There is considerable uncertainty in regard to the eventual outcome of the claims that have occurred by the end of the reporting period but remain unsettled. This includes claims that may have occurred but have not yet been notifi ed to the Group and those that are not yet apparent to the insured.
The Group uses a number of commonly accepted actuarial projection methodologies to determine the appropriate provision to recognise. These include methods based upon the following: · The development of previously settled claims, where payments to date are extrapolated for each prior year; · Estimates based upon a projection of claims numbers and average cost; · Notifi ed claims development, where notifi ed claims to date for each year are extrapolated based upon observed development of earlier years; · Expected loss ratios; · Bornhuetter-Ferguson method, which combines features of the above methods; · Bespoke methods for specialist classes of business.
Individually large and signifi cant claims are generally assessed separately, being measured either at the face value of the loss adjusters’ estimates, or projected separately in order to allow for the future development of large claims.
Sensitivities in the table below show the impact on the pre-taxation result considering an increase in loss ratio of 5%, and an increase in expenses of 10%.
As at 31 December 2018, the value of the discount on UK and Scandinavia annuities is £466m (2017: 455m). A decrease of 1% in the real discount rate would reduce the value of the discount by approximately £110m (2017: £100m). The sensitivity calculation has taken into consideration the undiscounted provisions for each class of business and the respective average settlement period.
The Group accounting policies in respect of insurance contract liabilities are described in note 4.
Provision for unearned premiums at 31 December net of held for sale 3,244 (739) 2,505
Provision for unearned premiums at 31 December net of held for sale 3,316 (729) 2,587
RSA Annual Report and Accounts 2018152 rsagroup.com 37) Insurance contract liabilities continued
Provisions for losses and loss adjustment expenses at 31 December 10,072 10,113
Consolidated claims development table gross of reinsurance prior £m £m £m £m £m £m £m £m £m £m £m
At end of accident year 9,128 2,533 2,802 2,981 2,839 3,145 2,823 2,931 2,830 2,999 3,259
Current year provision before discounting 849 136 98 211 252 414 481 596 903 1,489 3,259 8,688
RSA Annual Report and Accounts 2018154 rsagroup.com 37) Insurance contract liabilities continued
Consolidated claims development table net of reinsurance prior £m £m £m £m £m £m £m £m £m £m £m
At end of accident year 7,732 2,234 2,462 2,524 2,586 2,830 2,487 2,445 2,253 2,287 2,440
Current year provision before discounting 775 103 106 174 237 382 472 569 853 1,141 2,440 7,252
Present value of unfunded obligations (7) (92) (99) (7) (111) (118)
Schemes in defi cit (note 39) (7) (90) (97) (170) (112) (282)
The profi le of the members of the two main UK schemes at 30 September 2018 (the latest date at which full information is available) is as follows: Number
Deferred members – members no longer accruing and not yet receiving benefi ts 24,678
After retirement, pensions in payment are increased each year based on the increases in the Government indices for infl ation. A cap of 2.5% applies to benefi ts accrued post 31 December 2005 (a cap of 5% applied to benefi ts in excess of Guaranteed Minimum Pension prior to this date).
At the most recent funding valuations, the main UK funds had an aggregate funding defi cit of £468m, equivalent to a funding level of 95%. The Group and the Trustees have agreed funding plans to eliminate the funding defi cits by 2026. Details of the defi cit contributions paid in 2018 and that are due to be paid in 2019 under these plans are disclosed below. The funding plans will be reviewed again following the next triennial valuations which will have an effective date of 31 March 2021.
For the two main UK defi ned benefi t schemes, the level of contributions in 2018 was £120m (2017: £82m) of which £110m (2017: £65m) were additional contributions to reduce funding defi cits. Expected contributions to the two schemes for the year ending 31 December 2019 are approximately £94m including £86m of additional contributions to reduce the defi cit.
The maturity profi le of the undiscounted cash fl ows of the two main UK schemes is shown below: CASH FLOW – TOTAL LIABILITY £m
The Group also provides post-retirement healthcare benefi ts to certain current and retired Canadian employees. The benefi ts are not prefunded. Life insurance benefi ts, which provide varying levels of coverage, are provided at no cost to retirees. Healthcare benefi ts, which also provide varying levels of coverage, require retiree contributions in certain instances and benefi ts are generally payable for life.
The split of post-retirement liabilities across other countries is shown below: NON-UK LIABILITY SPLIT BY COUNTRY
The estimated discounted present values of the accumulated obligations are calculated in accordance with the advice of independent, qualifi ed actuaries.
Return on scheme assets less amounts in interest income – (409) – (409)
Return on scheme assets less amounts in interest income – 277 – 277
Where assets are classifi ed as unquoted they are: · taken from the underlying managers in the case of non-developed market equity, non-UK sovereign debt, pooled non-government debt and other pooled funds – these funds themselves will be subject to annual (or more frequent) audit
The mortality assumptions are set following investigations of the main schemes’ recent experience carried out by independent actuaries as part of the most recent funding valuations. The core mortality rates assumed for the main UK schemes follow industry-standard tables with percentage adjustments to refl ect the schemes’ recent experience compared with that expected under these tables.
Long-term future improvements to mortality rates Increase by 0.25% 61 78 1 The impact shown is for the appropriate increase in the revaluation of deferred pensions and the increases to pensions in payment resulting from the specifi ed increase in RPI and CPI.
Other provisions includes £13m (2017: £12m) held relating to vacant property leases, dilapidations and refurbishments, the costs relating to which will be borne across the period over which the leases expire, which is up to 20 years.
The balance consists of a number of provisions none of which are individually signifi cant.
Profi t for the year before tax from continuing operations 480 448
Fair value (gains) on disposal of fi nancial assets (31) (15)
Loss/(profi t) on disposal of business and realised losses/(gains) on held for sale assets 2 (69)
The operating lease payments recognised as an expense during the year are £48m (2017: £50m). The Group has no signifi cant lease agreements that include contingent rent.
The future aggregate minimum lease payments under non-cancellable operating leases are as follows: Land and buildings Other £m £m £m £m
In Canada the Group has purchased annuities from regulated Canadian life insurers in order to pay fi xed and recurring payments to certain claimants. This arrangement exposes the Group to a credit risk that the life insurers are unable to make these payments which is mitigated by an industry compensation scheme which in that event would assume a signifi cant majority of the remaining outstanding obligations. The likelihood of both a Canadian regulated life insurer and the industry compensation scheme being unable to pay their obligations is considered very remote and so no provision has been recognised in respect of this risk.
Subsidiaries are entities over which the Group has control. The Group controls a subsidiary if the Group has all of the following: · power over the subsidiary; · exposure, or rights, to variable returns from its involvement with the subsidiary; and
Identifi able assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifi able net assets acquired is recognised as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the consolidated income statement.
Associates are entities over which the Group has signifi cant infl uence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for by the equity method of accounting and are initially recognised at cost.
The results and fi nancial position of subsidiaries and associates whose functional currency is not Sterling are translated into Sterling as follows: · Assets and liabilities for each statement of fi nancial position presented are translated at closing exchange rates at the end of the period
· All resulting exchange differences are recognised in other comprehensive income and accumulated in the foreign currency translation reserve.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are recognised in other comprehensive income within the foreign currency translation reserve. Further information can be found in note 21. When a foreign entity is sold, the cumulative exchange differences relating to that foreign entity are recognised in the consolidated income statement as part of the gain or loss on sale.
· The hedge is expected to be highly effective in achieving offsetting changes in fair value or cash fl ows attributable to the hedged risk, consistent with the originally documented risk management strategy for that particular hedging relationship
Policy acquisition costs incurred in acquiring insurance contracts include commissions and premium levies directly related to the writing or renewal of insurance policies. These acquisition costs are deducted from unearned premiums and recognised in the consolidated income statement on the same basis as the unearned premiums.
Own shares are deducted from equity. No gain or loss is recognised on the purchase, sale, issue or cancellation of shares. Any consideration paid or received is recognised directly in equity.
Other operating income is comprised principally of: · Administration fee income: is received from policyholders in order for certain changes to their policy or policyholder details within their period of cover and is recognised in full on the date that the change is made.
· Premium policy instalment fee income: is received from policyholders as a fi nance charge on premiums paid in instalments and is recognised over the period that the instalments are made on a straight line basis.
· Service income refers to income received for operating a settlement function primarily for the Group and its Global Network Partners which is recognised over the period in which service is provided whilst the relevant business is earned.
The fair value of the employee share options and other equity settled share based payments is calculated at the grant date and recognised as an expense over the vesting period. The vesting of share awards is dependent on service and performance conditions, as well as market conditions. The assumption of the number of shares expected to vest is revised at the end of each reporting period, with the corresponding credit or charge recognised immediately in the income statement. Where an option is cancelled by an employee, the full value of the option (less any value previously recognised) is recognised at the cancellation date. The proceeds received by RSA upon exercise of share options, net of any transaction costs, are credited to share capital (nominal value) and share premium when the options are exercised, with a corresponding increase in equity.
Royal & Sun Alliance Insurance plc – Escritório de Representação no Brasil Ltda.
Canada 18 York Street, Suite 800, Toronto ON M5J 2T8, Canada 10622923 Canada Limited Common 10622923 Canada Limited(4) Preferred 3342484 Canada Limited 8301140 Canada Limited Common 8301140 Canada Limited(4) Preferred
90 Allstate Parkway Suite 500 Markham ON L3R 6H3 Canada 10122033 Canada Inc. Common 10122033 Canada Inc.(4) Class A Preferred 2029974 Ontario Inc.(8) Class A Common 2029974 Ontario Inc.(8) Class B Common 2029974 Ontario Inc.(4) Class C Special 2029974 Ontario Inc.(4) Class D Special 2029974 Ontario Inc.(4) Class E Special 2029974 Ontario Inc.(4) Class S Special 2029974 Ontario Inc.(8) Class V Special
Isle of Man 33–37 Athol Street, Douglas, IM1 1LB, Isle of Man
Offi ce No.203, 2nd Floor, Home Centre Building, Tahlia Street, Suleymaniyah, Riyadh, Kingdom of Saudi Arabia
Centrium Management Company Limited(3) 31.45 10 Buckingham Gate, London, SW1E 6LA, United Kingdom
Fitzwilliam House, 10 St Mary Axe, London, EC3A 8EQ, United Kingdom
Law Society House, 90–106 Victoria Street, Belfast, BT1 3GN, Northern Ireland
There are no entities where the Group holds more than 50% of the voting rights which are not subsidiaries other than Punchbowl.
7 In relation to Al Ahlia Insurance Company SAOC (listed on the Muscat Securities Market, Oman Stock Exchange) and Al Alamiya for Cooperative Insurance Company (listed on the Tadawul, Saudi Stock Exchange), the percentage held relates to the actual percentage of the share capital held and not the effective percentage held (which is 26.25% and 25.04% respectively).
8 Johnson Inc. holds all of the voting shares in 2029974 Ontario Inc. through the following share classes: Class A Common (0.0016% voting), Class B Common (0.0033% voting), Class V Special (99.9950% voting).
10 The UK Noble Marine entities were sold in February 2019.
The profi t for the year net of tax includes a tax charge of £1m (2017: credit £16m). There is no tax relating to fair value (losses)/gains.
Loss for the year net of tax – – – – – – (18) – (18)
Shares issued for cash (note 9) 1 3 – – – – – – 4
Shares issued for cash (note 9) 1 4 – – – – – – 5
The attached notes form an integral part of these separate fi nancial statements.
The profi t for the year net of tax was £213m (2017: £18m loss).
Cash and cash equivalents at the end of the year 3 3
RSA Annual Report and Accounts 2018172 rsagroup.com 1) Signifi cant accounting policies
RSA Insurance Group plc, (‘the Company’), incorporated in England and Wales, is the ultimate Parent Company of the RSA group of companies. The principal activity of the Company is to hold investments in its subsidiaries and the receipt and payment of dividends.
These separate fi nancial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU) and the Companies Act 2006 where applicable.
The accounting policies that are used in preparation of these separate fi nancial statements are consistent with the accounting policies used in preparation of the consolidated fi nancial statements of RSA Insurance Group plc as set out in those fi nancial statements.
Changes in the fair value of the investments in subsidiaries are recognised directly in equity in the statement of comprehensive income which is not re-classifi ed through profi t or loss on de-recognition.
The Company accounts for amounts owed from subsidiaries at amortised cost and determines an expected credit loss based on those default events that are possible within 12 months after the reporting date, or where the credit risk has increased signifi cantly since initial recognition on the basis of all possible default events over the life of debt.
Dividend income from investments in subsidiaries is recognised when the right to receive payment is established.
IFRS 9 ‘Financial Instruments’ which replaces IAS 39 ‘Financial Instruments: Recognition and Measurement’ became effective from 1 January 2018.
This standard primarily changes the classifi cation and measurement of fi nancial assets depending on the business model under which they are held, as well as recognising expected credit losses and changes to hedge accounting requirements.
IFRS 9 also replaces the ‘incurred loss’ model under IAS 39 with an “expected credit loss” (ECL) model as considered below: This is applicable to the amounts owed by subsidiaries to the Company, which it can seen from note 3 are repayable on 24 hours written notice.
As at the reporting date the credit risk on the amounts owed has not increased signifi cantly since initial recognition and so the ECL was determined by considering the ECL that would occur from those default events that are possible within 12 months based on the probability of default and the expected loss given default. Specifi cally the probability of default was considered together with the expected subsequent loss. It was concluded that the value of the ECL would be insignifi cant and so no ECL has been recognised at the reporting date.
As set out above, adoption of IFRS 9 did not result in any change in the carrying value of fi nancial assets nor recognition of an ECL and so consequently no restatement of comparatives or changes in retained earnings or reserves was necessary.
IFRS 16 ‘Leases’ which replaces the existing standard IAS 17, becomes effective, at the latest, for periods beginning on or after 1 January 2019 and is not expected to have any impact on the Company.
The amounts charged in respect of these services to the Company’s subsidiaries totalled £50m (2017: £56m).
Royal & Sun Alliance Insurance plc (RSAI), a subsidiary of the Company, has provided guarantees to the Company’s creditors for amounts arising from its loan capital agreements (as set out in note 35 to the consolidated fi nancial statements) and for amounts arising from its committed credit facilities (as set out in note 36 to the consolidated fi nancial statements). The guarantees relating to the loan capital agreements are subordinated to all other creditors of RSAI.
Full details of share based compensation plans are provided in note 18 to the consolidated fi nancial statements.
Full details of the dividends paid and proposed by the Company are set out in note 20 to the consolidated fi nancial statements.
The investments in subsidiaries are recognised in the statement of fi nancial position at fair value measured in accordance with the Company’s accounting policies. The Company’s investments are classifi ed as level 2 fi nancial assets. Fair value of the Company’s signifi cant subsidiary is determined by reference to the market value (derived from relevant indices) of the Company’s ordinary shares and loan capital instruments at the end of the reporting period, being the most transparent independent available indicator. The market value is adjusted for the fair value of the Company’s preference shares, assets and liabilities, excluding directly owned subsidiaries. The adjusting items have been fair valued by determining the present value of future cash fl ow projections, using an appropriate arm’s length discount rate. The remaining subsidiaries are held at fair value which has been determined to be net asset value.
The Directors believe that the methodology used supports the inclusion of the investments in subsidiaries in the statement of fi nancial position, at the fair values ascribed to them. The market value of the Company’s ordinary shares at 31 December 2018 was 513.6p. A movement of 1% in the share price would have an impact of £53m on the fair value.
Full details of the principal subsidiaries of the Company are set out in Appendix B to the consolidated fi nancial statements.
Deferred tax for the current year is based on a rate of 17% (2017: 17%). The following are the major deferred tax assets recognised by the Company and movements during the year: £m £m
No deferred tax has been recognised in respect of £23m (2017: £7m) of deferred tax reliefs due to the unpredictability of future profi ts streams.
Net deferred tax assets of £4m (2017: £6m), 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 profi ts will be available against which these can be utilised. The evidence for the future taxable profi ts 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.
Total other debtors and other assets – 1 9) Share capital
Ex-dividend date for the ordinary fi nal dividend for 2018 and the fi rst preference dividend for 2019
Record date for the ordinary fi nal dividend for 2018 and the fi rst preference dividend for 2019
Payment date for the ordinary fi nal dividend for 2018 1 August 2019*
Record date for the ordinary interim dividend for 2019 1 October 2019*
The APMs reported are monitored consistently across the Group to manage performance on a monthly basis. They are reviewed across various functions and levels and undergo rigorous internal quality assurance. Occasionally management may also report additional or adjusted APMs when circumstance requires to further enhance understanding. In 2018 additional proforma profi tability measures have been included to show the result of our ongoing business, given the signifi cant portfolio exits undertaken in the UK business and new reinsurance programmes.
Available For Sale (AFS) A class of fi nancial asset that is neither held for trading nor held to maturity.
Claims Frequency Average number of claims per policy over the year.
Claims Ratio (Loss Ratio) Percentage of net earned premiums that is paid out in claims and claims handling expenses.
Combined Operating Ratio (COR) A measure of underwriting performance calculated on an ‘earned’ basis as follows: COR = loss ratio + commission ratio + expense ratio, where
Constant Exchange (CFX) Prior period comparative retranslated at current period exchange rates. ◊ 4 N/a
Current Year Underwriting Result The profi t or loss earned from business for which insurance cover has been provided during the current fi nancial period.
Financial Conduct Authority (FCA) The regulatory authority with responsibility for the conduct of the UK fi nancial services industry.
Interest Costs Interest costs represent the cost of Group debt excluding any debt buy back costs. ◊ 1 O
Large Loss Ratio The large loss ratio is an expression of claims incurred in the period with a net cost of £0.5m or higher as a percentage of current year net earned premium over the same period.
Non-operating charges represent items that are excluded to arrive at the underlying profi t after tax measure.
To allow meaningful assessment of segmental performance where similar internally generated assets are not capitalised
To remove the impact of market volatility and investment rebalancing activity
Debt buy back costs To allow meaningful assessment of ongoing fi nance costs
Payout Ratio Ordinary dividends expressed as a percentage of underlying profi t after tax attributable to ordinary shareholders.
Property insurance covers loss or damage through fi re, theft, fl oods, storms and other specifi ed risks.
Return on Equity Profi t attributable to ordinary shareholders (profi t after tax excluding non-controlling interests, coupon on tier 1 notes and preference dividend) expressed in relation to opening ordinary shareholders' funds (opening ordinary shareholders funds less preference share capital).
Underwriting Result A measure of underwriting performance calculated as net earned premium less net claims and underwriting and policy acquisition costs.
Underlying profi t after tax expressed in relation to opening tangible net asset value.
Underlying Return on Equity Underlying profi t after tax expressed in relation to opening shareholders’ funds excluding preference share capital.
Weather Loss Ratio The weather loss ratio is an expression of weather losses in the period with a net cost of £0.5m or higher as a percentage of earned premium.
Income Gross written premiums 7,467 7,467 Less: reinsurance premiums (997) (997) Net written premiums 6,470 6,470 Change in the gross provision for unearned premiums 61 61 Less: change in provision for unearned reinsurance premiums 6 6 Change in provision for unearned premiums 67 67 Net earned premiums, analysed as 6,537 A 6,537
Net investment return 343 Other insurance income 138 E 138 Other operating income 138 Total income 7,018 Expenses Gross claims incurred (5,023) (5,023) Less: claims recoveries from reinsurers 543 543 Net claims, analysed as (4,480) F (4,480)
Earned CY commission (870) K (870) Earned PY commission (16) L (16) Earned CY operating expenses (1,059) M (1,059) Earned PY operating expenses – N – Underwriting and policy acquisition costs (1,945) (1,945) Unwind of discount (33) (33) Investment expenses (14) (14) Central expenses (9) (9) Amortisation of intangible assets (13) (13) Impairment of goodwill (7) (7) Pension net interest and administration costs (6) (6) Regulatory costs (4) (4) Foreign exchange losses (1) (1) Other operating expenses (54)
Alternative Performance Measures Reconciliations continued 1. IFRS reconciliation to management P&L continued
Investment income 331 D 331 Realised gains on investments 19 19 Gains/(losses) on forex derivatives (5) (5) Unrealised gains/(losses) 1 1
Note 21 Less: coupon on 2017 issued restricted tier 1 instrument (14) (11)
Alternative Performance Measures Reconciliations continued 4. Net written premium movement and constant exchange £m £m
The UK proforma adjusts the reported result for the estimated impact of the strategic portfolio exits (£195m NEP) primarily including London market portfolios and a number of UK MGA schemes and the impact of new reinsurance (assumed to be broadly neutral in the UK when exit adjustments are taken into account).
Proforma adjusts Canadian reported result to include share of GVC reinsurance premiums and claims recoveries and the impact of new reinsurance programmes.
G Underwriting impact 82 (includes £(37)m of forgone GVC recoveries for exits)
When contacting Equiniti, please quote your shareholder reference number which can be found on your share certifi cate or dividend tax voucher. Telephone lines are open 8.30am to 5.30pm (UK time), Monday to Friday, excluding public holidays in England and Wales. Overseas callers should use +44(0) 121 415 7064. Shareholders with a text phone facility should use +44(0) 371 384 2255 or use the Text Relay service by dialling 18001 0121 415 7064 directly from the text phone. To securely email Equiniti with an enquiry, visit www.help.shareview.co.uk.
The 2019 AGM will be held at 200 Aldersgate, St Paul’s, London EC1A 4HD on Friday 10 May 2019 at 11.00am.
No of holdings No of shares % of holdings % of shares
The Company operates a sponsored American Depositary Receipts (ADRs) programme which is managed by JPMorgan Chase NA. The programme allows shareholders to invest in the Company through US dollar denominated funds. One ADR represents one Ordinary Share of £1.00 each.
Shareholders are encouraged to have their dividends paid directly into their bank account. It is a more secure and faster way to receive the dividend payment, with cleared funds available to shareholders on the dividend payment date. Shareholders who have their dividends paid directly into their bank account receive annual dividend confi rmations once a year, showing payments received in the respective tax year. Alternatively, individual dividend confi rmations are available upon request. To take advantage of this convenient method of payment, visit www.shareview. co.uk or contact Equiniti. Details of 2019 dividend dates are detailed overleaf.
Shareholders who receive duplicate sets of Company mailings owing to multiple accounts in their name may contact Equiniti to request that their accounts be amalgamated.
Shareholders may purchase or sell their RSA Ordinary Shares through their stockbroker, a high street bank or one of the providers detailed below: Equiniti offers a telephone and internet dealing service. Commission is 1.5% (rate quoted as at 7 February 2019 and may be subject to change) 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 public holidays in England and Wales. For internet sales log on to www.shareview.co.uk/dealing. Please quote your shareholder reference number.
Stocktrade offers an online dealing service. An account can be opened by visiting www.alliancetrustsavings.co.uk, applying for an account which enable to buy, sell or transfer. Alternatively, call +44(0) 13 8257 3737 for more detailed information on commission charges and their full terms and conditions.
· Be aware of dividend payment dates and contact Equiniti if you do not receive your dividend cheque or, better still, make arrangements to have the dividend paid directly into your bank account.
This document contains ‘forward-looking statements’ with respect to certain of the Group’s plans and its current goals and expectations relating to its future fi nancial condition, performance, results, strategic initiatives and objectives. Generally, words such as ‘may’, ‘could’, ‘will’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘aim’, ‘outlook’, ‘believe’, ‘plan’, ‘seek’, ‘continue’, ‘potential’, ‘target’, ‘reasonably possible’ or similar expressions, are intended to identify forward-looking statements.
By their nature, all forward-looking statements involve risk and uncertainty because they relate to, and may be impacted by, future events and circumstances which are beyond the Group’s control, including amongst other things, UK domestic, European and global economic business conditions, market-related risks such as fl uctuations in interest rates and exchange rates, the policies and actions of governments, central banks and regulatory authorities (including changes related to capital and solvency requirements whether in the UK, Europe or globally), the impact of competition, infl ation, defl ation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affi liates operate.
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