RNS Number : 1186U
RSA Insurance Group Limited
06 August 2025
6 August 2025
RSA Insurance Group Limited
(the "Company")
2025 Interim Results
In accordance with its obligations under section 4.2.2. of the Disclosure Guidance and Transparency Rules, the Company announces that its Interim Results for the period ended 30 June 2025 are available on the Company's website at www.rsainsurance.co.uk. The document has also been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
In fulfilment of its obligations under sections 6.3.3(2) and 6.3.5(1) of the Disclosure Guidance and Transparency Rules, the Company hereby releases the unedited full text of its 2025 Interim Results for the period ended 30 June 2025.
Enquiries:
Lorna Youssouf
Company Secretary
RSA Insurance Group Limited
+44 (0) 7753 259514
Jonathan Sellors
Head of External Affairs
RSA Insurance Group Limited
+44 (0) 7711 701806
LEI: 549300HOGQ7E0TY86138
Interim Management Report
for the six month period ended 30 June 2025
RSA Insurance Group Limited (the Company) is incorporated and domiciled in England and Wales. The Company's immediate parent company is 2283485 Alberta Limited. The Company's ultimate parent company and controlling party is Intact Financial Corporation (IFC).
RSA Insurance Group Limited and its subsidiaries (known as the Group or RSA) operate in the UK, Ireland and Continental Europe. Several of the Group's subsidiaries are regulated by the Financial Conduct Authority and/or the Prudential Regulation Authority.
Principal activity
The principal activity of the Group is the transaction of insurance and related financial services.
In the UK, RSA currently offers predominately commercial lines insurance including specialty commercial lines insurance, as well as personal property and pet insurance, but is in the process of repositioning to become a leading UK commercial and specialty lines insurer.
In 2023, the Group made the decision to exit the UK Personal lines market (Motor, Home and Pet), including the announcement of the sale of its direct Home and Pet operations to Admiral Group plc, which closed on 31 March 2024, and its decision to transfer the Home and Pet partnerships to other parties or to allow them to expire over time.
Also in 2023, the Group entered into an agreement to acquire the commercial lines broker business of Direct Line Insurance Group (the DLG acquisition), increasing its market share in the domestic commercial lines market. The NIG and Farmweb brands were acquired through the DLG acquisition. The operational transfer completed on 1 May 2024 and the transfer of policy renewals and writing of new business started in June and July 2024 respectively.
RSA is also a specialist insurer largely in the London Market, currently distributing through brokers under the RSA brand.
In Ireland, RSA holds a top six position in the multi-line insurance market, distributing through 123.ie (a direct-to-consumer Personal lines brand), affinity partnerships and brokers. In addition, RSA is Ireland's largest commercial wind energy insurer.
In Europe, RSA operates within France, Belgium, Netherlands and Spain as a commercial lines insurer distributing under the RSA brand via brokers.
In April 2025 the Group announced the rebrand of RSA, NIG and FarmWeb to Intact Insurance that is occurring in phases through to 31 March 2026. Further information on the rebrand is provided in note 8.2 - Trade names - rebrand.
RSA also provides reinsurance to other companies within the IFC group and has quota share arrangements with Unifund Assurance Company (Unifund) and Belair Insurance Company Inc. (Belair), under which the insurance risk for a proportion of the business of those companies is transferred to the Group. Further information is provided in note 19 - Related party transactions.
Business review
The Group reports a profit before tax of £80m for the six month period ended 30 June 2025 (six month period ended 30 June 2024: £150m). Net written premiums1 for the six month period ended 30 June 2025 are £1,706m (six month period ended 30 June 2024: £2,147m) and net assets at 30 June 2025 are £2,703m (30 June 2024: £2,767m).
Profit before tax of £80m consists of £120m underwriting result (six month period ended 30 June 2024: £146m), investment result of £126m (six month period ended 30 June 2024: £123m), £(16)m of central costs (six month period ended 30 June 2024: £(8)m), and £(150)m of other charges (six month period ended 30 June 2024: £(111)m).
The financial results for the six month period ended 30 June 2025 reflect the process of repositioning the UK business to commercial and specialty lines insurance and include £(79)m of Integration and restructuring costs (six month period ended 30 June 2024: £(75)m). During the six month period ended 30 June 2024, Other net (losses) gains includes an £85m gain related to the sale of the UK direct Home and Pet operations. Further information is provided in note 14.1 - Components of other net (losses) gains.
Some of these measures are alternative performance measures (APMs). Refer to note 20 - Alternative performance measures for a reconciliation of these measures to the interim condensed consolidated income statement, and to Our Key Performance Indicators (KPIs) below for further information.
The Group paid an interim ordinary dividend of £160m to 2283485 Alberta Limited during the period.
Our KPIs
The Group uses both IFRS and non-IFRS financial measures (APMs) to assess performance, including common insurance industry metrics. Refer to note 20 - Alternative performance measures for a reconciliation of these measures to the interim condensed consolidated income statement.
The KPIs most relevant to the financial performance of the Group are as follows:
Net written premiums1 £1,706m (six month period ended 30 June 2024: £2,147m): premiums incepted in the period, irrespective of whether they have been paid, less the amount shared with reinsurers. They represent how much premium the Group retains for assuming risk. The Group targets growth that does not compromise underwriting performance.
Underwriting result1 £120m (six month period ended 30 June 2024: £146m). Net earned premium and other operating income less net claims and underwriting and policy acquisition costs. The Group aims to provide competitive pricing to customers that delivers a sustainable ongoing underwriting profit for the Group.
Profit before tax £80m (six month period ended 30 June 2024: £150m): net profit or loss generated before taxes have been deducted. This is a key statutory measure of the earnings performance of the Group. The Group seeks to maximise its profit before tax.
Principal risks and uncertainties
The Group continues to assess its principal risks and uncertainties and how these are managed. Any update to the risk management information disclosed in notes 9 and 11 of the 2024 Annual Report and Accounts is provided in the below notes to the interim condensed consolidated financial statements.
1Net written premiums and the underwriting result are APMs. For further information refer to note 20 for reconciliation to the nearest IFRS measure.
Interim Condensed Consolidated Statement Of Financial Position (unaudited)
30 June 2025
31 December 2024
As at
Note
£m
£m
Assets
Cash and cash equivalents
4
291
221
Financial assets
4
5,864
5,946
Investment property
4
343
317
Reinsurance contract assets
7
1,286
1,310
Income taxes receivable
1
1
Deferred tax assets
265
275
Property and equipment
106
105
Intangible assets
8
442
492
Goodwill
8
349
349
Other assets
9
249
233
Total assets
9,196
9,249
Liabilities
Insurance contract liabilities
7
5,833
5,848
Income taxes payable
3
2
Deferred tax liabilities
15
1
2
Debt outstanding
10
126
127
Other liabilities
9
530
503
Total liabilities
6,493
6,482
Equity
2,703
2,767
Total equity and liabilities
9,196
9,249
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
The interim condensed consolidated financial statements were approved on 5 August 2025 by the Board of Directors and are signed on its behalf by:
Karim Hirji
Chief Financial Officer
Interim Condensed Consolidated Income Statement (unaudited)
2025
2024
For the six month period ended 30 June
Note
£m
£m
Insurance revenue
7
1,958
2,186
Insurance service expense
7
(1,610)
(1,825)
Insurance service result from insurance contracts
348
361
Expense from reinsurance contracts
7
(271)
(283)
Income from reinsurance contracts
7
87
101
Net expense from reinsurance contracts
(184)
(182)
Insurance service result
164
179
Net investment income
13
126
123
Net gains (losses) on investment portfolio
13
16
(74)
Net investment return
142
49
Insurance finance expense
13
(81)
(55)
Reinsurance finance income
13
17
21
Net insurance financial result
(64)
(34)
Net investment return and net insurance financial result
78
15
Other net (losses) gains
14
(4)
92
Other income and expense
14
(74)
(56)
Integration and restructuring costs
(79)
(75)
Finance costs
(5)
(5)
Profit before tax
80
150
Income tax expense
15
(3)
(20)
Profit
77
130
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
Interim Condensed Consolidated Statement Of Comprehensive Income (unaudited)
2025
2024
For the six month period ended 30 June
£m
£m
Profit
77
130
Items that may be reclassified to the income statement:
Exchange gains net of tax on translation of foreign operations
1
-
Fair value gains (losses) on FVTOCI assets net of tax
17
(7)
18
(7)
Items that will not be reclassified to the income statement:
Pension - remeasurement of defined benefit asset/liability net of tax
1
11
1
11
Other comprehensive income
19
4
Total comprehensive income
96
134
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
Ordinary share capital
Ordinary share premium
Preference shares
Fair value reserve
Foreign currency translation reserve
Retained earnings
Equity
For the six month period ended 30 June 2025
£m
£m
£m
£m
£m
£m
£m
Balance at 1 January 2025
1,563
-
-
(63)
59
1,208
2,767
Total comprehensive income
Profit
-
-
-
-
-
77
77
Other comprehensive income
-
-
-
17
1
1
19
-
-
-
17
1
78
96
Transactions with owners of the Group
Contribution and distribution
Ordinary share dividends
-
-
-
-
-
(160)
(160)
-
-
-
-
-
(160)
(160)
Balance at 30 June 2025
1,563
-
-
(46)
60
1,126
2,703
For the six month period ended 30 June 2024
Balance at 1 January 2024
1,563
1,366
125
(59)
60
(243)
2,812
Total comprehensive income
Profit
-
-
-
-
-
130
130
Other comprehensive income (expense)
-
-
-
(7)
-
11
4
Transfers
-
-
-
(6)
-
6
-
-
-
-
(13)
-
147
134
Transactions with owners of the Group
Contribution and distribution
Preference share dividends
-
-
-
-
-
(5)
(5)
-
-
-
-
-
(5)
(5)
Balance at 30 June 2024
1,563
1,366
125
(72)
60
(101)
2,941
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
2025
2024
For the six month period ended 30 June
Note
£m
£m
Operating activities
Profit before tax
80
150
Income tax paid
(4)
(3)
Adjustments for non-cash items
18
36
24
Changes in other operating assets and liabilities
18
(17)
134
Net cash flows provided by operating activities
95
305
Investing activities
Proceeds from sale of businesses
14
-
87
Proceeds from sale of investments
2,187
2,299
Purchase of investments
(2,009)
(2,346)
Purchase of intangibles and property and equipment
(37)
(49)
Net cash flows provided by (used in) investing activities
141
(9)
Financing activities
Payment of lease liabilities
(6)
(5)
Payment of dividends on ordinary shares
(160)
-
Payment of dividends on preferred shares
-
(5)
Net cash flows used in financing activities
(166)
(10)
Net increase in cash and cash equivalents
70
286
Cash and cash equivalents at beginning of the period
221
312
Effect of exchange rate changes on cash and cash equivalents
-
(1)
Cash and cash equivalents at end of the period
18
291
597
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Glossary of abbreviations
AIC
Asset for incurred claims
IAS
International Accounting Standards
ARC
Asset for remaining coverage
IFRS
International Financial Reporting Standards
CAD
Canadian Dollar, Canada's official currency
LIC
Liability for incurred claims
CPI
Consumer price index
LRC
Liability for remaining coverage
DB
Defined benefits
OCI
Other comprehensive income
EUR (€)
Currency of the Euro zone countries in Europe
PAA
Premium Allocation Approach
FVTOCI
Fair value through other comprehensive income
RPI
Retail price index
FVTPL
Fair value through profit or loss
UK
United Kingdom
GBP (£)
British pound sterling, UK's official currency
USD
US Dollar, United States official currency
GMM
General Measurement Model
1. Status of the Company
The Company is an indirect subsidiary of IFC. Its parent is 2283485 Alberta Limited (a Canadian incorporated company), a wholly owned subsidiary of IFC, the ultimate controlling party. It operates in the UK, Ireland and Continental Europe.
These interim condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company's significant operating subsidiaries are listed in Appendix A of the Group's annual consolidated financial statements for the year ended 31 December 2024. These interim condensed financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2024 were approved by the board of directors on 4 March 2025 and delivered to the Registrar of Companies. The independent auditor's report on the Group accounts for the year ended 31 December 2024 is unqualified, does not draw attention to any matters by way of emphasis and does not include a statement under section 498(2) or (3) of the Companies Act 2006.
The registered office of the Company is Floor 8, 22 Bishopsgate, London, EC2N 4BQ, United Kingdom.
2. Basis of presentation
2.1 Statement of compliance
These interim condensed consolidated financial statements and the accompanying notes are prepared in accordance with IAS 34 - Interim Financial Reporting as adopted by the UK. They were authorised for issuance in accordance with a resolution of the Board of Directors on 5 August 2025.
2.2 Preparation and presentation of financial statements
These interim consolidated financial statements are condensed financial statements and should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2024, prepared in accordance with UK-adopted international accounting standards.
The Group presents its interim condensed consolidated statement of financial position broadly in order of liquidity.
Except where otherwise stated, all figures included in the interim condensed consolidated financial statements are presented in millions of pounds sterling (£m).
2.3 Seasonality
General insurance business is seasonal in nature. While Insurance revenue net of Expense from reinsurance contracts is generally stable from period to period, insurance service results are influenced by weather conditions which may vary significantly between reporting periods.
2.4 Going concern
The interim condensed consolidated financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Board have reviewed the Group's ongoing commitments over the next twelve months. The Board's assessment included review of the Group's strategic plans and latest forecasts, capital position and liquidity including on demand capital funding arrangements with IFC. The risk profile, both current and emerging, has been considered, as well as the implications for capital. These assessments include sensitivity analysis and stress testing and scenario analysis on forward-looking capital projections, assessing a combined 1-in-10 year market risk shock, a 1-in-20 year catastrophe shock, and reduction of longer-term underwriting profitability. Key risk indicators demonstrate that the risk appetite is aligned to the available capital. Risk management strategies are in place to assess and mitigate climate risk, with stress and scenario testing and climate scenario analysis informing the Group's policies and standards, pricing, risk selection and reinsurance. The Board have considered the impact of events after the balance sheet date, with none identified which could impact the Group's ability to continue as a going concern.
Based on this review no material uncertainties that would require disclosure have been identified in relation to the ability of the Group to remain a going concern over the next twelve months from the date of the approval of the interim condensed consolidated financial statements.
2.5 Foreign currency translation
The rates of exchange used in the preparation of the interim condensed consolidated financial statements are as follows:
As at
Average rate for the period
30 June 2025
31 December 2024
30 June 2025
30 June 2024
EUR
1.17
1.21
1.19
1.17
CAD
1.87
1.80
1.83
1.72
USD
1.37
1.25
1.30
1.26
2.6 Geopolitical risk
The current geopolitical environment continues to contribute to uncertainty in global trade, which has created capital market volatility and may affect the global economic environment in the future. Refer to note 4.2 - Geopolitical risk of the Group's annual consolidated financial statements for the year ended 31 December 2024 for more details.
Management will continue to monitor the impact of geopolitical risk on its use of judgements, estimates, and assumptions.
3. Summary of material accounting policies
The accounting policies applied during the six month period ended 30 June 2025 are the same as those described and disclosed in note 3 - Summary of material accounting policies in the Group's annual consolidated financial statements for the year ended 31 December 2024.
4. Investments
4.1 Classification of investments
FVTPL
FVTOCI
Amortised Cost
Total carrying amount
Designated as FVTPL
Classified as FVTPL
Measured at FVTPL
As at 30 June 2025
£m
£m
£m
£m
£m
£m
Cash and cash equivalents
-
-
-
-
291
291
Debt & fixed income securities
2,119
198
-
2,777
-
5,094
Equity securities
-
524
-
-
-
524
Loans
-
-
-
-
246
246
Investment property
-
-
343
-
-
343
2,119
722
343
2,777
537
6,498
As at 31 December 2024
Cash and cash equivalents
-
-
-
-
221
221
Debt & fixed income securities
1,969
302
-
2,891
-
5,162
Equity securities
-
501
-
-
-
501
Loans
-
-
-
-
283
283
Investment property
-
-
317
-
-
317
Total
1,969
803
317
2,891
504
6,484
4.2 Carrying amounts of investments
The following tables analyse the cost/amortised cost, gross unrealised gains and losses, and fair value of financial assets and investment property.
FVTPL investments
Other investments
Total investments
Carrying amount
Cost/ amortised cost
Unrealised gains
Unrealised losses
Carrying amount
Carrying amount
As at 30 June 2025
£m
£m
£m
£m
£m
£m
Cash and cash equivalents
-
291
-
-
291
291
Debt & fixed income securities
2,317
2,899
23
(145)
2,777
5,094
Equity securities
524
-
-
-
-
524
Loans
-
246
-
-
246
246
Investment property
343
-
-
-
-
343
3,184
3,436
23
(145)
3,314
6,498
As at 31 December 2024
Cash and cash equivalents
-
221
-
-
221
221
Debt & fixed income securities
2,271
2,994
11
(114)
2,891
5,162
Equity securities
501
-
-
-
-
501
Loans
-
283
-
-
283
283
Investment property
317
-
-
-
-
317
3,089
3,498
11
(114)
3,395
6,484
5. Derivative financial instruments
5.1 Fair value and notional amount of derivatives
The Group generally uses derivatives for economic hedging purposes and to improve the risk profile of its investment portfolio, provided the resulting exposures remain within the guidelines of its investment policy. In certain circumstances, these hedges also meet the requirements for hedge accounting. Risk management strategies eligible for hedge accounting have been designated as net investment hedges in foreign operations.
The following table presents the notional amount by remaining term to maturity and fair value of derivatives held by the Group based on their designation in qualifying hedge accounting relationships.
As at
30 June 2025
31 December 2024
Notional amount
Fair value
Notional amount
Fair value
Asset
Liability
Asset
Liability
Type of hedge
Instrument type
£m
£m
£m
£m
£m
£m
Designated for hedge accounting
Net investment hedges
Currency forwards
194
-
3
143
2
-
194
-
3
143
2
-
Not designated for hedge accounting
Currency forwards
226
5
-
330
1
4
Equity swaps
62
-
-
-
-
-
Cross currency interest swaps
-
-
-
1
-
-
Inflation swaps
120
30
12
120
30
10
408
35
12
451
31
14
602
35
15
594
33
14
6. Fair value measurement
The fair value of financial instruments on initial recognition is normally the transaction price, being the value of the consideration. After initial recognition, the fair value of financial instruments is based on available information and categorised according to a three-level fair value hierarchy.
6.1 Fair value hierarchy
The three-level fair value hierarchy comprises:
i. Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
ii. Level 2 fair value measurements are those derived from data other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
iii. Level 3 fair value measurements are those derived from valuation techniques that include significant inputs for the asset or liability valuation that are not based on observable market data (unobservable inputs).
A financial instrument is regarded as quoted in an active market (Level 1) if quoted prices for that financial instrument are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's length basis.
For Level 1 and Level 2 investments, the Group uses prices received from external providers who calculate these prices from quotes available at the reporting date for the particular investment being valued. For investments that are actively traded, the Group determines whether the prices meet the criteria for classification as a Level 1 valuation. The price provided is classified as a Level 1 valuation when it represents the price at which the investment traded at the reporting date, taking into account the frequency and volume of trading of the individual investment, together with the spread of prices that are quoted at the reporting date for such trades. Typically, investments in frequently traded government debt would meet the criteria for classification in the Level 1 category. Where the prices provided do not meet the criteria for classification in the Level 1 category, the prices are classified in the Level 2 category. Market traded securities only reflect the possible impact of climate change to the extent that this is built into the market price at which securities are trading.
In certain circumstances, the Group does not receive pricing information from an external provider for its financial investments. In such circumstances the Group calculates fair value, which may use input parameters that are not based on observable market data. Unobservable inputs are based on assumptions that are neither supported by prices from observable current market transactions for the same instrument nor based on available market data. In these cases, judgement is required to establish fair values. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Derivative financial instruments
Derivative financial instruments are financial contracts whose fair value is determined on a market basis by reference to underlying interest rate, foreign exchange rate, equity or commodity instrument or other indices.
Cash and cash equivalents, loans, other assets and other liabilities and issued debt
For cash and cash equivalents, loans, commercial paper, other assets, liabilities, accruals and issued debt, carrying amounts are reasonable approximations of their fair values. Loans represent direct lending for investment purposes.
The principal investments classified as Level 3, and the valuation techniques applied to them, are described below.
Investment property
Investment property valuations are carried out in accordance with the latest edition of the Valuation Standards published by the Royal Institution of Chartered Surveyors (RICS) and are undertaken by independent RICS registered valuers. Valuations are based on the comparative method with reference to sales of other comparable buildings and take into account the nature, location and condition of the specific property, factoring in the occupational lease terms and tenant covenant strength as appropriate. The valuations also include an income approach using discounted future cash flows, which uses unobservable inputs, such as discount rates, rental values, rental growth rates, vacancy rates and void or rent free periods expected after the end of each lease.
Private fund structures
Debt and equity private funds are principally valued at the proportion of the Group's holding of the Net Asset Value (NAV) reported by the investment vehicle. Several procedures are employed to assess the reasonableness of the NAV reported by the fund, including obtaining and reviewing periodic and audited financial statements and estimating fair value based on a discounted cash flow model that adds spreads for credit and illiquidity to a risk-free discount rate. If necessary, the Group will adjust the fund's reported NAV to more appropriately represent the fair value of its interest in the investment.
The items presented in the following table are measured in the interim condensed consolidated statement of financial position at fair value. The table does not include financial assets and liabilities not measured at fair value for which the carrying value is a reasonable approximation of fair value.
6.2 Categorisation of fair value
Level 1
Level 2
Level 3
Total
As at 30 June 2025
£m
£m
£m
£m
Debt & fixed income securities
977
3,920
197
5,094
Equity securities
476
-
48
524
Investment Property
-
-
343
343
Derivative assets
-
35
-
35
Total assets measured at fair value
1,453
3,955
588
5,996
Derivative liabilities
-
15
-
15
Total liabilities measured at fair value
-
15
-
15
Level 1
Level 2
Level 3
Total
As at 31 December 2024
£m
£m
£m
£m
Debt & fixed income securities
1,060
3,800
302
5,162
Equity securities
452
-
49
501
Investment Property
-
-
317
317
Derivative assets
-
33
-
33
Total assets measured at fair value
1,512
3,833
668
6,013
Derivative liabilities
-
14
-
14
Total liabilities measured at fair value
-
14
-
14
6.3 Reconciliation of fair value measurement of level 3 financial assets and investment property
Classified as FVTPL
Measured as FVTPL
Debt & fixed income securities
Equity securities
Investment property
Total
For the six month period ended 30 June 2025
£m
£m
£m
£m
Balance, beginning of period
302
48
317
667
Gains / (losses)1
(11)
(8)
5
(14)
Purchases
24
14
21
59
Disposals
(118)
(7)
-
(125)
Exchange adjustment
-
1
-
1
Balance, end of period
197
48
343
588
1Includes £4m of losses in relation to securities and property recognised on the Interim condensed consolidated statement of financial position at 30 June 2025. These gains are recognised in the Net gains (losses) on investment portfolio line in the Interim condensed consolidated income statement.
Classified as FVTPL
Measured as FVTPL
Debt & fixed income securities
Equity securities
Investment property
Total
For the six month period ended 30 June 2024
£m
£m
£m
£m
Balance, beginning of period
314
69
285
668
Gains / (losses)1
1
-
(4)
(3)
Purchases
50
-
17
67
Disposals
(48)
(5)
(4)
(57)
Exchange adjustment
(2)
-
-
(2)
Balance, end of period
315
64
294
673
1Includes£3m of losses in relation to securities and property recognised on the Interim condensed consolidated statement of financial position at 30 June 2024. These gains are recognised in the Net gains (losses) on investment portfolio line in the Interim condensed consolidated income statement.
6.3 Fair value sensitivity (level 3 assets)
The following table shows the level 3 financial assets and investment property carried at fair value as at the balance sheet date, the main assumptions used in the valuation of these instruments and reasonably possible decreases in fair value based on reasonably possible alternative assumptions.
Reasonably possible alternative assumptions¹
2025
2024
Current fair value
Decrease in fair value
Current fair value
Decrease in fair value
Financial assets and investment property
Main assumptions
£m
£m
£m
£m
Level 3 FVTPL financial assets
Equity securities
Cash flows; discount rate
48
(1)
49
(1)
Debt & fixed income securities
Cash flows; discount rate
197
(4)
302
(5)
Investment property
Cash flows; discount rate
343
(25)
317
(22)
Total
588
(30)
668
(28)
1The Group's investments in financial assets classified at level 3 in the hierarchy are primarily investments in various private fund structures investing in debt instruments where the valuation includes estimates of the credit spreads on the underlying holdings. The estimates of the credit spread are based upon market observable credit spreads for what are considered to be assets with similar credit risk. Reasonably possible alternative valuations for these instruments have been determined using an increase of 50bps in the credit spread used in the valuation (31 December 2024: 50bps). Reasonably possible alternative assumptions for investment property have been determined using an increase of 50bps in the equivalent yield (31 December 2024: 50bps).
7. Insurance and reinsurance contracts
7.1 Insurance revenue
2025
2024
For the six month period ended 30 June
£m
£m
Contracts measured under PAA
1,991
2,147
Contracts measured under the GMM
Amounts related to changes in liability for remaining coverage
Risk adjustment recognised for the risk expired
(1)
1
Expected incurred claims and other insurance service expense
(32)
38
Total insurance revenue
1,958
2,186
7.2 Reconciliation of movements in carrying amounts
The following reconciliations show how the net carrying amounts of insurance and reinsurance contracts changed during the period as a result of cash flows and amounts recognised in the interim condensed consolidated income statement.
The Group presents tables that separately analyse movements in the liability for remaining coverage and the liability for incurred claims and reconcile these movements to the line items in the Interim condensed consolidated income statement.
Insurance contracts analysis by remaining coverage and incurred claims
2025
2024
LRC
LIC
Total
LRC
LIC
Total
For the six month period ended 30 June
£m
£m
£m
£m
£m
£m
Insurance contract liabilities, beginning of period
(371)
(5,477)
(5,848)
(440)
(5,530)
(5,970)
Changes in comprehensive income:
Insurance revenue
1,958
-
1,958
2,186
-
2,186
Incurred claims and other insurance service expense
33
(1,382)
(1,349)
19
(1,556)
(1,537)
Amortisation of insurance acquisition cash flows
(375)
-
(375)
(365)
-
(365)
Losses and reversals on onerous contracts
-
-
-
(20)
-
(20)
Adjustments to liabilities for incurred claims
-
114
114
-
97
97
Insurance service expense
(342)
(1,268)
(1,610)
(366)
(1,459)
(1,825)
Insurance service result from insurance contracts
1,616
(1,268)
348
1,820
(1,459)
361
Insurance finance expense
13
(94)
(81)
5
(60)
(55)
Exchange rate differences
(2)
(3)
(5)
1
7
8
Total changes in comprehensive income
1,627
(1,365)
262
1,826
(1,512)
314
Cash flows
Premium received
(1,972)
-
(1,972)
(2,218)
-
(2,218)
Claims and other insurance service expense paid
-
1,337
1,337
-
1,520
1,520
Insurance acquisition cash flows
388
-
388
381
-
381
Total cash flows
(1,584)
1,337
(247)
(1,837)
1,520
(317)
Insurance contract liabilities, end of period
(328)
(5,505)
(5,833)
(451)
(5,522)
(5,973)
Reinsurance contracts analysis by remaining coverage and incurred claims
2025
2024
ARC
AIC
Total
ARC
AIC
Total
For the six month period ended 30 June
£m
£m
£m
£m
£m
£m
Reinsurance contract assets, beginning of period
(3)
1,313
1,310
(16)
1,772
1,756
Changes in comprehensive income:
Expense from reinsurance contracts
(271)
-
(271)
(283)
-
(283)
Amounts recoverable for incurred claims and other expenses
-
87
87
-
107
107
Adjustments to assets for incurred claims
-
-
-
-
(7)
(7)
Changes in non-performance risk of reinsurers
-
-
-
-
1
1
Income from reinsurance contracts
-
87
87
-
101
101
Net expense from reinsurance contracts
(271)
87
(184)
(283)
101
(182)
Reinsurance finance income
(1)
18
17
(1)
22
21
Exchange rate differences
(2)
2
-
-
(4)
(4)
Total changes in comprehensive income
(274)
107
(167)
(284)
119
(165)
Cash flows
Premium paid
313
-
313
294
-
294
Amounts received
-
(170)
(170)
-
(317)
(317)
Total cash flows
313
(170)
143
294
(317)
(23)
Reinsurance contract assets, end of period
36
1,250
1,286
(6)
1,574
1,568
7.3 Reconciliation of the liability for incurred claims to undiscounted value
30 June 2025
31 December 2024
Direct
Ceded
Net
Direct
Ceded
net
As at
£m
£m
£m
£m
£m
£m
Undiscounted value
(5,220)
1,135
(4,085)
(5,320)
1,179
(4,141)
Effect of time value of money
356
(75)
281
386
(90)
296
Undiscounted risk adjustment
(186)
42
(144)
(201)
43
(158)
Periodic payment orders1
(262)
118
(144)
(250)
117
(133)
Liability for incurred claims before net payables and claims reported under the GMM
(5,312)
1,220
(4,092)
(5,385)
1,249
(4,136)
Net payables included in incurred claims
(193)
31
(162)
(206)
66
(140)
Reclass of claims reported under the GMM
-
(1)
(1)
116
(2)
114
Liability for incurred claims
(5,505)
1,250
(4,255)
(5,475)
1,313
(4,162)
¹The net periodic payment orders are net of the discount and risk adjustment of £197m as at 30 June 2025 (£199m as at 31 December 2024).
7.4 Discount rates
The following table presents the yield curves used to discount cash flows for insurance and reinsurance contracts. Refer to note 10 - Insurance and reinsurance contracts of the annual consolidated financial statements for the year ended 31 December 2024 for more details.
30 June 2025
31 December 2024
1 year
3 years
5 years
10 years
1 year
3 years
5 years
10 years
GBP
4.3%
4.4%
4.6%
5.2%
4.9%
4.8%
4.9%
5.3%
EUR
2.2%
2.5%
2.9%
3.5%
2.6%
2.8%
3.0%
3.3%
CAD
3.0%
3.3%
3.6%
4.1%
3.3%
3.5%
3.7%
4.1%
USD
4.3%
4.2%
4.4%
4.9%
4.6%
4.7%
4.9%
5.2%
Periodic payment orders
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
8. Goodwill and intangible assets
8.1 Carrying values of goodwill and intangible assets
30 June 2025
31 December 2024
As at
£m
£m
Goodwill
349
349
Internally generated software
259
293
Trade names
16
26
Distribution networks
167
173
791
841
8.2 Trade names - rebrand
In April 2025, the Group announced the rebrand of RSA, NIG and FarmWeb to Intact Insurance that is occurring in phases through to 31 March 2026. As a result, the Group reviewed prospectively the useful life of trade names related to the DLG acquisition. These trade names are expected to be fully amortised over the next nine months from the balance sheet date.
For the six month period ended 30 June 2025, the Group recorded accelerated amortisation of £5m and integration costs of £4m relating to the rebrand. These costs are recognised in Integration and restructuring costs.
9. Other assets and liabilities
9.1. Other assets
30 June 2025
31 December 2024
As at
£m
£m
Financial assets related to investments
60
61
Other debtors
39
45
Pension plans in a surplus position (note 16)
28
25
Accrued interest and rent
68
65
Prepayments
54
37
249
233
Financial assets related to investments
Amounts receivable from investment brokers on unsettled trades
15
25
Amounts receivable related to investment properties
7
-
Derivative financial assets (note 5.1)
35
33
Collateral assets
3
3
60
61
9.2. Other liabilities
30 June 2025
31 December 2024
As at
£m
£m
Financial liabilities related to investments
232
179
Other creditors
29
39
Accruals
158
162
Deferred income
2
1
Lease liabilities
71
72
Pension plans in a deficit position and unfunded plans (note 16)
11
11
Provisions
27
39
530
503
Financial liabilities related to investments
Accounts payable to investment brokers on unsettled trades
83
28
Derivative financial liabilities (note 5.1)
15
14
Collateral liabilities
24
22
Equities sold short position
110
115
232
179
10. Debt outstanding
Amortised cost
Maturity date
Initial term
Fixed rate
Coupon payment
Principal amount
30 June 2025
31 December 2024
As at
(years)
%
£m
£m
GBP notes
Oct-45
31
5.13
Oct.
£120m
120
120
US bonds
Oct-29
30
8.95
Apr. & Oct.
$9m
6
7
126
127
The dated guaranteed subordinated GBP notes were issued on 10 October 2014 at a fixed rate of 5.125%. The notes, with a remaining nominal value of £120m, have a maturity date of 10 October 2045. The Group has the right to redeem the notes in whole on specific dates from 10 October 2025 at a redemption price equal to the principal amount, together with accrued and unpaid interest. If the notes are not repaid on that date, the rate of interest will be reset to 3.852% plus the appropriate benchmark gilt for a further five year period.
The subordinated guaranteed US$ bonds were issued in 1999 and have a nominal value of $9m and a redemption date of 15 October 2029. The rate of interest payable on the bonds is 8.95%.
The bonds and the notes are contractually subordinated to all other creditors of the Group such that in the event of a winding up or of bankruptcy, they would be repaid only after the claims of all other creditors have been met.
The Group has the option to defer interest payments on the bonds and notes but has to date not exercised this right.
There have been no defaults on any bonds or notes during the period.
11. Share capital
The issued share capital of the parent company is fully paid and is summarised in the following table:
2025
2024
As at 30 June
Number
£m
Number
£m
Ordinary shares of £1 each
1,563,286,980
1,563
1,563,286,979
1,563
Preference shares of £1 each
-
-
125,000,000
125
1,563,286,980
1,563
1,688,286,979
1,688
The movements during the period of ordinary shares in issue, nominal value and share premium are as follows:
Number of shares
Nominal value £m
Share premium £m
At 1 January 2025
1,563,286,980
1,563
-
At 30 June 2025
1,563,286,980
1,563
-
Number of shares
Nominal value £m
Share premium £m
At 1 January 2024
1,563,286,979
1,563
1,366
At 30 June 2024
1,563,286,979
1,563
1,366
The Company's preferred shares were cancelled following shareholder approval on 16 July 2024. Refer to note 17 - Share capital of the 2024 Annual Report and Accounts for further details.
12. Distributions declared and paid
2025
2024
For the six month period ended 30 June
£m
£m
Ordinary dividend
160
-
Preference dividend
-
5
160
5
On 17 June 2025, an interim ordinary dividend of £160m was paid by the Group to 2283485 Alberta Limited.
Prior to the preference share redemption, the Group's preference shareholders received a dividend at the rate of 7.375% per annum paid in two installments on, or as near as practicably possible to, 1 April and 1 October each year, subject to approval of the board. See note 11 - Share capital for further detail on the preference share redemption.
13. Net investment return and net insurance financial result
13.1 Net investment return and net insurance financial result
2025
2024
For the six month period ended 30 June
£m
£m
Net investment income
126
123
Net gains (losses) on investment portfolio
16
(74)
Net investment return
142
49
Net insurance financial result
(64)
(34)
Net investment return and net insurance financial results
78
15
13.2 Net investment income
2025
2024
For the six month period ended 30 June
£m
£m
Interest income calculated using the effective interest method:
Debt securities classified as FVTOCI
53
53
Loans and cash and cash equivalents at amortised cost
11
15
Interest and similar income on securities classified or designated as FVTPL
51
45
Interest income
115
113
Dividend income on FVTPL equity securities
8
5
Investment property rental income
9
10
Investment income
132
128
Investment expense
(6)
(5)
Net investment income
126
123
13.3 Net gains (losses) on investment portfolio
2025
2024
Fixed income
Equity and property
Total
Fixed income
Equity and property
Total
For the six month period ended 30 June
£m
£m
£m
£m
£m
£m
Financial instruments:
Classified as FVTOCI
1
-
1
(14)
-
(14)
Classified or designated as FVTPL
13
21
34
(27)
3
(24)
14
21
35
(41)
3
(38)
Derivatives1
1
(2)
(1)
-
(1)
(1)
Investment property
-
5
5
-
(4)
(4)
Net foreign currency losses
(23)
-
(23)
(45)
-
(45)
(8)
24
16
(86)
(2)
(88)
1Excluding foreign currency contracts, which are recognised in Net foreign currency gains (losses) on investments. Derivatives are mandatorily measured at FVTPL, except when part of a documented hedging arrangement.
13.4 Net insurance financial result
2025
2024
For the six month period ended 30 June
£m
£m
Change in the carrying amount of insurance contracts due to:
Unwind of discount
(107)
(113)
Changes in discount rates and other financial assumptions
(21)
21
Net foreign currency gains
47
37
Insurance finance expense
(81)
(55)
Change in the carrying amount of reinsurance contracts due to:
Unwind of discount
25
33
Changes in discount rates and other financial assumptions
6
(6)
Net foreign currency losses
(14)
(6)
Reinsurance finance income
17
21
Net insurance financial result
(64)
(34)
14. Other net (losses) gains and other income and expense
14.1 Components of other net (losses) gains
2025
2024
For the six month period ended 30 June
£m
£m
Gain on disposal of business1
-
87
Other net foreign currency (losses) gains
(4)
2
Other2
-
3
(4)
92
1£85m related to the sale of the UK direct Home and Pet operations completed on 31 March 2024. Further information is provided in note 5.2 - Disposals completed in 2024 of the Group's annual consolidated financial statements for the year ended 31 December 2024.
2£3m represents the release of non-payable contingent consideration in respect of the 2023 DLG acquisition.
14.2 Other income and other expense
2025
2024
For the six month period ended 30 June
£m
£m
Other income¹
-
1
Other expense²
(74)
(57)
(74)
(56)
1Includes pension interest income
2Includes administration costs, amortisation of acquired brands and distribution channels and other expenses
15. Income taxes
15.1 Income tax expense recognised in the interim condensed consolidated income statement
2025
2024
For the six month period ended 30 June
£m
£m
Current income tax expense
18
34
Deferred income tax credit
(15)
(14)
Total tax charge to income statement
3
20
15.2 Effective income tax rate
For the six month period ended 30 June
2025
2024
Statutory tax rates
25.0%
25.0%
(Decrease) increase in income tax rates resulting from:
Non-taxable investment income
(3.1)%
(0.6)%
Non-deductible expenses
2.1%
1.4%
Recognition of prior year deferred tax assets
(16.8)%
(9.5)%
Utilisation of unrecognised deferred tax assets
(2.1)%
(1.6)%
Different tax rates of subsidiaries operating in other jurisdictions
(3.1)%
(1.0)%
Other
1.8%
(0.5)%
Effective income tax rate
3.8%
13.2%
16. Employee future benefits
DB pension plans are recognised on the consolidated balance sheet as an asset when plans are in a surplus position, or as a liability when plans are in a deficit position. This classification is determined on a plan-by-plan basis.
16.1 Funded status
30 June 2025
31 December 2024
UK
Other1
Total
UK
Other
Total
As at
£m
£m
£m
£m
£m
£m
Defined benefit obligation (funded)
(4,806)
(59)
(4,865)
(4,895)
(54)
(4,949)
Defined benefit obligation (unfunded)
(3)
-
(3)
(3)
-
(3)
Fair value of plan assets
4,807
80
4,887
4,898
70
4,968
(2)
21
19
-
16
16
Other net surplus remeasurements
(2)
-
(2)
(2)
-
(2)
Net DB asset (liability)
(4)
21
17
(2)
16
14
Recognised in:
Other assets - plans in a surplus position
7
21
28
9
16
25
Other liabilities - plans in a deficit position and unfunded plans
(11)
-
(11)
(11)
-
(11)
(4)
21
17
(2)
16
14
16.2 Employee future benefit recognised in the interim condensed consolidated income statement
2025
2024
As at 30 June
£m
£m
Net interest expense:
Interest expense on DB obligation
(132)
(123)
Interest income on plan assets
132
124
Other
(5)
(6)
(5)
(5)
16.3 Actuarial gains (losses) on employee future benefits, net of other surplus remeasurement, recognised in OCI
2025
2024
As at 30 June
£m
£m
Changes in discount rate used to determine the benefit obligation
43
423
Actual return on plan assets
(67)
(318)
Plan experience and change in other financial assumptions1
24
(109)
Other net surplus remeasurements
-
(3)
-
(7)
¹ Changes in other financial assumptions are mainly related to inflation rate.
16.4 Assumptions used
The following table presents changes of certain key assumptions as disclosed in note 26.5 - Accounting judgements, estimates and assumptions of the Group's annual consolidated financial statements for the year ended 31 December 2024.
The weighted average principal actuarial assumptions used are:
UK
Other
30 June 2025
31 December 2024
30 June 2025
31 December 2024
%
%
%
%
Assumptions used in calculation of retirement benefit obligations:
Discount rate
5.51
5.46
4.20
3.75
Annual rate of inflation (RPI)
2.92
3.18
-
-
Annual rate of inflation (CPI)
2.39
2.63
2.25
2.20
Annual rate of increase in pensions
2.82
3.01
2.25
2.20
Assumptions used in calculation of pension net interest costs for the year:
Discount rate
5.46
4.54
3.75
3.55
17. Operating segments
17.1 Reportable segments
The Group's primary operating segments comprise UK, International and Central Functions. The primary operating segments are based on geography and, during 2025, were engaged in providing personal and commercial general insurance services. During 2023, the Group announced its exit from the UK Personal lines general insurance market. This forms part of the UK operating segment. Refer to note 5 - Business combinations and disposals in the Group's annual consolidated financial statements for the year ended 31 December 2024 for further information on this transaction. International comprises operating segments based in Ireland and Europe. Central Functions includes the Group's internal reinsurance function, which includes reinsurance with the wider IFC group. Each operating segment is managed by individuals who are accountable to the Chief Executive and the Board of Directors, who together are the chief operating decision makers in respect of the operating activities of the Group. The UK is the Group's country of domicile and one of its principal markets.
17.2 Assessing segment performance
The Group uses the following key measures to assess the performance of its operating segments:
i. Net written premiums
ii. Underwriting result
Net written premiums is a key measure of revenue used in internal reporting.
Underwriting result is the key internal measure of profitability of the operating segments.
Net written premiums and underwriting result are APMs. Refer to note 20 for a reconciliation to the nearest IFRS measure.
Transfers or transactions between segments are entered into under normal commercial terms and conditions that would also be available to unrelated third parties.
17.3 Segment revenue and results
UK
International
Central Functions
Total
For the six month period ended 30 June 2025
£m
£m
£m
£m
Net written premiums (management basis note 20)
986
315
405
1,706
Underwriting result (note 20)1,2
80
22
18
120
Net investment income (note 13)
126
Central costs and other activities (note 20)
(16)
Business operating result (management basis)
230
Realised gains
17
Net insurance finance result, foreign exchange and gains (losses) on investments
(69)
Finance costs
(5)
Amortisation of intangible assets1
(9)
Pension net interest and administration costs (note 16)
(5)
Integration and restructuring costs1
(79)
Profit before tax
80
Tax on operations (note 15)
(3)
Profit
77
UK
International
Central Functions
Total
For the six month period ended 30 June 2024
£m
£m
£m
£m
Net written premiums (management basis note 20)
1,236
299
612
2,147
Underwriting result (note 20)1,2
39
52
55
146
Net investment income (note 13)
123
Central costs and other activities (note 20)
(8)
Business operating result (management basis)
261
Realised losses
(15)
Net insurance finance result, foreign exchange and gains (losses) on investments
(91)
Finance costs
(5)
Amortisation of intangible assets1
(9)
Pension net interest and administration costs (note 16)
(6)
Integration and restructuring costs1
(75)
Profit on disposal of business and other gains
90
Profit before tax
150
Tax on operations (note 15)
(20)
Profit
130
1 Total amortisation expense is £70m (2024: £69m). This relates to the UK segment (2025: £68m; 2024: £66m) and the International segment (2025: £2m; 2024: £2m). The expense has been charged to Underwriting result (2025: £24m; 2024: £28m), Integration and restructuring costs (2025: £37m; 2024: £32m), and Amortisation of intangible assets (2025: £9m; 2024: £9m).
2 Depreciation expense of £5m (2024: £6m) relates to the UK segment (2025: £4m; 2024: £5m) and the International segment (2025: £1m; 2024: £1m). The expense has been charged to Underwriting result.
17.3 Selected segment assets and liabilities
UK
International
Central Functions
Total
As at 30 June 2025
£m
£m
£m
£m
Investments (note 4)
5,555
309
-
5,864
Net liability for incurred claims1
(2,661)
(991)
(440)
(4,092)
As at 31 December 2024
Investments (note 4)
5,652
294
-
5,946
Net liability for incurred claims1
(2,686)
(939)
(511)
(4,136)
1Represents the net liability for incurred claims before net payables included in incurred claims and the reclass of net claims reported under the GMM. Refer to note 7.3.
18. Additional information on the interim condensed consolidated statement of cash flows
18.1 Supplementary information on cash flows from operating activities
2025
2024
For the six month period ended 30 June
£m
£m
Adjustments for non-cash items
Net losses on investment portfolio
(35)
42
Depreciation and impairment of property and equipment
10
11
Amortisation and impairment of intangible assets
70
69
Amortisation of investments
(15)
(14)
Pension net interest and admin costs (note 16)
5
5
Gain on disposal of business
-
(90)
Derecognition and disposal of intangibles
12
3
Foreign exchange gain
(9)
(1)
Other
(2)
(1)
36
24
Changes in other operating assets/liabilities
Contributions to the defined benefit pension plans
(8)
(39)
Changes in insurance and reinsurance contracts
37
227
Other operating assets
(32)
(35)
Other operating liabilities
(14)
(19)
(17)
134
Other relevant cash flow disclosures - operating activities
Interest paid
(2)
(2)
Interest received
110
97
Dividends received
8
5
116
100
18.2 Composition of cash and cash equivalents
2025
2024
As at 30 June
£m
£m
Composition of cash and cash equivalents
Cash
217
227
Cash equivalents
74
370
Cash and cash equivalents
291
597
19. Related party transactions
19.1 Transactions with parent company
The Company's parent company is 2283485 Alberta Limited, a wholly owned subsidiary of IFC, the ultimate controlling party.
During the six month period to 30 June 2025, the Group paid an ordinary dividend of £160m on 17 June to 2283485 Alberta Limited. During the six month period to 30 June 2024 there were no related party transactions with 2283485 Alberta Limited.
19.2 Other related party transactions
The Group has a reinsurance arrangement with Unifund, a member of the IFC Group. Under the terms of the arrangement the insurance risk of the proportion of Unifund's business covered by the quota share agreement is transferred to the Group. The Group pays a reinsurance commission in relation to the quota share agreement and the agreement covers 60% of Unifund's existing insurance liabilities. No new business has been ceded after 31 December 2024. The Group also has a reinsurance arrangement with Belair, also a member of the IFC group. Under the terms of this arrangement, the insurance risk of a proportion of Belair's business covered by the quota share agreement is transferred to the Group. The Group pays a reinsurance commission in relation to the quota share agreement and the agreement covers 40% of Belair's unexpired insurance business at 1 January 2024 and new written premiums for all lines of business. Collateral assets, comprising assets held in trust and a letter of credit, have been pledged by the Group as security against the outstanding balances for the Unifund and Belair quota shares.
The Group also has other reinsurance arrangements (some of which are secured by pledging collateral assets) and fronting transactions with entities that are part of the IFC group. Under these arrangements, risk is transferred to or from the Group on a risk-by-risk basis.
The amounts relating to the above related party transactions included in the interim condensed consolidated income statement are provided in the table below:
2025
2024
For the six month period ended 30 June
£m
£m
Income (expenses) recognised in:
Insurance revenue
280
413
Insurance service expenses
(242)
(363)
Income from reinsurance contracts
5
7
Expenses from reinsurance contracts
(19)
(24)
Net investment expense
(1)
-
The amounts relating to the above related party transactions included in the interim condensed consolidated statement of financial position are provided in the table below:
30 June 2025
31 December 2024
As at
£m
£m
Assets and liabilities recognised in:
Debt and fixed income securities
839
942
Equity securities
-
7
Reinsurance contract assets
33
32
Other assets
6
7
Insurance contract liabilities
(880)
(996)
Other liabilities
(30)
(26)
20. Alternative Performance Measures
IFRS reconciliation to management P&L
For the six month period ended 30 June 2025
£m
IFRS
Underwriting result
Investment result
Central costs
Business operating result
Other income and charges
Profit before tax
Insurance revenue
1,958
1,958
1,958
1,958
Insurance service expense
(1,610)
(1,610)
(1,610)
(1,610)
Insurance service result from insurance contracts
348
Expense from reinsurance contracts
(271)
(271)
(271)
(271)
Income from reinsurance contracts
87
87
87
87
Net expense from reinsurance contracts
(184)
Insurance service result
164
Net investment income
126
126
126
126
Net gains on investment portfolio
16
16
16
Net investment return
142
Insurance finance expense
(81)
(81)
(81)
Reinsurance finance income
17
17
17
Net insurance financial result
(64)
Net investment return and net insurance financial result
78
Other net losses
(4)
(4)
(4)
Other income and expense
(74)
(44)
(16)
(60)
(14)
(74)
Integration and restructuring costs
(79)
(79)
(79)
Finance costs
(5)
(5)
(5)
Profit before tax
80
120
126
(16)
230
(150)
80
Income tax expense
(3)
Profit
77
Reconciliation of Insurance revenue to Net written premiums
For the six month period ended 30 June 2025
£m
Insurance revenue
1,958
Movement in gross earned premium
(6)
Other income
(10)
Reinsurance written premiums
(406)
Revenue for internal contracts
136
Revenue measured under GMM
34
Net written premiums (note 17)
1,706
For the six month period ended 30 June 2024
£m
IFRS
Underwriting result
Investment result
Central costs
Business operating result
Other income and charges
Profit before tax
Insurance revenue
2,186
2,186
2,186
2,186
Insurance service expense
(1,825)
(1,825)
(1,825)
(1,825)
Insurance service result from insurance contracts
361
Expenses from reinsurance contracts
(283)
(283)
(283)
(283)
Income from reinsurance contracts
101
101
101
101
Net expense from reinsurance contracts
(182)
Insurance service result
179
Net investment income
123
123
123
123
Net losses on investment portfolio
(74)
(74)
(74)
Net investment return
49
Insurance finance expense
(55)
(55)
(55)
Reinsurance finance income
21
21
21
Net insurance financial result
(34)
Net investment return and net insurance financial result
15
Other net gains
92
92
92
Other income and expense
(56)
(33)
(8)
(41)
(15)
(56)
Integration and restructuring costs
(75)
(75)
(75)
Other finance costs
(5)
(5)
(5)
Profit before tax
150
146
123
(8)
261
(111)
150
Income tax expense
(20)
Profit
130
Reconciliation of Insurance revenue to Net written premiums
For the six month period ended 30 June 2024
£m
Insurance revenue
2,186
Movement in gross earned premium
365
Other income
(5)
Reinsurance written premiums
(461)
Revenue for internal contracts
101
Revenue measured under GMM
(39)
Net written premiums (note 17)
2,147
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF-YEARLY FINANCIAL REPORT
We confirm that to the best of our knowledge:
The condensed set of financial statements has been prepared in accordance with the UK-adopted IAS 34 - Interim Financial Reporting and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Group.
The interim management report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
Signed on behalf of the Board
Karim Hirji Ken Norgrove
Chief Financial Officer Chief Executive Officer
5 August 2025 5 August 2025
INDEPENDENT REVIEW REPORT TO RSA INSURANCE GROUP LIMITED (the 'Company' and 'Group')
Conclusion
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprises the interim condensed consolidated statement of financial position, the interim condensed consolidated income statement, the interim condensed consolidated statement of comprehensive income, the interim condensed consolidated statement of changes in equity, the interim condensed consolidated statement of cash flows and the related explanatory notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.
Ernst & Young LLP
London
05 August 2025
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