Deferred tax assets Deferred tax for the current year is based on a rate of 18% (2014: 20%). The following are the major deferred tax assets recognised by the Company and movements during the year: £m £m
The Company has recognised a deferred tax asset of £nil (2014: £1m) in other temporary differences in respect of deferred tax reliefs of £58m (2014: £58m). No deferred tax has been recognised in respect of £58m (2014: £55m) of deferred tax reliefs due to the unpredictability of future profits streams.
Net deferred tax assets of £8m (2014: £9m), that relate to tax jurisdictions in which the Company has suffered a loss in either the current or preceding period, have been recognised on the basis that future taxable profits will be available against which these can be utilised. The evidence for the future taxable profits is a forecast consistent with the three-year operational plans prepared by the relevant businesses, which are subject to internal review and challenge. Where relevant, the forecast includes extrapolations of the operational plans using assumptions consistent with those used in the plans.
Payable to related parties: Payable to subsidiaries, interest bearing loans 185 185
Interest is receivable on interest bearing loans to subsidiaries, which are repayable on 24 hours written notice. The rates of interest charged are at three months LIBOR + margins ranging from 0.6% to 2.5%.
Interest is payable on interest bearing loans from subsidiaries, which are repayable on 24 hours written notice; £170m (2014: £170m) at three months LIBOR plus 0.6% and £15m (2014: £15m) at three months LIBOR plus 200bps.
10) Share based compensation Full details of share based compensation plans are provided in note 19 to the consolidated financial statements.
RSA Annual Report and Accounts 2015178 Financial statements – Notes to the separate financial statements
Managing your Shareholding Information on how to manage your shareholding can be found at www.help.shareview.co.uk. If you do not find the information you require, you can send your enquiry via secure email from these pages. You will be asked to complete a form providing your name, address and shareholder reference number. If you require an email response, you will need to provide your email address.
You can elect to receive email notification of shareholder communications by registering at www.shareview.co.uk where you can also set up a bank mandate to receive dividends directly to your bank account and submit proxy votes for shareholder meetings. Shareholders may elect to receive a printed copy of the Annual Report and Accounts at any time by contacting Equiniti.
The Terms and Conditions of the Scheme have been amended to make it clearer that a scrip dividend will not be available in the event that a cash dividend is not paid (including where it is cancelled or deferred by the Board). The revised Terms and Conditions of the Scheme are available on the shareholder services area of the Company’s website or from Equiniti. Shareholders with a scrip dividend mandate in place need take no further action as your mandate remains effective until notified to the Registrar in writing.
For dividends where a Scrip alternative is offered, shareholders wishing to receive a Scrip dividend instead of a cash dividend should contact Equiniti for details or visit the shareholder services area of the Company’s website.
Low cost share dealing facilities Shareholders may purchase or sell their RSA Ordinary Shares through their stockbroker, a high street bank or one of the providers detailed below: Equiniti offer a telephone and internet dealing service. Commission is currently 1.5% on amounts up to £50,000 and 0.25% on the excess thereafter, with a minimum charge of £60 for telephone dealing and £45 for internet dealing. For telephone sales call +44(0) 345 6037 037. Lines are open 8.30am to 5.30pm (UK time), Monday to Friday, excluding English public holidays. For internet sales log on to www.shareview.co.uk/dealing. Please quote your shareholder reference number.
Stocktrade also offer a telephone dealing service. Commission is currently 1% which is subject to a minimum charge of £25. For telephone sales call +44(0) 131 240 0414 between 8.00am and 4.30pm, Monday to Friday. Please quote reference: ‘RSA Group dial and deal service’.
Shareholders are advised to be wary of any unsolicited advice, offers to buy shares at a discount, or offers of free reports about the Company. If you receive any unsolicited advice, make sure you get the correct name of the person and organisation and check that they are appropriately authorised by the FCA by visiting www.fca.org.uk. More information on protecting your investment can be found at If you do receive a fraudulent approach, please advise the FCA using the share fraud reporting form at www.fca.org.uk/scams or call the FCA Consumer Helpline on 0800 111 6768.
Tips on protecting your shares • Keep any documentation that contains your shareholder reference number in a safe place and destroy any documentation you no longer require by shredding it
Record date for the ordinary final dividend for 2015 and the first preference dividend 2016.
4 August 2016* Announcement of the half-year results for the six months ended 30 June 2016.
11 August 2016* Ex-dividend date for the second preference dividend for 2016.
12 August 2016* Record date for the second preference dividend for 2016.
8 September 2016* Ex-dividend date for the ordinary interim dividend for 2016.
3 October 2016* Payment date for the second preference dividend for 2016.
14 October 2016* Payment date of the ordinary interim dividend for 2016.
Claims Handling Expenses • The administrative cost of processing a claim (salary costs, costs of running claims centres, etc. and allocated share of the costs of head office units). Not the cost of the claim itself.
Claims Ratio (Loss Ratio) • Percentage of Net Earned Premiums which is paid out in claims and Claims Handling Expenses.
• The sum of the Claims Ratio, Expense Ratio and Commission Ratio. • Measures how much we pay out in claims and expenses for each unit of net premium received. • A COR of less than 100% indicates that we are writing profitable business. • Calculated as: Net Incurred Claims + Expenses + Commissions %
Economic Capital • The Group’s assessment of the capital we must hold to have a high confidence of meeting our obligations given our risk appetite.
• The regulatory authority for the conduct of the UK financial services industry.
Net Earned Premium (NEP) • The portion of Net Written Premiums for which we have already provided protection. This is included as income in the period.
Run-off • A situation where an insurer is no longer underwriting new business but continues to meet its liabilities under existing contracts.
Total Shareholder Return • A measure of performance based on the overall value to shareholders of their investment in the Group over a period of time. Includes the movement in the share price and dividends paid, expressed as a percentage of the share price at the beginning of the period.
• Claims incurred during the period expressed as a percentage of earned premiums, including claims handling expenses but excluding claims incurred in respect of large losses, weather events and subsidence losses.
• A measure of the underlying profits the Group earns, adjusted for profit/loss on disposal of subsidiaries, reorganisation and integration costs and acquisition costs, relative to opening tangible funds attributable to ordinary shareholders.
Underwriting Result • This is a measure of how well the Group has done excluding its investment performance and is calculated as: NEP – Net Incurred Claims (including Claims Handling Expenses) – Expenses – Commissions
Yield • Rate of return on an investment in percentage terms. • The dividend payable on a share expressed as a percentage of the market price.
The Group’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group’s forward-looking statements and, as a result, these forwardlooking statements are not guarantees of future performance of the Group and undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Neither the content of RSA’s website nor the content of any other website accessible from hyperlinks on RSA’s website is incorporated into, or forms part of, this document.