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Basis of preparation (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure of basis of preparation of financial statements [Abstract]  
Disclosure of reconciliation of changes in insurance contracts by components [text block] The table below summarises the approach the Group has applied to groups of insurance contracts at the transition date and the resulting CSM.
CSM at transition date
Year contracts initially recognisedTransition approach£m%
Contracts initially recognised prior to 1 January 2016
Fair value approach1
1,419 74 
Contracts initially recognised after 1 January 2016Full retrospective approach508 26 
1,927 100 
1    The fair value element of the CSM was determined as the difference between the fair value of a group of contracts and the fulfilment cash flows at 1 January 2022. Fair value was determined using an economic value creation model which relied on a number of judgements, assumptions and non-observable inputs including: the market participant in the transaction shared the same characteristics as the Group, the best estimate assumptions were aligned to those used by the Group in its 1 January 2022 regulatory calculations and the required capital in the model was based on the capital requirement, plus the additional internal capital buffer, at that date. The model considered the expected profit arising in each future period as the value of the realistic cash flow less the release of required capital. The stream of profits derived was then discounted at a required rate of return. The Group has applied the simplification permitting contracts in different annual cohorts to be grouped together into a single group for measurement purposes.
2023
Contractual service margin
LifePresent
value of
future
cash
flows
£m		Risk
adjustment
for non-
financial
risk
£m		Contracts
measured
under the
modified
retrospective
approach
£m		Contracts
measured
under the
fair value
approach
£m		Other
contracts
£m		Total
£m		Total
£m
At 1 January
Insurance contract assets– – – – – – – 
Liabilities arising from insurance and participating investment contracts1
(104,545)(1,165)– (1,441)(2,769)(4,210)(109,920)
Net asset (liability)(104,545)(1,165)– (1,441)(2,769)(4,210)(109,920)
 
Relating to current services
CSM recognised for services provided– – – 130 199 329 329 
Changes in risk adjustment for non-financial risk for risk expired– 84 – – – – 84 
Experience adjustments99 – – (1)(2)(3)96 
99 84 – 129 197 326 509 
Relating to future services
Contracts initially recognised in the year107 (86)– – (92)(92)(71)
Changes in estimates that adjust the CSM390 (12)– (170)(208)(378)– 
Changes in estimates that result in losses and reversal of losses on onerous contracts109 20 – – – – 129 
606 (78)– (170)(300)(470)58 
Relating to past services
Adjustments to liabilities for incurred claims– – – – – – – 
Insurance service result705 6 – (41)(103)(144)567 
Net finance income (expense) from insurance and participating investment contracts(11,621)– – 7 (70)(63)(11,684)
Exchange differences30 – – 2 – 2 32 
Total change in profit or loss(10,886)6 – (32)(173)(205)(11,085)
 
Cash flows
Premiums received(9,768)– – – – – (9,768)
Claims and other insurance service expenses paid10,721 – – – – – 10,721 
Insurance acquisition cash flows203 – – – – – 203 
1,156 – – – – – 1,156 
 
Transfer to other items in the balance sheet66 – – – – – 66 
 
At 31 December
Insurance contract assets– 1 – – – – 1 
Liabilities arising from insurance and participating investment contracts1
(114,209)(1,160)– (1,473)(2,942)(4,415)(119,784)
Net asset (liability)(114,209)(1,159)– (1,473)(2,942)(4,415)(119,783)
1    Excluding insurance acquisition assets.
Note 32: Reconciliation of measurement components of insurance contract balances continued
2022
Contractual service margin
LifePresent
value of
future
cash
flows
£m		Risk
adjustment
for non-
financial
risk
£m		Contracts
measured
under the
modified
retrospective
approach
£m		Contracts
measured
under the
fair value
approach
£m		Other
contracts
£m		Total
£m		Total
£m
At 1 January
Insurance contract assets149 (53)– (67)(5)(72)24 
Liabilities arising from insurance and participating investment contracts1
(121,344)(1,599)– (1,359)(583)(1,942)(124,885)
Net asset (liability)(121,195)(1,652)– (1,426)(588)(2,014)(124,861)
 
Relating to current services
CSM recognised for services provided– – – 123 122 245 245 
Changes in risk adjustment for non-financial risk for risk expired– 103 – – – – 103 
Experience adjustments(189)– – – (93)(93)(282)
(189)103 – 123 29 152 66 
Relating to future services
Contracts initially recognised in the year2
2,364 (646)– – (1,793)(1,793)(75)
Changes in estimates that adjust the CSM3
(158)603 – (83)(362)(445)– 
Changes in estimates that result in losses and reversal of losses on onerous contracts3
(1,835)424 – – – – (1,411)
371 381 – (83)(2,155)(2,238)(1,486)
Relating to past services
Adjustments to liabilities for incurred claims(4)4 – – – – – 
Insurance service result178 488 – 40 (2,126)(2,086)(1,420)
Net finance income (expense) from insurance and participating investment contracts16,055 – – (50)(55)(105)15,950 
Exchange differences(88)(1)– (5)– (5)(94)
Total change in profit or loss16,145 487 – (15)(2,181)(2,196)14,436 
 
Cash flows
Premiums received(8,861)– – – – – (8,861)
Claims and other insurance service expenses paid9,099 – – – – – 9,099 
Insurance acquisition cash flows200 – – – – – 200 
438 – – – – – 438 
 
Transfer to other items in the balance sheet67 – – – – – 67 
 
At 31 December
Insurance contract assets– – – – – – – 
Liabilities arising from insurance and participating investment contracts1
(104,545)(1,165)– (1,441)(2,769)(4,210)(109,920)
Net asset (liability)(104,545)(1,165)– (1,441)(2,769)(4,210)(109,920)
1    Excluding insurance acquisition assets.
2    Contracts initially recognised in the year, include present value of future cash flows of £2,281 million, risk adjustment of £(551) million and CSM of £(1,730) million relating to contracts that were modified to add a drawdown feature and recognised as new contracts.
3    The Group derecognised present value of future cash flows of £2,175 million, risk adjustment of £(534) million and CSM of £(399) million relating to contracts that were derecognised due to a contract modification to add a drawdown feature. The amounts derecognised are included within changes in estimates that adjust the CSM and changes that result in losses and reversal of losses on onerous contracts. A loss on contract derecognition modification of £1,242 million arose and was recognised in insurance service expense. Further details are provided in note 10.