REG - RSA Insurance Group - Half-year Report
06/08/2025 08:15
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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 (http://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
(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
premiums(1) 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 premiums(1) £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 result(1) £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.
(1)Net 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
(1)Includes £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
(1)Includes £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)
(1)The 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 orders(1) (262) 118 (144) (250) 117 (133)
Liability for incurred claims before net payables and claims reported under (5,312) 1,220 (4,092) (5,385) 1,249 (4,136)
the GMM
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 Share premium
£m £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 Share premium
£m £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)
Derivatives(1) 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)
(1)Excluding 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 business(1) - 87
Other net foreign currency (losses) gains (4) 2
Other(2) - 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)
(1)Includes pension interest income
(2)Includes 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 Other(1) 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 assumptions(1) 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 (69)
investments
Finance costs (5)
Amortisation of intangible assets(1) (9)
Pension net interest and administration costs (note 16) (5)
Integration and restructuring costs(1) (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 (91)
investments
Finance costs (5)
Amortisation of intangible assets(1) (9)
Pension net interest and administration costs (note 16) (6)
Integration and restructuring costs(1) (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 claims(1) (2,661) (991) (440) (4,092)
As at 31 December 2024
Investments (note 4) 5,652 294 - 5,946
Net liability for incurred claims(1) (2,686) (939) (511) (4,136)
(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
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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