Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 32

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 32
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 |     |       -460 |     |      8 |
| Deferred profit at 31 December 2024 |     4,216 |     |       686 |     |        118 |     |  5,020 |
| Deferred profit at 1 January 2023   |     3,661 |     |       909 |     |        538 |     |  5,108 |
| New business written                |       120 |     |         - |     |         53 |     |    173 |
| Release to income statement         |      -267 |     |       -85 |     |        -35 |     |   -387 |
| Other movements                     |       511 |     |      -122 |     |         22 |     |    411 |
| Deferred profit at 31 December 2023 |     4,025 |     |       702 |     |        578 |     |  5,305 |

1 Total deferred profit is represented by CSM and risk adjustment, both held on the balance sheet. CSM is released as insurance contract services are provided; risk adjustment is released as uncertainty within the calculation of the liabilities diminishes. Amounts are shown net of reinsurance.

2 Other products includes longstanding business and European business.

3 Bulk annuities for 2024 reflects the reinsurance agreement entered into as part of the agreed sale (subject to High Court approval) of the in-force bulk annuity portfolio to Rothesay Life plc, with the impact of the reinsurance agreement included within Other movements.

Volatility arising in the Insurance business

|                                   | 2024 
   £m |     | 2023 
   £m |
| Insurance volatility              |  -56 |     |  198 |
| Policyholder interests volatility |  162 |     |  116 |
| Total volatility                  |  106 |     |  314 |
| Insurance hedging arrangements    | -442 |     | -422 |
| Total1                            | -336 |     | -108 |

1 Total insurance volatility is included within market volatility and asset sales, which in total resulted in a loss of £144 million in 2024 (2023: gain of £35 million). See page 29.

Insurance volatility impacts statutory profit before tax (through volatility and asset sales) but does not impact underlying profit, which is based on an expected return. The impact of the actual return differing