Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 59

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 59
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  - |     | -127,355 |
| Insurance acquisition assets                                   |               |        - |            |     |    - |     |             |      - |     |       | 23 |     |       23 |
| Insurance and participating investment contracts net           
 liability                                                      |               | -122,379 |            |     | -874 |     |             | -4,102 |     |       | 23 |     | -127,332 |

1 Excluding insurance acquisition assets.

2 Liabilities arising from insurance contracts relating to the disposal of the Group's bulk annuity business have been classified as disposal group liabilities.

On 13 March 2024, the Group entered into a business transfer agreement with Rothesay Life plc for the sale of the Group's bulk annuity business and to pursue the transfer of associated business assets and assumed liabilities under Part VII of the Financial Services and Markets Act 2000. A reinsurance agreement between the Group and Rothesay Life plc was signed on 30 April 2024 to materially de-risk the Group's bulk annuity portfolio. The Part VII transfer was completed on 11 June 2025.

At 31 December 2024, the Group presented the assets and liabilities relating to the bulk annuity business, including the reinsurance contract assets arising from the agreement between the Group and Rothesay Life plc, as a disposal group.

At the Part VII transfer date, the Group derecognised the assets and liabilities of the disposal group, comprising £4.9 billion of reinsurance contract assets, £5.1 billion of insurance contract liabilities, £50 million of goodwill and a £9 million deferred tax asset. Following the derecognition requirements in IFRS 17 for transfers of contracts to a third party, the Group recognised £179 million in insurance revenue, representing the release of CSM for future service at the transfer date. The derecognition of the goodwill and deferred tax asset was charged to other operating income. The overall pre-tax gain on derecognition of the disposal group was £120 million.

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED) (continued)

#### Note 6: Operating expenses
|                                                          | Half-year 
 to 30 Jun 
      2025 
        £m |     | Half-year 
 to 30 Jun 
      2024 
        £m |     | Half-year 
 to 31 Dec 
      2024