Half-year Financial Report
5 August 2026
RSA Insurance Group Limited
(the "Company")
2026 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 2026 are available on the Company's website at www.intactinsurance.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 2026 Interim Results for the period ended 30 June 2026.
Enquiries:
Jon 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 2026
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 (Intact).
RSA Insurance Group Limited and its subsidiaries (known as the Group) 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, the Group currently offers Commercial lines and Specialty lines insurance. In Commercial lines, the Group is largely focused on offering a range of Property and Casualty coverage, mainly for small to medium sized operations. In Specialty lines, the Group provides a broad range of insurance solutions, tailored to meet the unique needs of specific industry segments and diverse customer groups including multi-nationals, largely in the London market, and distributed through brokers under the Intact brand.
In Ireland, the Group offers Personal and Commercial insurance through a multi-channel distribution network, including 123.ie (our direct-to-consumer brand), independent brokers and affinity partnerships.
In Europe, we offer specialty and commercial products through the Intact Insurance brand via brokers in France, Belgium, Spain and the Netherlands.
The Group also provides reinsurance to other companies within the wider Intact group and has a quota share arrangement with Belair Insurance Company Inc. (Belair), under which the insurance risk for a proportion of the business of that company is transferred to the Group. Further information is provided in note 19 - Related party transactions.
Business review
The Group reports a loss before tax of £47m for the six month period ended 30 June 2026 (six month period ended 30 June 2025: £80m profit). Net written premiums1 for the six month period ended 30 June 2026 are £1,692m (six month period ended 30 June 2025: £1,706m) and net assets at 30 June 2026 are £2,792m (30 June 2025: £2,703m).
The loss before tax of £47m consists of £(13)m underwriting result (six month period ended 30 June 2025: £120m), investment result of £121m (six month period ended 30 June 2025: £126m), £(4)m of central costs (six month period ended 30 June 2025: £(16)m), and £(151)m of other charges (six month period ended 30 June 2025: £(150)m).
The underwriting result for the six month period ended 30 June 2026 has been adversely impacted by elevated levels of catastrophe losses and large losses. The financial results for the period also reflect the process of repositioning the UK business to commercial and specialty lines insurance and include £(69)m of Integration and restructuring costs (six month period ended 30 June 2025: £(79)m). There was a net reduction of £(53)m in the net investment result, primarily due to adverse valuation and foreign exchange movements. This was materially offset by movements in the net insurance finance result, other net gains and losses, and other income and expenses.
In 2023, the Group acquired Direct Line Insurance Group plc's (DLG) brokered commercial lines operations through various agreements, including a quota share reinsurance agreement. The insurance policies subject to the quota share agreement remained the legal responsibility of DLG until 1 April 2026, when the High Court of Justice in England and Wales approved their transfer to the Group. Refer to note 7.2 - Transfer of insurance contracts for further details.
The Group paid an interim ordinary dividend of £30m 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 £1,692m (six month period ended 30 June 2025: £1,706m): represents the total amount of premiums for new and renewed policies written during 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 £13m loss (six month period ended 30 June 2025: £120m profit). 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.
Loss before tax £47m (six month period ended 30 June 2025: £80m profit): 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 2025 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 2026
31 December 2025
As at
Note
£m
£m
Assets
Investments
Cash and cash equivalents
4
240
142
Financial assets
4
6,210
6,078
Investment property
4
380
379
Total investments
6,830
6,599
Reinsurance contract assets
7
1,262
1,231
Income taxes receivable
15
16
-
Deferred tax assets
273
279
Property and equipment
122
112
Intangible assets
8
449
441
Goodwill
8
349
350
Other assets
9
267
271
Total assets
9,568
9,283
Liabilities
Insurance contract liabilities
7
6,267
5,927
Income taxes payable
4
5
Deferred tax liabilities
1
1
Debt outstanding
10
7
6
Other liabilities
9
497
475
Total liabilities
6,776
6,414
Equity
Share capital
11
1,563
1,563
Retained earnings
1,214
1,281
Other reserves
15
25
Total equity
2,792
2,869
Total liabilities and equity
9,568
9,283
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
The interim condensed consolidated financial statements were approved on 4 August 2026 by the Board of Directors and are signed on its behalf by:
Karim Hirji
Chief Financial Officer
Interim Condensed Consolidated Income Statement (unaudited)
2026
2025
For the six month period ended 30 June
Note
£m
£m
Insurance revenue
7
1,840
1,958
Insurance service expense
7
(1,760)
(1,610)
Insurance service result from insurance contracts
80
348
Expense from reinsurance contracts
7
(233)
(271)
Income from reinsurance contracts
7
180
87
Net expense from reinsurance contracts
(53)
(184)
Insurance service result
27
164
Net investment income
13
121
126
Net (losses) gains on investment portfolio
13
(32)
16
Net investment return
89
142
Insurance finance expense
13
(60)
(81)
Reinsurance finance income
13
19
17
Net insurance financial result
(41)
(64)
Net investment return and net insurance financial result
48
78
Other net gains (losses)
14
2
(4)
Other income and expense
14
(53)
(74)
Integration and restructuring costs
(69)
(79)
Finance costs
(2)
(5)
(Loss) profit before tax
(47)
80
Income tax credit (expense)
15
20
(3)
(Loss) profit
(27)
77
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
Interim Condensed Consolidated Statement Of Comprehensive Income (unaudited)
2026
2025
For the six month period ended 30 June
£m
£m
(Loss) profit
(27)
77
Items that may be reclassified to the income statement:
Exchange (losses) gains net of tax on translation of foreign operations
-
1
Fair value (losses) gains on FVTOCI assets net of tax
(10)
17
(10)
18
Items that will not be reclassified to the income statement:
Pension - remeasurement of defined benefit asset/liability net of tax
(10)
1
(10)
1
Other comprehensive (expense) income
(20)
19
Total comprehensive (expense) income
(47)
96
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
Fair value reserve
Foreign currency translation reserve
Retained earnings
Equity
For the six month period ended 30 June 2026
£m
£m
£m
£m
£m
Balance at 1 January 2026
1,563
(39)
64
1,281
2,869
Total comprehensive income
Loss
-
-
-
(27)
(27)
Other comprehensive expense
-
(10)
-
(10)
(20)
-
(10)
-
(37)
(47)
Transactions with owners of the Group
Contribution and distribution
Ordinary share dividends
-
-
-
(30)
(30)
-
-
-
(30)
(30)
Balance at 30 June 2026
1,563
(49)
64
1,214
2,792
For the six month period ended 30 June 2025
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
The following explanatory notes form an integral part of these interim condensed consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
2026
2025
For the six month period ended 30 June
Note
£m
£m
Operating activities
(Loss) profit before tax
(47)
80
Income tax paid
(4)
(4)
Adjustments for non-cash items
18
57
36
Changes in other operating assets and liabilities
18
298
(17)
Net cash flows provided by operating activities
304
95
Investing activities
Proceeds from sale of investments
2,424
2,187
Purchase of investments
(2,543)
(2,009)
Purchase of intangibles and property and equipment, net
(52)
(37)
Net cash flows (used in) provided by investing activities
(171)
141
Financing activities
Payment of lease liabilities
(6)
(6)
Payment of dividends on ordinary shares
(30)
(160)
Net cash flows used in financing activities
(36)
(166)
Net increase in cash and cash equivalents
97
70
Cash and cash equivalents, net of bank overdraft at beginning of the period
142
221
Cash and cash equivalents, net of overdraft at end of the period
18
239
291
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 Intact. Its parent is 2283485 Alberta Limited (a Canadian incorporated company), a wholly owned subsidiary of Intact, 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 2025. 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 2025 were approved by the board of directors on 3 March 2026 and delivered to the Registrar of Companies. The independent auditor's report on the Group accounts for the year ended 31 December 2025 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 4 August 2026.
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 2025, 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 Intact. 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 available capital is aligned to the Group's risk appetite. 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 2026
31 December 2025
30 June 2026
30 June 2025
EUR
1.16
1.15
1.15
1.19
CAD
1.88
1.85
1.85
1.83
USD
1.33
1.35
1.35
1.30
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 2025 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 2026 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 2025, except for the amendments to existing standards described below and adopted on 1 January 2026.
3.1 Amendments to the classification and measurement of financial instruments
In May 2024, the IASB published Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 to address matters identified during the post-implementation review of IFRS 9. The amendments clarify the classification of certain financial assets as well as the derecognition of a financial liability and introduce an accounting policy option for the derecognition of financial liabilities settled through electronic transfer if certain conditions are met. The amendments also add disclosure requirements for certain financial instruments.
The Group has elected to apply these amendments to all payments excluding contracts in the scope of IFRS 17 - Insurance contracts, with no restatement to the comparative figures. There was no significant impact on these interim condensed consolidated financial statements following the application of the amendments.
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 2026
£m
£m
£m
£m
£m
£m
Cash and cash equivalents
-
-
-
-
240
240
Debt & fixed income securities
2,621
387
-
2,407
-
5,415
Equity securities
-
549
-
-
-
549
Loans
-
-
-
-
246
246
Investment property
-
-
380
-
-
380
Total
2,621
936
380
2,407
486
6,830
As at 31 December 2025
Cash and cash equivalents
-
-
-
-
142
142
Debt & fixed income securities
2,356
363
-
2,555
-
5,274
Equity securities
-
551
-
-
-
551
Loans
-
-
-
-
253
253
Investment property
-
-
379
-
-
379
Total
2,356
914
379
2,555
395
6,599
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 2026
£m
£m
£m
£m
£m
£m
Cash and cash equivalents
-
240
-
-
240
240
Debt & fixed income securities
3,008
2,516
13
(122)
2,407
5,415
Equity securities
549
-
-
-
-
549
Loans
-
246
-
-
246
246
Investment property
380
-
-
-
-
380
Total
3,937
3,002
13
(122)
2,893
6,830
As at 31 December 2025
Cash and cash equivalents
-
142
-
-
142
142
Debt & fixed income securities
2,719
2,618
16
(79)
2,555
5,274
Equity securities
551
-
-
-
-
551
Loans
-
253
-
-
253
253
Investment property
379
-
-
-
-
379
Total
3,649
3,013
16
(79)
2,950
6,599
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 2026
31 December 2025
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
237
4
-
238
2
-
237
4
-
238
2
-
Not designated for hedge accounting
Currency forwards
246
1
4
299
3
1
Equity swaps
-
-
-
66
-
1
Inflation swaps
120
32
11
120
33
14
366
33
15
485
36
16
603
37
15
723
38
16
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 2026
£m
£m
£m
£m
Debt & fixed income securities
1,332
3,696
387
5,415
Equity securities
513
-
36
549
Investment Property
-
-
380
380
Derivative assets
-
37
-
37
Total assets measured at fair value
1,845
3,733
803
6,381
Derivative liabilities
-
15
-
15
Equities short sold position
143
-
-
143
Total liabilities measured at fair value
143
15
-
158
Level 1
Level 2
Level 3
Total
As at 31 December 2025
£m
£m
£m
£m
Debt & fixed income securities
1,210
3,701
363
5,274
Equity securities
510
-
41
551
Investment Property
-
-
379
379
Derivative assets
-
39
-
39
Total assets measured at fair value
1,720
3,740
783
6,243
Derivative liabilities
-
16
-
16
Equities short sold position
119
-
-
119
Total liabilities measured at fair value
119
16
-
135
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 2026
£m
£m
£m
£m
Balance, beginning of period
363
41
379
783
Gains / (losses)1
-
1
1
2
Purchases
87
-
-
87
Disposals
(63)
(6)
-
(69)
Balance, end of period
387
36
380
803
1Includes £100k of gains in relation to securities and property recognised on the Interim condensed consolidated statement of financial position at 30 June 2026. 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 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 losses are recognised in the Net gains (losses) on investment portfolio line in the Interim condensed consolidated income statement.
6.4 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
2026
2025
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
36
-
41
-
Debt & fixed income securities
Cash flows; discount rate
387
(6)
363
(6)
Investment property
Cash flows; discount rate
380
(28)
379
(28)
Total
803
(34)
783
(34)
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 2025: 50bps). Reasonably possible alternative assumptions for investment property have been determined using an increase of 50bps in the equivalent yield (31 December 2025: 50bps).
7. Insurance and reinsurance contracts
7.1 Insurance revenue
2026
2025
For the six month period ended 30 June
£m
£m
Contracts measured under PAA
1,811
1,991
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
28
(32)
Total insurance revenue
1,840
1,958
7.2 Transfer of insurance contracts
In 2023, the Group acquired the brokered commercial lines operations of Direct Line Insurance Group (DLG). The acquisition included a quota share reinsurance agreement, prior to the transfer of policy renewals. The policies subject to this agreement remained the legal responsibility of DLG until 1 April 2026, when following court approval, the Group became legally responsible for these policies, and the quota share reinsurance agreement was terminated.
On 1 April 2026, these policies were accounted for as acquired claims and treated as new insurance contracts issued by the Group. As a result, the Group reclassified £173m from LIC to LRC and £5m from AIC to ARC in relation to the quota share agreement. The Group also recognised £49m of LRC with a corresponding ARC for transferred claims, previously retained by DLG that could not be separated from the underlying policies. These have subsequently been ceded back to DLG. The Group's net exposure was unchanged after this transaction.
Refer to note 3.3 - Insurance and reinsurance contracts of the annual consolidated financial statements for the year ended 31 December 2025, for more details.
7.3 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
2026
2025
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
(376)
(5,551)
(5,927)
(371)
(5,477)
(5,848)
Changes in comprehensive income:
Insurance revenue
1,840
-
1,840
1,958
-
1,958
Incurred claims and other insurance service expense
1
(1,413)
(1,412)
33
(1,382)
(1,349)
Amortisation of insurance acquisition cash flows
(349)
-
(349)
(375)
-
(375)
Losses and reversals on onerous contracts
(9)
-
(9)
-
-
-
Adjustments to liabilities for incurred claims
-
10
10
-
114
114
Insurance service expense
(357)
(1,403)
(1,760)
(342)
(1,268)
(1,610)
Insurance service result from insurance contracts
1,483
(1,403)
80
1,616
(1,268)
348
Insurance finance expense
-
(60)
(60)
13
(94)
(81)
Exchange rate differences
(3)
4
1
(2)
(3)
(5)
Total changes in comprehensive income
1,480
(1,459)
21
1,627
(1,365)
262
Cash flows
Premium received
(1,943)
-
(1,943)
(1,972)
-
(1,972)
Claims and other insurance service expense paid
-
1,273
1,273
-
1,337
1,337
Insurance acquisition cash flows
358
-
358
388
-
388
Total cash flows
(1,585)
1,273
(312)
(1,584)
1,337
(247)
Transfer of contracts (note 7.2)
(222)
173
(49)
-
-
-
Insurance contract liabilities, end of period
(703)
(5,564)
(6,267)
(328)
(5,505)
(5,833)
Reinsurance contracts analysis by remaining coverage and incurred claims
2026
2025
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
17
1,214
1,231
(3)
1,313
1,310
Changes in comprehensive income:
Expense from reinsurance contracts
(233)
-
(233)
(272)
-
(272)
Amounts recoverable for incurred claims and other expenses
(2)
95
93
-
87
87
Loss recoveries and reversals on onerous contracts
4
-
4
-
-
-
Adjustments to assets for incurred claims
-
83
83
-
-
-
Income from reinsurance contracts
2
178
180
-
87
87
Net expense from reinsurance contracts
(231)
178
(53)
(272)
87
(185)
Reinsurance finance income
1
18
19
(1)
18
17
Exchange rate differences
-
-
-
(2)
2
-
Total changes in comprehensive income
(230)
196
(34)
(275)
107
(168)
Cash flows
Premium paid
215
-
215
313
-
313
Amounts received
-
(199)
(199)
-
(170)
(170)
Total cash flows
215
(199)
16
313
(170)
143
Transfer of contracts (note 7.2)
54
(5)
49
-
-
-
Reinsurance contract assets, end of period
56
1,206
1,262
35
1,250
1,285
7.4 Reconciliation of the liability for incurred claims to undiscounted value
30 June 2026
31 December 2025
Direct
Ceded
Net
Direct
Ceded
net
As at
£m
£m
£m
£m
£m
£m
Undiscounted value
(5,528)
1,093
(4,435)
(5,268)
1,070
(4,198)
Effect of time value of money
412
(78)
334
365
(71)
294
Undiscounted risk adjustment
(196)
39
(157)
(190)
43
(147)
Periodic payment orders1
(270)
122
(148)
(265)
123
(142)
Liability for incurred claims before net payables and claims reported under the GMM
(5,582)
1,176
(4,406)
(5,358)
1,165
(4,193)
Net payables included in incurred claims
(186)
82
(104)
(193)
50
(141)
Reclass of claims reported under the GMM
204
(52)
152
-
(1)
(1)
Liability for incurred claims
(5,564)
1,206
(4,358)
(5,551)
1,214
(4,335)
¹The net periodic payment orders are net of the discount and risk adjustment of £207m as at 30 June 2026 (£209m as at 31 December 2025).
7.5 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 2025 for more details.
30 June 2026
31 December 2025
1 year
3 years
5 years
10 years
1 year
3 years
5 years
10 years
GBP
4.5%
4.7%
4.9%
5.4%
4.0%
4.3%
4.5%
5.1%
EUR
2.8%
3.1%
3.2%
3.7%
2.3%
2.8%
3.1%
3.7%
CAD
2.9%
3.4%
3.6%
4.1%
2.7%
3.3%
3.6%
4.2%
USD
4.3%
4.6%
4.7%
5.1%
3.9%
4.0%
4.3%
4.8%
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 2026
31 December 2025
As at
£m
£m
Goodwill
349
350
Internally generated software
294
276
Trade names
-
5
Distribution networks
155
160
798
791
9. Other assets and liabilities
9.1. Other assets
30 June 2026
31 December 2025
As at
£m
£m
Financial assets related to investments
47
55
Other debtors
44
49
Pension plans in a surplus position (note 16)
54
54
Accrued interest and rent
82
70
Prepayments
40
43
Total other assets
267
271
Financial assets related to investments
Amounts receivable from investment brokers on unsettled trades
4
16
Investment property debtors
5
-
Derivative financial assets (note 5.1)
37
39
Collateral assets
1
-
Total financial assets related to investments
47
55
9.2. Other liabilities
30 June 2026
31 December 2025
As at
£m
£m
Financial liabilities related to investments
218
174
Other creditors
24
41
Accruals
150
160
Deferred income
-
1
Lease liabilities
81
72
Pension plans in a deficit position and unfunded plans (note 16)
2
3
Provisions
21
24
Bank overdraft
1
-
497
475
Financial liabilities related to investments
Accounts payable to investment brokers on unsettled trades
38
15
Derivative financial liabilities (note 5.1)
15
16
Collateral liabilities
22
24
Equities sold short position
143
119
218
174
10. Debt outstanding
Amortised cost
Maturity date
Initial term
Fixed rate
Coupon payment
Principal amount
30 June 2026
31 December 2025
As at
(years)
%
£m
£m
US bonds
Oct-29
30
8.95
Apr. & Oct.
$9m
7
6
7
6
The subordinated guaranteed US$ 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 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 but has to date not exercised this right.
There have been no defaults on any bonds during the period.
11. Share capital
The issued share capital of the parent company is fully paid and is summarised in the following table:
2026
2025
As at 30 June
Number
£m
Number
£m
Ordinary shares of £1 each
1,563,286,980
1,563
1,563,286,980
1,563
1,563,286,980
1,563
1,563,286,980
1,563
There have been no movements during the period of ordinary shares in issue or nominal value (30 June 2025: no movement).
12. Distributions declared and paid
2026
2025
For the six month period ended 30 June
£m
£m
Ordinary dividend
30
160
30
160
On 22 May 2026, an interim ordinary dividend of £30m was paid by the Company on behalf of the Group to 2283485 Alberta Limited (2025: £160m on 17 June).
13. Net investment return and net insurance financial result
13.1 Net investment return and net insurance financial result
2026
2025
For the six month period ended 30 June
£m
£m
Net investment income
121
126
Net (losses) gains on investment portfolio
(32)
16
Net investment return
89
142
Net insurance financial result
(41)
(64)
Net investment return and net insurance financial results
48
78
13.2 Net investment income
2026
2025
For the six month period ended 30 June
£m
£m
Interest income calculated using the effective interest method:
Debt securities classified as FVTOCI
45
53
Loans and cash and cash equivalents at amortised cost
10
11
Interest and similar income on securities classified or designated as FVTPL
56
51
Interest income
111
115
Dividend income on FVTPL equity securities
7
8
Investment property rental income
10
9
Investment income
128
132
Investment expense
(7)
(6)
Net investment income
121
126
13.3 Net gains (losses) on investment portfolio
2026
2025
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
(3)
-
(3)
1
-
1
Classified or designated as FVTPL
(23)
12
(11)
13
21
34
(26)
12
(14)
14
21
35
Derivatives1
-
(3)
(3)
1
(2)
(1)
Investment property
-
1
1
-
5
5
Net foreign currency losses
(16)
-
(16)
(23)
-
(23)
(42)
10
(32)
(8)
24
16
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
2026
2025
For the six month period ended 30 June
£m
£m
Change in the carrying amount of insurance contracts due to:
Unwind of discount
(101)
(107)
Changes in discount rates and other financial assumptions
23
(21)
Net foreign currency gains
18
47
Insurance finance expense
(60)
(81)
Change in the carrying amount of reinsurance contracts due to:
Unwind of discount
22
25
Changes in discount rates and other financial assumptions
(5)
6
Net foreign currency gains (losses)
2
(14)
Reinsurance finance income
19
17
Net insurance financial result
(41)
(64)
14. Other net (losses) gains and other income and expense
14.1 Components of other net (losses) gains
2026
2025
For the six month period ended 30 June
£m
£m
Other net foreign currency gains (losses)
2
(4)
2
(4)
14.2 Other income and other expense
2026
2025
For the six month period ended 30 June
£m
£m
Other income1
9
-
Other expense2
(62)
(74)
(53)
(74)
1Includes £6.8m compensation due from HMRC for the time value of money associated with historical income tax overpayments and £2.0m relating to chargeback 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
2026
2025
For the six month period ended 30 June
£m
£m
Current income tax (credit) expense
(15)
18
Deferred income tax (credit)
(5)
(15)
Total tax (credit) charge to income statement
(20)
3
15.2 Effective income tax rate
For the six month period ended 30 June
2026
2025
Statutory tax rates
25.0%
25.0%
(Decrease) increase in income tax rates resulting from:
Non-taxable investment income
4.0%
(3.1)%
Non-deductible expenses
(2.4)%
2.1%
Prior year tax expense
28.1%
-
Changes in tax legislation
(19.4)%
-
Recognition of prior year deferred tax assets
29.1%
(16.8)%
Change in unrecognised deferred tax assets
(18.3)%
(2.1)%
Different tax rates of subsidiaries operating in other jurisdictions
(0.1)%
(3.1)%
Other
(3.6)%
1.8%
Effective income tax rate
42.4%
3.8%
15.3 Income tax receivable
The income tax receivable balance of £16m held as at 30 June 2026 relates to historical income tax overpayments. As the receivable is due from a separate tax authority to the income tax payable balance, it is presented separately in the financial statements.
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 2026
31 December 2025
UK
Other
Total
UK
Other
Total
As at
£m
£m
£m
£m
£m
£m
Defined benefit obligation (funded)
(4,692)
(61)
(4,753)
(4,792)
(60)
(4,852)
Defined benefit obligation (unfunded)
(2)
-
(2)
(3)
-
(3)
Fair value of plan assets
4,739
79
4,818
4,842
76
4,918
45
18
63
47
16
63
Other net surplus remeasurements
(12)
-
(12)
(12)
-
(12)
Net DB asset
33
18
51
35
16
51
Recognised in:
Other assets - plans in a surplus position
35
18
53
38
16
54
Other liabilities - plans in a deficit position and unfunded plans
(2)
-
(2)
(3)
-
(3)
33
18
51
35
16
51
16.2 Employee future benefit recognised in the interim condensed consolidated income statement
2026
2025
As at 30 June
£m
£m
Net interest expense:
Interest expense on DB obligation
(130)
(132)
Interest income on plan assets
131
132
Other
(2)
(5)
(1)
(5)
16.3 Actuarial gains (losses) on employee future benefits, net of other surplus remeasurement, recognised in OCI
2026
2025
As at 30 June
£m
£m
Changes in discount rate used to determine the benefit obligation
161
43
Actual return on plan assets
(76)
(67)
Plan experience and change in other financial assumptions1
(84)
24
1
-
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 2025.
The weighted average principal actuarial assumptions used are:
UK
Other
30 June
31 December
30 June
31 December
2026
2025
2026
2025
%
%
%
%
Assumptions used in calculation of retirement benefit obligations:
Discount rate
5.73
5.45
4.20
4.30
Annual rate of inflation (RPI)
2.97
2.83
-
-
Annual rate of inflation (CPI)
2.47
2.33
2.35
2.20
Annual rate of increase in pensions1
2.85
2.75
2.35
2.20
Assumptions used in calculation of pension net interest costs for the year:
Discount rate
5.45
5.46
4.30
3.75
1
For the UK the annual rate of increase in pensions shown is the rate that applies to pensions that increase at RPI subject to a cap of 5%.
16.5 UK plans
During 2023, the Group announced that the Trustees of its two major UK DB pension plans had entered into an agreement with Pension Insurance Corporation (PIC) to purchase annuity buy-in insurance contracts (the buy-ins) as part of their de-risking strategy. The buy-ins transferred the remaining economic and demographic risks associated with the plans to PIC. On 10 June 2026, the plans commenced the wind-up process, with all liabilities expected to be bought out by PIC during 2027. As the plans' obligations to members are fully covered by the buy-ins, no further contributions are expected to be required by the Group and the wind-up is not expected to have a material impact on the Group's consolidated financial statements other than the derecognition of the related assets and liabilities.
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. International comprises operating segments based in Ireland and Europe. Central Functions includes the Group's internal reinsurance function, which includes reinsurance with the wider Intact 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 2026
£m
£m
£m
£m
Net written premiums (management basis note 20)
889
343
460
1,692
Underwriting result (note 20)1,2
(48)
6
29
(13)
Net investment income (note 13)
121
Central costs and other activities (note 20)
(4)
Business operating result (management basis)
104
Realised gains
6
Net insurance finance result, foreign exchange and gains (losses) on investments
(77)
Finance costs
(2)
Amortisation of intangible assets1
(8)
Pension net interest and administration costs (note 16)
(1)
Integration and restructuring costs1
(69)
Loss before tax
(47)
Tax on operations (note 15)
20
Loss
(27)
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 losses
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
1 Total amortisation expense is £39m (2025: £70m). This relates to the UK segment (2026: £36m; 2025: £68m) and the International segment (2026: £3m; 2025: £2m). The expense has been charged to Underwriting result (2026: £24m; 2025: £24m), Integration and restructuring costs (2026: £7m; 2025: £37m), and Amortisation of intangible assets (2026: £8m; 2025: £9m).
2 Depreciation expense of £8m (2025: £5m) relates to the UK segment (2026: £6m; 2025: £4m) and the International segment (2026: £2m; 2025: £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 2026
£m
£m
£m
£m
Investments (note 4)
5,769
441
-
6,210
Net liability for incurred claims1
2,756
1,040
610
4,406
As at 31 December 2025
Investments (note 4)
5,636
442
-
6,078
Net liability for incurred claims1
2,659
1,015
519
4,193
1 Represents 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
2026
2025
For the six month period ended 30 June
£m
£m
Adjustments for non-cash items
Net losses (gains) on investment portfolio
24
(35)
Depreciation and impairment of property and equipment
8
10
Amortisation and impairment of intangible assets
39
70
Amortisation of investments
(10)
(15)
Pension net interest and admin costs (note 16)
1
5
Derecognition and disposal of intangibles
-
12
Foreign exchange gain
(5)
(9)
Other
-
(2)
57
36
Changes in other operating assets/liabilities
Contributions to the defined benefit pension plans
-
(8)
Changes in insurance and reinsurance contracts
331
37
Other operating assets
(8)
(32)
Other operating liabilities
(25)
(14)
298
(17)
Other relevant cash flow disclosures - operating activities
Interest paid
(2)
(2)
Interest received
105
110
Dividends received
7
8
110
116
18.2 Composition of cash and cash equivalents
2026
2025
As at 30 June
£m
£m
Composition of cash and cash equivalents
Cash
156
217
Cash equivalents
84
74
Cash and cash equivalents
240
291
Bank overdraft, recorded in Other liabilities
(1)
-
Cash and cash equivalents, net of bank overdraft
239
291
19. Related party transactions
19.1 Transactions with parent company
The Company's parent company is 2283485 Alberta Limited, a wholly owned subsidiary of Intact, the ultimate controlling party.
During the six month period to 30 June 2026, the Company paid an ordinary dividend on behalf of the Group of £30m on 22 May to 2283485 Alberta Limited. During the six month period to 30 June 2025 the Company paid an ordinary dividend on behalf of the Group of £160m to 2283485 Alberta Limited.
19.2 Other related party transactions
The Group has a reinsurance arrangement with Belair, a subsidiary of Intact. 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 insurance 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 Belair quota share.
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 Intact 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:
2026
2025
For the six month period ended 30 June
£m
£m
Income (expenses) recognised in:
Insurance revenue
356
280
Insurance service expenses
(305)
(242)
Income from reinsurance contracts
6
5
Expenses from reinsurance contracts
(20)
(19)
Net investment expense
(1)
(1)
Other income and 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 2026
31 December 2025
As at
£m
£m
Assets (liabilities) recognised in:
Debt and fixed income securities
974
958
Equity securities
1
7
Reinsurance contract assets
34
29
Other assets
7
5
Insurance contract liabilities
(1,055)
(1,050)
Other liabilities
(32)
(32)
20. Alternative Performance Measures
IFRS reconciliation to management P&L
For the six month period ended 30 June 2026
£m
IFRS
Underwriting result
Investment result
Central costs
Business operating result
Other income and charges
Profit before tax
Insurance revenue
1,840
1,840
1,840
1,840
Insurance service expense
(1,760)
(1,760)
(1,760)
(1,760)
Insurance service result from insurance contracts
80
Expense from reinsurance contracts
(233)
(233)
(233)
(233)
Income from reinsurance contracts
180
180
180
180
Net expense from reinsurance contracts
(53)
Insurance service result
27
Net investment income
121
121
121
121
Net losses on investment portfolio
(32)
(32)
(32)
Net investment return
89
Insurance finance expense
(60)
(60)
(60)
Reinsurance finance income
19
19
19
Net insurance financial result
(41)
Net investment return and net insurance financial result
48
Other net gains
2
2
2
Other income and expense
(53)
(40)
(4)
(44)
(9)
(53)
Integration and restructuring costs
(69)
(69)
(69)
Finance costs
(2)
(2)
(2)
Loss before tax
(47)
(13)
121
(4)
104
(151)
(47)
Income tax credit
20
Loss
(27)
Reconciliation of Insurance revenue to Net written premiums
For the six month period ended 30 June 2026
£m
Insurance revenue
1,840
Movement in gross earned premium
90
Other income
(2)
Reinsurance written premiums
(330)
Revenue for internal contracts
123
Revenue measured under GMM
(29)
Net written premiums (note 17)
1,692
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
Expenses 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 losses 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)
Other 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
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
4 August 2026 4 August 2026
INDEPENDENT REVIEW REPORT TO RSA INSURANCE GROUP LIMITED (the 'Company' and 'Group')
Conclusion
We have been engaged by RSA Insurance Group Limited (the 'Company' and 'Group') to review the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2026 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 consolidated financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2026 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 consolidated financial statements of the Group are prepared in accordance with UK adopted international accounting standards. The condensed set of consolidated 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 consolidated 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
04 August 2026
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