the credit standing of reinsurers
obligations
to the company
or does not * There are risk appetite limits in place in respect of
perform them reinsurance counterparties which are agreed by the
in a timely Board
manner
resulting in a
loss for the * Strong credit control processes are in place to
Group. manage broker and policyholder exposures
The principal
exposure to
credit risk
arises from Further information on this risk is given in note 4 to this
reinsurance, announcement.
which is
central to our
business
model. Other
elements are
our investment
in debt
securities,
cash deposits
and amounts
owed
to us by
intermediaries
and
policyholders.
------------------------------------------------------------------ -----------------------------------------------------------
Liquidity risk
The risk that * We hold a high proportion of our assets in readily
the Group, realisable investments to ensure we could respond to There have been no material changes to this risk since
although such a scenario last year.
solvent,
either does
not have * We maintain cash balances that are spread over
sufficient several banks
financial
resources
available to * We have arrangements within our reinsurance contracts
enable it to for reinsurers to pay recoverables on claims in
meet its advance of the claim settlement
obligations as
they fall due,
or can secure
them only at
excessive
cost. We may
need to pay
significant
amounts of
claims at
short notice
if there
is a natural
catastrophe or
other large
event in order
to deliver on
our promise to
our customers.
------------------------------------------------------------------ -----------------------------------------------------------
Climate change
The financial * Catastrophe risk is managed through reinsurance A programme of work continues to fully analyse the impact
risks arising models on the Group and to develop appropriate
through risk management responses.
climate The Group has effected changes to its investment policy
change. * We consider flood risk and other weather-related risk to:
The key factors in insurance risk selection * exclude investment in companies that are wholly or
impacts for mainly involved in fossil fuel exploration and
the Company production and thermal coal
are physical * There is an ESG overlay on the Investment Strategy
risks (event
driven or * Monitor the overall carbon profile and intensity of
longer term companies and, through its Fund Manager, engage wit
shifts), the h
transition the highest emitters, and urge the setting of
risks of science-based targets aligned with the Paris
moving towards Agreement
a lower carbon
economy and
liability * Seek opportunities to invest in areas that are
risks leading the transition to a low carbon economy, whe
associated re
with these also meet robust investment criteria
the potential
for litigation
arising from
an inadequate
response.
------------------------------------------------------------------ -----------------------------------------------------------
Operational risk
The risk of loss arising from inadequate or failed internal
processes, people and systems, or from external events.
Risk detail Key mitigants Change from last
year
Systems risk * A defined IT Strategy is in place This level of risk
The risk of remains stable, as
inadequate, ageing the Group continues
or unsupported * Systems monitoring is in place together with regular to invest in IT
systems and systems and data backups infrastructure to
infrastructure and maintain and
system failure improve future
preventing * A strategic systems programme is underway to deliver stability
processing improved systems, processes and data
efficiency. Systems
are critical to
enable us to * Business recovery plans are in place for all critical
provide excellent systems and are tested according to risk appetite
service
to our customers.
------------------------------------------------------------------------ ---------------------
Cyber risk Cyber risk remains
The risk of * A number of security measures are deployed to ensure a constantly
criminal or protected system access evolving threat,
unauthorised use of with malicious
electronic threat attackers
information, either * Security reviews and assessments are performed on an continuing
belonging to the ongoing basis to seek to exploit
Group or its businesses
stakeholders e.g. returning from the
customers, * There is ongoing maintenance and monitoring of our Covid-19 related
employees etc. systems and infrastructure in order to prevent and business
Cyber security detect cyber security attacks disruption,
threats from including
malicious a more hybrid
parties continue to * There is an ongoing Information Security training and approach to
increase in both awareness programme working. Employee
number and awareness and
sophistication vigilance is
across all therefore highly
industries. important
at this time, which
is continuing to be
proactively
managed.
------------------------------------------------------------------------ ---------------------
Change risk The level of this
The risk of failing * We have a clearly articulated Group Strategic risk has not
to manage the Programme, identifying areas of priority across the materially changed.
change needed to Group There continues to
transform the be a significant
business. volume
A number of * We ensure that there is adequate resourcing for of change within
strategic change projects using internal and external skills the business, which
initiatives are where appropriate is monitored
underway under closely, relating
three themes, to both IT systems
Support and * A Change Board and change governance processes are in and
protect, Innovate place and operate on an ongoing basis to meet the ever
and grow and changing Regulatory
Transform and landscape,
thrive. These * The GMB undertakes close monitoring and oversight of including the
include a the delivery of the strategic initiatives and key successful
transformation of Group change programmes implementation of
our core system and the required
key changes from IFRS
processes, which 17.
will deliver Appropriate
significant change strengthening of
for the company expertise has
over the next few continued in the
years. year to reflect and
There are a number meet this
of material risks volume of change.
associated with
major
transformation, not
only on the
risks to project
delivery itself,
but the potential
disruption to
business as usual,
or delays
to planned
benefits.
------------------------------------------------------------------------ ---------------------
Operational Operational
resilience * A recovery and resilience framework is in place Resilience
The risk that the aligned to the delivery of customer services continues to have
Group does not been successfully
prevent, respond tested during the
to, recover and * Recovery exercises including IT systems are regularly year, with the
learn from performed across the company with actions identified continued need to
operational addressed within an agreed timescale meet the needs of
disruptions. our customers,
The Group provides alongside working
a wide range of * All suppliers are subject to ongoing due diligence in a new hybrid
services to a environment.
diverse customer Focus in 2022, and
base and has a * There is ongoing maintenance and monitoring of our into the coming
reputation systems and infrastructure in order to prevent and couple of years,
for delivering detect issues remains on meeting
excellent service. the enhanced
Therefore, we seek Regulatory
to minimise the requirements around
potential for any Resilience.
such
disruption that
would impact on the
service provided to
our customers.
------------------------------------------------------------------------ ---------------------
Data management and Enhancements
governance * A Group Data Governance and Management Committee is continue to be made
The risk that the in place to the governance,
confidentiality, management, use and
integrity and/or control of data, in
availability of * Group Data Governance and Group Data Management and order to meet the
data held across Information Security Policies are in place evolving
the Group requirements. It
is compromised, or continues to be
data is misused. * A Group Data Optimisation Programme is in place which monitored and
The Group holds is responsible for ensuring the delivery of the data managed within the
significant amounts strategy and all aspects relating to the governance, context of major
of customer and management, use and control of the Group's data in change programmes.
financial line with regulatory requirements
data and there
could be
significant
implications if
this is compromised
or is found to be
inaccurate.
------------------------------------------------------------------------ ---------------------
Regulatory and conduct risk
The risk of regulatory sanction, operational disruption or
reputational damage from non-compliance with legal and regulatory
requirements or the risk that Ecclesiastical's behaviour may result
in poor outcomes for the customer.
Risk detail Key mitigants Change from last year
Regulatory risk There continues to
The risk of * We undertake close monitoring of regulatory be a significant
regulatory sanction, developments and use dedicated project teams volume of regulatory
operational supported by in-house and external legal experts to change. We remain
disruption or ensure appropriate actions to achieve compliance focused on the
reputational damage management of
from non-compliance regulatory change
with legal and * An ongoing compliance monitoring programme is in and therefore the
regulatory place across all our SBUs overall risk level
requirements. We is unchanged.
operate in a highly
regulated * Regular reporting to the Board of regulatory
environment which compliance issues and key developments is undertaken
is experiencing a
period of
significant change.
---------------------------------------------------------------------- ----------------------
Conduct risk The probability of
The risk of unfair * There is ongoing staff training to that customer such risks
outcomes arising outcomes are fully considered in all business crystallising
from the Group's decisions increased during the
conduct in the Covid-19 pandemic,
relationship with which
customers, * Customer charters have been implemented in all SBUs continued into the
or in performing our start of the
duties and financial year.
obligations to our * Conduct Risk Reporting to relevant governing bodies However, we remain
customers. We place is undertaken on a regular basis committed to placing
customers at the customers
centre at the centre of our
of the business, * Customer and conduct measures are used to assess practices and
aiming to treat them remuneration decision making,
fairly and governed by our
ethically, while internal Conduct &
safeguarding the Compliance
interests Committees, and
of all other key demonstrated by our
stakeholders. wide-ranging
industry awards and
customer
satisfaction
scores. Overall the
level of this risk
is unchanged from
last year.
---------------------------------------------------------------------- ----------------------
Reputation risk
The risk that our actions lead to reputational damage in the
eyes of customers, brokers, or other key stakeholders.
Risk detail Key mitigants Change from last year
Brand and reputation Maintaining a positive
risk * There is ongoing training of core customer facing reputation is critical
The Group aims to be staff to ensure high skill levels in handling to the Group's vision
the most trusted sensitive claims of being the most
specialist insurer and trusted
as a consequence this and ethical specialist
brings * We adopt a values led approach to ensure financial services
with it high customer-centric outcomes group.
expectations from all Risks to our brand and
of our stakeholders, be reputation are
they consumers, * There is a dedicated Marketing and PR function inherently high in an
regulators or the responsible for the implementation of the marketing increasingly
wider industry. Whilst and communication strategy interconnected
we aim to consistently environment,
meet and where possible with the risks of
exceed these * Ongoing monitoring of various media is in place to external threats such
expectations, ensure appropriate responses as cyber security
increasing consumer attacks, and viral
awareness and increased campaigns through
regulatory scrutiny social media always
across the sector present.
exposes The external
the Group to an environment continues
increased risk of to drive a high
reputational damage inherent probability of
should we fail to meet reputational issues
them, for example across all financial
as a consequence of services companies. We
poor business practices continued to focus on
and behaviours. serving our customers
and
ensuring fair treatment
and clear
communication, and are
proud of the volume of
Industry Awards
we continue to win, and
of the successful
Benefact brand launch
in 2022.
---------------------------------------------------------------- -------------------------
Statement of directors' responsibilities in respect of the
financial statements
The following statement is extracted from page the Directors'
report of the 2022 Annual Report & Accounts, and is repeated
here for the purposes of the Disclosure and Transparency Rules. The
statement relates solely to the Company's 2022 Annual Report &
Accounts and is not connected to the extracted information set out
in this announcement. The names and functions of the directors
making the responsibility statement are set out in the Governance
section of the full Annual Report & Accounts.
The Directors consider that the 2022 Annual Report and accounts,
taken as a whole, is fair, balanced and understandable and provides
the information necessary for shareholders to assess the Group's
and Company's position and performance, business model and
strategy. Each of the Directors, whose names and functions are
listed on the Governance section of the full Annual Report and
Accounts confirm that, to the best of their knowledge:
The directors confirm to the best of their knowledge:
-- the Group and Company financial statements, which have been
prepared in accordance with UK-adopted international accounting
standards, give a true and fair view of the assets, liabilities and
financial position of the Group and Company, and of the loss before
tax of the Group in the year; and
-- the Strategic Report includes a fair review of the
development and performance of the business and the position of the
Group and Company, together with a description of the principal
risks and uncertainties that it faces.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 31 December 2022
Restated*
2022 2021
GBP000 GBP000
Revenue
Gross written premiums 558,551 486,211
Outward reinsurance premiums (238,069) (198,601)
Net change in provision for unearned premiums (16,505) (14,620)
Net earned premiums 303,977 272,990
---------- ----------
Fee and commission income 63,533 55,417
Other operating income 2,020 1,136
Net investment return 4,058 102,897
Total revenue 373,588 432,440
---------- ----------
Expenses
Claims and change in insurance liabilities (285,680) (269,633)
Reinsurance recoveries 136,507 123,822
Fees, commissions and other acquisition costs (108,696) (95,649)
Other operating and administrative expenses (118,036) (109,514)
Total operating expenses (375,905) (350,974)
---------- ----------
Operating (loss)/profit (2,317) 81,466
Finance costs (2,456) (2,288)
---------- ----------
(Loss)/profit before tax from continuing operations (4,773) 79,178
Tax credit/(expense) 3,015 (18,021)
---------- ----------
(Loss)/profit for the year from continuing operations (1,758) 61,157
Net profit attributable to discontinued operations 13,696 338
---------- ----------
Profit for the year (attributable to equity holders of the Parent) 11,938 61,495
---------- ----------
* The Group's accounting policy for general insurance
outstanding claims provisions has previously been to apply
discounting only to certain longer term liabilities. The accounting
policy has been changed to include discounting of the general
insurance liabilities that have not previously been discounted. The
comparative financial statements have been restated to the revised
basis, detailed in note 11 to this announcement.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2022
Restated*
2022 2021
GBP000 GBP000
Profit for the year 11,938 61,495
--------- ----------
Other comprehensive (expense)/income
Items that will not be reclassified to profit or loss:
Actuarial (losses)/gains on retirement benefit plans (10,171) 38,660
Attributable tax 2,543 (8,098)
--------- ----------
(7,628) 30,562
Items that may be reclassified subsequently to profit or loss:
Gains/(losses) on currency translation differences 5,392 (2,356)
(Losses)/gains on net investment hedges (4,514) 1,912
Attributable tax 825 (183)
--------- ----------
1,703 (627)
Net other comprehensive (expense)/income (5,925) 29,935
--------- ----------
Total comprehensive income (attributable to equity holders of the Parent) 6,013 91,430
--------- ----------
*The comparative financial statements have been restated as
detailed in note 11 to this announcement .
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2022
Translation
and hedging
Share Share Revaluation Retained
capital premium reserve reserve earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2022 120,477 4,632 268 17,603 491,981 634,961
Profit for the year - - - - 11,938 11,938
Other net income/(expense) - - - 1,703 (7,628) (5,925)
--------- -------- -------------- ------------ ----------- ---------
Total comprehensive income - - - 1,703 4,310 6,013
Dividends - - - - (9,181) (9,181)
Gross charitable grant - - - - (20,000) (20,000)
Tax relief on charitable
grant - - - - 3,800 3,800
Reserve transfers - - (46) - 46 -
At 31 December 2022 120,477 4,632 222 19,306 470,956 615,593
--------- -------- -------------- ------------ ----------- ---------
At 31 December 2020 (as
reported) 120,477 4,632 599 18,230 425,290 569,228
Restatement - - - - 494 494
--------- -------- -------------- ------------ ----------- ---------
At 1 January 2021 (as
restated*) 20,477 4,632 599 18,230 425,784 569,722
Profit for the year - - - - 61,495 61,495
Other net (expense)/income - - (18) (627) 30,580 29,935
--------- -------- -------------- ------------ ----------- ---------
Total comprehensive
(expense)/income - - (18) (627) 92,075 91,430
Dividends - - - - (9,181) (9,181)
Gross charitable grant - - - - (21,000) (21,000)
Tax relief on charitable
grant - - - - 3,990 3,990
Reserve transfers - - (313) - 313 -
At 31 December 2021 (as
restated*) 120,477 4,632 268 17,603 491,981 634,961
--------- -------- -------------- ------------ ----------- ---------
*The comparative financial statements have been restated as
detailed in note 11 to this announcement .
The revaluation reserve represents cumulative net fair value
gains on owner-occupied property. Further details of the
translation and hedging reserve are included in note 6 to this
announcement.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2022
Restated*
2022 2021
GBP000 GBP000
Assets
Goodwill and other intangible assets 30,255 52,512
Deferred acquisition costs 52,526 46,027
Deferred tax assets 8,565 8,480
Pension surplus 15,338 28,304
Property, plant and equipment 31,405 35,245
Investment property 140,846 163,355
Financial investments 870,749 883,770
Reinsurers' share of contract liabilities 306,962 253,436
Current tax recoverable 4,212 5
Other assets 310,788 240,910
Cash and cash equivalents 104,664 114,036
Assets classified as held for distribution 14,999 -
Total assets 1,891,309 1,826,080
----------- -----------
Equity
Share capital 120,477 120,477
Share premium account 4,632 4,632
Retained earnings and other reserves 490,484 509,852
Total shareholders' equity 615,593 634,961
----------- -----------
Liabilities
Insurance contract liabilities 979,300 939,069
Investment contract liabilities 58,479 15,519
Lease obligations 19,062 22,738
Provisions for other liabilities 5,961 6,373
Retirement benefit obligations 4,960 7,058
Deferred tax liabilities 36,723 48,965
Current tax liabilities 308 1,232
Deferred income 33,167 28,385
Subordinated liabilities 25,818 24,433
Other liabilities 101,443 97,347
Liabilities classified as held for distribution 10,495 -
Total liabilities 1,275,716 1,191,119
----------- -----------
Total shareholders' equity and liabilities 1,891,309 1,826,080
----------- -----------
*The com parative financial statements have been restated as
detailed in note 11 to this announcement .
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2022
Restated*
2022 2021
GBP000 GBP000
(Loss)/profit before tax from continuing operations (4,773) 79,178
Profit before tax from discontinued operations 14,115 459
Adjustments for:
Depreciation of property, plant and equipment 6,261 6,155
(Profit)/loss on disposal of property, plant and equipment (9) 24
Amortisation and impairment of intangible assets 3,558 856
Loss on disposal of intangible assets - 4,765
Profit on disposal of subsidiary (14,293) -
Net fair value losses/(gains) on financial instruments and investment
property 94,121 (58,340)
Dividend and interest income (22,906) (21,802)
Finance costs 2,528 2,364
Adjustment for pension funding 695 1,646
Changes in operating assets and liabilities:
Net increase in insurance contract liabilities 21,449 81,352
Net decrease in reinsurers' share of contract liabilities 42,961 15,519
Net increase in reinsurers' share of contract liabilities (47,597) (49,513)
Net increase in deferred acquisition costs (5,349) (4,376)
Net increase in other assets (84,292) (25,891)
Net increase in operating liabilities 21,944 8,472
Net decrease in other liabilities (159) (234)
---------- ----------
Cash generated by operations 28,254 40,634
Purchases of financial instruments and investment property (208,588) (186,514)
Sale of financial instruments and investment property 156,110 157,614
Dividends received 7,177 7,427
Interest received 17,022 14,068
Tax paid (6,487) (3,142)
Net cash (used by)/from operating activities (6,512) 30,087
---------- ----------
Cash flows from investing activities
Purchases of property, plant and equipment (3,234) (3,634)
Proceeds from the sale of property, plant and equipment 28 48
Purchases of intangible assets (3,900) (3,914)
Disposal of subsidiary, net of cash disposed 36,355 -
Net cash from/(used by) investing activities 29,249 (7,500)
---------- ----------
Cash flows from financing activities
Interest paid (2,528) (2,364)
Payment of lease liabilities (3,267) (3,209)
Proceeds from issue of subordinate debt, net of expenses - 25,014
Dividends paid to Company's shareholders (9,181) (9,181)
Charitable grant paid to ultimate parent undertaking (15,000) (21,000)
Net cash used by financing activities (29,976) (10,740)
---------- ----------
Net (decrease)/increase in cash and cash equivalents (7,239) 11,847
Cash and cash equivalents at beginning of year 114,036 104,429
Cash classified as held for distribution (5,177) -
Exchange gains/(losses) on cash and cash equivalents 3,044 (2,240)
Cash and cash equivalents at end of year 104,664 114,036
---------- ----------
*The comparative financial statements have been restated as
detailed in note 11 to this announcement .
NOTES TO THIS ANNUAL FINANCIAL REPORT ANNOUNCEMENT OF
RESULTS
for the year ended 31 December 2022
1. Accounting policies
The Company has prepared this announcement of its consolidated
results using the same accounting policies and methods of
computation as the full financial statements for the year ended 31
December 2022 as prepared in accordance with UK adopted IAS
applicable at 31 December 2022 issued by the International
Accounting Standards Board (IASB).
A number of amendments and improvements to accounting standards
have been issued by the International Accounting Standards Board
(IASB), and endorsed by the UK, with an effective date of on or
after 1 January 2022, and are therefore applicable for the 31
December 2022 financial statements. None had a significant impact
on the Group.
2. General Information
Whilst the financial information included in this announcement
has been prepared in accordance with the recognition and
measurement criteria of IFRS, this announcement does not itself
contain sufficient information to comply with IFRS. Full financial
statements that comply with IFRS were approved by the Board of
Directors on 16 March 2023.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 2022
or 2021, but is derived from those accounts. Statutory accounts for
2021 have been delivered to the Registrar of Companies and those
for 2022 will be delivered following the Company's annual general
meeting. The auditors have reported on those accounts; their
reports were unqualified, did not draw attention to any matters by
way of emphasis without qualifying their report and did not contain
statements under sections 498(2) and 498(3) of the Companies Act
2006.
This announcement was approved at a meeting of the Board of
Directors held on 16 March 2023.
Ecclesiastical Insurance Office plc is a subsidiary of Benefact
Group plc which is an investment holding company whose ordinary
shares are not listed.
The ordinary shares of Ecclesiastical Insurance Office plc are
not listed.
Copies of the audited financial statements are available from
the registered office at Benefact House, 2000 Pioneer Avenue,
Gloucester Business Park, Brockworth, Gloucester, GL3 4AW.
The following information is included in this announcement in
compliance with the Disclosure and Transparency Rules and has been
extracted from the full financial statements for 2022.
3. Insurance Risk
Through its general and life insurance operations, the Group is
exposed to a number of risks, as summarised in the Risk Management
section of this announcement. The risk under any one insurance
contract is the possibility that the insured event occurs and the
uncertainty of the amount and timing of the resulting claim.
Factors such as the business and product mix, the external
environment including market competition and reinsurance capacity
all may vary from year to year, along with the actual frequency,
severity and ultimate cost of claims and benefits. This subjects
the Group to underwriting and pricing risk (the risk of failing to
ensure disciplined risk selection and to obtain the appropriate
premium), claims reserving risk (the risk of actual claims payments
exceeding the amount we are holding in reserves) and reinsurance
risk (the risk of failing to access and manage reinsurance capacity
at a reasonable price).
(a) Risk mitigation
Statistics demonstrate that the larger and more diversified the
portfolio of insurance contracts, the smaller the relative
variability in the expected outcome will be. The Group's
underwriting strategy is designed to ensure that the underwritten
risks are well diversified in terms of type and amount of risk and
geographical spread. In all operations pricing controls are in
place, underpinned by sound statistical analysis, market expertise
and appropriate external consultant advice. Gross and net
underwriting exposure is protected through the use of a
comprehensive programme of reinsurance using both proportional and
non-proportional reinsurance, supported by proactive claims
handling. The overall reinsurance structure is regularly reviewed
and modelled to ensure that it remains optimum to the Group's
needs. The optimal reinsurance structure provides the Group with
sustainable, long-term capacity to support its specialist business
strategy, with effective balance sheet and profit and loss
protection at a reasonable cost.
Catastrophe protection is purchased following an extensive
annual modelling exercise of gross and net (of proportional
reinsurance) exposures. In conjunction with reinsurance brokers the
Group utilises the full range of proprietary catastrophe models and
continues to develop bespoke modelling options that better reflect
the specialist nature of the portfolio. Reinsurance is purchased in
line with the Group's risk appetite.
(b) Concentrations of risk
The core business of the Group is general insurance, with the
principal classes of business written being property and liability.
The miscellaneous financial loss class of business covers personal
accident, fidelity guarantee and loss of money, income and licence.
The other class of business includes cover of legal expenses and
also a small portfolio of motor policies, but this has been in
run-off in the United Kingdom since November 2012. The Group's
whole-of-life insurance policies support funeral planning
products.
The table below summarises written premiums for the financial
year, before and after reinsurance, by territory and by class of
business:
2022 General insurance Life insurance
---------------------------------------------- ---------------
Miscellaneous
financial
Property Liability loss Other Whole of Total
life
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Territory
United Kingdom Gross 255,418 71,575 20,006 3,086 7 350,092
and Ireland Net 119,847 68,128 10,259 100 7 198,341
Australia Gross 55,266 42,978 918 536 - 99,698
Net 5,886 36,037 868 101 - 42,892
Canada Gross 73,779 34,982 - - - 108,761
Net 47,335 31,914 - - - 79,249
Total Gross 384,463 149,535 20,924 3,622 7 558,551
--------- ---------- -------------- ------- --------------- ---------
Net 173,068 136,079 11,127 201 7 320,482
--------- ---------- -------------- ------- --------------- ---------
2021 General insurance Life insurance
---------------------------------------------- ---------------
Miscellaneous
financial
Property Liability loss Other Whole of Total
life
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Territory
United Kingdom Gross 217,961 62,949 16,941 3,394 (9) 301,236
and Ireland Net 109,242 60,060 8,883 376 (9) 178,552
Australia Gross 54,229 37,106 1,290 740 - 93,365
Net 5,891 31,733 1,238 140 - 39,002
Canada Gross 64,086 27,524 - - - 91,610
Net 44,750 25,306 - - - 70,056
Total Gross 336,276 127,579 18,231 4,134 (9) 486,211
--------- ---------- -------------- ------- --------------- ---------
Net 159,883 117,099 10,121 516 (9) 287,610
--------- ---------- -------------- ------- --------------- ---------
(c) General insurance risks
Property classes
Property cover mainly compensates the policyholder for damage
suffered to their property or for the value of property lost.
Property insurance may also include cover for pecuniary loss
through the inability to use damaged insured commercial properties
(business interruption).
For property insurance contracts, there can be variability in
the nature, number and size of claims made in each period.
The nature of claims may include fire, weather damage, escape of
water, explosion (after fire), riot and malicious damage,
subsidence, accidental damage, theft and earthquake. Subsidence
claims are particularly difficult to predict because the damage is
often not apparent for some time. The ultimate settlements can be
small or large with a risk of a settled claim being reopened at a
later date.
The number of claims made can be affected in particular by
weather events, changes in climate, economic environment, and crime
rates. Climate change may give rise to more frequent and extreme
weather events, such as river flooding, hurricanes and drought, and
their consequences, for example, subsidence claims. If a weather
event happens near the end of the financial year, the uncertainty
about ultimate claims cost in the financial statements is much
higher because there is insufficient time for adequate data to be
received to assess the final cost of claims.
Individual claims can vary in amount since the risks insured are
diverse in both size and nature. The cost of repairing property
varies according to the extent of damage, cost of materials and
labour charges.
Contracts are underwritten on a reinstatement basis or repair
and restoration basis as appropriate. Costs of rebuilding
properties, of replacement or indemnity for contents and time taken
to bring business operations back to pre-loss levels for business
interruption are the key factors that influence the cost of claims.
Individual large claims are more likely to arise from fire, storm
or flood damage. The greatest likelihood of an aggregation of
claims arises from earthquake, weather or major spreading fire
events.
Claims payment, on average, occurs within a year of the event
that gives rise to the claim. However, there is variability around
this average with larger claims typically taking longer to settle
and business interruption claims taking much longer depending on
the length of the indemnity period involved.
Liability classes
The main exposures are in respect of liability insurance
contracts which protect policyholders from the liability to
compensate injured employees (employers' liability) and third
parties (public liability).
Claims that may arise from the liability portfolios include
damage to property, physical injury, disease and psychological
trauma. The Group has a different exposure profile to most other
commercial lines insurance companies as it has lower exposure to
industrial risks. Therefore, claims for industrial diseases are
less common for the Group than injury claims such as slips, trips
and back injuries.
The frequency and severity of claims arising on liability
insurance contracts can be affected by several factors. Most
significant are the increasing level of awards for damages
suffered, legal costs and the potential for periodic payment
awards.
The severity of bodily injury claims can be influenced
particularly by the value of loss of earnings and the future cost
of care. The settlement value of claims arising under public and
employers' liability is particularly difficult to predict. There is
often uncertainty as to the extent and type of injury, whether any
payments will be made and, if they are, the amount and timing of
the payments, including the discount rate applied for assessing
lump sums. Key factors driving the high levels of uncertainty
include the late notification of possible claim events and the
legal process.
Late notification of possible claims necessitates the holding of
provisions for incurred claims that may only emerge some years into
the future. In particular, the effect of inflation over such a long
period can be considerable and is uncertain. A lack of comparable
past experience may make it difficult to quantify the number of
claims and, for certain types of claims, the amounts for which they
will ultimately settle. The legal and legislative framework
continues to evolve, which has a consequent impact on the
uncertainty as to the length of the claims settlement process and
the ultimate settlement amounts.
Claims payment, on average, occurs about three to four years
after the event that gives rise to the claim. However, there is
significant variability around this average.
Provisions for latent claims
The public and employers' liability classes can give rise to
very late reported claims, which are often referred to as latent
claims. These can vary in nature and are difficult to predict. They
typically emerge slowly over many years, during which time there
can be particular uncertainty as to the number of future potential
claims and their cost. The Group has reflected this uncertainty and
believes that it holds adequate reserves for latent claims that may
result from exposure periods up to the reporting date.
Note 28 to the full financial statements presents the
development of the estimate of ultimate claim cost for public and
employers' liability claims occurring in a given year. This gives
an indication of the accuracy of the estimation technique for
incurred claims.
(d) Life insurance risks
The Group provides whole-of-life insurance policies to support
funeral planning products, for most of which the future benefits
are linked to inflation and backed by index-linked assets. None of
the risks arising from this business are amongst the Group's
principal risks and no new policies with insurance risk have been
written in the life fund since 2013.
The primary risk on these contracts is the level of future
investment returns on the assets backing the liabilities over the
life of the policyholders is insufficient to meet future claims
payments, particularly if the timing of claims is different from
that assumed. The interest rate and inflation risk within this has
been largely mitigated by holding index-linked assets of a similar
term to the expected liabilities profile. The main residual risk is
the spread risk attached to corporate bonds held to match the
liabilities.
Uncertainty in the estimation of the timing of future claims
arises from the unpredictability of long-term changes in overall
levels of mortality. The Group bases these estimates on standard
industry and national mortality tables and its own experience. The
most significant factors that could alter the expected mortality
rates profile are epidemics, widespread changes in lifestyle and
continued improvement in medical science and social conditions.
This small mortality risk is retained by the Group. The Group holds
a reserve to meet the costs of future expenses in running the life
business and administration of the policies. There is a risk that
this is insufficient to meet the expenses incurred in future
periods.
4. Financial risk and capital management
The Group is exposed to financial risk through its financial
assets, financial liabilities, reinsurance assets and insurance
liabilities. In particular, the key financial risk is that the
proceeds from its financial assets are not sufficient to fund the
obligations arising from its insurance contracts. The most
important components of financial risk are interest rate risk,
credit risk, equity price and currency risk.
There has been no change from the prior period in the nature of
the financial risks to which the Group is exposed. The continued
conflict in Ukraine and the cost of living crisis means there is
continued uncertainty in relation to the economic risks to which
the Group is exposed. This includes equity price volatility,
movements in exchange rates and long-term UK growth prospects. The
Group's management and measurement of financial risks is informed
by either stochastic modelling or stress testing techniques.
(a) Categories of financial instruments
(i) Categories applying IAS 39
Financial assets Financial liabilities
--------------------------------------------------- ----------- -------------------------------------
Other
Designated Held Hedge Designated Held Hedge assets
at fair for Loans accounted at fair for Financial accounted and
and
value trading receivables derivatives value trading liabilities* derivatives liabilities Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 December 2022
Financial
investments 869,880 100 114 655 - - - - - 870,749
Other
assets - - 302,685 - - - - - 8,103 310,788
Cash and
cash
equivalents - - 104,664 - - - - - - 104,664
Lease
obligations - - - - - - (19,062) - - (19,062)
Subordinated
liabilities - - - - - - (25,818) - - (25,818)
Other
liabilities - - - - - (2,475) (84,618) (759) (13,591) (101,443)
Inv't
contract
liabilities - - - - (58,479) - - - - (58,479)
Net other - - - - - - - - (465,806) (465,806)
------------ ----------- --------
Total 869,880 100 407,463 655 (58,479) (2,475) (129,498) (759) (471,294) 615,593
------------- -------- ------------ ------------ ----------- -------- ------------- ------------ ------------ ----------
At 31 December 2021
(restated**)
Financial
investments 882,350 336 670 414 - - - - - 883,770
Other
assets - - 232,553 - - - - - 8,357 240,910
Cash and
cash
equivalents - - 114,036 - - - - - - 114,036
Lease
obligations - - - - - - (22,738) - - (22,738)
Subordinated
liabilities - - - - - - (24,433) - - (24,433)
Other
liabilities - - - - - (331) (83,622) - (13,394) (97,347)
Inv't
contract
liabilities - - - - (15,519) - - - - (15,519)
Net other - - - - - - - - (443,718) (443,718)
------------ ----------- --------
Total 882,350 336 347,259 414 (15,519) (331) (130,793) - (448,755) 634,961
------------- -------- ------------ ------------ ----------- -------- ------------- ------------ ------------ ----------
(*Financial liabilities are held at) (amortised cost.)
**The comparative financial statements have been restated as
detailed in note 11 to this announcement and the tables above have
been re-presented for the split between financial liabilities and
other liabilities.
Assets and liabilities classified as held for distribution are
included within net other in the table above.
The carrying value of those financial assets and liabilities not
carried at fair value in the financial statements is considered to
approximate to their fair value.
(ii) Categories of financial assets applying IFRS 9
As disclosed in note 1 to the full financial statements, the
Group has chosen to defer application of IFRS 9 and classifies and
measures financial instruments using IAS 39. To facilitate
comparison with entities applying IFRS 9, the table below sets out
the Group's financial assets at the balance sheet date, split
between those which have contractual cash flows that are solely
payments of principal and interest on the principal outstanding
(SPPI), other than those which are held for trading or whose
performance is evaluated on a fair value basis, and all other
financial assets.
2022 2021
SPPI Other Total SPPI financial Other Total financial
financial financial financial assets financial assets
assets assets assets assets
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Financial investments 114 870,635 870,749 670 883,100 883,770
Cash and cash equivalents 104,664 - 104,664 114,036 - 114,036
Other financial assets 302,685 - 302,685 232,553 - 232,553
Total fair value 407,463 870,635 1,278,098 347,259 883,100 1,230,359
----------- ----------- ----------- --------------- ----------- ----------------
(b) Fair value hierarchy
The fair value measurement basis used to value those financial
assets and financial liabilities held at fair value is categorised
into a fair value hierarchy as follows:
Level 1: fair values measured using quoted bid prices
(unadjusted) in active markets for identical assets or liabilities.
This category includes listed equities in active markets, listed
debt securities in active markets and exchange-traded
derivatives.
Level 2: fair values measured using inputs other than quoted
prices included within level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from
prices). This category includes listed debt or equity securities in
a market that is not active and derivatives that are not
exchange-traded.
Level 3: fair values measured using inputs for the asset or
liability that are not based on observable market data
(unobservable inputs). This category includes unlisted debt and
equities, including investments in venture capital, and suspended
securities. Where a look-through valuation approach is applied,
underlying net asset values are sourced from the investee,
translated into the Group's functional currency and adjusted to
reflect illiquidity where appropriate, with the fair values
disclosed being directly sensitive to this input.
There have been no transfers between investment categories in
the current year.
Analysis of fair value measurement bases Fair value measurement
at the
end of the reporting
period based on
------------------------------
Level Level Level Total
1 2 3
GBP000 GBP000 GBP000 GBP000
At 31 December 2022
Financial assets at fair value through
profit or loss
Financial investments
Equity securities 268,297 - 85,726 354,023
Debt securities 458,420 1,299 - 459,719
Structured notes - 56,138 - 56,138
Derivatives - 100 - 100
726,717 57,537 85,726 869,980
Financial assets at fair value through
other comprehensive income
Financial investments
Hedged accounted derivatives - 655 - 655
--------- -------- --------- ---------
Total financial assets at fair value 726,717 58,192 85,726 870,635
--------- -------- --------- ---------
At 31 December 2021
Financial assets at fair value through
profit or loss
Financial investments
Equity securities 281,169 186 68,947 350,302
Debt securities 515,953 1,412 34 517,399
Structured notes - 14,649 - 14,649
Derivatives - 336 - 336
797,122 16,583 68,981 882,686
--------- -------- --------- ---------
Financial assets at fair value through
other comprehensive income
Financial investments
Hedged accounted derivatives - 414 - 414
--------- -------- --------- ---------
Total financial assets at fair value 797,122 16,997 68,981 883,100
--------- -------- --------- ---------
In the current year derivative liabilities of the Group were
measured at fair value through other comprehensive income if they
were hedge accounted and at fair value through profit or loss
otherwise. In the prior year the derivative liabilities of the
Group were measured at fair value through profit or loss.
Derivative liabilities are categorised as level 2 (see note 23 to
the full financial statements).
Fair value measurements based on level 3
Fair value measurements in level 3 consist of financial assets,
analysed as follows:
Financial assets at
fair value
through profit and loss
----------------------------------
Equity Debt
securities securities Total
GBP000 GBP000 GBP000
At 31 December 2022
Opening balance 68,947 34 68,981
Total gains/(losses) recognised in profit or
loss 16,779 (34) 16,745
Closing balance 85,726 - 85,726
----------- ----------- --------
Total gains/(losses) for the period included
in profit or loss for assets
held at the end of the reporting period 16,780 (34) 16,746
----------- ----------- --------
At 31 December 2021
Opening balance 59,688 551 60,239
Total gains/(losses) recognised in profit or
loss 9,259 (517) 8,742
Closing balance 68,947 34 68,981
----------- ----------- --------
Total gains/(losses) for the period included
in profit or loss for assets
held at the end of the reporting period 9,259 (517) 8,742
----------- ----------- --------
All the above gains or losses included in profit or loss for the
period are presented in net investment return within the statement
of profit or loss.
The valuation techniques used for instruments categorised in
levels 2 and 3 are described below.
Listed debt and equity securities not in active market (level
2)
These financial assets are valued using third-party pricing
information that is regularly reviewed and internally calibrated
based on management's knowledge of the markets.
Non exchange-traded derivative contracts (level 2)
These financial assets are not traded on active markets. Foreign
currency forward contracts are valued using observable forward
exchange rates corresponding to the maturity of the contract and
the contract forward rate. Over-the-counter equity or index options
and futures are valued by reference to observable index prices.
Structured notes (level 2)
These financial assets are not traded on active markets. Their
fair value is linked to an index that reflects the performance of
an underlying basket of observable securities, including
derivatives, provided by an independent calculation agent.
Unlisted equity securities (level 3)
These financial assets are valued using observable net asset
data, adjusted for unobservable inputs including comparable
price-to-book ratios based on similar listed companies, normalised
for performance measures where appropriate, and management's
consideration of constituents as to what exit price might be
obtainable.
The valuation is sensitive to the level of underlying net
assets, the Euro exchange rate, the price-to-tangible book ratio,
an illiquidity discount and a credit rating discount applied to the
valuation to account for the risks associated with holding the
asset. If the illiquidity discount or credit rating discount
applied changes by +/-10%, the value of unlisted equity securities
could move by +/-GBP9m (2021: +/-GBP8m).
Unlisted debt (level 3)
Unlisted debt is valued using an adjusted net asset method
whereby management uses a look-through approach to the underlying
assets supporting the loan, discounted using observable market
interest rates of similar loans with similar risk, and allowing for
unobservable future transaction costs.
The valuation is most sensitive to the level of underlying net
assets, but it is also sensitive to the interest rate used for
discounting and the projected date of disposal of the asset, with
the exit costs sensitive to an expected return on capital of any
purchaser and estimated transaction costs. Reasonably likely
changes in unobservable inputs used in the valuation would not have
a significant impact on shareholders' equity or the net result.
(c) Interest rate risk
The Group's exposure to interest rate risk arises primarily from
movements on financial investments that are measured at fair value
and have fixed interest rates, which represent a significant
proportion of the Group's assets, subordinated debt which has a
fixed interest rate until 2030, and from insurance liabilities
discounted at a market interest rate. The Group's investment
strategy is set in order to control the impact of interest rate
risk on anticipated cash flows and asset and liability values. The
fair value of the Group's investment portfolio of fixed income
securities reduces as market interest rates rise as does the
present value of discounted insurance liabilities, and vice
versa.
Interest rate risk concentration is reduced by adopting
asset-liability duration matching principles where appropriate.
Excluding assets held to back the life business, the average
duration of the Group's fixed income portfolio is three years
(2021: three years), reflecting the relatively short-term average
duration of its general insurance liabilities. The mean term of
discounted general insurance liabilities is disclosed in note
28(a)(iv) to the full financial statements.
For the Group's life insurance business, consisting of policies
to support funeral planning products, benefits payable to
policyholders are independent of the returns generated by
interest-bearing assets. Therefore, the interest rate risk on the
invested assets supporting these liabilities is borne by the Group.
This risk is mitigated by purchasing fixed interest investments
with durations that match the profile of the liabilities. For
funeral plan insurance policies, benefits are linked to the Retail
Prices Index (RPI). Assets backing these liabilities are also
linked to the RPI, and include index-linked gilts and corporate
bonds. For practical purposes it is not possible to exactly match
the durations due to the uncertain profile of liabilities (for
example mortality risk) and the availability of suitable assets,
therefore some interest rate risk will persist. The Group monitors
its exposure by comparing projected cash flows for these assets and
liabilities and making appropriate adjustments to its investment
portfolio.
The table below summarises the maturities of life business
assets and liabilities that are exposed to interest rate risk.
Maturity
----------------------------
Within Between After
1 year 1 & 5 5 years Total
Group life business years
GBP000 GBP000 GBP000 GBP000
At 31 December 2022
Assets
Debt securities 6,491 22,815 45,678 74,984
Cash and cash equivalents 11,854 - - 11,854
18,345 22,815 45,678 86,838
-------- -------- -------- ---------
Liabilities (discounted)
Life business provision 4,856 15,756 33,293 53,905
At 31 December 2021
Assets
Debt securities 6,120 26,768 63,819 96,707
Cash and cash equivalents 5,269 - - 5,269
11,389 26,768 63,819 101,976
-------- -------- -------- ---------
Liabilities (discounted)
Life business provision 4,787 16,686 52,436 73,909
Group financial investments with variable interest rates,
including cash and cash equivalents, and insurance instalment
receivables are subject to cash flow interest rate risk. This risk
is not significant to the Group.
(d) Credit risk
The Group has exposure to credit risk, which is the risk of
non-payment of their obligations by counterparties and financial
markets borrowers. Areas where the Group is exposed to credit risk
are:
-- counterparty default on loans and debt securities;
-- deposits held with banks;
-- reinsurers' share of insurance liabilities (excluding
provision for unearned premiums) and amounts due from reinsurers in
respect of claims already paid; and
-- amounts due from insurance intermediaries and
policyholders.
The Group is exposed to minimal credit risk in relation to all
other financial assets.
The carrying amount of financial and reinsurance assets
represents the Group's maximum exposure to credit risk. The Group
structures the levels of credit risk it accepts by placing limits
on its exposure to a single counterparty. Limits on the level of
credit risk are regularly reviewed. Where available the Group also
manages its exposure to credit risk in relation to credit risk
ratings. Investment grade financial assets are classified within
the range of AAA to BBB ratings, where AAA is the highest possible
rating. Financial assets which fall outside this range are
classified as sub-investment grade. 'Not rated' assets capture
assets not rated by external ratings agencies.
The following table provides information regarding the credit
risk exposure of financial assets with external credit ratings from
Standard & Poors or an equivalent rating from a similar agency.
This includes financial assets that meet the definition of 'solely
payments of principal and interest' (SPPI).
SPPI Non-SPPI
--------------------------------------------------------------- ------------
Cash and Reinsurance Other financial Total Debt
cash equivalents* debtors assets SPPI securities
GBP000 GBP000 GBP000 GBP000 GBP000
At 31 December
2022
AAA - - - - 182,348
AA 42,616 3,608 - 46,224 121,065
A 18,114 10,653 - 28,767 91,355
BBB 43,930 - - 43,930 51,951
Below BBB - - - - 4,857
Not rated 4 1,009 287,529 288,542 8,143
--------- ------------
104,664 15,270 287,529 407,463 459,719
-------------------- ------------ ---------------- --------- ------------
At 31 December
2021
AAA - - - - 171,502
AA 42,719 2,651 - 45,370 122,895
A 19,946 9,424 - 29,370 129,795
BBB 51,365 3 - 51,368 72,653
Below BBB - - - - 7,895
Not rated 6 505 220,640 221,151 12,659
--------- ---------
114,036 12,583 220,640 347,259 517,399
--------- -------- --------- --------- ---------
(*Cash includes amounts held on deposit classified within
financial investments and disclosed in note 22 to the full
financial statements. Cash balances which are not rated relate to
cash amounts in hand.)
For financial assets meeting the SPPI test that do not have low
credit risk, the carrying amount disclosed above is an
approximation of their fair value.
Group cash balances are regularly reviewed to identify the
quality of the counterparty bank and to monitor and limit
concentrations of risk.
The debt securities portfolio consists of a range of mainly
fixed interest instruments including government securities, local
authority issues, corporate loans and bonds, overseas bonds,
preference shares and other interest-bearing securities. Limits are
imposed on the credit ratings of the corporate bond portfolio and
exposures regularly monitored. Group investments in unlisted
securities represent 0% of this category in the current year and
less than 1% prior year.
The Group's exposure to counterparty default on debt securities
is spread across a variety of geographical and economic
territories, as follows:
2022 2021
GBP000 GBP000
UK 176,749 265,506
Canada 131,232 119,622
Australia 125,225 104,530
Europe 26,513 27,741
Total 459,719 517,399
--------- ---------
Reinsurance is used to manage insurance risk. This does not,
however, discharge the Group's liability as primary insurer. If a
reinsurer fails to pay a claim for any reason, the Group remains
liable for the payment to the policyholder. The creditworthiness of
reinsurers is considered on a regular basis through the year by
reviewing their financial strength. The Group Reinsurance Security
Committee assesses, monitors and approves the creditworthiness of
all reinsurers, reviewing relevant credit ratings provided by the
recognised credit rating agencies, as well as other publicly
available data and market information. The Group Reinsurance
Security Committee also monitors the balances outstanding from
reinsurers and maintains an approved list of reinsurers.
The Group's credit risk policy details prescriptive methods for
the collection of premiums and control of intermediary and
policyholder debtor balances. The level and age of debtor balances
are regularly assessed via monthly credit management reports. These
reports are scrutinised to assess exposure by geographical region
and counterparty of aged or outstanding balances. Any such balances
are likely to be major international brokers that are in turn
monitored via credit reference agencies and considered to pose
minimal risk of default. The Group has no material concentration of
credit risk in respect of amounts due from insurance intermediaries
and policyholders.
(e) Equity price risk
The Group is exposed to equity price risk because of financial
investments held by the Group which are stated at fair value
through profit or loss. The Group mitigates this risk by holding a
diversified portfolio across geographical regions and market
sectors, and through the use of derivative contracts from time to
time which would limit losses in the event of a fall in equity
markets.
The concentration of equity price risk by geographical listing,
before the mitigating effect of derivatives, to which the Group is
exposed is as follows:
2022 2021
GBP000 GBP000
-
UK 268,623 281,497
Europe 85,400 68,619
Hong Kong - 186
Total 354,023 350,302
--------- ---------
(f) Currency risk
The Group operates internationally and its main exposures to
foreign exchange risk are noted below. The Group's foreign
operations generally invest in assets and purchase reinsurance
denominated in the same currencies as their insurance liabilities,
which mitigates the foreign currency exchange rate risk for these
operations. As a result, foreign exchange risk arises from
recognised assets and liabilities denominated in other currencies
and net investments in foreign operations. The Group mitigates this
risk through the use of derivatives when considered necessary.
The Group exposure to foreign currency risk within the
investment portfolios arises from purchased investments that are
denominated in currencies other than sterling.
The Group's foreign operations create two sources of foreign
currency risk:
-- the operating results of the Group's foreign branches and
subsidiaries in the Group financial statements are translated at
the average exchange rates prevailing during the period; and
-- the equity investment in foreign branches and subsidiaries is
translated into sterling using the exchange rate at the year-end
date.
The forward foreign currency risk arising on translation of
these foreign operations is hedged by the derivatives which are
detailed in note 5 to this announcement. The Group has designated
certain derivatives as a hedge of its net investments in Canada and
Australia, which have Canadian and Australian dollars respectively
as their functional currency.
The largest currency exposures, before the mitigating effect of
derivatives, with reference to net assets/liabilities are shown
below, representing effective diversification of resources.
2022 2021
GBP000 GBP000
Aus $ 61,768 64,005
Can $ 57,710 46,087
Euro 25,287 11,054
USD $ 2,653 2,345
HKD $ 15 172
The figures in the table above, for the current and prior years,
do not include currency risk that the Group is exposed to on a
'look through' basis in respect of collective investment schemes
denominated in sterling. The Group enters into derivatives to hedge
currency exposure, including exposures on a 'look through' basis.
The open derivatives held by the Group at the year end to hedge
currency exposure are detailed in note 5 to this announcement.
(g) Liquidity risk
Liquidity risk is the risk that funds may not be available to
pay obligations when due. The Group is exposed to daily calls on
its available cash resources mainly from claims arising from
insurance contracts. An estimate of the timing of the net cash
outflows resulting from insurance contracts is provided in note 28
to the full financial statements. The Group has robust processes in
place to manage liquidity risk and has available cash balances,
other readily marketable assets and access to funding in case of
exceptional need. This is not considered to be a significant risk
to the Group.
Non-derivative financial liabilities consist of lease
liabilities, for which a maturity analysis is included in note 34
to the full financial statements, and other liabilities for which a
maturity analysis is included in note 31 to the full financial
statements, and subordinated debt for which a maturity analysis is
included in note 32 to the full financial statements.
(h) Market risk sensitivity analysis
The sensitivity of profit and other equity reserves to movements
on market risk variables (comprising interest rate, currency and
equity price risk), each considered in isolation and before the
mitigating effect of derivatives, is shown in the table below. This
table does not include the impact of variables on retirement
benefit schemes. Financial risk sensitivities for retirement
benefit schemes are disclosed separately in note 19 to the full
financial statements.
Group Potential increase / (decrease) in Potential increase / (decrease) in
profit other equity reserves
Restated*
Change in
Variable variable 2022 2021 2022 2021
GBP000 GBP000 GBP000 GBP000
Interest rate risk -100 basis points (4,618) (11,765) (8) 54
+100 basis points 5,648 9,475 7 (48)
Currency risk -10% 2,154 4,118 13,123 10,845
+10% (1,763) (3,369) (10,737) (8,873)
Equity price risk +/-10% 28,676 28,375 - -
* The comparative financial statements have been restated as
detailed in note 11 to this announcement
The following assumptions have been made in preparing the above
sensitivity analysis:
-- the value of fixed income investments will vary inversely
with changes in interest rates, and all territories experience the
same interest rate movement;
-- currency gains and losses will arise from a change in the
value of sterling against all other currencies moving in
parallel;
-- equity prices will move by the same percentage across all
territories; and
-- change in profit is stated net of tax at the standard rate
applicable in each of the Group's territories.
(i) Capital management
The Group's primary objectives when managing capital are to:
-- comply with the regulators' capital requirements of the
markets in which the Group operates; and
-- safeguard the Group's ability to continue to meet
stakeholders' expectations in accordance with its corporate
mission, vision and values.
The Group is subject to insurance solvency regulations in all
the territories in which it issues insurance and investment
contracts, and capital is managed and evaluated on the basis of
both regulatory and economic capital, at a group and parent entity
level.
In the UK, the Group and its UK regulated entities are required
to comply with rules issued by the Financial Conduct Authority
(FCA) and the Prudential Regulation Authority (PRA).
The PRA expects a firm, at all times, to hold Solvency II Own
Funds in excess of its calculated Solvency Capital Requirement
(SCR). Group solvency is assessed at the level of Ecclesiastical
Insurance Office plc (EIO)'s parent, Benefact Group plc.
Consequently, there is no directly comparable solvency measure for
EIO group. Quantitative returns are submitted to the PRA, in
addition to an annual narrative report, the Solvency and Financial
Condition Report (SFCR) which is also published on the company's
website. A further report, the Regular Supervisory Report (RSR) is
periodically submitted to the PRA.
EIO's Solvency II Own Funds will be subject to a separate
independent audit, as part of the Group's process for Solvency II
reporting to the PRA. The Group's regulated entities, EIO and ELL,
expect to meet the deadline for submission to the PRA of 6 April
2023 and their respective SFCRs will be made available on the
Group's website shortly thereafter. Benefact Group is also expected
to meet its deadline for submission to the PRA of 20 May 2023, with
its SFCR also being made available on the Group's website shortly
after.
2022 2021
Ecclesiastical Ecclesiastical
Insurance Insurance
Office plc Ecclesiastical Office plc Ecclesiastical
Parent Life Limited Parent Life Limited
GBP000 GBP000 GBP000 GBP000
Solvency II Own Funds 635,577 54,172 616,905 55,235
Economic capital is the Group's own internal view of the level
of capital required, and this measure is an integral part of the
Own Risk and Solvency Assessment Report (ORSA) which is a private,
internal forward-looking assessment of own risk, as required as
part of the Solvency II regime. Risk appetite is set such that the
target level of economic capital is always higher than the
regulatory SCR.
5. Derivative financial instruments
The Group utilises derivatives to mitigate equity price risk
arising from investments held at fair value, foreign exchange risk
arising from investments denominated in foreign currencies, and
foreign exchange risk arising from investments denominated in
Sterling that contain underlying foreign currency exposure. These
'non-hedge' derivatives either do not qualify for hedge accounting
or the option to hedge account has not been taken.
The Group has also formally designated certain derivatives as a
hedge of its net investments in Australia and Canada. A loss of
GBP4,514,000 (2021: gain of GBP1,912,000) in respect of these
'hedge' derivatives has been recognised in the hedging reserve
within shareholders' equity, as disclosed in note 27 to the full
financial statements. The Group has formally assessed and
documented the effectiveness of derivatives that qualify for hedge
accounting in accordance with IAS 39, Financial Instruments:
Recognition and Measurement.
2022 2021
Contract / notional Fair value Fair value Contract / notional Fair value Fair value
amount asset liability amount asset liability
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Non-hedge derivatives
Equity/Index
contracts
Options 100 100 - 34,695 334 296
Foreign exchange
contracts
Forwards (Euro) 93,712 - 2,475 99,369 2 35
Hedge derivatives
Foreign exchange
contracts
Forwards (Australian
dollar) 55,742 - 759 40,512 145 -
Forwards (Canadian
dollar) 48,442 655 - 37,609 269 -
197,996 755 3,234 212,185 750 331
-------------------- ----------- ----------- -------------------- ----------- -----------
All derivatives in the current and prior period expire within
one year.
All contracts designated as hedging instruments were fully
effective in the current and prior year.
The notional amounts above reflect the aggregate of individual
derivative positions on a gross basis and so give an indication of
the overall scale of the derivative transactions. They do not
reflect current market values of the open positions.
Derivative fair value assets are recognised within financial
investments (note 22 of the full financial statements) and
derivative fair value liabilities are recognised within other
liabilities (note 31 of the full financial statements).
6. Translation and hedging reserve
Translation Hedging
reserve reserve Total
GBP000 GBP000 GBP000
At 1 January 2022 13,196 4,407 17,603
Gains on currency translation differences 5,392 - 5,392
Losses on net investment hedges - (4,514) (4,514)
Attributable tax - 825 825
At 31 December 2022 18,588 718 19,306
------------ -------- --------
At 1 January 2021 15,552 2,678 18,230
Losses on currency translation differences (2,356) - (2,356)
Gains on net investment hedges - 1,912 1,912
Attributable tax - (183) (183)
At 31 December 2021 13,196 4,407 17,603
------------ -------- --------
The translation reserve arises on consolidation of the Group's
foreign operations. The hedging reserve represents the cumulative
amount of gains and losses on hedging instruments in respect of net
investments in foreign operations.
7. Segment information
(a) Operating segments
The Group segments its business activities on the underwriting territory. Expenses relating
to Group management activities are included within 'Corporate costs'. This reflects the management
and internal Group reporting structure.
As part of the streamlining of the Benefact Group, on 30 December 2022, the Group disposed
of South Essex Insurance Holdings Limited and its wholly owned subsidiary, SEIB Insurance
Brokers Limited. On 3 January 2023, the shares of EdenTree Investment Management Limited and
Ecclesiastical Financial Advisory Services Limited were distributed to the Group's immediate
parent company, Benefact Group plc. Discontinued operations are disclosed separately in note
8 to this announcement and excluded from the segmental analysis. The prior period has been
re-presented in line with the current year basis.
The activities of each operating segment are described below.
- General business
United Kingdom and Ireland
The Group's principal general insurance business operation is in the UK, where it operates
under the Ecclesiastical and Ansvar brands. The Group also operates an Ecclesiastical branch
in the Republic of Ireland underwriting general business across the whole of Ireland.
Australia
The Group has a wholly-owned subsidiary in Australia underwriting general insurance business
under the Ansvar brand.
Canada
The Group operates a general insurance Ecclesiastical branch in Canada.
Other insurance operations
This includes the Group's internal reinsurance function, adverse development cover and operations
that are in run-off or not reportable due to their immateriality.
- Life business
Ecclesiastical Life Limited provides long-term policies to support funeral planning products.
The business reopened in the year but remains closed to new insurance business.
- Corporate costs
This includes costs associated with Group management activities.
Inter-segment and inter-territory transfers or transactions are
entered into under normal commercial terms and conditions that
would also be available to unrelated third parties.
The accounting policies of the operating segments are the same
as the Group's accounting policies described in note 1 to the full
financial statements.
Segment revenue
The Group uses gross written premiums as the measure for
turnover of the general and life insurance business segments.
Segment revenues do not include net investment return or general
business fee and commission income, which are reported within
revenue in the consolidated statement of profit or loss.
Revenue is attributed to the geographical region in which the
customer is based.
Re-
presented*
Continuing operations 2022 2021
GBP000 GBP000
General business
United Kingdom and Ireland 344,788 297,235
Australia 99,698 93,365
Canada 108,761 91,610
Other insurance operations 5,297 4,010
Total 558,544 486,220
Life business 7 (9)
Group revenue 558,551 486,211
--------- -----------
Group revenues are not materially concentrated on any single
external customer.
*The prior year has been re-presented for discontinued
operations as detailed in note 8 to this announcement.
Segment result
General business segment results comprise the insurance
underwriting profit or loss, investment activities and other
expenses of each underwriting territory. The Group uses the
industry standard net combined operating ratio (COR) as a measure
of underwriting efficiency. The COR expresses the total of net
claims costs, commission and underwriting expenses as a percentage
of net earned premiums. Further details on the underwriting profit
or loss and COR, which are alternative performance measures that
are not defined under IFRS, are detailed in note 9 to this
announcement.
The life business segment result comprises the profit or loss on
insurance contracts (including return on assets backing liabilities
in the long-term fund), shareholder investment return and other
expenses.
2022 Combined
Continuing operations operating Insurance Investments Other Total
ratio GBP000 GBP000 GBP000 GBP000
General business
United Kingdom and Ireland 86.7% 24,239 (7,726) (2,075) 14,438
Australia 107.3% (2,864) 3,667 (235) 568
Canada 90.6% 7,025 3,570 (146) 10,449
Other insurance operations (981) 135 - (846)
91.0% 27,419 (354) (2,456) 24,609
Life business 3,552 (7,191) - (3,639)
Corporate costs - - (25,743) (25,743)
Profit/(loss) before tax 30,971 (7,545) (28,199) (4,773)
---------- ------------ --------- ---------
2021 (restated*) Combined
Continuing operations operating Insurance Investments Other Total
ratio GBP000 GBP000 GBP000 GBP000
General business
United Kingdom and Ireland 85.3% 24,952 88,953 (2,098) 111,807
Australia 156.9% (13,306) 1,924 (34) (11,416)
Canada 88.6% 7,065 999 (156) 7,908
Other insurance operations (9,952) (133) - (10,085)
96.8% 8,759 91,743 (2,288) 98,214
Life business 1,117 3,981 - 5,098
Corporate costs - - (24,134) (24,134)
Profit/(loss) before tax 9,876 95,724 (26,422) 79,178
---------- ------------ --------- ---------
*The comparative financial statements have been restated as
detailed in note 11 to this announcement .
(b) Geographical information
Gross written premiums from external customers and non-current
assets, as attributed to individual countries in which the Group
operates, are as follows:
2022 2021
Gross Gross
written Non-current written Non-current
premiums assets premiums assets
GBP000 GBP000 GBP000 GBP000
United Kingdom and Ireland 350,092 319,485 301,236 293,726
Australia 99,698 3,052 93,365 2,925
Canada 108,761 5,601 91,610 6,227
558,551 328,138 486,211 302,878
--------- ------------ --------- ------------
Gross written premiums are allocated based on the country in
which the insurance contracts are issued. Non-current assets
exclude rights arising under insurance contracts, deferred tax
assets, pension assets and financial instruments and are allocated
based on where the assets are located.
8. Disposal of subsidiaries and discontinued operations
(a) Disposal of subsidiaries
On 30 December 2022 the Group disposed of South Essex Insurance
Holdings Limited and its wholly owned subsidiary, SEIB Insurance
Brokers Limited, to a related party. The related party is an
associate of the Company's immediate parent company, Benefact Group
plc. The results of the disposed subsidiaries are reported in the
current and prior year as a discontinued operations.
2022 2021
GBP000 GBP000
Consideration received or receivable 45,197 -
Carrying amount of net assets sold (30,904) -
Gain on disposal before and after tax 14,293 -
--------- -------
The gain on disposal has been presented within profit
attributable to discontinued operations in the consolidated
statement of profit or loss.
2022 2021
GBP000 GBP000
Goodwill and other intangible assets 22,707 -
Property, plant and equipment 1,666 -
Other assets 7,466 -
Cash and cash equivalents 8,842 -
Total assets 40,681 -
-------- -------
Lease obligations (1,215) -
Provisions for other liabilities (263) -
Current tax liabilities (1,010) -
Deferred income (512) -
Other liabilities (6,777) -
Total liabilities (9,777) -
-------- -------
Net assets 30,904 -
-------- -------
On 3 January 2023 the Company approved a dividend in specie and
distributed its entire holdings in EdenTree Investment Management
Limited and Ecclesiastical Financial Advisory Services Limited to
the Group's immediate parent company, Benefact Group plc. The
results of these subsidiaries are reported in the current and prior
year as a discontinued operations and associated assets and
liabilities are presented as held for distribution in the current
year statement of financial position.
(b) Assets and liabilities of disposal group classified as held
for distribution
The following assets and liabilities were classified as held for
distribution in relation to the discontinued operation at 31
December 2022:
2022 2021
GBP000 GBP000
Other assets 9,822 -
Cash and cash equivalents 5,177 -
Total assets of disposal groups held for distribution 14,999 -
-------- -------
Deferred income 261 -
Other liabilities 10,234 -
Total liabilities of disposal groups held for distribution 10,495 -
-------- -------
(c) Financial performance of discontinued operations
Discontinued operations includes both the subsidiaries sold in
the year and the assets held for distribution at the balance sheet
date.
2022 2021
GBP000 GBP000
Revenue 23,695 31,286
Expenses (23,801) (30,750)
Finance costs (72) (77)
---------- ----------
(Loss)/profit before tax of discontinued operations (178) 459
Tax expense (419) (121)
---------- ----------
(Loss)/profit after tax of discontinued operations (597) 338
Gain on disposal of subsidiaries after tax 14,293 -
---------- ----------
Profit from discontinued operations 13,696 338
---------- ----------
(d) Cash flow information for discontinued operations
2022 2021
GBP000 GBP000
Net cash (outflow)/inflow from operating activities (397) 2,718
Net cash outflow from investing activities (8,987) (104)
Net cash outflow from financing activities (239) (268)
--------- -------
Net (decrease)/increase in cash generated by discontinued
operations (9,623) 2,346
--------- -------
Net cash outflow from investing activities includes an outflow
of GBP8,842,000 (2021: GBPnil) from the disposal of South Essex
Insurance Holdings Limited.
9. Reconciliation of Alternative Performance Measures
The Group uses alternative performance measures (APM) in
addition to the figures which are prepared in accordance with IFRS.
The financial measures included in our key performance indicators:
regulatory capital, combined operating ratio (COR) and net expense
ratio (NER) are APM. These measures are commonly used in the
industries the Group operates in and are considered to provide
useful information and enhance the understanding of the
results.
Users of the accounts should be aware that similarly titled APM
reported by other companies may be calculated differently. For that
reason, the comparability of APM across companies might be
limited.
The table below provides a reconciliation of the COR and NER to
its most directly reconcilable line item in the financial
statements. Regulatory capital does not have an IFRS equivalent and
is covered in more detail in note 4 to this announcement.
2022
Broking
Inv'mnt Inv'mnt and Corporate
Insurance return mngt Advisory costs Total
--------------------
General Life
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
Gross written premiums 558,544 7 - - - - 558,551
Outward reinsurance premiums (238,069) - - - - - (238,069)
Net change in provision for
unearned premiums (16,505) - - - - - (16,505)
Net earned premiums [1] 303,970 7 - - - - 303,977
---------- -------- -------- -------- --------- ------------- ----------
Fee and commission
income [2] 63,533 - - - - - 63,533
Other operating income 2,020 - - - - - 2,020
Net investment return - 8,523 (4,465) - - - 4,058
Total revenue 369,523 8,530 (4,465) - - - 373,588
---------- -------- -------- -------- --------- ------------- ----------
Expenses
Claims and change in insurance
liabilities (281,349) (4,331) - - - - (285,680)
Reinsurance recoveries 136,507 - - - - - 136,507
Fees, commissions and
other acquisition
costs [3] (108,581) (115) - - - - (108,696)
Other operating and
administrative
expenses [4] (88,681) (532) (3,080) - - [5] (25,743) (118,036)
Total operating expenses (342,104) (4,978) (3,080) - - (25,743) (375,905)
---------- -------- -------- -------- --------- ------------- ----------
Operating profit/(loss) [6] 27,419 3,552 (7,545) - - (25,743) (2,317)
Finance costs (2,456) - - - - - (2,456)
Profit/(loss) before tax from
continuing operations 24,963 3,552 (7,545) - - (25,743) (4,773)
(Loss)/profit before tax
attributable to discontinued
operations - - - (2,907) 17,022 - 14,115
Profit/(loss) before tax for
the year 24,963 3,552 (7,545) (2,907) 17,022 (25,743) 9,342
---------- -------- -------- -------- --------- ------------- ----------
Underwriting profit [6] 27,419
Combined operating ratio 91.0%
Net expenses ( =
[2]+[3]+[4]+[5] ) [7] (159,472)
Net expense ratio 52%
The underwriting profit of the Group is defined as the operating
profit of the general insurance business.
The Group uses the industry standard net COR as a measure of
underwriting efficiency. The COR expresses the total of net claims
costs, commission and underwriting expenses as a percentage of net
earned premiums. It is calculated as ( [1] - [6] ) / [1] .
The NER expresses total underwriting and corporate expenses as a
proportion of net earned premiums. It is calculated as - [7] /
[1].
Restated*
2021
Broking
Inv'mnt Inv'mnt and Corporate
Insurance return mngt Advisory costs Total
--------------------
General Life
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
Gross written premiums 486,220 (9) - - - - 486,211
Outward reinsurance premiums (198,601) - - - - - (198,601)
Net change in provision for
unearned premiums (14,620) - - - - - (14,620)
Net earned premiums [1] 272,999 (9) - - - - 272,990
---------- -------- -------- -------- --------- ------------- ----------
Fee and commission
income [2] 55,417 - - - - - 55,417
Other operating income 1,136 - - - - - 1,136
Net investment return - 3,939 98,958 - - - 102,897
Total revenue 329,552 8,530 98,958 - - - 432,440
---------- -------- -------- -------- --------- ------------- ----------
Expenses
Claims and change in insurance
liabilities (267,291) (2,342) - - - - (269,633)
Reinsurance recoveries 123,822 - - - - - 123,822
Fees, commissions and
other acquisition
costs [3] (95,628) (21) - - - - (95,649)
Other operating and
administrative
expenses [4] (81,696) (450) (3,234) - - [5] (24,134) (109,514)
Total operating expenses (320,793) (2,813) (3,234) - - (24,134) (350,974)
---------- -------- -------- -------- --------- ------------- ----------
Operating profit/(loss) [6] 8,759 1,117 95,724 - - (24,134) 81,466
Finance costs (2,288) - - - - - (2,288)
Profit/(loss) before tax from
continuing operations 6,471 1,117 95,724 - - (24,134) 79,178
(Loss)/profit before tax
attributable to discontinued
operations - - - (2,525) 2,984 - 459
Profit/(loss) before tax for
the year 6,471 1,117 95,724 (2,525) 2,984 (24,134) 79,637
---------- -------- -------- -------- --------- ------------- ----------
Underwriting profit [6] 8,759
Combined operating ratio 96.8%
Net expenses ( =
[2]+[3]+[4]+[5] ) [7] (146,041)
Net expense ratio 53%
*The comparative financial statements have been restated as
detailed in note 11 to this announcement .
10. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation.
Charitable grants paid to the ultimate parent undertaking are
disclosed in note 15 to the full financial statements.
Full disclosure of related party transactions is included in
note 37 to the full financial statements.
11. Prior year restatement
The Group's accounting policy for general insurance outstanding
claims provisions has previously been to apply discounting only to
certain longer term liabilities. The accounting policy has been
changed to include discounting of the general insurance liabilities
that have not previously been discounted. This change in accounting
policy resulted in a credit of GBP13.2m recognised in this
financial year and a credit of GBP2.6m in the prior year, both
within net investment return.
Under IAS 8, Accounting Policies, Changes in Accounting
Estimates and Errors, a retrospective restatement of the prior
period results is required. The effects of the restatement are
detailed in this note, and included throughout the financial
statement comparatives, where appropriate. As a result of the
restatement, as at 1 January 2021 the Group recognised an increase
in retained earnings of GBP0.5m.
The prior year has also been re-presented for discontinued
operations as detailed in the financial statements.
The Group considers that this change in accounting policy
provides more reliable and relevant information. This is because,
if the impact of discounting were not more widely applied during a
period of higher interest rates (as in 2022), it would create
excessive prudence in the implied claim reserves. Furthermore, this
change to accounting policy better reflects the impact of the
Group's objective of matching assets with insurance liabilities
when managing exposure to interest rate risk.
As reported Re-presented Restatement As restated
2021 2021 2021
GBP000 GBP000 GBP000 GBP000
Revenue
Gross written premiums 486,211 - - 486,211
Outward reinsurance premiums (198,601) - - (198,601)
Net change in provision for unearned
premiums (14,620) - - (14,620)
Net earned premiums 272,990 - - 272,990
------------ ------------- ------------ ------------
Fee and commission income 81,547 (26,130) - 55,417
Other operating income 1,136 - - 1,136
Net investment return 101,067 (770) 2,600 102,897
Total revenue 456,740 (26,900) 2,600 432,440
------------ ------------- ------------ ------------
Expenses
Claims and change in insurance liabilities (269,633) - - (269,633)
Reinsurance recoveries 123,822 - - 123,822
Fees, commissions and other acquisition
costs (95,896) 247 - (95,649)
Other operating and administrative
expenses (135,632) 26,118 - (109,514)
Total operating expenses (377,339) 26,365 - (350,974)
------------ ------------- ------------ ------------
Operating profit 79,401 (535) 2,600 81,466
Finance costs (2,364) 76 - (2,288)
Profit before tax 77,037 (459) 2,600 79,178
Tax expense (17,648) 121 (494) (18,021)
Profit for the year from continuing
operations 59,389 (338) 2,106 61,157
Net profit attributable to discontinued
operations - 338 - 338
Profit for the year (attributable
to equity holders of the Parent) 59,389 - 2,106 61,495
------------ ------------- ------------ ------------
As reported Restatement As restated As restated
31 December 31 December 1 January
2021 2021 2021
GBP000 GBP000 GBP000 GBP000
Assets
Goodwill and other intangible assets 52,512 - 52,512 54,353
Deferred acquisition costs 46,027 - 46,027 41,989
Deferred tax assets 8,480 - 8,480 1,078
Pension surplus 28,304 - 28,304 1,053
Property, plant and equipment 35,245 - 35,245 38,316
Investment property 163,355 - 163,355 142,142
Financial investments 883,770 - 883,770 820,777
Reinsurers' share of contract liabilities 254,449 (1,013) 253,436 208,677
Current tax recoverable 5 - 5 7,986
Other assets 240,910 - 240,910 216,570
Cash and cash equivalents 114,036 - 114,036 104,429
Total assets 1,827,093 (1,013) 1,826,080 1,637,370
------------ ------------ ------------ ------------
Equity
Share capital 120,477 - 120,477 120,477
Share premium account 4,632 - 4,632 4,632
Retained earnings and other reserves 507,252 2,600 509,852 444,613
------------ ------------ ------------ ------------
Total shareholders' equity 632,361 2,600 634,961 569,722
------------ ------------ ------------ ------------
Liabilities
Insurance contract liabilities 943,292 (4,223) 939,069 868,155
Investment contract liabilities 15,519 - 15,519 -
Lease obligations 22,738 - 22,738 25,450
Provisions for other liabilities 6,373 - 6,373 6,499
Retirement benefit obligations 7,058 - 7,058 6,530
Deferred tax liabilities 48,355 610 48,965 29,846
Current tax liabilities 1,232 - 1,232 1,293
Deferred income 28,385 - 28,385 25,908
Subordinated liabilities 24,433 - 24,433 -
Other liabilities 97,347 - 97,347 93,561
Total liabilities 1,194,732 (3,613) 1,191,119 1,067,648
------------ ------------ ------------ ------------
Total shareholders' equity and liabilities 1,827,093 (1,013) 1,826,080 1,637,370
------------ ------------ ------------ ------------
As reported Restatement As restated
31 December 31 December
2021 2021
GBP000 GBP000 GBP000
Profit before tax from continuing operations 77,037 2,141 79,178
Profit before tax from discontinued operations - 459 459
Adjustments for:
Depreciation of property, plant and equipment 6,155 - 6,155
Loss on disposal of property, plant and equipment 24 - 24
Amortisation and impairment of intangible
assets 856 - 856
Loss on disposal of intangible assets 4,765 - 4,765
Net fair value gains on financial instruments
and investment property (58,340) - (58,340)
Dividend and interest income (21,802) - (21,802)
Finance costs 2,364 - 2,364
Adjustment for pension funding 1,646 - 1,646
Changes in operating assets and liabilities:
Net increase in insurance contract liabilities 83,952 (2,600) 81,352
Net increase in investment contract liabilities 15,519 - 15,519
Net increase in reinsurers' share of contract
liabilities (49,513) - (49,513)
Net increase in deferred acquisition costs (4,376) - (4,376)
Net increase in other assets (25,891) - (25,891)
Net increase in operating liabilities 8,472 - 8,472
Net decrease in other liabilities (234) - (234)
------------ ------------ ------------
Cash generated by operations 40,634 - 40,634
------------ ------------ ------------
Purchases of financial instruments and investment
property (186,514) - (186,514)
Sale of financial instruments and investment
property 157,614 - 157,614
Dividends received 7,427 - 7,427
Interest received 14,068 - 14,068
Tax paid (3,142) - (3,142)
------------ ------------ ------------
Net cash from operating activities 30,087 - 30,087
------------ ------------ ------------
Cash flows from investing activities
Purchases of property, plant and equipment (3,634) - (3,634)
Proceeds from the sale of property, plant
and equipment 48 - 48
Purchases of intangible assets (3,914) - (3,914)
Net cash used by investing activities (7,500) - (7,500)
------------ ------------ ------------
Cash flows from financing activities
Interest paid (2,364) - (2,364)
Payment of lease liabilities (3,209) - (3,209)
Proceeds from issue of subordinate debt, net
of expenses 25,014 - 25,014
Dividends paid to Company's shareholders (9,181) - (9,181)
Charitable grant paid to ultimate parent undertaking (21,000) - (21,000)
------------ ------------ ------------
Net cash used by financing activities (10,740) - (10,740)
------------ ------------ ------------
Net increase in cash and cash equivalents 11,847 - 11,847
Cash and cash equivalents at beginning of
year 104,429 - 104,429
Exchange losses on cash and cash equivalents (2,240) - (2,240)
------------ ------------ ------------
Cash and cash equivalents at end of year 114,036 - 114,036
------------ ------------ ------------
12. Events after the balance sheet date
On 3 January 2023, the shares of EdenTree Investment Management
Limited and Ecclesiastical Financial Advisory Services Limited were
distributed to the Group's immediate parent company, Benefact Group
plc. Discontinued operations are disclosed separately in note 8 to
this announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR SFUEEMEDSEDD
(END) Dow Jones Newswires
March 17, 2023 03:00 ET (07:00 GMT)
Ecclesiastl.8fe (LSE:ELLA)
Historical Stock Chart
From Oct 2024 to Nov 2024
Ecclesiastl.8fe (LSE:ELLA)
Historical Stock Chart
From Nov 2023 to Nov 2024
