Our focus on evaluating claims fairly and paying promptly has been a consistent differentiator.
Among the team’s projects this year has been building out our reputational risk solution, offered through the Custodian Consortium at Lloyd’s. This offers crisis management expertise for companies facing reputational damage and covers a pre-agreed figure for loss of profit and support for reputational remediation.
The group is of the view that some of the above metrics constitute alternative performance measures (APMs). Further information on our APMs can be found in the financial review on page 44 and in the glossary on page 205.
Our financial strength enables us to support long-term strategies for navigating change and keeping ahead of the curve in our markets.
Over 5,000 brokers provided feedback on our underwriting and claims service in our most recent survey.
Throughout this year the board and management have adapted well to working together in this virtual environment. I thank my fellow board members for their deep commitment to the business and our stakeholders. We have benefitted from the expertise of John Sauerland and Sir Andrew Likierman over the past five and six years respectively. As they retire from the board, we wish them very well for the future and we thank them for their valued contribution.
A further example was the launch of a new Transmission Failure product to cover the organisers of virtual events, as these are becoming increasingly prevalent. When we saw an increase in the frequency and severity of malicious ransomware attacks we started to scan our clients who have cyber coverage for vulnerabilities in order to reduce the threats to our clients and the potential for losses to them and the company.
Throughout the year we have achieved strong targeted growth and taken responsible action to manage our exposure in lines where COVID-19 and recession-related claims have led to capacity withdrawal elsewhere.
The short answer is yes. Our surplus capital is currently $476.3m, which at 23% is well within the range of the 15%-25% surplus we want to hold in excess of our Lloyd’s capital requirements. Our capital is in place to support the growth in our Lloyd’s, US and European businesses and we have enough capital for our planned 15%-20% growth this year in gross written premiums. We will be buying a bit more reinsurance in 2021 to take out the volatility in the areas of greatest growth, such as Directors’ & Officers’ liability and Financial Institutions. Regarding our claims-paying ability, this has never been in question. We have a thorough process in place that ensures that we sufficiently reserve for claims; and a strong, resilient review structure that ensures the amounts we set aside are fair given existing market conditions, yet robust enough to withstand any headwinds.
We made great progress on our inclusion & diversity (I&D) initiatives in 2020. With regard to gender, currently 36% of our executive committee and our board members are women. Whilst the makeup of the company is gender-balanced (48% women, 52% men) our objective is to ensure that balance is achieved across all levels and, importantly, across all areas. We’ve also been talking about the need for greater focus on race and ethnicity for a while. Now that we have made great strides forward on gender and are comfortable that we have the right processes in place to maintain our trajectory, we are keen to shift our focus and resources to achieve the same levels of success in ethnic diversity too. Our longest-standing network, PROUD@ Beazley, continues to go from strength to strength, extending its reach across the business – the latest virtual global pride event attracted strong attendance with over 400 employees showing support for the network. In the midst of the pandemic we also launched our mental well being network, with the dual objective of encouraging colleagues to actively manage their mental health and supporting more open and honest conversations on the topic. By partnering with Thrive, the mental wellbeing app, we can now offer 24/7 support to our employee population and give them direct access to effective tools and support at the touch of a button. We will continue to use data and insight to drive our I&D agenda, and I look forward to updating you on our continued progress in next year’s report.
Nick Furlonge, co-founder, retires as an executive member but becomes a non- executive of Beazley Furlonge Limited
Within the Lloyd’s market we are keen participants in the Product Innovation Facility (PIF), an initiative designed to speed up (re)insurance product development for new and emerging risks. Lloyd’s commitment to accelerating the market has accelerated during lockdown, which has been a positive development in tandem with the much improved growth prospects. Lockdown has also reminded us that our resilience as a market depends on continued collaboration and an openness to disrupt how we do things to deliver greater value for clients and thus society. This will be achieved through more efficient and effective products and services coupled with enhanced standards that improve business resilience.
Following several years of careful cycle management amid soft pricing and market losses, the Marine division achieved premiums of $337.4m and a combined ratio of 90%, as market conditions improved across most of the portfolio.
The marine war account also saw considerable growth in 2020, largely due to increased claims activity in and around the Persian Gulf driving additional premium payments.
The marine division continues to explore opportunities to embed data and analytics tools to derive more insight into the drivers of loss and how to mitigate them, working with third parties and enhancing proprietary data while looking ahead to more consistent growth opportunities in 2021.
Most areas of healthcare have seen steady growth and we have substantially increased the footprint of our pioneering Virtual Care product, which insures a multitude of risks facing digital health providers. We have rolled out the offering in six countries, at a time when remote health consultations have become commonplace under social distancing rules.
This also supported claims’ ability to manage additional requirements around the production of data and regulatory reports, to support the COVID-19 response at a Lloyd’s market level, and the vital ongoing work being undertaken as part of the Future at Lloyd’s programme.
Working closely with underwriters means we have more direct communication with clients on claims than ever before. By establishing relationships with both clients and brokers beyond the point of claim we are better positioned to manage and work collaboratively when something does happen.
Where the industry has excelled in this crisis is when we have challenged ourselves to go beyond what we thought possible in supporting our clients and partners to navigate through this crisis with flexible, innovative approaches that help them to steer towards a more certain future.
Responsible business committee Our responsible business committee is chaired by Emma Whiteacre and sponsored by executive member Richard Montminy. It reports into the executive committee and board. Our inclusion & diversity (I&D) committee leads on I&D within Beazley, and is led by Sarah Booth.
Renewable World installed solar panels to help improve living standards in Achham, West Nepal
• Rob Holmes ran the virtual London Marathon to raise funds for Saint Francis Hospice.
• Samantha Coffin ran over 50km in 10 days to raise funds for Macmillan Cancer Support.
• Helen Kemp and Linda Anderson walked 20 miles to raise funds for the Alzheimer’s Society.
Our community internships Due to lockdown, our community internship programme was postponed for this year. Instead we worked with our community partner The Brokerage and launched the Generation 2020 Academy. Through the academy, we supported our interns through a series of workshops and mentoring opportunities. These were designed to equip them with professional skills and prepare them for their future careers.
In preparation, our 2020 focus was on ensuring we used sustainable products in our fit-outs and furniture choices, partnered with local suppliers to minimise our carbon footprint.
Sarah Booth Chair of Inclusion & Diversity Steering Group Head of Investor Relations
The board is resolute in its duty to drive value for its shareholders with the money that was raised and very much positioned its decision-making and approval of the 2021 business plan around fixing underlying business trends and ensuring ‘good growth’.
The table below details the breakdown of our portfolio by asset class: Cash and cash equivalents 309.5 4.6 278.5 4.8 Fixed and floating rate debt securities
Tax Beazley is liable to corporation tax in a number of jurisdictions, notably the UK, the US and Ireland. Beazley’s effective tax rate is thus a composite tax rate mainly driven by the Irish, UK and US tax rates. The weighted average of the statutory tax rates for the year was (2.0%) (2019: 15.0%). The tax rate of (2.0%) is significantly lower than previous years due to this year’s composition of profits and losses across the group. Notwithstanding the overall loss before tax, some jurisdictions, notably with higher tax rates, were profitable. The effective tax rate has decreased in 2020 to 8.5% (2019: 12.6%). The decrease has been a result of, in addition to the lower weighted average of the statutory tax rates, lower favourable prior year tax adjustments in 2020 as compared to 2019.
Other assets Other assets are analysed separately in the notes to the financial statements. The items included comprise: • deferred acquisition costs of $384.9m
Capital structure Beazley aims to hold capital in excess of regulatory requirements in order to be best placed to swiftly take advantage of growth opportunities arising outside of our business plan, as well as to provide additional protection against downside events.
Beazley holds a level of capital over and above its regulatory requirements. The amount of surplus capital held is considered on an ongoing basis in light of the current regulatory framework, opportunities for organic or acquisitive growth and a desire to maximise returns for investors.
Resilience As lockdown extended and weeks turned to months, the risk management framework shifted gear and began focusing on monitoring staff resilience and looking for ways to offer greater support to all, not just those in most need. Our mental wellbeing network, founded in 2019, continues to not only educate all Beazley staff on mental wellbeing issues and provide a support network for those who are suffering but also to extend its reach and impact through the introduction of the Thrive app. The app helps with the early identification of and assistance with anxiety and depression, two of the most prevalent mental health illnesses in the workplace. This is in addition to the 30 volunteer trained mental health first aiders who offer support and guidance to our staff across the globe. The resilience of Beazley’s workforce has been particularly impressive given the challenges this year has thrown at us from a professional and personal perspective and there is much we should all be proud of.
To illustrate, whilst the average insurance claims costs of a US hurricane would increase 13% under scenario A, the cost of a 1:100 event would only increase 6%. This is because some of the policies will have been exhausted in the more extreme 1:100 event and so the additional effect of climate change will not increase the claims costs by as much.
To assess the risk within our insurance and investment portfolios, we have updated the following three stress tests, first reported in the 2019 report and accounts: • Scenario A – A sudden transition
• From an insurance portfolio perspective, the increased claims costs of a US hurricane under the three climatic scenarios are: Insurance portfolio
Risk management The group’s approach to risk management is set out on pages 55 to 62 and further detail is contained in note 2 to the financial statements on pages 149 to 162.
Disclosure of information to auditor The directors who held office at the date of approval of this directors’ report confirm that, so far as they are each aware, there is no relevant audit information of which the company’s auditors are unaware; and each director has taken all the steps that he or she ought to have taken as a director to make himself or herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
Board changes I am pleased to report that your board remains highly engaged in fulfilling its principal tasks of leading the company and overseeing the governance of the group. We have a strong board that has a good range of newer and more established directors.
Appointed: 12 June 2003* Experience: Andrew joined Beazley in June 2003 as Finance Director and became Chief Executive Officer in September 2008. Prior to that he held various financial positions within ING, NatWest and Lloyds Bank and was the Chief Financial Officer for the UK wholesale banking division of ING immediately prior to joining Beazley. Andrew was a Non-Executive Director of Man Group plc from 2013 to 2020. He qualified as a chartered accountant with Coopers and Lybrand in 1987. Committee: Executive committee (chair) Skills: strategy, investment, finance, mergers and acquisitions, leadership and people management.
Mutual Funds 52% Retail 11% Pensions 11% Insurance 7% SWF 6% Trading 5% ETF 2% Investment Trusts 2% Hedge funds 2% Directors 1% Charities 1%
Key responsibilities The chief executive is responsible for the implementation and delivery of the strategy agreed by the board and the day to day management of the business.
The primary role of the audit and risk committee in relation to financial reporting is to monitor the integrity of the financial statements of the group and any formal announcements relating to the group’s financial performance, and to review significant financial reporting judgements. The committee has continued to approach its review of the annual report as a whole with focus on behalf of the board on considering the concept of ‘fair, balanced and understandable’.
• received updates on the structure and effectiveness of the company’s risk management function.
Solvency II reporting During 2020 the committee has reviewed and approved the group’s 2019 Solvency and Financial Condition Report and Regular Supervisory Report summary as well as approving the Solvency II policy documentation for the group.
In 2020, the committee was focussed on both board and senior management succession as well as the emerging talent pipeline.
Responsibilities of the committee The committee’s main responsibilities are to, inter alia: • set the remuneration policy for the group for approval at the annual general meeting. The objective of such policy shall be to ensure that members of the executive management of the company are provided with appropriate incentives to encourage enhanced performance and are, in a fair and responsible manner, rewarded for their individual contributions to the success of the company; • recommend and where appropriate approve targets for performance related pay schemes and seek shareholder approval for any long term incentive arrangements; • recommend and approve the remuneration of the chair of the company; Membership and attendance – remuneration committee
Salaries for 2021 Given the exceptional level of effort and dedication shown by Beazley colleagues during the year in the face of the COVID-19 pandemic it was decided that salaries should be increased for 2021. The average employee salary has been increased by c.3.2%. Executive director salaries have been increased for 2021 by an average of c.2.6%, below the rate for the workforce.
I will be stepping down from the board at the 2021 AGM and will be handing over as chair of the committee to Christine LaSala. I’m very grateful to all those who have served as committee members in the period and to the staff and advisors who have given the committee excellent support.
Performance in 2020 Beazley delivered strong growth in 2020, with gross premiums written in a market that saw rates respond sharply to heightened claims activity in many lines of business. The loss before income tax of $50.4m and our combined ratio of 109% were significantly impacted by the volume of COVID-19 related claims. We achieved strong investment income in the face of volatile conditions.
Maximum bonus opportunity for executive directors was 400% of salary. ROE in the year was (2.5)%. Loss for the year was $50.4m. Despite strong individual performances the executive directors will not receive an annual bonus for 2020. Further details are set out on page 103.
• Increased focus on employee communication, engagement and wellbeing, resulting in employee engagement score increasing through lock down.
• Appointed a Sustainability Officer and provided the necessary resources to enable the further development of our sustainability strategy.
Assessment of individual contributions While a number of the specific individual objectives of the executive directors are considered commercially sensitive, the following provides details of executive director achievements which the committee took into account. Executive Objectives Achievements
• Quick and robust underwriting action taken in face of recession risk and COVID-19.
• Plans in place for IFRS 17 and 2020 deliverables achieved. =
Average executive director bonus as a percentage of salary c.272% c.333% c.294% c.291% c.272% c.150% c.73% c.212% c.0%
The fixed proportion is calculated based upon profit targets which are set through the business planning process and reviewed by a committee formed of executive committee members and functional specialists including the group actuary. Underwriting risk is taken into account when setting profit targets.
The employees used for the purposes of the table above were identified on a full-time equivalent basis as at 31 December 2020. Option A was chosen as it is considered to be the most accurate way of identifying the relevant employees. This captures all relevant pay and benefits and aligns to how the single figure table is calculated.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or actions can be predicted, this statement is not a guarantee as to the Group’s ability to continue as a going concern.
The work performed on the components, together with the additional procedures performed at Group level, gave us appropriate evidence for our opinion on the consolidated financial statements.
Valuation of Gross Insurance claims Liabilities of $5,454.1m and reinsurer’s share of IBNR of $1,034.4m (PY comparative Gross: $4,460.3m and reinsurer’s share of IBNR: $845.1m) Refer to the Audit and Risk Committee Report (pages 83 to 88; Accounting policies (pages 141 and 142); and Note 24 of the Consolidated Financial Statements (pages 185 to 194). One of the most significant financial statement risk areas from both a business and an audit perspective is the valuation and adequacy of the claims liabilities held by the Group. Gross claims liabilities, and the related reinsurance on IBNR are inherently uncertain and subjective by nature and therefore are more susceptible to fraud or error than other financial statement balances. A small manipulation of an assumption could have a significant impact on the result for the year. This could lead to insurance liabilities not falling within a reasonable range of estimates, resulting in a misstatement in the financial statements. Additionally, the valuation process is conditional upon the accuracy and completeness of the data. We have split the risk relating to the valuation of insurance liabilities into the following component parts: • Actuarial assumptions used in estimating gross IBNR and reinsurer’s share of IBNR; and • data
• Assessed whether the assumptions such as inflationary trends applied to key areas of uncertainties were appropriate based on our knowledge of the Group, industry practice and regulatory and financial reporting requirements.
• For a sample of policy estimates in respect of the 2020 underwriting year, we corroborated the estimated premium for all binders to third party supporting evidence such as third party signed slips. Additionally to corroborate estimates, including for coverholder business, where similar policies and binders have been written previously, we performed back testing against historic experience of estimated premium income compared to actual premium signed.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management. • We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the relevant laws and regulations related to elements of company law and tax legislation, and the financial reporting framework. Our considerations of other laws and regulations that may have a material effect on the financial statements included permissions and supervisory requirements of the Central Bank of Ireland (‘CBI’), Lloyd’s, Prudential Regulation Authority (‘PRA’), the Financial Conduct Authority (‘FCA’) and the UK Listing Authority (‘UKLA’).
Equity settled share based payments 22 – – – – 2.8 – 2.8 Acquisition of own shares in trust 22 – – – – (13.6) – (13.6) Transfer of shares to employees 22 – – – – 3.2 (2.7) 0.5 1 During the financial year ended 31 December 2020, the group raised $292.6m through a share issuance via a cash box structure. Merger relief under the
The financial statements were approved by the board of directors on 4 February 2021 and were signed on its behalf by: D L Roberts Chair
Cash flow from financing activities Acquisition of own shares in trust 22 (13.6) (13.6) (13.8) (13.8) Payment of lease liabilities (15.3) – (10.8) – Repayment of borrowings 25 – – (92.6) – Issuance of debt 25 – – 297.8 –
A number of new standards and interpretations adopted by the EU which are not mandatorily effective, as well as standards and interpretations issued by the IASB but not yet adopted by the EU, have not been applied in preparing these financial statements. The group does not plan to adopt these standards early; instead it expects to apply them from their effective dates as determined by their dates of EU endorsement. The group is still reviewing the upcoming standards to determine their impact: • IFRS 9: Financial Instruments (EU effective date: 1 January 2018, deferred in line with implementation of IFRS 17); • IFRS 9: Amendment: Prepayment Features with Negative Compensation (EU effective date: 1 January 2019, deferred in line with implementation of IFRS 17); • Interest Rate Benchmark Reform (IBOR) – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (effective date: 1 January 2021); • IFRS 17: Insurance Contracts (IASB effective date: 1 January 2023);1 and • IFRS 10 and IAS 28: Amendment: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
IFRS 9: Financial Instruments. The group qualifies for this exemption because, as at 31 December 2015, $5,040.7m or 95% of its total liabilities were connected with insurance. There has been no material change in the group’s activities since 31 December 2015, therefore the exemption still remains. The group has also disclosed information in relation to specific types of financial instruments to ensure the comparability with the entities applying IFRS 9. As such, fair values are disclosed separately for the group’s financial assets which are managed and evaluated on a fair value basis and those which meet the solely payments of principal and interest (SPPI) test under IFRS 9. Beazley plc as a standalone company adopted IFRS 9 from 1 January 2018. However, as the standalone company has no financial investments the adoption had an immaterial impact on its financial statements. Below is a table outlining the fair value of assets which are managed and evaluated on a fair value basis and those which meet the SPPI test under IFRS 9. The information on credit exposures can be found in note 2 to the financial statements on page 164.
Provision & claims The most critical estimate included within the group’s financial position is the estimate for insurance losses incurred but not reported (IBNR), which is included within total insurance liabilities and reinsurance assets in the statement of financial position and in note 24. This estimate is critical as it outlines the current liability for future expenses expected to be incurred in relation to claims. If this estimation was to prove inadequate then an exposure would arise in future years where a liability has not been provided for. The total estimate for insurance losses incurred but not reported gross of reinsurers’ share as at 31 December 2020 is $3,855.3m (2019: $3,196.6m). The total estimate for insurance losses incurred but not reported net of reinsurers’ share as at 31 December 2020 is $2,820.9m (2019: $2,351.5m) and is included within total insurance liabilities and reinsurance assets in the statement of financial position and in note 24.
In view of the several and direct liability of underwriting members at Lloyd’s for the transactions of syndicates in which they participate, only attributable shares of transactions, assets and liabilities of those syndicates are included in the group financial statements. The group continues to conclude that it remains appropriate to consolidate its share of the result of these syndicates and accordingly, as the group is the sole provider of capacity on syndicates 2623, 3622 and 3623, these financial statements include 100% of the economic interest in these syndicates. For the following syndicates to which Beazley is appointed managing agent, being syndicates 623, 6107, and 6050, for which the capacity is provided entirely by third parties to the group, these financial statements reflect Beazley’s economic interest in the form of agency fees and profit commission to which it is entitled. In 2018, 2019 and 2020 Beazley also consolidated 33.85% of the business written through syndicate 5623 on the 2018 year of account, which is aligned with Beazley Corporate Member No.3 Limited’s participation in the syndicate. There is no participation on the 2019 and 2020 year of account.
The eight categories of risk have also been considered in the context of the company (Beazley plc). The following areas are applicable to the company: market, operational, regulatory and legal, and liquidity. The following disclosures cover the company to the extent that these areas are applicable.
a) Senior management performance Management stretch is the risk that business growth might result in an insufficient or overly complicated management team structure, thereby undermining accountability and control within the group. As the group expands its worldwide business in the UK, North America, Europe, South America and Asia, management stretch may make the identification, analysis and control of group risks more complex.
2 Risk management continued Sensitivity analysis Fluctuations in the group’s trading currencies against the US dollar would result in a change to profit after tax and net asset value. The table below gives an indication of the impact on profit after tax and net assets of a percentage change in the relative strength of the US dollar against the value of sterling, the Canadian dollar and the euro, simultaneously. The analysis is based on information on net asset positions as at the balance sheet date.
The change in the duration of Syndicate loans is reflects a change in the repayment timeline assumption set by Lloyd’s. This revision now reflects a five year repayment timeline from the collection date.
1 Pension costs also include contributions made under the defined contribution scheme. Further information on the defined benefit pension scheme can be found in note 27.
12 Intangible assets continued The group’s intangible assets relating to syndicate capacity is allocated across all CGUs. The fair value of syndicate capacity can be determined from the latest Lloyds of London capacity auctions. Based upon the latest market prices, management concludes that the fair value exceeds the carrying amount and as such no impairment is necessary.
Equity funds 203.2 163.6 Hedge funds 442.1 354.0 Illiquid credit assets 227.9 216.6 Total capital growth assets 873.2 734.2 Total financial investments at fair value through statement of profit or loss 6,333.5 5,547.3
Our capital growth assets have no defined maturity dates and have thus been excluded from the above maturity table. However, all $203.2m (2019: $163.6m) of equity funds could be liquidated within two weeks, $267.7m (2019: $272.8m) of hedge fund assets within six months and the remaining $174.4m (2019: $81.2m) of hedge fund assets within 18 months, in normal market conditions. Illiquid credit assets are not readily realisable and principal will be returned over the life of these assets, which may be up to 12 years.
16 Financial assets and liabilities continued Valuation hierarchy The table below summarises financial assets carried at fair value using a valuation hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 – Valuations based on quoted prices in active markets for identical instruments. An active market is a market in which transactions for the instrument occur with sufficient frequency and volume on an ongoing basis such that quoted prices reflect prices at which an orderly transaction would take place between market participants at the measurement date. Included within level 1 are bonds, treasury bills of government and government agencies, corporate bonds and equity funds which are measured based on quoted prices in active markets.
Level 2 investments For the group’s level 2 debt securities our fund administrator obtains the prices used in the valuation from independent pricing vendors such as Bloomberg, Standard & Poor’s, Reuters, Markit and International Data Corporation. The independent pricing vendors derive an evaluated price from observable market inputs. The market inputs include trade data, two-sided markets, institutional bids, comparable trades, dealer quotes, news media, and other relevant market data. These inputs are verified in their pricing engines and calibrated with the pricing models to calculate spread to benchmarks, as well as other pricing assumptions such as Weighted Average life (WM), Discount Margins (DM), Default rates, and recovery and prepayments assumptions for mortgage securities. While such valuations are sensitive to estimates, it is believed that changing one or more of the assumptions to reasonably possible alternative assumptions would not change the fair value significantly.
(ii) Syndicate loans These are loans provided by our group syndicates to the Central Fund at Lloyd’s in respect of the 2019 and 2020 underwriting years. These instruments are not tradeable and are valued using discounted cash flow models, designed to appropriately reflect the credit and illiquidity risk of the instruments. The Syndicate loans have been classified as Level 3 investments because the valuation approach includes significant unobservable inputs and an element of subjectivity in determining appropriate credit and illiquidity spreads within the discount rates used in the discounted cash flow model. There is no market in which the instruments can be traded.
Weighted average share price (pence per option) 502.1 445.0 Weighted average exercise price (pence per option) 63.5 50.7 Average expected life of options 4.2 yrs 4.4 yrs Expected volatility 23.0% 22.8% Expected dividend yield 1.4% 1.2% Average risk-free interest rate 0.8% 0.8%
24 Insurance liabilities and reinsurance assets continued b) Unearned premiums reserve
Issuance of new debt 297.8 – – 297.8 Debt redemption – – (92.6) (92.6) Amortisation of capitalised borrowing costs 0.1 0.2 0.2 0.5 Foreign exchange gain – – (3.2) (3.2)
Contributions to the scheme are determined by a qualified actuary using the projected unit credit method as set out in the scheme rules and the most recent valuation was at 31 December 2020. According to the Schedule of Contributions, the group expects to contribute approximately $1.4m in each of the next two years.
Depreciation charge for the year (9.4) (3.5) (0.1) (13.0) Additions of right of use assets 40.9 17.3 – 58.2 Disposals of right of use assets 0.2 1.5 0.1 1.8 Foreign exchange gain 2.6 0.9 – 3.5
The funds are held in trust and can be used to meet claims liabilities should syndicates fail to meet their claim liabilities.