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Insurance business
 12 Months Ended
Dec. 31, 2024
Insurance business [Abstract]  
Disclosure of insurance contracts Note 8: Insurance business(A)Insurance service result
2024
£m
2023
£m
2022
£m
Insurance revenue
Amounts relating to the changes in liabilities for remaining coverage:
CSM recognised for services provided
449
329
245
Change in risk adjustments for non-financial risk for risk expired
58
84
103
Expected claims and other insurance service expenses
1,916
1,907
1,696
Charges (credits) to funds in respect of policyholder tax and other
108
87
(228)
2,531
2,407
1,816
Recovery of insurance acquisition cash flows
105
87
86
Total life
2,636
2,494
1,902
Total non-life
655
514
559
Total insurance revenue
3,291
3,008
2,461
Insurance service expense
Incurred claims and other insurance service expenses
(1,978)
(1,897)
(1,751)
Changes that relate to past service: adjustment to liabilities for incurred claims
(4)
–
–
Changes that relate to future service: (losses) reversal of losses on onerous contracts
(72)
58
(1,486)
Amortisation of insurance acquisition cash flows
(105)
(88)
(85)
Total life excluding net impairment loss on insurance acquisition assets
(2,159)
(1,927)
(3,322)
Net impairment loss on insurance acquisition assets
(9)
(7)
(14)
Total life
(2,168)
(1,934)
(3,336)
Total non-life1
(565)
(480)
(527)
Total insurance service expense
(2,733)
(2,414)
(3,863)
Net (expense) income from reinsurance contracts held
(72)
2
62
Insurance service result
486
596
(1,340)
1Includes weather-related claims of £82 million (2023: £57 million; 2022: £116 million), of which £64 million (2023: £51 million; 2022: £108 million) was related to severe weather events.
Note 8: Insurance business continued
(B)Net investment return on assets held to back insurance and investment contracts and net insurance finance (expense)
income arising from insurance and investment contracts
The following table shows the net investment return on assets held to back insurance and participating investment contracts and the net
finance expense arising from insurance, participating investment and reinsurance contracts, as required by IFRS 17. For completeness, the
net investment return on assets held to back third party interests in consolidated funds and non-participating investment contracts and
the related finance expense is also shown. These contracts are accounted for under IFRS 9.
2024
Life
£m
Non-life
£m
Total
£m
Net gains on financial assets and liabilities at fair value through profit or loss
10,247
38
10,285
Foreign exchange
196
–
196
Investment property losses
(4)
–
(4)
Net investment return on assets held to back insurance and participating investment contracts
(memorandum item)
10,439
38
10,477
Net investment return on assets held to back third party interests in consolidated funds
1,105
Net investment return on assets held to back non-participating investment contracts
4,431
Net investment return on assets held to back insurance and investment contracts1
16,013
Changes in fair value of underlying items of direct participating contracts
(10,844)
–
(10,844)
Effects of risk mitigation option
161
–
161
Interest accreted
(839)
(7)
(846)
Effect of changes in interest rates and other financial assumptions
1,001
–
1,001
Effect of changes in fulfilment cash flows at current rates when CSM is unlocked at locked-in rates
140
–
140
Net finance expense from insurance and participating investment contracts
(10,381)
(7)
(10,388)
Net finance income from reinsurance contracts held
47
–
47
Net finance expense from insurance, participating investment and reinsurance contracts
(10,334)
(7)
(10,341)
Movement in third party interests in consolidated funds
(1,059)
Change in non-participating investment contracts
(4,878)
Net finance expense arising from insurance and investment contracts
(16,278)
2023
Life
£m
Non-life
£m
Total
£m
Net gains on financial assets and liabilities at fair value through profit or loss
11,218
35
11,253
Foreign exchange
542
–
542
Investment property losses
(4)
–
(4)
Net investment return on assets held to back insurance and participating investment contracts
(memorandum item)
11,756
35
11,791
Net investment return on assets held to back third party interests in consolidated funds
1,179
Net investment return on assets held to back non-participating investment contracts
3,772
Net investment return on assets held to back insurance and investment contracts1
16,742
Changes in fair value of underlying items of direct participating contracts
(10,293)
–
(10,293)
Effects of risk mitigation option
172
–
172
Interest accreted
(874)
(6)
(880)
Effect of changes in interest rates and other financial assumptions
(654)
–
(654)
Effect of changes in fulfilment cash flows at current rates when CSM is unlocked at locked-in rates
(80)
–
(80)
Net finance expense from insurance and participating investment contracts
(11,729)
(6)
(11,735)
Net finance income from reinsurance contracts held
51
–
51
Net finance expense from insurance, participating investment and reinsurance contracts
(11,678)
(6)
(11,684)
Movement in third party interests in consolidated funds
(1,109)
Change in non-participating investment contracts
(3,983)
Net finance expense arising from insurance and investment contracts
(16,776)
Note 8: Insurance business continued
2022
Life
£m
Non-life
£m
Total
£m
Net (losses) gains on financial assets and liabilities at fair value through profit or loss
(14,876)
9
(14,867)
Foreign exchange
(1,039)
–
(1,039)
Investment property losses
(3)
–
(3)
Net investment return on assets held to back insurance and participating investment contracts
(memorandum item)
(15,918)
9
(15,909)
Net investment return on assets held to back third party interests in consolidated funds
(968)
Net investment return on assets held to back non-participating investment contracts
(4,022)
Net investment return on assets held to back insurance and investment contracts1
(20,899)
Changes in fair value of underlying items of direct participating contracts
11,212
–
11,212
Effects of risk mitigation option
(118)
–
(118)
Interest accreted
(350)
(2)
(352)
Effect of changes in interest rates and other financial assumptions
5,226
–
5,226
Effect of changes in fulfilment cash flows at current rates when CSM is unlocked at locked-in rates
(20)
–
(20)
Net finance income (expense) from insurance and participating investment contracts
15,950
(2)
15,948
Net finance expense from reinsurance contracts held
(55)
–
(55)
Net finance income (expense) from insurance, participating investment and reinsurance contracts
15,895
(2)
15,893
Movement in third party interests in consolidated funds
1,035
Change in non-participating investment contracts
3,959
Net finance income arising from insurance and investment contracts
20,887
1Net investment return on assets held to back insurance and investment contracts is reported within net trading income (losses) on the face of the Group’s income statement; includes
income of £10,688 million (2023: income of £10,200 million; 2022: loss of £11,081 million) in respect of unit-linked and with-profit contracts measured applying the variable fee
approach. The assets generating the investment return held to back insurance and investment contracts are carried at fair value on the Group’s balance sheet.
(C)Insurance and participating investment contracts assets and liabilities
2024
2023
Life
£m
Non-life
£m
Total
£m
Life
£m
Non-life
£m
Total
£m
Insurance contract assets
–
–
–
1
–
1
Liabilities arising from insurance and participating investment
contracts1
(121,700)
(387)
(122,087)
(119,784)
(364)
(120,148)
Other liabilities2
(5,268)
–
(5,268)
–
–
–
Net liability
(126,968)
(387)
(127,355)
(119,783)
(364)
(120,147)
Insurance acquisition assets
–
23
23
8
16
24
Insurance and participating investment contacts net liability
(126,968)
(364)
(127,332)
(119,775)
(348)
(120,123)
1Excluding insurance acquisition assets.
2Liabilities arising from insurance contracts relating to the disposal of the Group's bulk annuity business have been classified as disposal group liabilities and presented in Other liabilities
in note 27. Further information on the disposal group is provided in note 24.
Of the fair value of underlying items in respect of direct participating contracts of £110,045 million (2023: £101,425 million), £111,435 million
(2023: £103,022 million) were financial assets at fair value through profit or loss and £1,125 million (2023: £1,337 million) were derivative
financial liabilities.
Note 8: Insurance business continued
(D)Reconciliation of insurance balances for liability for remaining coverage and liability for incurred claims
2024
2023
Liabilities for
remaining coverage
Liability for
incurred
claims
£m
Liabilities for
remaining coverage
Liability for
incurred
claims
£m
Life
Excluding loss
component
£m
Loss
component
£m
Total
£m
Excluding loss
component
£m
Loss
component
£m
Total
£m
Net liability at 1 January1
(118,724)
(466)
(593)
(119,783)
(108,846)
(471)
(603)
(109,920)
Contracts under the modified
retrospective approach
–
–
–
–
–
–
–
–
Contracts under the fair value
transition approach
1,498
–
–
1,498
1,467
–
–
1,467
Other contracts
1,138
–
–
1,138
1,027
–
–
1,027
Insurance revenue
2,636
–
–
2,636
2,494
–
–
2,494
Insurance service expenses2
(105)
(44)
(2,010)
(2,159)
(88)
110
(1,949)
(1,927)
Insurance service result
2,531
(44)
(2,010)
477
2,406
110
(1,949)
567
Net finance income (expense)
from insurance and participating
investment contracts
(10,371)
(5)
(5)
(10,381)
(11,576)
(105)
(3)
(11,684)
Exchange differences
80
–
–
80
32
–
–
32
Total change in profit or loss
(7,760)
(49)
(2,015)
(9,824)
(9,138)
5
(1,952)
(11,085)
Investment components
10,205
–
(10,205)
–
8,793
–
(8,793)
–
Premiums received
(10,679)
–
–
(10,679)
(9,768)
–
–
(9,768)
Claims and other insurance
service expenses paid
849
–
12,214
13,063
–
–
10,721
10,721
Insurance acquisition cash flows
265
–
–
265
203
–
–
203
Cash flows
(9,565)
–
12,214
2,649
(9,565)
–
10,721
1,156
Transfer to other items in the
balance sheet
(10)
–
–
(10)
32
–
34
66
Net liability at 31 December1
(125,854)
(515)
(599)
(126,968)
(118,724)
(466)
(593)
(119,783)
1Excluding insurance acquisition assets.
2Losses and reversal of losses on onerous contracts amounted to a net loss of £72 million (2023: net reversal of losses of £58 million). Amortisation of insurance acquisition cashflows
amounted to £105 million (2023: £88 million).
Note 8: Insurance business continued
2024
2023
Liabilities for
remaining coverage
Liability for
incurred
claims
£m
Liabilities for
remaining coverage
Liability for
incurred
claims
£m
Non-life
Excluding loss
component
£m
Loss
component
£m
Total
£m
Excluding loss
component
£m
Loss
component
£m
Total
£m
Net liability at 1 January1
(25)
–
(339)
(364)
(22)
(1)
(357)
(380)
Contracts under the modified
retrospective approach
–
–
–
–
–
–
–
–
Contracts under the fair value
transition approach
–
–
–
–
–
–
–
–
Other contracts
655
–
–
655
514
–
–
514
Insurance revenue
655
–
–
655
514
–
–
514
Insurance service expenses2
(32)
–
(533)
(565)
(30)
1
(451)
(480)
Insurance service result
623
–
(533)
90
484
1
(451)
34
Net finance income (expense)
from insurance and participating
investment contracts
–
–
(7)
(7)
–
–
(6)
(6)
Total change in profit or loss
623
–
(540)
83
484
1
(457)
28
Premiums received
(659)
–
–
(659)
(525)
–
–
(525)
Claims and other insurance
service expenses paid
–
–
524
524
–
–
475
475
Insurance acquisition cash flows
29
–
–
29
38
–
–
38
Cash flows
(630)
–
524
(106)
(487)
–
475
(12)
Net liability at 31 December1
(32)
–
(355)
(387)
(25)
–
(339)
(364)
1Excluding insurance acquisition assets.
2Losses and reversal of losses on onerous contracts amounted to £nil (2023: net reversal of losses of £1 million). Amortisation of insurance acquisition cashflows amounted to £32 million
(2023: £30 million).
(E)Summary of contractual service margin and risk adjustment
2024
2023
Life
£m
Non-life
£m
Total
£m
Life
£m
Non-life
£m
Total
£m
CSM on insurance and participating investment contracts1
4,646
–
4,646
4,415
–
4,415
CSM on reinsurance contracts2
(467)
–
(467)
(220)
–
(220)
Total CSM
4,179
–
4,179
4,195
–
4,195
Risk adjustment on insurance and participating investment contracts1
891
19
910
1,159
17
1,176
Risk adjustment on reinsurance contracts2
(68)
(1)
(69)
(65)
(1)
(66)
Total risk adjustment
823
18
841
1,094
16
1,110
Total
5,002
18
5,020
5,289
16
5,305
1Includes CSM of £544 million (2023: £nil) and risk adjustment of £36 million (2023: £nil) arising from insurance contracts classified as disposal group liabilities and presented in other
liabilities. Further information on the disposal group is provided in note 24.
2Includes CSM of £(426) million (2023: £nil) and risk adjustment of £(36) million (2023: £nil) on reinsurance contracts classified as disposal group assets and presented in other assets.
Further information on the disposal group is provided in note 24.
Note 8: Insurance business continued
(F)Reconciliation of measurement components of insurance contract balances
2024
Contractual service margin (CSM)
Life
Present
value of
future
cash
flows
£m
Risk
adjustment
for non-
financial
risk
£m
Contracts
measured
under the
fair value
approach
£m
Other
contracts
£m
Total CSM
£m
Total
£m
Net liability at 1 January1
(114,209)
(1,159)
(1,473)
(2,942)
(4,415)
(119,783)
Relating to current services
46
58
155
294
449
553
Contracts initially recognised in the year
33
(65)
–
(61)
(61)
(93)
Changes in estimates that adjust the CSM
334
252
(95)
(491)
(586)
–
Changes in estimates that result in losses and reversal
of losses on onerous contracts
(2)
23
–
–
–
21
Relating to future services
365
210
(95)
(552)
(647)
(72)
Relating to past services
(3)
(1)
–
–
–
(4)
Insurance service result
408
267
60
(258)
(198)
477
Net finance expense from insurance and participating
investment contracts
(10,341)
–
(9)
(31)
(40)
(10,381)
Exchange differences
72
1
7
–
7
80
Total change in profit or loss
(9,861)
268
58
(289)
(231)
(9,824)
Premiums received
(10,679)
–
–
–
–
(10,679)
Claims and other insurance service expenses paid
13,063
–
–
–
–
13,063
Insurance acquisition cash flows
265
–
–
–
–
265
Cash flows
2,649
–
–
–
–
2,649
Transfer to other items in the balance sheet
(10)
–
–
–
–
(10)
Net liability at 31 December1
(121,431)
(891)
(1,415)
(3,231)
(4,646)
(126,968)
1Excluding insurance acquisition assets.
2023
Contractual service margin (CSM)
Life
Present
value of
future
cash
flows
£m
Risk
adjustment
for non-
financial
risk
£m
Contracts
measured
under the
fair value
approach
£m
Other
contracts
£m
Total CSM
£m
Total
£m
Net liability at 1 January1
(104,545)
(1,165)
(1,441)
(2,769)
(4,210)
(109,920)
Relating to current services
99
84
129
197
326
509
Contracts initially recognised in the year
107
(86)
–
(92)
(92)
(71)
Changes in estimates that adjust the CSM
390
(12)
(170)
(208)
(378)
–
Changes in estimates that result in losses and reversal
of losses on onerous contracts
109
20
–
–
–
129
Relating to future services
606
(78)
(170)
(300)
(470)
58
Insurance service result
705
6
(41)
(103)
(144)
567
Net finance (expense) income from insurance and
participating investment contracts
(11,621)
–
7
(70)
(63)
(11,684)
Exchange differences
30
–
2
–
2
32
Total change in profit or loss
(10,886)
6
(32)
(173)
(205)
(11,085)
Premiums received
(9,768)
–
–
–
–
(9,768)
Claims and other insurance service expenses paid
10,721
–
–
–
–
10,721
Insurance acquisition cash flows
203
–
–
–
–
203
Cash flows
1,156
–
–
–
–
1,156
Transfer to other items in the balance sheet
66
–
–
–
–
66
Net liability at 31 December1
(114,209)
(1,159)
(1,473)
(2,942)
(4,415)
(119,783)
1Excluding insurance acquisition assets.
Note 8: Insurance business continued
The Group estimates the Risk adjustment separately from other components of the fulfilment cashflows using an explicit margins
approach. A confidence level scenario, allowing for diversification of risks across the insurance business, is used to determine the margins to
be applied to the best estimate assumptions which are then used to calculate the risk adjustment at a policy level. The risk adjustment
represents the difference in the value of the best estimate cash flows with and without these margins.
The confidence level corresponding to the risk adjustment is 85 per cent (2023: 90 per cent). The risk adjustment is calibrated to the value
at risk over a one-year time horizon at this confidence level for non-financial risks. This is translated, using statistical approximations, into
an equivalent confidence level on a value at risk basis over the expected lifetime of in-force policies of approximately 68 per cent (2023: 70
per cent) at end of the reporting period.
(G)Impacts of insurance and participating investment contracts recognised in the year
2024
2023
Life
Profitable
contracts
issued
£m
Onerous
contracts
issued
£m
Total
£m
Profitable
contracts
issued
£m
Onerous
contracts
issued
£m
Total
£m
Insurance and participating investment contracts
Insurance acquisition cash flows
56
203
259
87
142
229
Claims and other directly attributable expenses
1,446
4,498
5,944
5,450
447
5,897
Estimates of the present value of future cash outflows
1,502
4,701
6,203
5,537
589
6,126
Estimates of the present value of future cash inflows
(1,577)
(4,659)
(6,236)
(5,708)
(525)
(6,233)
Risk adjustment for non-financial risk
14
51
65
79
7
86
Contractual service margin
61
–
61
92
–
92
Losses recognised on initial recognition
–
93
93
–
71
71
(H)Life business contractual service margin run-off
The following table analyses the expected recognition of the contractual service margin (CSM) in profit or loss.
At 31 December 2024
Less than 1
year
£m
1 to 2
years
£m
2 to 3
years
£m
3 to 4
years
£m
4 to 5
years
£m
5 to 10
years
£m
Over 10
years
£m
Total
£m
Pensions and investments
(240)
(218)
(199)
(164)
(152)
(591)
(1,169)
(2,733)
Annuities, protection and other1
(660)
(106)
(98)
(90)
(83)
(331)
(545)
(1,913)
Insurance and participating
investment contracts
(900)
(324)
(297)
(254)
(235)
(922)
(1,714)
(4,646)
Reinsurance contracts held2
433
5
4
3
3
8
11
467
Total
(467)
(319)
(293)
(251)
(232)
(914)
(1,703)
(4,179)
At 31 December 2023
Less than 1
year
£m
1 to 2
years
£m
2 to 3
years
£m
3 to 4
years
£m
4 to 5
years
£m
5 to 10
years
£m
Over 10
years
£m
Total
£m
Pensions and investments
(186)
(176)
(168)
(157)
(133)
(535)
(1,088)
(2,443)
Annuities, protection and other
(147)
(136)
(125)
(117)
(109)
(444)
(894)
(1,972)
Insurance and participating
investment contracts
(333)
(312)
(293)
(274)
(242)
(979)
(1,982)
(4,415)
Reinsurance contracts held
20
17
15
14
13
48
94
221
Total
(313)
(295)
(278)
(260)
(229)
(931)
(1,888)
(4,194)
1CSM of £(544) million arising from insurance contracts classified as disposal group liabilities has been included in less than one year. The Group expects the CSM to be derecognised in
2025 upon disposal of the insurance contract liabilities. Further information on the disposal group is provided in note 24.
2CSM of £426 million arising from reinsurance contracts held classified as disposal group assets has been included in less than one year. The Group expects the CSM to be derecognised
in 2025 upon disposal of the reinsurance contract assets. Further information on the disposal group is provided in note 24.
(I)Life insurance sensitivity analysis
Critical accounting judgements and key sources of estimation uncertainty
Critical judgements:
Determining the characteristics which make a product illiquid, the level of illiquidity premium to apply to
the discount rate of different products and how the illiquidity premium is determined
Key sources of estimation uncertainty:
Increase in illiquidity premia and widening of credit default spreads
The following table demonstrates the effect of reasonably possible changes in key assumptions on profit before tax and equity disclosed in
these financial statements assuming that the other assumptions remain unchanged. In practice this is unlikely to occur, and changes in
some assumptions may be correlated. With the exception of the 31 December 2024 risk free rate, the sensitivities below are on a gross of
reinsurance basis, which do not differ materially from the sensitivities on a net of reinsurance basis. The 31 December 2024 risk free rate
sensitivity is shown net of reinsurance and reflects the impact of the reinsurance of the Group's bulk annuity business to Rothesay Life plc.
These amounts include movements in liabilities relating to insurance and participating investment contracts and related assets in order to
demonstrate the impacts on shareholder profit and equity. Therefore, these sensitivities have not been applied to the proportion of assets
and liabilities where the risks are borne by the policyholder and where assets and liabilities are well matched so as not to have a significant
impact on shareholder profit.
Note 8: Insurance business continued
2024
2023
Change in variable
Increase
(reduction)
in profit
before tax
£m
Increase
(reduction)
in equity
£m
Increase
(reduction)
in profit
before tax
£m
Increase
(reduction)
in equity
£m
Key sources of estimation uncertainty
Risk free rate, including illiquidity premia - gross
1% reduction
(245)
(184)
393
294
1% increase
211
158
(333)
(250)
Risk free rate, including illiquidity premia  - net
1% reduction
243
183
1% increase
(203)
(153)
Widening of credit default spreads on corporate bonds
0.25% addition
(174)
(131)
(316)
(237)
Other accounting estimates
Annuitant mortality
5% reduction
49
37
70
52
5% increase
(46)
(34)
(75)
(56)
Future maintenance and investment expenses
10% reduction
33
25
29
21
10% increase
(33)
(25)
(29)
(21)
Non-annuitant mortality and morbidity
5% reduction
61
46
63
47
5% increase
(62)
(46)
(63)
(47)
Lapse rates
10% reduction
(6)
(4)
(11)
(8)
10% increase
4
3
8
6
At each measurement date, the Group estimates, based on information about past events, current conditions and forecasts of future
conditions, the expected value of future cash flows. The calculation uses a range of scenarios that reflect the full range of possible
outcomes. The assumptions used to develop the estimates of future cash flows are reassessed at each reported date to reflect conditions
existing at the measurement date.
Risk free rate, including illiquidity premia
The Group has applied judgement in determining the characteristics which make a product illiquid, the level of illiquidity premium to apply
to the discount rate of different products and how the illiquidity premium is determined, where material.
Due to the illiquid nature of their cash flows, an illiquidity premium has been applied to the discount rate of the Group’s annuity contracts.
At initial recognition, the illiquidity premium is calculated with reference to a strategic portfolio of assets, and subsequently measured to
reflect the mix of actual assets backing annuity contracts. To reflect differences between the characteristics of insurance contracts and a
reference portfolio, adjustments for credit risk are required when determining appropriate discount rates. The Group uses the fundamental
spread to maintain consistency with its Solvency II approach. For protection contracts, the illiquidity premium is based on the spread on a
covered bond index.
The average sterling yield curves that were used to discount the estimates of future cash flows that do not vary based on the returns of the
underlying items are as follows:
1 year
5 year
10 year
20 year
30 year
2024
5.58
5.17
5.66
5.71
5.06
2023
5.37
4.15
4.79
4.72
4.19
The Group determines the quantity of benefits provided under each contract using different bases, depending on the product. For with-
profits and unit linked products, the policyholder account value (or the guaranteed benefits, if higher) is used. For annuities, pre-vesting
date the defined amount payable is used (immediate annuities have no pre-vesting date period) and post-vesting date the annuity payout
is used.
Widening of credit default spreads on corporate bonds
The Group applies a sensitivity showing the impact of an increase in credit default spreads on corporate bonds and the corresponding
reduction in market values. Swap curves, the risk-free rate and illiquidity premia are all assumed to be unchanged and therefore this
sensitivity impacts the related assets. There is no impact in 2024 on the Bulk annuity business as this is now backed by the reinsurance with
Rothesay Life plc.
Mortality
The mortality assumptions for the main classes of business are set with regard to recent Group experience and general industry trends, all
of which are adjusted for smoker status and age/gender specific factors. The base mortality tables used for the annuities business for the
year ended 31 December 2024 and the prior period were selected from the bespoke mortality tables. The mortality improvements adopt
the 100per cent Bespoke tables and CMI 2023_{M/F}_(7.25)_{2.0/1.8}%_{0.5/0.5}A_2013 for the year ended 31 December 2024; and the
100 per cent Bespoke tables and CMI 2022_{M/F}_(7.25)_{2.0/1.8}%_{0.5/0.5}A_2013 for the prior period.
Note 8: Insurance business continued
Lapse rates
Lapse rates refer to the rate of policy termination or the rate at which policyholders stop paying regular premiums due under the contract.
Historical persistency experience is analysed using statistical techniques. As experience can vary considerably between different product
types and for contracts that have been in force for different periods, the data is broken down into broadly homogeneous groups for the
purposes of determining the Group’s lapse rate in determining the assumptions, which are set on a best estimates basis, based on
investigations of historical experience with some expert judgement overlays reflecting expectations of future trends and other external
data. The lapse rates for workplace pensions range from 0.8 per cent to 13.8 per cent (2023: 0.8 per cent to 14.6 per cent) and for
longstanding business range from 0.5 per cent to 74.1 per cent (2023: 0.5 per cent to 74.1 per cent), the wide range being a result of the age
and variety of products.