Insurance and participating investment contracts assets and liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Insurance Contract Assets and Liabilities [Abstract]

Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [text block]

	2023			2022
	Life £m	Non-life £m	Total £m	Life £m	Non-life £m	Total £m
Insurance contract assets	1	–	1	–	–	–
Liabilities arising from insurance and participating investment contracts1	(119,784)	(364)	(120,148)	(109,920)	(380)	(110,300)
Insurance acquisition assets	8	16	24	8	14	22
Net liabilities	(119,775)	(348)	(120,123)	(109,912)	(366)	(110,278)

1    Excluding insurance acquisition assets.

		2023				2022
		Liabilities for remaining coverage		Liability for incurred claims £m		Liabilities for remaining coverage		Liability for incurred claims £m
Life	Excluding loss component £m		Loss component £m		Total £m	Excluding loss component £m	Loss component £m		Total £m
At 1 January
Insurance contract assets		–	–	–	–	184	(160)	–	24
Liabilities arising from insurance and participating investment contracts1		(108,846)	(471)	(603)	(109,920)	(124,053)	(179)	(653)	(124,885)
Net asset (liability)		(108,846)	(471)	(603)	(109,920)	(123,869)	(339)	(653)	(124,861)
Insurance revenue
Contracts under the modified retrospective approach		–	–	–	–	–	–	–	–
Contracts under the fair value transition approach		1,467	–	–	1,467	1,266	–	–	1,266
Other contracts		1,027	–	–	1,027	636	–	–	636
		2,494	–	–	2,494	1,902	–	–	1,902
Insurance service expenses
Incurred claims and other directly attributable expenses		–	52	(1,949)	(1,897)	–	44	(1,795)	(1,751)
Adjustments to liabilities for incurred claims		–	–	–	–	–	–	–	–
Losses from drawdown contract modifications		–	–	–	–	(1,242)	–	–	(1,242)
Losses and reversal of losses on onerous insurance contracts		–	58	–	58	–	(244)	–	(244)
Amortisation of insurance acquisition cash flows		(88)	–	–	(88)	(85)	–	–	(85)
		(88)	110	(1,949)	(1,927)	(1,327)	(200)	(1,795)	(3,322)
Insurance service result		2,406	110	(1,949)	567	575	(200)	(1,795)	(1,420)
Net finance income (expense) from insurance and participating investment contracts		(11,576)	(105)	(3)	(11,684)	15,885	68	(3)	15,950
Exchange differences		32	–	–	32	(94)	–	–	(94)
Total change in profit or loss		(9,138)	5	(1,952)	(11,085)	16,366	(132)	(1,798)	14,436
Investment components		8,793	–	(8,793)	–	7,285	–	(7,285)	–
Cash flows
Premiums received		(9,768)	–	–	(9,768)	(8,861)	–	–	(8,861)
Claims and other insurance service expenses paid		–	–	10,721	10,721	–	–	9,099	9,099
Insurance acquisition cash flows		203	–	–	203	200	–	–	200
		(9,565)	–	10,721	1,156	(8,661)	–	9,099	438
Transfer to other items in the balance sheet		32	–	34	66	33	–	34	67
At 31 December
Insurance contract assets		1	–	–	1	–	–	–	–
Liabilities arising from insurance and participating investment contracts1		(118,725)	(466)	(593)	(119,784)	(108,846)	(471)	(603)	(109,920)
Net asset (liability)		(118,724)	(466)	(593)	(119,783)	(108,846)	(471)	(603)	(109,920)

1    Excluding insurance acquisition assets.

Note 31: Reconciliation of insurance balances for liability for remaining coverage and liability for incurred claims continued

		2023				2022
		Liabilities for remaining coverage		Liability for incurred claims £m		Liabilities for remaining coverage		Liability for incurred claims £m
Non-life	Excluding loss component £m		Loss component £m		Total £m	Excluding loss component £m	Loss component £m		Total £m
At 1 January
Insurance contract assets		–	–	–	–	–	–	–	–
Liabilities arising from insurance and participating investment contracts1		(22)	(1)	(357)	(380)	(32)	(4)	(286)	(322)
Net asset (liability)		(22)	(1)	(357)	(380)	(32)	(4)	(286)	(322)
Insurance revenue
Contracts under the modified retrospective approach		–	–	–	–	–	–	–	–
Contracts under the fair value transition approach		–	–	–	–	–	–	–	–
Other contracts		514	–	–	514	559	–	–	559
		514	–	–	514	559	–	–	559
Insurance service expenses
Incurred claims and other directly attributable expenses		–	–	(448)	(448)	–	5	(480)	(475)
Adjustments to liabilities for incurred claims		–	–	(3)	(3)	–	–	(57)	(57)
Losses and reversal of losses on onerous insurance contracts		–	1	–	1	–	(2)	–	(2)
Amortisation of insurance acquisition cash flows		(30)		–	(30)	7	–	–	7
		(30)	1	(451)	(480)	7	3	(537)	(527)
Insurance service result		484	1	(451)	34	566	3	(537)	32
Net finance income (expense) from insurance and participating investment contracts		–	–	(6)	(6)	–	–	(2)	(2)
Exchange differences		–	–	–	–	–	–	–	–
Total change in profit or loss		484	1	(457)	28	566	3	(539)	30
Investment components		–	–	–	–	–	–	–	–
Cash flows
Premiums received		(525)	–	–	(525)	(584)	–	–	(584)
Claims and other insurance service expenses paid		–	–	475	475	–	–	468	468
Insurance acquisition cash flows		38	–	–	38	28	–	–	28
		(487)	–	475	(12)	(556)	–	468	(88)
Transfer to other items in the balance sheet		–	–	–	–	–	–	–	–
At 31 December
Insurance contract assets		–	–	–	–	–	–	–	–
Liabilities arising from insurance and participating investment contracts1		(25)	–	(339)	(364)	(22)	(1)	(357)	(380)
Net asset (liability)		(25)	–	(339)	(364)	(22)	(1)	(357)	(380)

1    Excluding insurance acquisition assets.

Schedule of Average Yield Curves

The average yield curves (GBP currency) that were used to discount the estimates of future cash flows that do not vary based on the returns of the underlying items are as follows:

	1 year	5 year	10 year	20 year	30 year
2023	5.37	4.15	4.79	4.72	4.19
2022	6.11	5.15	5.03	4.84	4.42

Additional information about insurance contracts [text block]

The Group determines the quantity of benefits provided under each contract as follows:

Product	Basis
With-Profits and unit linked	Policyholder account value1
Annuities	Pre-vesting date2: defined amount payable Post-vesting date: annuity payout

1    Or the guaranteed benefits, if higher.

2    Immediate annuities have no pre-vesting date period.