Annual Report
and Accounts 2024
Ecclesiastical Insurance Office plc
Ecclesiastical Insurance Office public limited company
Table of Contents
Page Contents
1 Directors and Company Information
2 Strate
gic Report
20 Governance
42I
ndependent Auditors’ Report
48
Consolidated Statement of Profit or Loss
49 Consolidated and Parent Statements of Comprehensive Income
50 Consolidated and Parent Statements of Changes in Equity
51 Consolidated and Parent Statements of Financial Position
52 Consolidated and Parent Statements of Cash Flows
53 Notes to the Financial Statements
Ecclesiastical Insurance Office public limited company
Directors and Company Information
Directors *R. D. C. Henderson FCA Chair
M
. C. J. Hews BSc (Hons), FIA Group Chief Executive
M. E. H. Bennett BSc (Hons), FIA Group Chief Financial Officer
S. J. Whyte MC Inst. M, ACII Deputy Group Chief Executive
*F. X. Boisseau MSc
*J. Coyle B Acc, CA, FCIBS
*
Sir S. M. J. Lamport GCVO, DL
*
The Venerable K. B. Best BA
*M. E. Darby-Walker BA
*A. C. Winther BA
Company Secretary R. J. Hall FCG
Independent Auditors PricewaterhouseCoopers LLP
2 Glass Wharf
Temple Quay
Bristol
BS2 0FR
United Kingdom
Registered and Head Office Benefact House
2000 Pioneer Avenue
Gloucester Business Park
Brockworth
Gloucester
GL3 4AW
United Kingdom
Company Registration Number 00024869
Registrar Computershare Investor Services plc
T
he Pavilions
B
ristol
BS13 8AE
*Non-Executive Director
1
Ecclesiastical Insurance Office public limited company
Strategic Report
The directors present their strategic report for the year ended 31 December 2024 for the Ecclesiastical Insurance Office public limited company
(‘Ecclesiastical Insurance Office plc’ or ‘EIO’), together with its subsidiaries the Ecclesiastical Group, also the Group.
Group Chief Executive’s Review
A record-breaking year
2024 was a record-breaking year for the Ecclesiastical Group as we exceeded our profit targets, won more awards than ever before, and – most
importantly – it enabled us to reach the fantastic milestone of donating £250m to good causes since 2014.
Through our giving, volunteering and charity support programmes, we helped change millions of lives for the better in communities across the UK, Ireland,
Canada and Australia, providing vital support to those that need it most.
Who we are
The Ecclesiastical Group is part of the Benefact Group, which is owned by the charity Benefact Trust. The Group is an international group of financial
services businesses with a purpose to contribute to the greater good of society.
Unlike many other companies, we’re motivated and inspired to grow our business so that we can give more to the host of incredible charities and
organisations that work tirelessly and selflessly day in, day out to improve the lives of those most in need.
Charities like Emily’s Gift, a remarkable project supporting children with cancer in Gloucestershire. I recently joined founder and CEO Julie Kent to learn
more about their impactful work, and how our donations have a made a difference to the charity – potentially saving lives, protecting more dreams, and
holding more families together.
I also had the privilege of hosting our first ever Benefact Group Charity Heroes Awards at the iconic Tower of London. This was a humbling, energising and
inspiring event where we recognised unsung heroes in the charity sector, and we heard how they are changing the world in which we live.
Grow more to give more
Our giving wouldn’t be possible without the continued success of our businesses, and I’m pleased to report the Group delivered an excellent result, posting
a pre-tax profit of £82.5m.
1
In General Insurance, we reported an underwriting profit
of £47.6m, up 94.3% on the previous year. 2024 was an exceptionally low year for claims, with
no major losses and more benign weather experience in the UK compared to other territories. This is in stark contrast to 2023 when we suffered our
largest ever UK loss with the devastating fire at St Mark’s Church in London. As the insurer of many iconic and irreplaceable buildings, a major loss or
weather event can be a significant driver of our underwriting result. Australia reported a small underwriting loss impacted by several factors, including an
adverse development in prior year liability claims. Canada’s strong underwriting result highlighted the resilience of the portfolio and quality of underwriting
action taken in recent years.
1
Gross written premiums
rose by 4.1% thanks to strong retention across our territories and excellent growth in the UK and Ireland, supported by good
growth in existing customer segments and expansion into new sectors, including Leisure and Office Professions.
Building a movement for good
During the year we were able to give a record £36.5m to good causes. This includes amounts to our ultimate charitable owner, Benefact Trust Limited, of
which £25.0m is in respect of 2024 performance and £8.0m in respect of 2023 performance.
This means we have achieved our ambition to give £250m to good causes since 2014. This is a remarkable achievement only made possible by the support
of our customers, colleagues, brokers and partners. Thank you to everyone who has helped us to reach this giving milestone. Whether you realise it or
not, you are supporting children with cancer, assisting the homeless, aiding those with mental health challenges, helping Ukrainian refugees, providing
medical relief in Gaza, helping those suffering from climate change disasters, and so much more. In short, you are truly changing lives by doing business
with us.
Delivering for our customers
Underpinning our charitable ethos is our unrelenting drive to do the right thing for our customers, and I’m incredibly proud that our specialist insurance
businesses are recognised as leaders in their fields and are trusted by our customers.
In General Insurance, our UK claims team was awarded Outstanding Service Quality Marque for the fourth consecutive year by Gracechurch,
demonstrating our commitment to excellent service. Ecclesiastical UK also retained top spot in the Fairer Finance rankings for an incredible 20th
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Strategic Report
consecutive time and remains the most trusted insurer in the UK, with the happiest customers. The home insurance business was also awarded a ‘Which?
Best Buy’ for both buildings and contents insurance. Our UK Risk Management team was also named Risk Management Team of the Year at the CIR Risk
Management Awards. Ecclesiastical Canada received the Excellence in Philanthropy & Community Service and P&C Insurer of the Year awards at
Insurance Business Canada’s Excellence Awards 2023.
We wouldn’t achieve this recognition without the hard work of all our teams across our Group. There's no doubt it's been a demanding 12 months, but our
colleagues have risen to the challenges head-on, and I want to extend my heartfelt thanks for all that they have accomplished.
Our Planet, Our Part
The threat from climate change is becoming ever greater. Last year was the hottest on record, surpassing the internationally agreed 1.5°C limit for the first
time. Extreme weather is now commonplace and last year saw wildfires, hurricanes, flooding, hailstorms across all the territories we insure. Despite the
extreme events, there has been relatively benign claims experience, particularly in the UK. I was in Canada last July and witnessed first-hand the
devastation caused by climate change, when deadly fires ripped through Jasper National Park in Alberta, destroying hundreds of buildings (including
many that we insured) and forcing the evacuation of the town of Jasper. I’m pleased we have received very positive feedback on the support we provided
to all those customers affected, and that Benefact Trust Limited made a substantial donation to the communities affected by this disaster.
As a responsible insurer, we know we have an important part to play in protecting our planet. We are seeking to respond to climate change by addressing
our carbon impact, while supporting customers and communities to tackle their climate challenges too.
To achieve this, we’re decarbonising where we can, challenging and influencing who we invest in, supporting the customers we insure to become more
climate resilient, and giving to charities making a big difference in all aspects of climate from biodiversity restoration to education in schools.
The Group’s Responsible & Sustainable investment policy not only avoids investment in businesses that we believe cause social harm, such as fossil fuels,
but also proactively seeks to invest in markets that have positive impacts, as well as considering environmental, social and governance factors in every
investment case. Through our Climate Stewardship Plan we're also engaging with our highest emitters and holding companies to account by setting
science-based targets.
Alongside this, we don’t underwrite businesses that are involved in the extraction, production or investment of fossil fuels, heavy industry or commercial
aviation, and we don’t invest our premiums in businesses that we believe cause social harm.
We’re reducing the impact of our operations and investing in highly assured charitable offset projects to enable us to be ‘net negative’ for our direct impact.
With focus and innovation, we’ll continue to find ways to reduce our carbon emissions and support our customers on our journey to net zero by 2040.
Destination employer
Our ambition is to build a world-class team, and I’m delighted that we once again achieved market-leading employee engagement scores in our
independently run B-Heard surveys.
Our parent company, Benefact Group plc, maintained a two-star ‘outstanding’ rating and a three-star ‘World Class’ UK accreditation. It was also named
among the Top 50 large companies to work for in the UK by Best Companies, moving from 47 to 41 in the rankings.
Ecclesiastical Canada was also named a Greater Toronto Top Employer for the seventh consecutive year, while Ansvar Australia was named among the
Top 50 workplaces for fathers in the Insurance Business Awards. Ecclesiastical Ireland received the Investors in Diversity Bronze Award.
As an ultimately charity-owned business with a unique and singular purpose to contribute to the greater good, we want to be a destination employer for
people who want to make a difference in the world. A place where talented people work together in a collaborative and inclusive environment, helping to
grow our business so that we can give more to good causes. A place where every colleague feels valued, respected and treated fairly. In short, we aim to
provide life-changing careers that change lives.
Looking ahead
We delivered so much in 2024, and go into 2025 refreshed, with momentum, confidence and optimism. We have a real clarity of purpose as we push
forward towards our strategic goals.
Inspired by the impact that our giving has on our beneficiaries, we are set to grow the business even further in 2025, with the aim of growing our giving.
We’ve got a strong sales pipeline across our businesses providing opportunity for profitable growth, and we’re ambitious and hungry to win new business.
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Strategic Report
This will see us continue our drive for profitable growth with stretching targets for our sales teams. In Ecclesiastical UK we will develop our new sectors,
Leisure and Office Professions, and it will be another exciting year for Ansvar UK following its brand refresh.
While we drive up sales, we’ll also maintain our focus on efficiency and effectiveness, making continuous improvements to our processes, products and
services for the benefit of our customers.
Join our movement
As we celebrate the incredible milestone of giving £250m to good causes and set our ambitions for the future even higher, I want to say a heartfelt, sincere
“thank you” to all our customers, business partners and dedicated colleagues for their exceptional support.
By doing business with our Group, you’re helping us to grow so that we can give even more to good causes. I invite anyone reading this, whether as a
potential colleague, customer or business partner, to come and join us and experience a different way of doing business. Together, with your support, we
can build a Movement for Good and transform lives for the better.
Mark Hews
Group Chief Executive
20 March 2025
1
The Group uses Alternative Performance Measures (APMs) to help explain performance. More information on APMs is included in note 37.
Principal risks and uncertainties
The Group undertakes a continual risk assessment process. Set out below are the principal risks encompassing the different types of risks which are
relevant to the Group’s business model and achievement of its strategic objectives.
Insurance risk
The risk that arises from the fluctuation in the timing, frequency and severity of insured events relative to the expectations of the firm at the time of
underwriting.
Risk detail Key mitigants Change from last year
Underwriting risk
• A robust pricing process is in place
There have not been material changes to this risk
The risk of failure to price insurance
• The underwriting licensing process has been
during the year.
products adequately and failure to
refreshed
establish appropriate underwriting
• A documented underwriting strategy and risk
disciplines. The premium charged must
appetite is in place together with standards and
be appropriate for the nature of the
guidance and monitored by the strategic
cover provided and the risk presented.
business units (SBUs)
Disciplined underwriting is vital to
• This is supported by formally documented
ensure that only business within the
authority levels for all underwriters which must
risk appetite and desired niches is
be adhered to. Local checking procedures ensure
written.
compliance
• Monitoring of rate strength compared with
technical rate is undertaken on a regular basis
within SBUs
• There are ongoing targeted underwriting
training programmes in place
• A portfolio management framework is in place
to ensure clear understanding and allow
targeted actions to be taken
• Group Underwriting audits are carried out
across General Insurance Businesses
Latent Claims
• Full review of physical and sexual abuse (PSA)
During 2024 there has been a material strengthening
The risk of financial loss arising from
claims utilising the stochastic reserving model
of reserves within EIO to reflect the emerging
the deterioration of reserves held for
for all territories
experience relating to latent claims. Oversight of PSA
causes of claim that typically have long
• Actuarial Function Holder review of Technical
claims continues across all territories.
latent periods prior to reporting.
Provisions with an opinion report provided to the
Board
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Strategic Report
• Robust management of claims including
investigation and justification
• Reserving Team training and understanding of
the risk to ensure recommendation of
appropriate reserves
Catastrophe risk
• Modelling and exposure monitoring is
There have not been material changes to this risk
The risk of large scale extreme events
undertaken to understand the risk profile and
during the year.
giving rise to significant insured losses.
inform the purchase of reinsurance
Through our General Insurance
• Local risk appetite limits have been established
business we are exposed to significant
to manage concentrations of risk and these are
natural catastrophes in the territories in
monitored by SBUs
which we do business.
• There is a comprehensive reinsurance
programme in place to protect against extreme
events. All placements are reviewed and
approved by the Group Reinsurance Board
• Processes in place to provide oversight and
sign off of reinsurance modelling and exposure
management across the company
• The Risk Appetite specifies the reinsurance
purchase levels and retention levels for such
events
Reinsurance risk
• We take a long-term view of reinsurance
The level of this risk has remained broadly similar
The risk of failing to access and manage
relationships to deliver sustainable capacity
since last year. We continue to take a long-term
reinsurance capacity at a reasonable
• A well-diversified panel of reinsurers is
approach to our reinsurance relationships.
price. Reinsurance is a central
maintained for each element of the programme
component of our business model,
• A General Insurance Reinsurance Executive
enabling us to insure a portfolio of large
Meeting approves all strategic general
risks in proportion to our capital base.
reinsurance decisions
Operational risk
The risk of loss arising from inadequate or failed internal processes, people and systems, or from external events
Risk detail Key mitigants Change from last year
Cyber risk
• A number of security measures are deployed to
Cyber risk remains a constantly evolving threat, with
The risk of criminal or unauthorised use
ensure protected system access
malicious threat actors continuing to seek to exploit
of electronic information, either
• Security reviews and assessments are
businesses. Ongoing investment in technology and
belonging to the Company or its
performed on an ongoing basis
employee awareness and vigilance is therefore
stakeholders for example customers,
• There is ongoing maintenance and monitoring
highly important at this time, which is continuing to
employees etc. Cyber security threats
of our systems and infrastructure in order to
be proactively managed.
from malicious parties continue to
prevent and detect cyber security attacks
increase in both number and
• There is an ongoing information security
sophistication across all industries and
training and awareness programme
remains the Company’s highest rated
risk.
Data governance (inc. management and
• A Group Data Committee is in place
Enhancements continue to be made to the
protection)
• Group data governance and Group data
governance, management, use and control of data, in
The risk that the confidentiality,
management and information security policies
order to meet the evolving requirements, and
integrity and/or availability of data held
are in place
remains a key focus.
across the Group is compromised, or
• Data is managed by Data Owners and
data is misused. The Group holds
Stewards, and supported by Data teams for
significant amounts of customer and
technical support and oversight
financial data and there could be
significant implications, including if this
is compromised or is found to be
inaccurate.
Critical Supplier risk
• Pre-defined contingency/exit plans in place
The risk remains unchanged, with action underway
Poor customer service or disruption to
with business-critical services
to continue to enhance oversight of the high risk
the business caused by supplier failure
• Regular credit checking and financial
suppliers.
(including data or regulatory breach) or
monitoring of suppliers' financial status
inadequate contractual arrangements,
• Ongoing and specialist due diligence and
due diligence, and ongoing supplier
ongoing monitoring, including cyber security and
management.
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Strategic Report
business continuity, prioritising tier 1 and 2
suppliers
Other risks
Other significant risks faced by the Group.
Risk detail Key mitigants Change from last year
Market and investment risk
• An investment strategy is in place which is
Overall market risk has increased, and we remain
The risk of financial loss due to changes
reviewed at least annually and recommended by
invested for the long term. We continue to monitor
in economic conditions. This includes a
the Market and Investment Risk Executive
market conditions and the geopolitical and
fall in the value of investments held, as
Meeting to the EIO Risk Committee. This includes
sociopolitical environment.
well as the impact of movements in
consideration of the Group’s liabilities and capital
exchange rates and discount rates on
requirements
insurance and pension liabilities.
• There are risk appetite metrics in place which
are agreed by the Board and include limits on
asset / liability matching and the management of
investment assets
• Derivative instruments are used to hedge
elements of market risk, notably currency. Their
use is monitored to ensure effective
management of risk
• There is tracking of risk metrics to provide early
warning indicators of changes in the market
environment as well as performance of
investment funds is monitored against their
respective benchmarks
Further information on this risk is given in note 4
to the financial statements on page 72.
Regulatory risk
• Close monitoring of regulatory developments
There continues to be a significant volume of
Failure to develop and embed a risk
and use of dedicated project teams supported by
regulatory change and therefore the risk remains
focussed culture to comply with
in-house and external experts to ensure
unchanged.
obligations under the regulatory
appropriate actions to achieve compliance
system, enable a competent authority
• Specialist compliance monitoring programmes
to exercise its powers effectively under
are in place across SBUs
the regulatory system, or counter the
• Regular reporting to the Board of regulatory
risk that the business may be used to
compliance issues and key developments is
further financial crime.
undertaken
We operate in a highly regulated
• An ongoing programme to enhance
environment which is experiencing a
documentation for ease of comprehension in line
period of significant change.
with the Consumer Duty
• Continued activity to ensure ongoing
compliance and enhancement against regulatory
change such as operational resilience
Conduct risk
• There is ongoing colleague training to ensure
The Group remains committed to placing customers
The risk of unfair outcomes arising from
customer outcomes are fully considered in all
at the centre of our practices and decision making,
the Group’s conduct in the relationship
business decisions
demonstrated by our wide-ranging industry awards
with customers, or in performing our
• Customer charters have been implemented in
and customer satisfaction scores. Overall the level of
duties and obligations to our customers.
all SBUs
this risk is unchanged from the prior year.
Customers are placed at the centre of
• Conduct risk reporting to relevant governing
the business, ensuring good customer
bodies is undertaken on a regular basis
outcomes, in line with the regulatory
• An ongoing Consumer Duty Day 2 programme
Consumer Duty, while safeguarding the
to enhance our compliance with the regulation
interests of all other key stakeholders.
• Customer and conduct measures are used to
assess remuneration
Brand and reputation risk
• There is ongoing training of core customer
Maintaining a positive reputation is critical to the
The Group aims to be the most trusted
facing colleagues to ensure high skill levels in
company’s vision of being the most trusted and
specialist insurer and as a consequence
handling sensitive claims
ethical specialist financial services group, and the
this brings with it high expectations
• Adopts a values led approach to ensure
risk remains unchanged to last year.
from all of our stakeholders, be they
customer-centric outcomes
Risks to our brand and reputation are inherently high
consumers, regulators or the wider
in an increasingly interconnected environment, with
industry.
the risks of external threats such as cyber security
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Strategic Report
• There is a dedicated marketing and PR function
attacks, and viral campaigns through social media
Whilst we aim to consistently meet and
responsible for the implementation of the
always present.
where possible exceed these
marketing and communication strategy
expectations, increasing consumer
• Ongoing monitoring of various media is in place
awareness and increased regulatory
to ensure appropriate responses
scrutiny across the sector exposes the
Group to an increased risk of
reputational damage should we fail to
meet them, for example as a
consequence of poor business practices
and behaviours.
Climate change
• Catastrophe risk is managed through
Whilst there is now more awareness of the
The financial and reputational risks
reinsurance models
challenges faced as a result of climate change, there
arising through climate change.
• The Group considers flood risk and other
have been no material changes to this risk since last
weather-related risk factors in insurance risk
year. A programme of work continues to fully
The key impacts for the Company are
selection
analyse the impact on the Group and to develop
physical risks (event driven or longer
• There is an ESG overlay on the investment
appropriate risk management responses.
term shifts), the transition risks of
strategy
moving towards a lower carbon
• The Group actively manages exposures and is
economy and liability risks associated
up to date on market development
with the potential for litigation arising
from an inadequate response.
Our business model and strategy
Ecclesiastical Insurance is part of the Benefact Group, a family of specialist financial services businesses united by a singular purpose: to donate all
available profits to charity and good causes. Our ambition to do right by our customers, clients and business partners and our commitment to philanthropy
enables Ecclesiastical Insurance Office plc to stand out in the financial services sector.
Benefact Group’s purpose is to contribute to the greater good of society, by managing a successful, ethically run portfolio of businesses. All available
profits generated by Ecclesiastical Group and the other businesses within the Benefact Group are used to support good causes through independent
grants from our ultimate charitable owner (Benefact Trust Limited) or our own considerable donations. We're committed to doing the right thing for our
customers, business partners and colleagues, and to delivering growing donations to our ultimate charitable owner, enabling Benefact Trust Limited to
continue its work in transforming people's lives.
The Benefact Group’s overarching strategy fosters alignment and strategic focus across all its businesses, including investment in systems and people to
target further growth and drive increased charitable donations. In fields such as Specialist Insurance, Asset Management, Broking and Advisory, each
business within the Benefact family is a specialist in its respective field, built on genuine insight and ethics. Together, businesses within the Benefact Group
offer products and services designed to protect in the present, anticipate possibilities, and invest in a healthier financial future.
Responsible business
The Ecclesiastical Group is part of the wider Benefact Group. A Responsible Business Report containing a summary of social and environmental impact is
in the Benefact Group Annual Report and Accounts which is published on www.benefactgroup.com. It covers social impact including approach to diversity,
equality and inclusion, colleague wellbeing and charitable giving. It also summarises climate impact and is supported by a separate report featuring
disclosures in line with the Taskforce on Climate-related Financial Disclosures (TCFD), which is published on the Company’s website. A separate report
enables the Benefact Group to explain climate-related disclosures in much more detail for the benefit of an increasing range of interested stakeholders.
The following table provides details of the carbon associated with the direct operation of businesses that are part of the wider Benefact Group, in line with
the Streamlined Energy and Carbon Reporting (SECR) requirements. This table does not include the emissions relating to our investment portfolio or our
underwriting activity. The Group offsets its Scope 1 and 2 emissions through highly assured charitable projects to achieve ‘net negative’ for its direct impact.
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Strategic Report
Emissions source 2024 2023
UK
Non-Uk
Total
Scope 1 & 2
UK
Non-UK
Total
Scope 1 & 2
tCO
2
e
tCO
2
e
tCO
2
e
tCOe/
tCO
2
e
tCO
2
e
tCO
2
e
tCOe/
employee
employee
Scope 1: fuel, fluorinated gas losses and fuel
116 15 131 142 7 149
combustion in offices and company fleet
Scope 2: electricity and cooling in premises
591 149 740
696 84 780
1
(location based)
Scope 2: Scope 2: electricity and cooling in
109 146 255
97 75 172
2
premises (market based)
3
Scope 3: business travel
, waste, water use 538 269 807 439 568 1,007
Total tCO
2
e (market based electricity)* 763 430 1,193 0.51* 678 650 1,328 0.56*
tCOe is tonnes of CO and equivalent gases.
1
The average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data)
2
Emissions based on how an organization buys its energy
3
Air, rail, bus, taxi, ferry, car rental and vehicles owned and driven by an employee, driven for business purposes (grey fleet)
* Scopes 1, 2 (market based) and scope 3
In 2024, total energy use is 4,570,001 kWh of which 3,841,221 is UK and 728,780 kWh is non-UK based. In 2023, total energy use was 4,153,784 kWh of
which 3,962,931 kWh was UK and 190,853 kWh was non-UK based. Scope 3 emissions reported as part of SECR mostly comprise business travel. A data
discrepancy in 2023 contributed to an overstatement in reported emissions.
Methodology
The wider Benefact Group has reported on all emission sources required under the Companies (Directors’ Report) and Limited Liability Partnerships
(Energy and Carbon Report) Regulations 2018.
The reporting year runs from 1 September 2023 to 31 August 2024. The emissions reporting boundary is defined as all entities and facilities either owned
by or under operational control of the Benefact Group of companies, that is, emissions relating to our premises and associated travel by staff in the UK,
Ireland, Australia, and Canada.
The reporting comprises:
Scope 1: emissions from fluorinated gas losses, oil and gas used to heat our offices, and fuel used in company vehicles
Scope 2: emissions from electricity, cooling, heat and steam used in our offices
Scope 3: emissions from business travel, waste and water use in our offices
Calculating emissions from electricity scope 2 emissions is done in two ways:
Location based reporting calculates emissions based on the average emission intensity of the local power grid, regardless of what electricity
contracts are in place
Market based reporting reflects emissions from the specific electricity contract/s purchased
Location based electricity use shows emissions from physical consumption while market-based reporting reflects decisions made to purchase electricity
on a zero carbon tariff.
The above emissions are displayed in tonnes of carbon dioxide and equivalent gases (tCOe), have all been calculated using UK Government Greenhouse
Gas reporting emission factors 2021 (Department for Environment, Food and Rural Affairs), and independently verified according to ISO – 14064-1
Specifications with Guidance for the Validation and Verification of Greenhouse Gas Statements.
Colleagues
Colleagues across the Benefact Group are united by our purpose to give to good causes. Each business within the Benefact Group is specialist and expert
in its field, with an engaged global team of colleagues driving growth and success.
Health and wellbeing
Employee health and wellbeing continued to be a key focus for the Group in 2024. Learning resources and communications were expanded including
virtual sessions on understanding the menopause and a menopause conversation guide for people leaders. Men’s mental health was spotlighted in
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November, with personal stories and resources shared. A range of tools provided across the Group bring physical, mental and financial wellbeing support
together for employees and their families.
Investment in great workplaces continued in 2024. This included Ansvar UK moving to modern premises in the heart of Brighton. Integral to the move was
the new Community Hub, providing a free flexible workspace for local charities. The building is also built to a BREEAM Excellent sustainability standard,
putting it in the top 10% of UK new non-domestic buildings for sustainability.
Engagement
An independent assessment of engagement levels was benchmarked through the B-Heard survey provided by Best Companies. With almost 2,000
responses the survey is now a well-established way to listen and celebrate. The Benefact Group overall maintains a two-star ‘outstanding’ rating, a three-
star ‘World Class’ UK accreditation and is ranked as one of the UK’s Top 50 best large companies to work for.
A new communication, The Link, was launched to keep colleagues connected across all three continents the Group operates in. Colleagues were also
brought together at ‘Make It Happen’ events in the UK, where they collaborated to find solutions to real business problems.
Diversity, equity and inclusion
The Group continued its strong commitment to diversity, equity and inclusion. Group-wide inclusion networks grew, including the LGBTQ+ and Women’s
Network.
Over 200 leaders attended Leading Inclusively training, now a core element of the People Leader’s Journey programme. The Group’s attraction and
recruitment processes were reviewed and updated to ensure inclusivity, and inclusive hiring training will be rolled out to all recruiting managers in the UK
and Ireland in 2025. A new Women in Leadership programme was launched, targeted at developing senior female leaders from businesses across the
Group. The first cohort of 13 leaders completed the programme in 2024, with plans for global rollout in 2025.
A number of events brought people together, notably a Women in Leadership panel discussion which welcomed over 80 attendees from businesses and
the community and raised several thousand pounds for charity. Colleagues celebrated Pride month in June, including the LGBTQ+ network and allies who
represented Benefact Group at Gloucester Pride.
Non-Financial and sustainability information statement
The Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006 are addressed below. Non-financial and
Environmental, Social and Governance (ESG) information is integrated across the Strategic Report, in particular in the responsible business section starting
on page 7.
Non-financial and sustainability
Disclosure Section Pages
information
Business model Our business model and information
Strategic Report – Our business
7
on how we do business differently
model and strategy
Key performance indicators (KPIs) Our KPIs set out how we are doing
Strategic Report – Key performance
19
against our strategic goal
indicators
Principal risks Our key risks and their management Strategic Report – Principal risks
4
and uncertainties
Environmental, social matters,
Statements of our policy and
Strategic Report - Primarily within
7
colleagues, human rights,
practice in these areas
the responsible business section
financial crime and corruption
and below.
Our key policies / statements of intent
We have a range of policies and guidance in place to support the key outcomes for our stakeholders. These also ensure consistent governance on
environmental matters, our employees, social matters, human rights and anti-bribery and corruption.
Climate and environmental matters
The Ecclesiastical Group is part of the Benefact Group and as a diverse financial services business, the Benefact Group is exposed to climate risk primarily
through investments and insurance. It also has a responsibility to reduce its operational impact and can achieve positive impact through its charitable
giving. The majority of the Benefact Group’s climate and environmental matters are relevant to the Ecclesiastical Group.
A separate Task Force on Climate-Related Financial Disclosures (‘TCFD’) report is published on the Group’s website at www.ecclesiastical.com, but the
following provides a summary of key considerations.
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Governance
The Benefact Group Board has overarching responsibility for overseeing the response to climate change. Ecclesiastical as part of the Benefact Group
has adopted the Benefact Group plc's Governance Framework. Accordingly, the Ecclesiastical Risk Committee (and prior to that the Group Risk
Committee) has sight of climate related risk matters on behalf of the Ecclesiastical Board. Across the business various committees, management
functions and a core climate strategy function lead, develop and deliver the Group’s response.
Strategy
- The Benefact Group has a robust strategy review and evaluation process. In particular scenario analysis is used as a key tool for assessing
and understanding climate risk.
Testing risks through scenarios
Insurance Investment
• Focusing on worst case scenario: the assessment of
• Property investments continue to be assed for climate impact using a Real Estate
insurance underwriting risk has focused on the worst-case
Environmental Benchmark (REEB) benchmark, Energy Performance Certificate
scenario of the Bank of England’s three Climate Biennial
(EPC) schedule priority, physical and climate risk assessments and scope 1, 2 and
Exploratory Scenario (CBES) scenarios (the No Additional
3 data completion, it also included emissions reduction targets and a
Action scenario) because this enables identification of the
decarbonisation plan.
most extreme outcomes, therefore the greatest risks to the
• Footprinting: tools used by EdenTree, which is part of the Asset Management
business, particularly over the medium to long-term. The
division of the Benefact Group, enable the Benefact Group to view its
scenarios have been used primarily in a qualitative nature to
investments from various perspectives. These include the portfolio emission
identify the types of perils that are most likely to affect the
pathway vs climate scenario budgets (and whether it is overshooting) and the
current insured portfolio. We have also looked at other, less
associated temperature increase.
harmful scenarios to understand a range of feasible outcomes
and so the difference in expected impact that would result
Based on current targets, equity investments are expected to be aligned with the
from positive climate mitigation actions.
Sustainable Development Scenario by 2050, representing a potential
temperature increase of 1.5°C by 2050 compared to 2.9°C for the benchmark.
• Considering socioeconomic impacts: besides considering the
direct impact of weather events, the economic and social
• This figure is tracked annually to ensure continued alignment. This temperature
impact on key customers were also considered, in this case
alignment score is based on the ISS-ESG methodology and shows the estimated
also using the scenarios whereby Paris-aligned targets are
temperature increase which the portfolio is associated with by 2050.
met, to identify some of the issues they likely face in the
• The current proportion of holdings that have adopted a Science Based Target
various circumstances. This analysis is being used to inform
(SBT) are also tracked. Increasing this is a key part of our engagement work to
customer propositions and how the Benefact Group might
support the decarbonisation of our portfolio.
work with and support customers to manage and mitigate
climate risk.
The process has been used to assess the Benefact Group’s
insurance footprint in various geographies, for example
assessing wildfires in Canada, temperature rises in Australia
and windstorm and flood in the UK. For example, in the UK a
tool for flood and storm mapping, Mapview, is used to manage
individual and accumulated local exposures.
- The Benefact Group is a member of voluntary climate action initiative ClimateWise which drives best practice and provides independent
assessment.
Risk management
- The Enterprise Risk Management process provides the tools, guidance, policies, standards and defined responsibilities to enable the Benefact
Group to achieve its strategy and objectives whilst ensuring that risks to objectives are identified and managed.
- The Benefact Group’s risk management process is a structured and iterative method for identifying, assessing, responding and monitoring risk
on an ongoing basis.
- Risk management is integrated into the way the Benefact Group works with each business unit and significant business areas using this
process, producing risk registers and feeding into reporting shared with the Group Risk function and ultimately the Benefact Group Audit and
Risk Committee.
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- The principal climate risks faced by the Benefact Group are:
Risk Nature of risk Time horizon Actions being taken to understand and mitigate impact on business, strategy
and planning
Physical Direct damage to assets
There are acute, event-
• We have partnered with a third-party expert to quantify exposures on our
both owned and insured
driven risks which can
insured portfolio across territories where we operate using models based on
and indirect impacts from
occur over all time
a range of scenarios. This will be used to inform capital, pricing and
supply chain disruption.
horizons, and chronic
underwriting strategy.
risks, which are
• Mapping technology has also been used in the UK to identify concentration
The main physical risk
typically longer-term.
of risks in the most flood-prone areas.
exposures stem from its
• We continue to work with our reinsurance partners to ensure that our risk
property underwriting
mitigation remains appropriate for our current risk exposures and to learn
portfolio and from its
from their expertise.
investment assets.
• The Benefact Group is a member of the Partnership for Carbon Accounting
Financials (PCAF) and has completed an initial assessment of the carbon
impact of its underwriting portfolios in the UK, Ireland, Australia and Canada.
This will inform strategy for engagement and decarbonisation.
• As part of its investment process, EdenTree assesses a company’s exposure
to climate risk (including physical risk). Where this is deemed to be material
or poorly managed, a company will not be included in the portfolio.
Transition Relates to financial risks
Short to medium term • Funds are invested with a responsible and sustainable policy which excludes
resulting from transitioning
fossil fuel exploration and production, thermal coal extraction and eschews
to a low carbon economy.
investment in high carbon emitters (automotive, aviation and heavy industry).
They arise from policy,
• Across EdenTree’s Funds, we also invest in companies providing solutions
technology and market
that will enable the low-carbon transition alongside providing a compelling
disruption. Additional
investment case
implications include the
• The Benefact Group’s asset manager EdenTree has established a Climate
subsequent changes to
Stewardship Plan which engages investee companies and targets
consumer expectations,
improvement.
demand and behaviour.
• Climate change is also a permanent pillar of EdenTree’s engagement
strategy, and they have supported various initiatives over the years. They
The Benefact Group’s main
have contributed for seven consecutive years to the CDP’s non-disclosure
exposure to transition risks
campaign. They supported the Paris Pledge for Action in 2015 and are a
is on the value of its
signatory to the TCFD Framework. EdenTree also maintain memberships
investment assets through
including the UK Sustainable Investment and Finance Association, UN
the impact of changes to a
Principles for Responsible Investment and the Institutional Investors Group
low carbon economy on
on Climate Change.
investee companies.
• The Benefact Group also footprints its property portfolio annually, to
understand both physical and transition risks, inform investment strategies
and understand energy performance.
Liability Stems from the potential
Short term • Each territory have assessed exposure to the potential for receiving future
for litigation if entities and
liability claims relating to climate related litigation arising from customers’
boards do not adequately
activities. Each territory will also continue to track potential for insured
consider or respond to the
customers to be exposed to liability risks and the evolving legal
impacts of climate change.
environment.
- A full overview of actions taken to understand and mitigate impact on business, strategy and planning is included in the full TCFD report.
Actions include mapping technology to identify concentration of insurance risks and a responsible and sustainable investment policy.
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Metrics and targets
- The Benefact Group has committed to Net Zero targets over the short and long-term. Net Zero progress and ClimateWise performance are
integrated into our long-term incentive plan for senior leaders.
- A wide range of metrics and targets are used across the Benefact Group’s climate programme (fully outlined in the TCFD report). They include
fund alignment with a 1.5-degree pathway, underwriting footprint calculated to the Partnership on Carbon Accounting Financials
methodology, amount of giving to climate charities and carbon intensity per employee.
- The Benefact Group does not have a suite of key performance indicators specifically in relation to measuring climate change, but this is
monitored through investment performance.
Taskforce on Climate-related Financial Disclosures (TCFD) compliance summary
Climate reporting is included in the Strategic report (in particular in the Responsible Business section) and a separate TCFD report published on
www.ecclesiastical.com. The following table is produced to highlight the TCFD pillars, recommended disclosures and where this information can be
found across the Strategic report and separate TCFD report.
TCFD pillars TCFD recommended disclosures Section of the Strategic report, that
Section of the TCFD
disclosures are included in, in
Disclosure report with
compliance with the Companies Act
further details, in
compliance with the Listing
Rules
Governance
- Describe the Board’s oversight of climate-
- Non-financial and sustainability
- Governance structure
Disclose the
related risks and opportunities
information statement (page 9).
overview (page 4).
organisation’s
- Describe management’s role in assessing and
- Section 172 statement (page 14)
- Examples of climate
governance around
managing climate-related risks and
topics
climate-related issues
opportunities
discussed/decisions
and opportunities
made at various
governance forums
including Board
Committees and
management groups
(page 5).
Strategy
- Describe the climate-related risks and
- Climate strategy overview in the
- Strategy overview (page
Disclose the actual and
opportunities the organisation has identified
Group Chief Executive’s Review
6).
potential impacts of
over the short, medium, and long-term
(page 2).
- How climate is
climate-related risks
- Describe the impact of climate-related risks and
- Non-financial and sustainability
embedded in how the
and opportunities on
opportunities on the organisation’s businesses,
information statement (page 9).
Group operates (page 6).
the organisation’s
strategy, and financial planning.
- Principal risks (page 4).
- Climate risk and
business, strategy and
- Describe the resilience of the organisation’s
opportunity
financial planning
strategy, taking into consideration different
consideration (page 7).
where such information
climate-related scenarios, including a 2 degree
- Physical, transition and
is material.
or lower scenario.
liability risks outlined,
time horizons considered
and actions being taken
to understand and
mitigate impact outlined
(page 8).
- Using scenario analysis
to understand and test
climate risk (page 9).
Risk management
- Describe the organisation’s processes for
- Non-financial and sustainability
- Risk management
Disclose how the
identifying and assessing climate-related risks.
information statement (page 9).
framework and process
organisation identifies,
- Describe the organisations processes for
overview (page 10).
assesses and manages
managing climate-related risks.
- Overview of how the risk
climate-related risks
- Describe how processes for identifying,
management process
assessing, and managing climate-related risks
and risk management
are integrated into the organisation’s overall risk
tools are used to capture,
management.
assess and respond to
risk, but also to monitor
and report (page 10).
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Metrics and Targets
- Disclose the metrics used by the organisation to
- Climate strategy overview in the
- Overview of Net Zero
Disclose the metrics
assess climate-related risks and opportunities in
Group Chief Executive’s Review
targets set over the
and targets used to
line with its strategy and risk management
(page 2).
short- and long-term
assess and manage
process.
- Non-financial and sustainability
(page 11).
relevant climate-
- Disclose Scope 1, Scope 2, and, if appropriate,
information statement (page 9).
- Overview of approach to
related risks and
Scope 3 greenhouse gas emissions (GHG), and
- Direct footprint reporting in line
key metrics against each
opportunities where
the related risks.
with SECR requirements (page 8).
pillar of climate strategy
such information is
- Describe the targets used by the organisation to
(page 12).
material.
manage climate-related risks and opportunities
and performance against targets.
Colleagues
The Benefact Group’s Code of Conduct policy is centred on ‘Doing the right thing’ and sets the standards of conduct and behaviour expected
from employees.
The Board aims to ensure it is comprised of persons who are fit and proper to direct the business. The Board’s diversity policy sets out the
approach to diversity in the leadership population.
Other information on our commitments to supporting diversity and development is included in the Responsible Business section on page 7. Also
included within the Corporate Governance report on page 26 is information about the composition and diversity of the Board.
Social matters
The Benefact Group was founded with a charitable purpose and this remains what motivates us today. We believe business has a social
responsibility and should give more to support charities and communities. The Group does not make political donations.
The Group’s tax strategy supports our group strategy and the ethical way we do business. We are committed to managing all aspects of tax
transparently and in accordance with current legislation. We work to achieve the spirit of legislation and not just the letter of the law in each
tax jurisdiction. Our tax strategy is available on www.ecclesiastical.com
Human rights, anti-bribery and anti-corruption
The Benefact Group Board is committed to operating with honesty and integrity in all of our business activities and promoting an anti-bribery
and corruption culture across the Group.
The Benefact Group has established and upholds good practices regarding human rights, anti-corruption and anti-bribery through a range of
measures including robust risk management, employee Code of Conduct and employee training on topics such as data protection and
vulnerable customers.
The Benefact Group complies with relevant legislation concerning supply chain – the Modern Slavery Act 2015 and the Payment Practices and
Performance regulations – to drive good practice and transparency.
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Section 172 Statement
The directors confirm that during 2024 and to the date of this Report, they have acted to promote the success of the Company for the benefit of its
members as a whole and considered the matters as set out in section 172(1)(a) to (f) of the Companies Act 2006. This section describes how the directors
have had regard to those matters when performing their duties.
Our approach to the long term success of the Company
The directors recognise that the long-term success of the Company, and therefore our ability to continue to help people, charities and good causes is
dependent on having regard to the interests of its stakeholders at its heart. In order to achieve our strategic ambitions, the Board understands how
important it is to listen and respond to the needs of our stakeholders.
As a global financial services group driven by the ambition of transforming lives and communities, we are continually striving to do the right thing at all
times. However, there are occasions where the needs of different stakeholder groups may not always be aligned. On these occasions, the Board attempts
to balance the conflicting interests and impacts on our stakeholders in their decision-making.
Our stakeholders
Customers
Colleagues
The Board considers that customers should be at the heart of everything
Th
e Board recognises that colleagues are the Company’s greatest asset given
we do, putting their needs first, treating them fairly and ethically and
their specialist skills and knowledge and propensity to go above and beyond.
ensuring any actions or decisions demonstrate our passion for customers
and make us first choice for customers both today and in the future.
What matters to them?
- Culture and purpose
What matters to them?
-
Fair pay and reward
- Customer experience
- Flexible working practices
- Fair pricing
- Ma
king a positive impact on society
- Specialist expertise and guidance
- Health and wellbeing
- Products which represent fair value and are clear and easy to
- A diverse, equitable and inclusive workplace
understand
- T
raining, development and progression
- Bein
g part of an ambitious, commercial and successful business
Communities
Shareholder and investors
The Board is committed to doing business differently and building a
The Board understands the need to maintain a close and open relationship with
movement for good across society, transforming lives and communities.
shareholders and investors characterised by transparency and mutual
understanding.
What matters to them?
- Charitable giving
What matters to them?
- Health and safety
- Financial performance and returns
- Emp
loyment, economic and societal contribution
- Strate
gy and business model
- Env
ironmental impact of operations
- Env
ironmental, social and governance (ESG) performance
- Reputa
tion
-
Strong leadership
Suppliers (including brokers)
Regulators
The Board recognises the importance of the role that suppliers play in
The Board recognises the importance of open and honest dialogue with
ensuring a reliable service is delivered to customers and the need to
regulators (including those in the UK, Australia, Canada and the Republic of
have a strong working relationship.
Ireland) and is committed to complying with applicable legislation and
regulation in order to maintain standards of business conduct.
What matters to them?
- Collaborative approach
What matters to them?
- Open terms of business
- Outcomes for customers
- Fair payment terms
- Oper
ational and financial resilience
- Responsible supply chain
- Openness and transparency
- Communication
-
Compliance with legislation and regulation
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Stakeholder Engagement
Below is an overview of our approach to stakeholder engagement and outcomes.
Key stakeholders Methods of engagement and outcomes
Customers At Ecclesiastical, we focus upon always providing first class service to our customers. To do so, we understand that anticipating
the needs of our customers is fundamental to achieve this.
Throughout the year, the Board has paid regard to the progression on the Group’s digital strategy. At its Away Day in October,
the Board received a presentation on Artificial Intelligence (AI), primarily the impacts that AI is having upon the insurance industry
and the ways in which the Group’s digital strategy will need to evolve to further improve the customer journey and enhance the
ways in which customers interact with us in the future.
Additionally, the Board received updates on customer matters via the Group Chief Executive’s Report and business updates. The
Board and the Group Remuneration Committee takes account of customer experience through regular reviews of key measures
such as Net Promoter scores and customer satisfaction.
We understand how important it is to be there for our customers when they need us the most. Therefore, Operational Resilience
continued to be a key area of focus for the Board throughout 2024 ahead of the regulatory deadline in March 2025.
The Board continued to oversee Consumer Duty compliance and reviewed and approved the Consumer Duty Annual Attestation
to ensure that the Group’s business strategy remained consistent with delivering good customer outcomes in accordance with
the Consumer Duty.
The Group also has regular engagement with customers including conducting listening exercises, surveys, holding focus or
consultative groups, monitoring customer complaints and satisfaction data. Key outcomes are shared with the Board. Our
commitment to customers and clients is demonstrated by the tailored Customer Promises that have been developed for our
businesses, the awards that we have won and independent research.
Colleagues
Members of the management team and subject matter experts are invited to Board and Committee meetings to present on items
and input into discussion. During the year, the Group Chief People Officer provided an update on the Group People Strategy.
Directors visit subsidiaries, businesses and project teams to gain a good understanding of colleagues’ views.
In order to engage, involve and inform colleagues, a range of methods as set out below are used:
- Sir Stephen Lamport as the designated non-executive director for employee engagement is briefed on associated survey
results and findings are reported to the Board.
- A variety of communication channels including intranet, all colleague emails (including weekly news, results, achievements
and changes), briefings, conferences and publishing of financial reports and feedback and discussion is adopted (including to
make colleagues aware of financial and economic factors affecting the performance of the Company);
- Colleague engagement surveys adopting the B-Heard Survey provided by an external partner, Best Companies.
- During the year colleagues undertake training to support the accessibility and understanding of our whistleblowing policy,
procedure and approach to ensure they feel safe to speak up and challenge when needed;
- Direct engagement and consultation through colleague representative forums including the Group’s recognised Union (Unite)
and Employee Networks such as the DEI working Group, Women’s Network and Neurodiversity Network;
- ‘Town Hall’ meetings are hosted virtually by senior management where colleagues can ask questions and provide feedback.
- A performance-related bonus scheme is operated, which directly links individual objectives and business performance to
encourage employees to participate in the overall financial success of the Company and the Benefact Group; and
- A range of training, development and volunteering activities are available to colleagues, including technical courses,
mentoring, coaching and community opportunities.
Communities We are ultimately owned by a charity with a unique purpose to contribute to the greater good of society. All of our available
profits are donated to good causes and as part of the Benefact Group we are the third largest UK corporate donor over a decade.
During the year, the Board has received regular updates on our charitable giving and areas of focus. In addition, directors have
also had the opportunity to visit beneficiaries to see first-hand their work which has enabled a better understanding of needs.
The Board approved a donation of £25m to Benefact Trust Limited (BTL) to support its funding of charities in respect of the
Group’s 2024 performance, as well as an £8m donation is respect of 2023 performance.
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Key stakeholders Methods of engagement and outcomes
Shareholder and
Benefact Group plc owns the entire issued Ordinary share capital of Ecclesiastical Insurance Office plc. Benefact Group plc in
investors
turn is wholly owned by Benefact Trust Limited with whom the Board has an open and constructive relationship.
Protocols for the exchange of information between Benefact Trust Limited and Benefact Group plc and its subsidiaries (including
Ecclesiastical Insurance Office plc) are in place and cover performance, operations and financial position. There is at least one
‘Common Director’ (a director who is a member of the Boards of Benefact Trust Limited, and Ecclesiastical Insurance Office plc)
who is expected to attend every Board meeting.
The common directors present a summary of highlights from Benefact Trust Limited Board meetings to the directors. There is
also engagement between respective Board and Committee Chairs and the Group Chief Executive Officer. Regular dialogue
takes place on Benefact Trust Limited’s expectations of the Group, strategy for the development of the business and grants from
the Group. This ensures the views of Benefact Trust Limited are communicated to the Board as a whole. In turn, the Common
directors are able to support the Directors of Benefact Trust Limited to understand the performance and strategic issues faced
by the Company.
A conflict of interest policy which sets out how actual and perceived conflicts of interest between the two companies are
managed is in place.
Suppliers (including
Ecclesiastical operates in conjunction with a range of suppliers, who are essential to the high standard of service we provide to
brokers)
our customers. We understand the importance of maintaining solid relationships with our suppliers.
Directors do not usually directly interact with our suppliers; this responsibility is delegated to management who are responsible
for the day to day management of supplier relationships within the remit of the Supplier Relationship Management Framework.
The Board, via reporting from the Risk Committee (previously Group Risk Committee) are kept up to date on the development of
any actual or potential supplier risks.
During the year, the Board (via the Group Risk Committee) received an update on outsourcing and the Supplier Relationship
Management Framework. They also received reports and updates from management allowing them to oversee associated
relationships and to keep up to date on developments.
Awareness refresher sessions were also provided to colleagues managing suppliers’ relationships on their responsibilities
under the Outsourcing Policy including consideration of associated regulatory requirements throughout the year.
Regulators As an insurance group, we are subject to the financial services approvals and regulations. We maintain an open and constructive
relationship with the regulators. Members of Senior Management and Directors meet with our UK Regulators throughout the
year, as appropriate.
Regulators engaged with us to discuss their objectives and priorities. The Board actively engaged with the Regulators in relation
to the separation of the Board and that of Benefact Group plc. Constructive feedback was also sought in relation to the refreshed
governance framework, which was a key area of focus for the Board this year.
The Board (via its Committees) continues to receive regular reports detailing the Group’s regulatory interactions. Regular reports
are also received on the evolving legal and regulatory landscape incorporating a detailed impact and progress assessment.
Consideration of environmental and climate change matters.
As part of the Benefact Group, we are committed to playing our part in making our planet a better place for future generations. Therefore, we have
developed a roadmap to become a Net Zero company by 2040. The Board received an update on the Group’s climate positioning during the year. The
presentation included input from internal subject matter experts and insights from the Benefact Leadership Development Programme.
Stakeholder engagement in decision making
The Board adopts a range of approaches to engage with stakeholders and recognises that the importance of a stakeholder group may differ depending
on the matter being considered. Given the nature of the business, the Board sometimes engages directly with stakeholders and also understands that it
may be more appropriate for engagement to be undertaken at an operational level.
The Board considers a variety of information to understand the impact of the Company’s operations and the interests and views of key stakeholders. A
one-year rolling plan of business for discussion is agreed annually to ensure that the Board is focused on the right issues at the right time and sufficient
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time is allowed for appropriate consideration and debate. Information is provided to directors in papers in advance of each meeting. Colleagues from the
business are invited to attend meetings to provide insight into key matters and developments. At each Board meeting, the directors discuss strategic and
business matters, financial, operational and governance issues and other relevant issues that arise. In addition, the Chair of each Committee provides a
verbal report to the Board on proceedings of those meetings including areas of discussion and any recommendations. Because of this, the Board has an
appreciation of engagement with stakeholders and other relevant matters, which enables the directors to comply with their legal duties. Below is an
example of a decision made by the Board:
Refreshed approach to governance
Ecclesiastical is proudly part of the part of the Benefact Group, a financial services group with a charitable owner, Benefact Trust Limited. In 2023, the
Benefact Group plc Board restructured its business repositioning itself as a holding company, overseeing the three distinct businesses which it owns being
Insurance (Ecclesiastical), Asset Management (EdenTree) and Broking and Advisory (Benefact Broking & Advisory). In 2024 and, as a consequence of this
the Board focused on increasing independence between the Boards of Benefact Group plc and Ecclesiastical. The intention was to move away from the
common directorship model. This was agreed in Q1 2024, following which a working group was established comprising the Group Company Secretary
and a number of Non-Executive Directors from both Benefact Group plc and Ecclesiastical (the Working Group). The objective of the Working Group was
to progress development of a refreshed governance framework, that would reflect the new approach.
A consequence of the decision to separate the boards was the need to refresh the composition of the Ecclesiastical Board of Directors, to ensure
independence from that of its parent board. For a more detailed overview of the appointment process please see the Nominations Committee Report.
As detailed within the Corporate Governance Report, it was agreed that Ecclesiastical should have an independent Audit Committee and a separate Risk
Committee which had historically been joint committees with Benefact Group plc. These were established during the year and the existing Group Audit
Committee, Group Risk Committee and Group Finance & Investment Committees (which were joint with Benefact Group plc) were all disbanded and their
duties allocated between the Board and its new Committees.
The revised Governance Framework, including the Audit Committee and Risk Committee’s Terms of Reference were approved by the Board in September
2024. Additionally, the composition of the Audit Committee and Risk Committee respectively were also agreed.
During its decision-making process throughout the year, the Board had regular contact with the Regulator and incorporated any feedback received as
necessary. Additionally, the Board held open dialogue with the Benefact Trust Limited to ensure that the revised Governance Framework reflected its
strategic ambitions for the Group. As an insurance company that is committed to helping to transform lives, the Board are confident that this refreshed
approach is in the best interest of Ecclesiastical and has positioned the Group to continue building our movement for good, for the benefit of our customers
and communities.
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Group Chief Financial Officer review
I am pleased to present my first financial review since becoming Group Chief Financial Officer and am delighted to be able to outline an outstanding set of
results. The Group is reporting a profit before tax of £82.5m (2023: £44.8m) which represents a stronger performance than expected and continued
progress in the delivery of the Group’s strategy. Critically, these results support our ambition to give more to good causes and we’ve now surpassed our
target of giving £250m since 2014.
Overall profit was driven by both a strong net investment result of £71.9m (2023: £57.5m) and excellent trading performance with an insurance service
1
result of £83.5m (2023: £70.7m). Gross written premium
increased by 4.1% to £640.3m (2023: £615.0m) as a result of new business and rate
improvements. The Group recognised a net insurance financial loss of £6.9m (2023: £19.5m) due to the impact of discount rate unwinding, partly offset by
gains as a result of increased discount rates.
The Group’s strong credit ratings with both Moody’s (A2 with stable outlook) and AM Best (A with stable outlook) were reaffirmed during the year and our
Solvency II regulatory capital position remains well above both regulatory requirements and our risk appetite.
General Insurance
Overall, the Group’s underwriting businesses achieved particularly strong results in the year. We have continued to deliver growth in insurance revenue,
1
building on the strength of our position in core segments and recent product launches in the UK. The increase in gross written premium
of 4.1% to £640.6m
(2023: £615.0m) reflected excellent new business wins and rate strengthening. Underwriting experience has benefited from particularly benign weather
claims and a more stable claims environment, resulting in an insurance service result of £72.7m (2023: £56.2m) and a Group Combined Operating Ratio
1
(COR)
of 86.9% (2023: 92.6%).
Our ongoing investment program, with a strong emphasis on advancing our technology platforms and supporting our colleagues, remains a key focus.
These technological investments are crucial for driving our business growth and meeting our customers' long-term needs.
United Kingdom and Ireland
1
In the United Kingdom and Ireland, underwriting profits
rose to £53.6m (2023: £16.4m), driven by an unusually benign year for weather claims, large
1
losses and higher associated profit commission. Gross written premium
grew by 9.3% (2023: 15.9%) to £436.9m (2023: £399.7m) driven by record new
business wins and excellent retention levels, reinforcing the strength of our proposition.
Many of our core segments experienced double digit growth, with Art & Private Client and Schemes being particularly strong growth areas in 2024. In
addition to the new Leisure product launch in 2023, which continues to be a success, 2024 saw a further launch of the Office Professions product.
Our strategy over the medium term is to continue to grow, while maintaining our strong underwriting discipline to increase the profit contribution to the
Group. Our specialisms will continue to deepen through investment in people, technology and innovation together with the propositions, specialism and
excellent service that our customers and broker partners value.
Australia
1
1
Our Australian business reported an underwriting loss
of AUD $6.3m (2023: AUD $9.6m loss). Gross written premium
fell by 3.9% in local currency to
AUD $184.7m (2023: AUD $192.2m) primarily driven by robust portfolio management, with lapses to exit poor-performing accounts, lower retention in
SME and mid-market portfolios and $2.7m of debt write-off. New business wins have been encouraging and aligned to core growth areas, with a positive
outlook supported by significant investment in people during the course of 2024.
1
The underwriting loss
for the year has been impacted by several factors, including an adverse development in prior year liability claims and higher than
expected historical physical and sexual abuse (PSA) claims. Current year performance has been encouraging, supported by favourable catastrophe
experience and underwriting action over recent years. This has been partly offset by increased expenses, and a higher level of large losses in 2024.
Canada
1
Canada reported an underwriting profit
of CAD$23.9m (2023: CAD$25.0m). This slight reduction in profit was due to the impact of several significant
events, such as the Jasper Wildfire in July and the 'Western Deep Freeze' weather event in January. Additionally, historic PSA reserves have been
strengthened due to higher-than-expected development in prior-year claims. However, the strength of the result compared to the industry highlighted
the resilience of the portfolio and quality of underwriting action taken in recent years, despite these large losses.
1
The size of our Canadian business has remained relatively consistent with the prior year, reporting gross written premium
of CAD$177.6m (2023:
CAD$179.4m). This performance was driven by an enhanced distribution strategy, a strong focus on strategic accounts, and effective broker engagement.
This was accomplished despite increased competition, softening market conditions, and active non-renewal of certain accounts.
18
Ecclesiastical Insurance Office public limited company
Strategic Report
Investments
The Group’s net investment result for the year was £71.9m (2023: £57.5m), as markets were generally more positive compared to 2023. The Group remains
committed to its long-term investment philosophy, with a well-diversified and appropriately matched portfolio.
Investment income of £50.1m (2023: £42.9m) remained strong while fair value gains on financial instruments of £21.4m (2023: £19.6m) benefited from
gains on an unlisted equity instrument and fair value gains on listed equities, partly offset by fair value losses on government bonds as interest rates
increased.
The Group’s investment approach is a key part of our climate strategy, and you can find out more in our Responsible Business report.
Long-term business
Our life business, Ecclesiastical Life Limited, provides a product backing policies sold by the wider Group’s pre-paid funeral plan business as well as a
legacy book of life insurance business, which remains closed to new business. Profit before tax was £1.4m for the year (2023: £1.2m), driven by lower
claims and higher long term yields. Assets and liabilities in relation to the life insurance business remain well matched.
Outlook
Given ongoing geopolitical tensions and global uncertainty, market volatility is expected to continue. However, moderate growth and reducing inflation
seem likely to improve market conditions over time, with a steady decline in interest rates also expected. In this context, the Group is committed to
sustainable growth, supported by the inherent resilience of our businesses and well-established strategies in place. Our commitment to a resilient and
long-term strategy underscores our dedication to delivering consistent value to our customers, even amidst market uncertainties.
Balance sheet and capital position
1
In the year, total shareholders’ equity decreased by £1.9m to £627.0m. Underwriting profits
and investment returns were offset in part by £33.0m of
charitable donations paid to the Company’s ultimate shareholder, Benefact Trust Limited, of which £8.0m was in relation to 2023 performance. The
Benefact Group has now achieved its ambition of giving £250m, which is a remarkable milestone in the Group’s charitable objectives.
Our capital position remains robust with Solvency II capital ratio cover for Ecclesiastical solo decreasing slightly to 252% from 254%.
Mark Bennett
Group Chief Financial Officer
1
The Group uses Alternative Performance Measures (APMs) to help explain performance. More information on APMs is included in note 37.
Key performance indicators
The Group considers its key performance indicators to be profit or loss before tax, regulatory capital, gross written premiums, and combined operating
ratio. In addition to information included within this Strategic Report, details about the Group’s regulatory capital, gross written premiums, and combined
operating ratio can be found in notes 4 and 37 to the financial statements. The Group no longer considers net earned premiums to be a key performance
indicator.
Strategic Report
Approved and authorised for issue by the Board of Directors and signed on its behalf by
Mark Hews
Group Chief Executive
20 March 2025
19
Ecclesiastical Insurance Office public limited company
Governance
Board of Directors
The directors of the company who were in office during the year and up to the date of signing the financial statements were:
David Henderson
Chair
David Henderson was appointed to the Board in April 2016. David began his career specialising in personal tax and UK trusts. He spent ten years as a
banker with Morgan Grenfell and, following that, 11 years in financial services executive recruitment with Russell Reynolds Associates. He joined the Board
of Kleinwort Benson Group plc as Personnel Director in 1995. He was appointed Chief Executive of Kleinwort Benson Private Bank Ltd (now Kleinwort
Benson) in June 1997. He was Chairman of Kleinwort Benson from 2004 to 2008 and a Senior Adviser to the Bank until 2019. He holds several external
Non-Executive Directorships.
Mark Hews
Group Chief Executive
Mark Hews was appointed Group Chief Executive in May 2013 and was previously Group Chief Financial Officer. He was appointed to the Board in June
2009 and appointed to the Board of MAPFRE RE in December 2013. He also became a Trustee of The Windsor Leadership Trust in November 2017. He
was formerly a Director of HSBC Life and Chief Executive of M&S Life. Prior to this he was Finance Director at Norwich Union Healthcare. He started his
financial career at Deloitte (formerly Bacon and Woodrow) as a consultant and actuary.
Mark Bennett
Group Chief Financial Officer
Mark Bennett was appointed Group Chief Financial Officer in January 2025, having progressed his career within the organisation since 2007. He is a
member of the Group Management Board, reporting directly to the Group CEO, and is a member of the Ansvar Australia Board. After working at an actuarial
consultancy firm in London, Mark began his career at Benefact Group and qualified as an Actuary in 2009. Mark was appointed Group Chief Actuary in
2018 and became Acting CFO in July 2024, before taking on the role permanently in January 2025.
S. Jacinta Whyte
Deputy Group Chief Executive
Jacinta Whyte was appointed Deputy Group Chief Executive and joined the Board in July 2013 with responsibility for the Group’s General Insurance
business globally. She was also appointed to the Ansvar Australia Board during 2013. Jacinta joined Ecclesiastical in 2003 as the General Manager and
Chief Agent of the Group’s Canadian business, a role that she continues to hold. Having commenced her career as an underwriter for RSA in Dublin in 1974,
she moved with them to Canada in 1988, holding a number of senior executive positions in both Ireland and Canada.
Francois- Xavier Boisseau
Senior Independent Non-Executive Director
Francois-Xavier Boisseau was appointed to the Board in March 2019. In addition Francois-Xavier is a Non-Executive Director of the Company’s ultimate
parent Benefact Trust Limited. He is the Chair of IQUW Syndicate Managing Agency Ltd.
Francois-Xavier has more than 30 years’ experience working in the insurance industry, 25 years in the UK. He was CEO of Insurance Ageas (UK) until
December 2018. Prior to that Francois-Xavier was CEO of Groupama and CEO of GUK Broking Services as well as being Non-Executive Chairman of Lark,
Bollington and Carole Nash.
James Coyle
Independent Non-Executive Director
James was appointed to the Board in May 2024. He is also a Non- Executive Director and Chair of the Risk Committee at HSBC Bank (Singapore) Limited
and Chair of HSBC Global Services Limited. He is also Senior Independent Director and Chair of the Audit and Risk Committee at Pollen Street Capital and
Deputy Chair of the Oversight Board and member of the Audit Governance Board of Deloitte LLP.
He was previously Chair of the Audit Committee, member of the Risk Committee and member of the Chair’s Nomination and Remuneration Committee at
HSBC UK Bank plc, Chair of HSBC Trust Company (UK) Ltd, Chair of Marks & Spencer Unit Trust Management Limited. Also Chair of the Board of Worldfirst
UK Limited, Chair of the Audit and Risk Committee of Scottish Water and member of Committees of the Financial Reporting Council.
After 25 years in Financial Services, James retired as Deputy Group Finance Director at Lloyds Banking Group in May 2015 and, prior to that, he was Group
Chief Accountant at the Bank of Scotland. Before joining Lloyds, James held senior Finance positions at BP for 10 years.
20
Ecclesiastical Insurance Office public limited company
G
overnance
Sir Stephen Lamport
Independent Non-Executive Director
Sir Stephen was appointed to the Board in March 2020. He is A Deputy Lieutenant of Surrey and a Senior Adviser at Sanctuary Counsel. He was a Director
of Benefact Trust Limited until 5 March 2024 and is Vice-President of the Community Foundation for Surrey; Painshill Park Trust Chair; and is the Deputy
High Bailiff of Westminster Abbey. He co-authored with Douglas Hurd a political novel, ‘The Palace of Enchantments’.
He has now retired as a Court member of the St Katharine’s Foundation. Sir Stephen was the Receiver General of Westminster Abbey from 2008 to 2018,
and previously a Group Director of the Royal Bank of Scotland for five years. He was Deputy Private Secretary to The Prince of Wales from 1993, and
Private Secretary and Treasurer from 1996 to 2002. From 1994 to 2002 he was a member of HM Diplomatic Service, with overseas postings in New York,
Tehran and Rome.
He was appointed KCVO in 2002, and GCVO in 2018.
The Venerable Karen Best
Independent Non-Executive Director
The Venerable Karen Best was appointed to the Board in August 2024, having been a member of the Benefact Trust Limited Board prior to this. Karen is
Archdeacon of Manchester. Having bee
n ordained in 1994, Karen carried out her curacy in the Diocese of London where she served as a Prison Chaplain
before becoming an Associate Vicar in 2000. She then went on to serve in Rochester, Chelmsford, and Bolton, before taking on the role of Archdeacon of
Manchester in 2017.
Maria Darby-Walker
Independent Non-Executive Director
Maria Darby-Walker was appointed to the Board in July 2024 and is passionate about working for organisations with a focus on corporate purpose, good
culture, and sustainability. An expert in stakeholder engagement - whether with investors, employ
ees, customers, media, or regulators - her executive
career was in marketing, corporate reputation and investor relations covering financial services, banking, and other sectors.
Maria is currently Senior NED and Chair of the Remuneration Committee of Personal Group Holdings plc, an insurance and technology enabled employee
benefits provider in the UK. She is also Senior Independent Director and Chair of the Remuneration Committee at SME Challenger Bank Redwood Bank
Ltd.
Angus Winther
Independent Non-Executive Director
Angus Winther was appointed to the Board in March 2019. Angus co-founded Lexicon Partners, a London-based investment banking advisory firm, where
he specialised in advising clients in the insurance and financial services sectors. He was closely involved in Lexicon Partners’ leadership until it was
acquired by Evercore in 2011 and served as a Senior Adviser at Evercore until October 2016. He is currently Chair of Apollo Syndicate Management Limited,
a Lloyd’s managing agent and was previously a Non-Executive Director
of Hiscox Syndicates Limited and Trinity Exploration & Production plc. Angus is
also Churchwarden of Holy Trinity Brompton, Vice Chair of the Church Revitalisation Trust and a trustee of St Mellitus College Trust, St Paul’s Theological
Centre, and the Church Renewal Trust.
Denise Cockrem retired from the Board on 30 June 2024. Additionally, Rita Bajaj and Chris Moulder retired from the Board on 24 September 2024. Neil
Maidment stepped down from the Board on 31 December 2024.
DavidHendersonMarkHewsMarkBennettS.JacintaWhyteFrancois-XavierBoisseau
JamesCoyleSirStephenLamportTheVenerableKarenBestMariaDarby-WalkerAngusWinther
21
Ecclesiastical Insurance Office public limited company
Governance
Directors’ Report
The directors present their report and the audited consolidated financial statements for the year ending 31 December 2024.
Information incorporated by reference
The Directors’ Report required under Companies Act 2006 comprises this report and other disclosures contained in the Strategic Report, Governance
section and Notes to the consolidated financial statements is incorporated by reference and includes the following information:
Information Reported in Page(s)
Business model Strategic Report Page 7
Corporate Governance Statement Corporate Governance Report Page 26
Financial instruments Note 4
Page 72
Financial instruments accounting policy
Page 62
Important events since 31 December 2024 Strategic Report Page 24
Future developments Strategic Report Page 3
Research and development Strategic Report Page 3
Employee engagement and involvement Strategic Report Page 15
Stakeholder engagement Strategic Report Page 15
Greenhouse gas emissions and energy consumption Strategic Report Page 8
Going Concern and Viability Statement Directors’ Report Page 23
Diversity and inclusion Strategic Report Page 9
The Section 172 Statement Strategic Report Page 14
Principal risks and uncertainties Strategic Report
Page 4
Note 3
Page 69
Company status and branches
Ecclesiastical Insurance Office plc is incorporated and domiciled in England and Wales (registration number 00024869). The registered office of the
Company is Benefact House, 2000 Pioneer Avenue, Gloucester Business Park, Brockworth, Gloucester, GL3 4AW, United Kingdom. The Company has
branches in Canada and Ireland.
Ownership and share capital
At the date of this report, the entire issued Ordinary share capital of the Company was owned by Benefact Group plc. In addition, 4.35% of the issued
8.625% non-cumulative irredeemable preference shares of £1 each (‘Preference shares’) are owned by Benefact Group plc. In turn, the entire issued
ordinary share capital of Benefact Group plc was owned by Benefact Trust Limited, the ultimate parent of the Group.
Directors and their interests
The directors of the Company who served during the year and up to the date of this report were David Henderson, Mark Hews, Mark Bennett (appointed
1 January 2025), Jacinta Whyte, Francois Xavier-Boisseau, James Coyle (appointed 21 May 2024), Sir Stephen Lamport, Karen Best (appointed 19 August
2024), Maria Darby-Walker (appointed 31 July 2024) and Angus Winther. Denise Cockrem, Rita Bajaj, Chris Moulder, and Neil Maidment stepped down
from the Board during the year. Biographies of those directors who are currently serving on the Board are set out on page 20.
As set out in the Notice of Meeting, all current directors who have served since the last AGM will be proposed for re-election. Mark Bennett, James Coyle,
Karen Best and Maria Darby-Walker will also be proposed for election, following the recommendation of the Nominations Committee. All directors seeking
re-election were subject to a formal and rigorous performance evaluation, further details of which can be found in the Group Nominations Committee
Report. Details of directors’ service contracts are set out in the Directors’ Remuneration Report of Benefact Group plc.
Neither the directors nor their connected persons held any beneficial interest in any ordinary shares of the Company during the year ended 31 December
2024 and to the date of this report.
22
Ecclesiastical Insurance Office public limited company
Governance
The interests of the directors and their connected persons in the preference shares in the capital of the Company as at 31 December 2024 and to the date
of this report are shown below:
Director Nature of interest Number of Non-Cumulative Irredeemable
Preference Shares held
Mark Hews Connected person 75,342
The Board has a documented process in place in respect of conflicts.
No contract of significance existed during or at the end of the financial year in which a director was or is materially interested.
Indemnities and insurance
In accordance with the Company’s Articles and qualifying third party indemnity provisions (as defined by Section 234 of the Companies Act 2006) the
Company indemnifies each of its directors and directors of any associated company against certain liabilities that may be incurred because of their positions
were in force during the course of the financial year ended 31 December 2024 for the benefit of the directors of the Company and that of any associated
company. In addition, the Company maintains directors’ and officers’ liability insurance. Neither our indemnity nor the insurance provides cover in the
event that a director is proven to have acted dishonestly or fraudulently.
Employees
The Group is dedicated to nurturing a culture and work environment where all colleagues can reach their potential. Our Diversity, Equity and Inclusion
Standard and Guidance sets our commitment to creating and sustaining an open and inclusive workplace where we all belong, and we place the care and
wellbeing of all our colleagues at the heart of our employment policies. Throughout the colleague lifecycle, from recruitment onwards, we consider
adjustments to our processes and practices to remove barriers for colleagues with disabilities.
We engage with third-party and occupational health specialists to provide expert advice and ensure we offer the best support possible. Our adjusted work
approach creates an environment where colleagues with additional needs can fully participate in all opportunities provided by the Group, including
continued employment, training, job moves, and promotions. We offer various support options to help colleagues maintain a healthy work-life balance,
including flexible working practices, a virtual GP service, an employee assistance program, flu vaccinations, eye tests, and a wide range of flexible benefits
such as dental care and critical illness insurance and inclusive colleague networks.
Information on employee engagement and well-being is provided in the responsible business section.
Dividends
Dividends paid on the preference shares were £9,181,000 (2023: £9,181,000). The Directors do not recommend a final dividend on the Ordinary shares
(2023: £nil).
An interim dividend of £30m on the Ordinary Shares of 4p each was paid to Benefact Group plc. In 2023, the Company approved a dividend in specie
of £5.2m, as detailed in note 15 to the financial statements.
23
Ecclesiastical Insurance Office public limited company
Governance
Longer-term viability statement
The directors have assessed the prospects of the Group in accordance with Provision 31 of the 2018 UK Corporate Governance Code. Although the
prospects and business plans of the Group are considered over a longer period, the assessment by the directors covers three years. In making its
assessment the directors considered:
The Group’s current position and prospects, risk appetite, and the potential impact of the principal risks and how these are managed;
The Group’s long-term business plans and strategy, and the costs associated with its delivery;
The Group’s current and projected capital, liquidity and solvency positions;
The political, economic and regulatory environment, including uncertainties on the geopolitical outlook.
While the directors have no reason to believe the Group will not be viable over a longer period, a three-year outlook period has been selected. In
determining this assessment period, consideration has been given to the nature of the Group and its businesses, its stage of development, strategy and
business model. Given the rate of change in the markets in which the Group operates, three years provides an appropriate balance between the period of
outlook and degree of clarity over specific, foreseeable risk events that could impact on the viability of the Group. The directors will continue to monitor
and consider the suitability of this period.
The Group uses various stress scenarios with reference to the principal risks, which are documented on pages 4 to 7. Scenarios are designed to be severe,
but plausible, and assess the impact of certain events on the Group’s profitability and capital strength. Reverse stress testing is also used to assess what
could make the Group’s business model unviable. The outcome of testing was discussed by the Board during the year and consideration was given to the
current environment on the Group’s viability.
Among the considerations and scenarios were further investment market volatility, claims experience and business deterioration.
The solvency position of the Group has been projected as part of the Own Risk and Solvency Assessment (ORSA), which is a private, internal, forward-
looking assessment of own risk, required as part of the Solvency II regime. The forward looking emphasis of the ORSA ensures that business strategy and
plans are formulated with full recognition of the risk profile and future capital needs.
Analysis confirms that the Group has sufficient capital resources to cover its capital requirements and is operationally resilient.
The directors have also considered the Group’s ability to service its preference shares, subordinated liabilities and the expectations of its ultimate charitable
owner, Benefact Trust Limited. The Group has fixed annual dividend payments in respect of its non-cumulative irredeemable preference shares and
payments in respect of its subordinated liabilities. The Group makes regular grants to its ultimate charitable owner, Benefact Trust Limited. There is a
regular cycle of discussion with Benefact Trust Limited to determine the appropriate level of grants, in which the Group’s capital position and future
business needs are taken into account.
Confirmation of viability
Based on the Group’s strong capital position, the strong risk management framework in place and the Group’s resilience to the variety of adverse
circumstances as demonstrated in the results of the stress testing and potential mitigating actions, the directors confirm that they have a reasonable
expectation that the Group will continue in operation and be able to meet its liabilities over the three year period of the viability assessment.
Political donations
No political donations were made in the year (2023: £nil). The Group policy is that no political donations may be made or expenditure incurred.
Important events since 31 December 2024
There have been no significant events or transactions since 31 December 2024.
External auditor
During the year, prior to its disbandment, the Group Audit Committee reviewed the effectiveness of the External Auditor.
In accordance with Section 489 of the Companies Act 2006, a resolution proposing that PricewaterhouseCoopers LLP be re-appointed as External
Auditor will be presented to the forthcoming AGM for consideration.
Disclosure of information to the auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information that the auditor is unaware,
that could be needed by the auditor in order to prepare their report.
Having made enquiries of fellow directors and the Group’s auditor, each director has taken all the steps that they ought to have taken as a director, in
order to make themselves aware of any relevant audit information, and to establish that the auditor is aware of that information.
24
Ecclesiastical Insurance Office public limited company
Governance
This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.
Annual General Meeting
A copy of the Notice for the 2025 AGM is available on Ecclesiastical’s website.
Directors' responsibilities statement
The directors are responsible for preparing the 2024 Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial
statements in accordance with UK-Adopted International Accounting Standards (UKIAS). Under company law, directors must not approve the financial
statements unless they are satisfied that they give a true and fair view of the state of the affairs of the Company and of the profit or loss of the Company
for that period. In preparing the financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable UKIAS have been followed, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose
with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the
Companies Act 2006.
Directors’ confirmations
The directors consider that the 2024 Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group’s and Company’s position and performance, business model and strategy. Each of the directors, whose
names and functions are listed on pages 20 and 21 confirm that, to the best of their knowledge:
the Group and Company financial statements, which have been prepared in accordance with UK-adopted international accounting standards, give
a true and fair view of the assets, liabilities and financial position of the Group and Company, and of the profit of the Group; and
the Strategic Report includes a fair review of the development and performance of the business and the position of the Group and Company,
together with a description of the principal risks and uncertainties that it faces.
Approved and authorised for issue by the Board of Directors and signed on its behalf by
David Henderson Mark Hews
Chair Group Chief Executive
20 March 2025 20 March 2025
25
Ecclesiastical Insurance Office public limited company
Governance
Corporate Governance
Introduction from the Chair
Dear Stakeholder
I am delighted to introduce the Corporate Governance Report. I firmly believe that good corporate governance is essential in assisting us to deliver our
ambitions and to continue supporting our stakeholders.
Ecclesiastical is proudly part of the part of the Benefact Group, a financial services group owned by a charity, Benefact Trust Limited. In 2023, the Benefact
Group plc Board restructured its business repositioning itself as a holding company, overseeing the three distinct businesses which it owns being Insurance
(Ecclesiastical), Asset Management (EdenTree) and Broking and Advisory (Benefact Broking & Advisory).
In 2024 and, as a consequence of the restructure, the Ecclesiastical Board focused on making the Boards of Benefact Group plc and Ecclesiastical more
independent and have moved away from a common directorship model. The Board refresh has enabled the Ecclesiastical Board to comprise a majority
of independent Non-Executive directors, overseeing an Insurance Group of companies and the Benefact Group Board has become smaller and more
focused on overseeing its subsidiaries. The refresh of the Benefact Group plc and Ecclesiastical Boards, to reduce commonality of membership, was agreed
at the September meeting of the Boards.
In addition, it was agreed that Ecclesiastical should have an independent Audit Committee and a separate Risk Committee which had historically been joint
committees with Benefact Group plc. These were established during the year and the existing Group Audit Committee, Group Risk Committee and Group
Finance & Investment Committees (which were joint with Benefact Group plc) were all disbanded and their duties allocated between the Board and its new
Committees.
More detail on the composition of the Board can be found on page 20. Any references to the Audit Committee shall also include the Group
Audit Committee. Any references to the Risk Committee shall also include the Group Risk Committee.
The decision has also been taken to maintain the Group Nominations Committee and Group Remuneration Committee, which are joint Committees with the
Benefact Group plc board.
We have taken the opportunity to review and strengthen our governance structure to ensure that we have a governance framework in place that
empowers and supports the Benefact Group’s strategic ambitions. An overview of the refreshed governance structure is detailed further within this report.
Areas of Board and Committee focus
2024 was another challenging year given the backdrop of uncertain economic conditions. We looked to demonstrate our resilience and commitment to
our stakeholders as detailed below. The Board’s main focus during the year has been the review of the Board and the implementation of the new
governance structure. More information of the Board’s activities and key decisions can be found on page 14.
Our approach to governance
As a Board, we are committed to applying the highest standards of corporate governance and believe that the affairs of the Company should be conducted
in accordance with best business practice. Consequently, although the Company does not have shares with a main market listing on the London Stock
Exchange we have chosen to voluntarily comply with the Principles and Provisions of the 2018 UK Corporate Governance Code (the Code) where possible.
A copy of the Code can be found on the FRC’s website. I am pleased to report that, we are fully compliant with the principles and provisions of good
governance contained in the Code with the following exceptions:
Provision Current Status / Explanation
4: When 20 per cent or more of votes have been cast against the board
Given Benefact Group plc owns the entire issued Ordinary share capital of the
recommendation for a resolution, the company should explain, when
Company, there is no need to comply with the provisions relating to outcomes
announcing voting results, what actions it intends to take to consult
from shareholder votes
shareholders in order to understand the reasons behind the result.
10. The board should identify in the annual report each Non-Executive
The Board has considered the circumstances and relationships of all Non-
director it considers to be independent. Circumstances which are likely
Executive Directors and is satisfied that a majority (75%) of the Non-Executive
to impair, or could appear to impair, a non-executive director’s
Directors remained independent in character and judgement. Francois
independence include, but are not limited to, whether a director:
Boisseau is also a Non-Executive Director of the Company’s ultimate parent,
holds cross-directorships or has significant links with other
Benefact Trust Limited, a registered charity, and this common directorship is
directors through involvement in other companies or bodies;
regarded as good practice with a charity that owns trading subsidiaries. Karen
Where any of these or other relevant circumstances apply, and the
Best and Sir Stephen Lamport were previously Non-Executive Directors of
board nonetheless considers that the non-executive director is
Benefact Trust Limited.
independent, a clear explanation should be provided.
26
Ecclesiastical Insurance Office public limited company
Governance
36: Remuneration schemes should promote long-term shareholdings
Given the Company does not have listed equity shares we are unable to comply
by executive directors that support alignment with long-term
with the shareholding requirements for Executive Directors.
shareholder interests.
AGM and re-election of directors
This year our AGM will be taking place on 26 June 2025. A copy of the Notice for the AGM is available on the Company’s website.
In accordance with the Code and as set out in the Notice of Meeting, all directors who have served since the last AGM will be proposed for re-election
(except for Neil Maidment who stepped down from the Board with effect from 31 December 2024). I can confirm that all directors seeking re-election were
subject to a formal and rigorous performance evaluation. Additionally, Mark Bennett, James Coyle, Karen Best and Maria Darby-Walker, all being directors
appointed during the year, will seek election at the forthcoming AGM.
David Henderson
Chair
20 March 2025
27
Ecclesiastical Insurance Office public limited company
G
overnance
Nominations Committee Report
Committee member Member since Meetings attended
Chris Moulder
November 2019 3/3
David Henderson
January 2018 3/3
Angus Winther
May20213/3
Dear Stakeholder
I am pleased to present the Group Nominations Committee’s Report for the year-ending 31 December 2024. This is a joint Committee of EIO and Benefact
Group plc. I am a Non-Executive Director and Senior Independent Director of Benefact Group plc and Chair the Group Nominations Committee on behalf
of both Boards.
During the year, we focused on making the Boards of EIO and Benefact Group plc more independent following the organisational restructure of the Group
into three distinct divisions in 2023. We reviewed the skills, experience and diversity on the EIO Board, its Committees and subsidiaries and led the process
for the appointment of three new Non-Executive Directors. In addition, we established an independent Audit Committee and a separate Risk Committee of
the Company.
C
hris Moulder, Group Nominations Committee’s Chair
20 March 2025
Composition of the Board and Senior Management
Following the organisational restructure of the Group undertaken in 2023, the Committee reviewed the composition of the Boards of EIO and Benefact
Group plc which had historically consisted of a common directorship model. The aim of the review was to establish an EIO Board comprising a majority of
independent non-executive directors. The review included consideration of skills, knowledge, experience, length of tenure, independence, and diversity in
the context of the Company’s long term strategic priorities. In addition, it was agreed
that EIO should have an independent Audit Committee and a separate
Risk Committee and these were created during the year. As part of this review, three new non-executive directors were appointed to the EIO Board during
the year and two directors resigned from the Board. In addition, Denise Cockrem, the Group CFO retired from the Board in June 2024 and was succeeded
by Mark Bennett who was appointed on 1 January 2025. Neil Maidment resigned from the Board on 31 December 2024.
The Committee was conscious that improvements
were required in relation to the diversity of the Board and its Committees particularly in terms of female
representation – this was actively addressed during this review. Two of the new directors recruited were female. In line with the expectations of the FCA,
the Committee will continue to make this a consideration when recruiting new directors in the future.
Board Diversity
Ecclesiastical recognises the benefits of having a diverse Board and is committed to improving diversity on the Board. It believes that diversity both
strengthens the Board and business performance. The Board
will take opportunities, as and when appropriate, to further improve diversity in its broadest
sense (including ethnicity, skills, regional and industry experience, background, age, gender and other distinctions) as part of its recruitment practice.
However, the Board believes the approach to diversity and inclusion should not be a ‘tick box exercise’ but an opportunity to continue to build a cohesive
and robust leadership. Ultimately all appointments should be made on merit with directors able to bring a range of thoughts and opinions to avoid
‘Groupthink’.
The Board’s Diversity Policy includes objectives which align with the diversity and inclusion targets set out in the Listing Rules.
Statement on Board Diversity
The Board has continued to focus on diversity , however we are disappointed that we have been unable to achieve two of the three objectives as set out
below:
BoardDiversityObjectiveImplementationandprogress
At least 40% of the Board are women. This objective has not been met. The Board have focused on increasing female
representation with two new female directors appointed during the year and this
continues to be an area of focus. This has been further compounded with the retirement
of Denise Cockrem.
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At least one of the senior positions on the Board (defined as
The Deputy Chief Executive Officer, and the Group Chief Financial Officer (who retired
Chair, Chief Executive, Deputy Chief Executive, Senior
during the year) were women. As Mark Bennett has succeeded Denise Cockrem as
Independent Director and Chief Financial Officer) is held by
Group Chief Financial Officer this objective is no longer met.
a women.
At least one director is from a minority ethnic background. One member of the Board is from an ethnic minority background.
Numerical information, together with detail relating to the approach taken to collate this diversity data in accordance with UKLR 6.6.6 R(9) is set out in
the Board Diversity Schedule.
Directors’ Length of Service
The Committee monitors the length of tenure of all directors as shown in the table on Board diversity.
Director’s Independence and time commitments
Independence is reviewed as part of each director’s annual appraisal, considered by the Committee and agreed by the Board annually. The Committee
has considered the circumstances and relationships of all Non-Executive Directors and, following rigorous review, the Committee confirmed to the Board
that a majority (75%) of the Non-Executive Directors remained independent in character and judgement. No individual participated in the discussions
relating to their own independence. One Non-Executive Director, David Henderson, (and two Executive Directors, Mark Hews and Mark Bennett) remain
directors of the Company’s immediate parent, Benefact Group plc and are not deemed to be independent.
Francois Boisseau is also a director on the Board of Benefact Trust Limited and the Company (‘a common director’). Chris Moulder and Sir Stephen Lamport
were also common directors with Benefact Trust Limited until 6 July 2023 and 5 March 2024 respectively when they stepped down from the Board of
Benefact Trust Limited. The common directorship model is regarded as good practice with a charity that owns a trading subsidiary and these common
directors enable the Trust to gain a thorough understanding of its subsidiary company’s performance and the strategic issues it faces, and for the
subsidiary to understand the expectations of its parent company. A joint Company and Benefact Trust Limited Nominations Committee Meeting is held
annually, amongst other things to consider the appointment of common directors.
The Committee evaluates the time Non-Executive Directors spend on the Company’s business annually and is satisfied that, in 2024, the Non-Executive
Directors continued to be effective and fulfilled their time commitment as stated in their letters of appointment.
External directorships are considered to be valuable in terms of broadening the experience and knowledge of Executive Directors, provided there is no
actual or potential conflict of interest, and the commitment required is not excessive.
All appointments are subject to approval by the Board, and the Conflicts Register maintained by the Group Company Secretary is used to monitor external
interests. Any monetary payments received by Executive Directors from outside directorships are paid over to and retained by the Company.
Succession Planning and Talent Development
The composition of the Board and Senior Management is informed by plans for orderly, rigorous and a phased approach to succession and to reflect the
Company’s strategic ambitions, opportunities and challenges faced.
In respect of each leadership role, emergency, short-term and long-term succession plans are considered and challenged by the Committee to ensure
that appropriate skills are in place to support the Company’s strategy and ensure a diverse pipeline of talent is in place. This is supported by a robust
skills analysis which is conducted for all directors annually. During 2024, the assessment demonstrated that all directors had the required skills, expertise
and knowledge the Board believes are necessary to drive the Company forward.
In support of the Benefact Group’s strategy to build a world class team, the Committee reviewed the talent, succession, and leadership activities across
the Company.
Board Appointments
The appointment process is set out below:
Appointment Process
An Appointments Panel comprising Chris Moulder, David Henderson, and Rachael Hall was formed for the recruitment of a new Non-Executive Director
with extensive senior experience in the financial services sector or the civil service. A Position Specification for the role based on objective criteria and
having regard to the outcome of the Board skills analysis was developed.
Following a tender process involving three Search Agencies, Sapphire Partners (which had no other connection to the Company) was engaged to support
the recruitment process.
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Having due regard to the Board’s diversity and inclusion ambitions, the skills and competences outlined in the specification, and the Company’s ethics,
culture and values, Sapphire Partners drew up a list of potential candidates. This long-list was reduced to a short-list by the Appointments Panel and
interviews were held. The Board appointed Maria Darby-Walker on 31 July 2024.
Chair of the Audit Committee
The Group Audit Committee, a joint Committee with Benefact Group plc was disbanded during the year.
Following the creation of a new EIO Audit Committee, a new Non-Executive Director was recruited to chair the Audit Committee. Per Ardua had been
previously selected as the Search Agency (which had no other connection to the Company) to assist with the search for an Audit Chair and Jim Coyle was
appointed on 21 May 2024.
Chair of the Risk Committee
The Group Risk Committee, a joint Committee with Benefact Group plc was disbanded during the year.
Francois Boisseau was appointed to Chair the newly formed EIO Risk Committee.
Senior Independent Director
Francois Boisseau was appointed as Senior Independent Director succeeding Chris Moulder.
Group Chief Financial Officer
Denise Cockrem retired from her role as an Executive Director and Group Chief Financial Officer on 30 June 2024. The search for a new Group Chief
Financial Officer resulted in the appointment of Mark Bennett with effect from 1 January 2025. Russell Reynolds assisted the Company with the
recruitment.
Other Changes to the Board
As a result of the review of the Board, Chris Moulder and Rita Bajaj resigned from the Board on 24 September 2024. They remain on the Board of Benefact
Group plc.
The Venerable Karen Best was recruited as a Non-Executive Director of the Board on 21 August 2024. A search agency was not used for the recruitment
of this role.
Induction and Training
All Directors undertake a formal, comprehensive and tailored induction upon joining the Board. This includes sessions with key SMEs across the Company.
In addition, the annual training schedule of the Board is developed in consultation with the Committee, the Group Management Board (GMB) and key Small
and Medium-sized Enterprises (SMEs) around the Company before being approved by the Board. It is dynamic and can change to reflect the needs of the
Board. Any Director may request further training to support their individual or collective needs. Throughout the year, the Board received training on
Diversity, Inclusion and Unconscious Bias, Cyber Risk, Internal Model, IFRS17, Investment Strategy and Rating Agencies, Climate Change and Sustainability
and Sustainability Disclosure Requirements.
The Group Company Secretary maintains annual Continuing Professional Development (CPD) records for all directors, which the Chair reviews as part of
their annual appraisal.
Board Evaluation and Performance
All Directors receive an annual appraisal from the Chair. The Chair is appraised by the Board, in his absence led by the Senior Independent Director.
As explained in last’s year’s Committee report Stephenson Executive Search conducted the external Board Evaluation in late 2022 and early 2023. It had
no connection to the Group or its directors beyond Tim Stephenson, Stephenson Executive Search’s Chair supporting David Henderson in relation to Non-
Executive Director assignments. The Board was content that Mr Stephenson provided an independent view on the performance of the Board, its
committees and individual directors. Mr Stephenson observed Board and Committee meetings and conducted a series of interviews with each director,
the Group Company Secretary, the Group Chief Actuary and the Group Chief Risk and Compliance Officer. The outcome of the evaluation was considered
by the Board in March 2023. The main recommendations arising from the Board Evaluation related to the Board Succession planning which has been
addressed. The next evaluation is due in 2026.
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Ecclesiastical Insurance Office public limited company
G
overnance
Risk Committee Report
EIO Risk Committee member Member since Meetings attended
1
Francois-Xavier Boisseau (Chair)
September 2024 1/1
2
James Coyle
September 2024 0/1
3
Maria Darby-Walker
September 2024 1/1
Sir Stephen Lamport September 2024 1/1
Group Risk Committee member Member since Meetings attended
4
Neil Maidment (Chair)
March 2020 5/5
5
Rita Bajaj
September20235/5
6
Chris Moulder
September20174/5
7
Sir Stephen Lamport
November 2020 5/5
1
Francois-Xavier Boisseau
April 2019 5/5
1
Francois-Xavier Boisseau stepped down as a member of the Group Risk Committee on 24
September 2024. The same day, he was appointed Chair of the EIO Risk Committee.
2
James Coyle was appointed a member of EIO Risk Committee on 24 September 2024. He was
unable to attend the Committee’s meeting in November due to a professional commitment arranged
before he joined the Board.
3
Maria Darby-Walker joined the EIO Risk Committee on 24 September 2024.
4
Neil Maidment stepped down as the Group Risk Committee Chair when it was disbanded on 24
September 2024.
5
Rita Bajaj stepped down as a Group Risk Committee member on 24 September 2024.
6
Chris Moulder stepped down as a Group Risk Committee member on 24 September 2024. He was
unable to attend one meeting due to a professional commitment arranged before the meeting was
confirmed.
7
Stephen Lamport stepped down as a member of the Group Risk Committee on 24 September 2024.
He was appointed a member of the EIO Risk Committee on the same day.
Dear Stakeholder
I am pleased to present this report, my first as Chair of the Risk Committee.
The Committee was established by the Board on 24 September 2024. Prior to this, the risk management framework was overseen by the Group Risk
Committee, a joint committee of the Ecclesiastical Insurance Office plc and Benefact Group plc Boards, which was disbanded on 24 September 2024.
I take this opportunity to thank Neil Maidment for chairing the Group Risk Committee until it was disbanded.
This report describes the work undertaken by the Group Risk Committee and the EIO Risk Committee during the past year to monitor the risk management
framework; management of capital; Internal Model scope, u
se, governance and validation; operational resilience; and other material risks, paying close attention to
impacts from the internal and external environments.
F
rancois Boisseau
Chair of the Risk Committee
20 March 2025
The Committee’s primary role is to provide oversight and advice to the Board on the current and future risk exposures, by reference to strategic
developments, including determining risk appetite, tolerances and culture.
The Committee also oversees risk and compliance monitoring; monitors operational, conduct, reputational, market and prudential risks; and oversees the
Group’s exposure to the financial and reputational risks arising from Climate Change.
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The Board has voluntarily chosen to include this report in addition to the disclosures in the Risk Management Report and Principal Risks sections. The latter
sets out the principal risks and uncertainties. The Committee has reviewed these in detail and is comfortable that the business has addressed them
appropriately within its ongoing operating model and strategic priorities.
Areas of focus during 2024
During 2024, meetings of the Group Risk Committee and the EIO Risk Committee were attended by the Group Chair, Deputy Group Chief Executive, Group
Chief Risk and Compliance Officer, Group Chief Financial Officer, Group Underwriting Director, Group Chief Actuary and Group Chief Internal Auditor.
Areas of focus for these Committees included operational and financial resilience, and the capital and solvency positions and the Committees monitored
the ongoing development, governance, methodology and calibration of the Internal Model; overseeing independent validation; reviewing profit and loss
attribution; and recommending Model changes and management actions to the Board.
Updates were received from management particularly in light of direct and indirect impacts from the external environment which included adverse weather
events, cyber risk and regulatory changes.
During the year, reports from the Actuarial Function on reinsurance, underwriting and pricing; the Money Laundering Reporting Officer; and the Data Protection
Officer were reviewed.
Reports were received on risk appetite; risk and compliance monitoring and assurance; underwriting and insurance risk; market and investment risk; reinsurance;
outsourcing and third-party risk; business continuity; climate change; cyber risk; the data management; and the Consumer Duty. Updates on the implementation
of a new computer system for General Insurance in the UK, and the implementation of operational resilience regulatory requirements were also received.
The Group Risk Committee also reviewed the Own Risk and Solvency Assessment, recommending it to the Board.
The Group Chief Risk and Compliance Officer reports to the Committee and has direct access to the Committee Chair and the Non-Executive Directors. The
Committee ensures that it meets with the Group Chief Risk and Compliance Officer at least annually without other management present.
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overnance
Audit Committee Report
EIO Audit Committee member Member since Meetings attended
1
James Coyle (Chair)
September 2024 1/1
2
Francois-Xavier Boisseau
September 2024 1/1
3
Angus Winther
September 2024 0/1
Group Audit Committee member Member since Meetings attended
4
Chris Moulder (Chair)
September 2017 6/6
5
Neil Maidment
March 2020 5/6
2
Francois-Xavier Boisseau
April 2019 6/6
1
James Coyle
May20241/1
1
James Coyle stepped down as a member of the Group Audit Committee on 24 September 2024. The
same day, he was appointed as a member and Chair of the EIO Audit Committee.
2
Francois-Xavier Boisseau stepped down as a Group Audit Committee member on 24 September
2024. The same day, he was appointed as an EIO Audit Committee member.
3
Angus Winther was appointed a member of the EIO Audit Committee on 24 September 2024. He
was unable to attend the Committee’s meeting in November due to a professional commitment
arranged before he joined the Committee.
4
Chris Moulder stepped down as a Group Audit Committee member and Chair when the Group Audit
Committee was disbanded on 24 September 2024.
5
Neil Maidment was unable to attend one meeting due to a prior professional commitment. He
stepped down as a Group Audit Committee member on 24 September 2024.
Dear Stakeholder
I am pleased to present my first report on the work of the EIO Audit Committee and its key areas of focus. I would like to thank my fellow Committee members
for their input and insight as well as Chris Moulder for chairing the Group Audit Co
mmittee until it was disbanded in September 2024.
The Committee was established by the Board on 24 September 2024. Prior to this, the Committee’s role in monitoring the integrity of the Group’s financial and
regulatory reporting; internal controls processes; and internal and external audit arrangements was performed by the Group Audit Committee, a joint committee
of Ecclesiastical Insurance Office plc and Benefact Group plc Boards. On 24 September 2024, this joint Group Audit Committee was disbanded and the Audit
Committee of the Ecclesiastical Insurance Office plc Group (EIO Audit Committee) was formed.
This report
describes the work undertaken by the Group Audit Committee and the EIO Audit Committee (the Committees) in respect of the 2024 financial year.
The Committee plays a key role in challenging and monitoring the integrity of the Group’s financial reporting, ensuring the Annual Report and Accounts are
prepared using appropriate judgements and are a fair reflection of the Group’s performance and position. The significant accounting and financial reporting issues
considered in detail by the Committee are set out in this report. The Committee oversees and reviews the Group’s internal financial control and internal control
systems, ensuring they
operate effectively and provide stakeholders with confidence in the accuracy and reliability of financial information. The Committee
monitors external factors to ensure reporting and controls take into consideration, and respond to, emerging developments and external risks.
As noted in the Corporate Governance Report, the Group has adopted Benefact Group plc’s Governance Framework. The role of the Committee in the Governance
Framework is vital, providing independent challenge and oversight across financial reporting and internal control procedures in the Group. The Committee
ensure
s the interests of shareholders are protected by providing independent scrutiny and challenge to ensure the Group presents a true and fair view of its
performance, with a focus on the accuracy, integrity and communication of its financial reporting. The Committee also examines the Group’s control environment
and strategies for risk management, providing assurance these are managed appropriately. The Committee remain satisfied that the business has maintained a
robust risk management and internal controls culture, supported by strong overall governance processes.
James Coyle
Ch
air of the Audit Committee
20 March 2025
Members of the Committee
Committee members are Non-Executive Directors and bring a wide range of financial, risk, control and commercial expertise, with a particular depth of experience
in the insurance sector that are necessary to fulfil the Committee’s duties and enable the Committee to challenge and scrutinise management’s work. The Board
considers that the Committee has recent and relevant financial experience and accounting competence and that the Committee as a whole is appropriately
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competent in the sectors in which the Group operates.
Committee meetings
In addition to the members of the Committees, regular attendees of meetings included the Chair of the Board, Group Chief Executive Officer, Deputy Group Chief
Executive, Group Chief Financial Officer, Group Chief Internal Auditor and the external auditors. Other subject matter experts are invited to attend certain meetings
in order to provide insight into key matters and developments.
In 2024, the Group’s external auditors, PricewaterhouseCoopers (PwC), attended six Group Audit Committee meetings and one EIO Audit Committee meeting.
During the year, the Group Audit Committee met privately with the Group’s external auditors without management present.
The Committee’s key responsibilities and activities include:
•
scrutinising the financial statements and reviewing accounting policies and significant judgements and estimates;
•
reviewing the content of financial reporting and advising the Board whether, taken as a whole, they are fair, balanced and understandable;
•
reviewing the going concern basis of preparation of the financial statements and statements on viability for recommending to the Board;
•
reviewing climate and non-financial metrics reporting;
•
reviewing the Group’s whistleblowing arrangements;
•
overseeing the Group’s external and internal audit arrangements; and
•
reviewing the effectiveness of the Group’s systems of internal controls and the management of financial risks.
A summary of the main activities of the Committees during the year is set out below:
Auditor appointment and tenure, independence and non-audit services
Prior to its disbandment, the Group Audit Committee oversaw the relationship with and performance of the external auditor. The EIO Audit Committee
continues to oversee this relationship, the external audit process, the audit fee, appointment, reappointment and removal of the external auditor, assessing
their independence and effectiveness on an ongoing basis.
PwC has acted as the Group’s external statutory auditor following appointment at the Company’s Annual General Meeting in June 2020. The Group’s
policy for auditor rotation follows regulatory requirements and PwC will be required to be rotated after no more than 20 years, and an audit tender held
after no more than 10 years. Alexis Gish of PwC became the Group’s senior statutory auditor for the financial year 2024. Alexis Gish’s term as senior
statutory auditor cannot exceed a maximum duration of five years. The Group’s previous senior statutory auditor, Sue Morling of PwC, led the Group’s
audit for four years.
The Company confirms that it complied with the provisions of the Competition and Markets Authority’s Order for the financial year under review. Both the
Board and the external auditor have safeguards in place to protect the independence and objectivity of the external auditor.
Until it was disbanded, the Group Audit Committee oversaw the development, implementation and monitoring of the Group’s policy on the provision of
non-audit services by the external auditor. The purpose of the policy is to safeguard the independence and objectivity of the external auditor and to comply
with the ethical standards of the Financial Reporting Council (FRC). The EIO Audit Committee continues to monitor the application of the policy, as it applies
to the Group, taking into account the Ethical Standard and legal requirements.
The Committee oversees the external audit plan to ensure it is comprehensive, risk-based and cost-effective. The plan describes the proposed scope of
the work and the approach to be taken, and the proposed materiality levels to be used which are described on page 42. In order to focus the audit work
on the right areas, the auditors identify particular risk issues based on various factors, including their knowledge of the business and operating environment
and discussions with management.
For the year ended 31 December 2024, the Group was charged £1,560,000 (ex VAT) by PwC for audit services. Non-audit fees for audit-related assurance
services required by legislation and/or regulation amounted to £355,000, making total fees from PwC of £1,915,000. There were no other non-audit
services provided by PwC during the financial year.
External audit effectiveness
The Committee assesses the effectiveness of the external auditor annually against several criteria including, but not limited to, accessibility and
knowledgeability of audit team members, the efficiency of the audit process including the effectiveness of the audit plan, and the quality of improvements
recommended.
The Group Audit Committee reviewed a report based on input from senior management, business unit leaders and those most involved in the external audit
process, regarding the PwC 2023 statutory audit and audit-related assurance services. The Group Audit Committee recognised the strengths of the external
auditor and that duties were performed independently and effectively.
Appropri
ateness of the Group’s external financial reporting
The primary role of the Committee in relation to financial reporting is to review, challenge and agree the appropriateness of the half-year and annual
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financial statements and annual regulatory reporting under Solvency II, concentrating on, amongst other matters:
•
the quality and acceptability of accounting policies and practices;
•
the clarity of the disclosures and compliance with financial and regulatory reporting standards, and relevant financial and governance reporting
requirements;
•
material areas in which significant judgements have been made or there has been discussion with the external auditor;
•
whether the Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and provide the information necessary for
shareholders to assess the Group’s position and performance, business model and strategy; and
•
any correspondence from regulators in relation to financial reporting.
In respect of these annual financial statements the Committee paid particular attention to the significant judgements set out below, including a review of
the corporate governance disclosures, monitoring of the external audit process and statements about going concern and viability. The Committee
concluded that it remained appropriate to prepare the financial statements on a going concern basis and recommended the viability statement to the Board
for approval.
The Group Audit Committee reviewed and challenged the annual regulatory submissions of Ecclesiastical Insurance Office plc and Ecclesiastical Life
Limited under Solvency II focussing on the reporting requirements of the publicly filed Solvency and Financial Capital Report (SFCR) and Quantitative
Reporting Templates (QRTs).
The significant areas of focus considered by the Committees in relation to 2024, and how these were addressed, are outlined below. These were discussed
and agreed with management during the course of the year, and also discussed with the auditors.
Area of focus Committee response
General insurance reserves
The Group Audit Committee considered a detailed report provided by the Group Actuarial Director on the adequacy
of general insurance reserves at the half year.
The estimation of the ultimate
liability arising from claims under
At the full year the Committee received a report and discussed and challenged management across a wide range
general business insurance
of assumptions and key judgements.
contracts is a critical accounting
estimate. There is uncertainty as to
This was a major area of audit focus and the auditor also provided detailed reporting on these matters to the
the total number of claims on each
Committee.
class of business, the amounts
that such claims will be settled for
Key areas of focus during 2024 were latent claim reserves, Australia general liability reserves, claims inflation
and the timings of any payments.
including the implementation of the latest Judicial College Guidelines, the Ogden discount rate and weather events
impacting Group companies.
The Committee concluded at year end that the reserving process and outcomes were robust, applied consistently,
were well managed and that the overall reserves set were reasonable as disclosed in note 27 of the financial
statements.
The Committee was also satisfied that management had carried out a thorough review of the drivers of uncertainty
and had arrived at an appropriate recommendation for the level of booked reserves including the risk adjustment.
Life insurance reserves
The Committee considered the key accounting judgements of Ecclesiastical Life Limited (ELL) (the Group’s life
business) which set out recommendations for the basis and methodology to apply for:
The calculation of life insurance
reserves requires management to
•
valuation of policy liabilities for inclusion in the A
nnual R
eport and Accounts for ELL at 31 December 2024,
make significant judgements about
and
bond yields, discount rates, credit
•
the calculation of technical provisions in accordance with Solvency II regulations at 31 December 2024.
risk, mortality rates and current
expectations of future expense
The main areas of judgement reviewed by the Committee were the estimated future cash flows and the discount
levels.
rate applied to future cash flows. The Committee also challenged the assumptions regarding mortality rates and
future attributable expenses which impact the estimated future cashflows.
The Committee reviewed the work done by the Chief Actuary to assess whether the methodology remained
appropriate, with a particular focus on mortality assumptions, surrender rates, interest rate and inflation rate
assumptions.
Following its review, and after consideration of the auditor’s report, the Committee was satisfied that the
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Ecclesiastical Insurance Office public limited company
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assumptions proposed were appropriate and overall the judgements made in respect of the reserves were
reasonable. The assumptions are disclosed in note 27 of the financial statements.
Pension scheme accounting
During 2024, reports were received from management on the proposed approach to the valuation of the pension
scheme. As the pension scheme is sensitive to changes in key assumptions, management completed an assessment
The liabilities of the scheme are
as to the appropriateness of the assumptions used, taking advice from independent actuarial experts and including,
material in comparison to the
where appropriate, benchmark data, and reported its findings to the Committee. Improvements in the pension
Group’s net asset and the
actuary’s models increased the accuracy, and also dynamically captured changes in the scheme’s liability profile.
valuation requires many actuarial
assumptions, including
Following the review, management concluded the future improvements in mortality table will be updated to the
judgements in relation to long-
CMI 2023 table. It was deemed that mortality rates in 2022 and 2023 could be indicative of future mortality to some
term interest rates, inflation,
extent and that a default weighting of 15% should be applied to 2022 and 2023 mortality data in the CMI 2023 table.
longevity and investment returns.
It was concluded that the salary assumptions remained consistent with long-term expectations. The best estimate
multipliers for the post-retirement mortality tables were revised following input from the Scheme Actuary.
Judgement is applied in
determining the extent to which a
The Committee considered the outcome of the Court of Appeal's judgement in the case of Virgin Media v NTL
surplus in the Group’s defined
Trustees, which was released on 25 July 2024. The Committee considered the relevance and implications of this
benefit scheme can be recognised
ruling, management’s ongoing review and the related disclosures included within the financial statements.
as an asset.
Following consideration, the Committee concluded that the assumptions and disclosures proposed were
appropriate.
The impact of updating assumptions to reflect those in force at the balance sheet date on the valuation at 31
December 2024 is explained in note 18 to the financial statements.
Valuation of intangible assets
The Group’s significant investment in technology, together with fast-moving technology development and change,
increases the importance of a detailed assessment of the value of assets and the implications of further investment.
The valuation and impairment
The Committee considered management’s work to test and review the value of assets and any consequent
reviews carried out over intangible
impairments or changes to useful lives. The Committee concurred with management’s conclusions that no
assets, particularly software, is an
impairment was required and that carrying values were appropriate.
area of focus for the Committee
given the Group’s investment in
technology and the materiality of
the balance.
Valuation of unlisted equity
The Committees received information from management on the Group’s unlisted equity investments and the model
used to determine fair value of these investments, paying particular attention to the application of industry
This is an area of focus given the
recognised valuation techniques and areas of the portfolio more susceptible to valuation uncertainty.
materiality and the subjectivity in
deriving fair value.
When considering management’s assessment of the fair value of unlisted equities, the Committee considered the
fair value model and inputs used. Particular consideration was given to the judgements included within the model
The judgements and estimates
that management used to determine a valuation. This included the discount applied for illiquidity, the quantity and
used to determine the value of the
suitability of comparable companies used within the model and the use of any specific adjustments in response to
Group’s interest in unlisted equity
past market expectations on the performance of fixed income securities held by comparable companies.
follow industry recognised fair
value model techniques and the
Following consideration, the Committee concluded that the assumptions proposed were appropriate.
principles of IFRS 13 Fair Value
Measurement. Judgements and
estimates include the selection of
the most appropriate valuation
approach, the set of comparable
companies, choice of valuation
multiples and the setting of an
illiquidity discount.
Fair, balanced and understandable
The Committee considered whether in its opinion, the 2024 Annual Report and Accounts were fair, balanced and understandable and provided the
information necessary for shareholders to assess the Group’s position and performance, business model and strategy. The Committee provided feedback
on early drafts of the Annual Report and Accounts, highlighting any areas where further clarity was required in the final version.
When forming its opinion, the Committee reflected on information it had received and discussions throughout the year as well as its knowledge of the
business and its performance.
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The Committee was satisfied that the disclosures in the Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and
represented the results and business performance for the year ended 31 December 2024.
Oversight of systems of internal control including the internal audit function
Assessment of internal controls
The approach to internal control and risk management is set out in the Corporate Governance Report section of this Annual Report and Accounts.
In reviewing the effectiveness of the system of internal control and risk management during 2024, the Committees have:
•
reviewed the findings arising from both external and internal audit reports issued during the year;
•
monitored management’s responsiveness to the findings and recommendations of the Group Chief Internal Auditor;
•
met with the Group Chief Internal Auditor without management being present to discuss any issues arising from internal audits carried out; and
•
considered a report prepared by the Group Chief Internal Auditor giving his assessment of the strength of the Group’s internal controls based on
internal audit activity during the year.
Internal control over financial reporting
Internal control over financial reporting is a process designed to provide reasonable, but not absolute, assurance regarding the reliability of management
and financial reporting in accordance with generally accepted accounting principles. Controls over financial reporting policies and procedures include
controls to ensure that:
•
through clearly defined role profiles and financial mandates, there is effective delegation of authority;
•
there is adequate segregation of duties in respect of all financial transactions;
•
commitments and expenditure are appropriately authorised by management;
•
records are maintained which accurately and fairly reflect transactions;
•
any unauthorised acquisition, use or disposal of assets that could have a material effect on the financial statements should be detected on a timely
basis;
•
transactions are recorded as required to permit the preparation of financial statements; and
•
the financial statements comply with IFRS.
Due to inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Risk management and control systems
provide reasonable assurance that the financial reporting does not contain any material inaccuracies. Through reviewing reports received from
management, and the internal and external auditors, the Committees did not identify any material weaknesses in internal controls over financial reporting
during the year. The financial systems are deemed to have functioned properly during the year under review. Management are reviewing one of the
primary finance systems which is reaching the end of its life. The Committee is being updated by management on the progress of this review and there
are no current indications finance systems will not continue to operate effectively in the forthcoming period.
Group Internal Audit (GIA)
GIA provides independent, objective assurance to the Board that the governance processes, management of risk and systems of internal control are
adequate and effective to mitigate the most significant risks to the Group. GIA operate co-sourcing arrangements the UK, Ireland and Canada where
specialist resource is required to supplement existing resources. In addition, GIA oversees and monitors the outsourced internal audit arrangements in
Australia.
The Committee oversees the annual internal audit plan to ensure that it is aligned to the Group’s key risks. It also assesses the internal audit plan and
reviews the findings of internal audit with management.
The Committee is satisfied that GIA has appropriate resources. The Group Chief Internal Auditor is accountable to the Chair of the Committee and reports
administratively to the Group Chief Executive. The Group Chief Internal Auditor has access to the Chair of the Committee and the Chair of the Board. The
function has an extensive stakeholder management programme in place.
GIA’s annual programme of work is risk based and designed to cover areas of higher risk or specific focus. The plan is approved annually in advance by
the Committee and is regularly reviewed throughout the year to ensure that it continues to reflect areas of higher priority. Where necessary, changes to
the agreed plan are identified as a consequence of the Group’s changing risk profile. Throughout the year, GIA submitted quarterly reports to the
Committees summarising findings from audit activity undertaken and the responses and action plans agreed with management. The respective Committees
monitored progress of the most significant management action plans to ensure that these were completed in a timely manner and to a satisfactory
standard.
Whistleblowing
Whistleblowing arrangements are managed by Group HR. They were overseen by the Group Audit Committee until it was disbanded. Th
e Committee
conti
nues to review reports on whistleblowing incidents as and when they occur, escalating any material issues where appropriate. There is a yearly
whistleblowing routine in place which includes training, communication, and monitoring. Online training for all colleagues and managers covers
whistleblowing and the code of conduct. Individual attestation and frequent communications help to maintain awareness and promote an open, positive
37
Ecclesiastical Insurance Office public limited company
Governance
culture. Whistleblowing procedures, policies, and guides are reviewed and updated every year to make sure they are easy to access, understand, and
encourage potential whistleblowers to come forward with confidence.
Legal and regulatory developments
The Committees received and reviewed reports on the impact of legal and regulatory developments relevant to the Group.
The year ahead
The Committee remains vigilant in its commitment to promoting a culture of excellence in financial governance. The forward-looking perspective involves
proactively addressing potential challenges. As new accounting standards emerge, these will be monitored, continuously adapting our practices to
maintain compliance and transparency. Anticipating an acceleration in technological advancements, the Committee aims to harness these innovations.
The focus will be on overseeing the implementation of new financial and operational systems that are designed to improve efficiency and accuracy in
reporting processes.
Given the dynamic nature of the global economic environment, the Committee will maintain close collaboration with management and stakeholders. This
will enable early responses to changes that could affect the organisation. The effectiveness of risk management processes will continue to be enhanced,
ensuring they are closely aligned with the Group’s objectives. Emphasising innovation, adaptability, and the highest standards of financial stewardship will
be central to our pursuit of excellence in financial governance and the sustained integrity of our corporate practices.
38
Ecclesiastical Insurance Office public limited company
Governance
Remuneration Committee Report
Remuneration Review
Remuneration Committee Chair’s statement
As Chair of the Group Remuneration Committee (the Committee), I am pleased to introduce the Remuneration Review for 2024 and to highlight some of
the key aspects of the Committee’s work during the year. The Committee’s principal aim remains to ensure that all colleagues are rewarded fairly according
to their contribution to the success of the Group and the quality of their individual performance, keeping carefully in mind the relationship between reward,
recruitment and retention.
This review sets out an overview of remuneration at EIO which is aligned with that at Benefact Group. The full Group Directors’ Remuneration Report is
available in the Benefact Group plc Annual Report.
Review of Group Remuneration Policy
The Committee has continued to review the Group Remuneration Policy and the design of its incentives, including the applicable performance measures
and targets, in order to ensure these continue to drive the Group’s strategy and long-term performance, while maintaining the Group’s high standards as
an ethically and socially responsible business. As part of the review the Committee took into account the Group’s remuneration principles, further detail
of which are set out in the Benefact Group plc Annual Report. The Committee is of the view that the remuneration policy operated as intended during the
year, that the overarching remuneration framework continues to be appropriate, taking into account both internal and external factors, and that it continues
to support the Group’s priorities. As a result, the Directors’ Remuneration Policy remains unchanged for 2025, other than being updated for the incentive
increases that were set out in the 2023 Directors’ Remuneration Report. Our intention is that this policy should remain in place for the next three years.
2024 performance and incentive outcomes
The financial results for EIO are set out in the CEO’s report. The Committee note with thanks the efforts of all our colleagues across the Group in continuing
to deliver what matters most to the business: supporting our customers by providing excellent customer service, maximising our grant to our charitable
shareholder, Benefact Trust Limited, and delivering on the Group’s next chapter in our ambitious strategy for the future.
The annual bonus and long-term incentive plan outcomes in the year reflected the wider Group performance. The Committee considered that the annual
bonus outcomes were a fair reflection of the overall performance achieved by both the Group and the individuals. No discretion was applied to the annual
or long-term incentive plans. Further details of performance against the targets set for 2024 are disclosed in the Benefact Group plc 2024 Directors’
Remuneration Report.
In line with the Committee’s established practice, the Committee, supported by the Group Chief Risk and Compliance Officer, considered risk management
outcomes across the Group as part of its deliberations, including how these had impacted individual performance assessments where relevant. Following
this review, the Committee did not consider further risk adjustment of the awards was necessary.
The Committee is of the view that the remuneration policy operated as intended during the year and that the overarching remuneration framework
continues to be appropriate taking into account both internal and external factors.
Key Committee activities during the year
Base salary
During the year the Committee undertook an extensive review of the Executive Directors’ remuneration packages in the context of the increased size and
complexity of the Group, the performance of the Group and the individuals, and external benchmarking data. Following this review, the Committee decided
to make a one-off adjustment to the salary levels of two Executive Directors. Full details are disclosed in the Benefact Group plc 2024 Directors’
Remuneration Report.
CFO transition
As announced in February 2024, Denise Cockrem retired from the Board and the position of Chief Financial Officer on 28 June 2024. All leaving
arrangements were in line with our Directors’ Remuneration Policy. Mark Bennett was appointed to the Board and as Chief Financial Officer on 1 January
2025, subject to regulatory approval. He has been with the Group for 17 years and held the role of Group Chief Actuary prior to this. He had also been
acting CFO since Denise Cockrem’s retirement. All remuneration arrangements are in line with our Directors’ Remuneration Policy. Full details are
disclosed in the Benefact Group plc 2024 Directors’ Remuneration Report.
39
Ecclesiastical Insurance Office public limited company
Governance
Remuneration for 2025
The level of salary increases for UK Ecclesiastical employees is a key consideration in setting the level of any salary increase for Executive Directors. On
this basis, the Committee determined that the base salaries of Executive Directors would be increased by 3.6% (effective 1 April 2025), which is in line with
the wider employee population.
There are no proposed changes to the incentive opportunities, performance measures and weightings for 2025.
The Committee considered the Chair’s fees as part of the regular review of Non-Executive Director (NEDs) fees. David Henderson took no part in the
discussions on his fees, nor the NEDs in discussion of theirs.
Gender pay gap
The Group’s gender pay report for 2024 showed our median gender pay gap slightly increased at 19.5% (2023: 19.1%) for EIO. The wider Group median
pay gap has also slightly increased to 25.8% (2023: 25.7%) due to small changes in the composition of the senior leadership population. The Group
continues to be committed to promoting inclusion and diversity through our business and to ensuring that all employees have a fair and equal pay
opportunity appropriate to their role.
Conclusion
I value the continued support and counsel of our charitable owner and ultimate shareholder, Benefact Trust Limited, and reaffirm our responsibility to
drive sustained, improved and responsible performance over the long-term through our remuneration strategy, policy and principles.
Sir Stephen Lamport
Chair of the Group Remuneration Committee
20 March 2025
Committee member Member since Meetings attended
Sir Stephen Lamport (Chair) June 2020 5/5
David Henderson September 2016 5/5
1
Neil Maidment
March 2020 5/5
2
Angus Winther
April 2019 4/5
3
Rita Bajaj
September 2024 2/2
1
Neil Maidment resigned from the Board on 31 December 2024.
2
Angus Winter retired from the Committee on 24 September 2024. He attended all eligible meetings during the year.
3
Rita Bajaj was appointed to the Committee on 24 September 2024 and attended all eligible meetings during the year.
Group Remuneration Committee
Purpose and membership
The Committee is responsible for recommending to the Board the Remuneration Policy for Executive Directors and for setting the remuneration packages
for each Executive Director, members of the Group Management Board (GMB), Material Risk Takers (MRTs) and heads of strategic business units. None
of the Executive Directors or other populations outlined above were involved in discussions relating to their own remuneration. The Committee also has
overarching responsibility for the Group-wide Remuneration Policy.
All members are independent NEDs and have the necessary experience and expertise to meet the Committee’s responsibilities. There was cross-
membership of the Group Risk Committee and the Committee to promote alignment of the Group’s Risks and Remuneration Policies and consideration of
Risk management and outcomes in setting reward.
Advisers to the Committee
During the year, the Committee received external advice from Deloitte in relation to the Committee’s activities. The Committee also had access to
benchmarking reports from Willis Towers Watson and McLagan, which provided additional data to support the determination of pay and conditions
throughout the Group.
Fees for professional advice to the Committee paid to Deloitte were £79,925 (2023: £115,650). The Committee is satisfied that the advice it received during
2024 from Deloitte was impartial.
To assist its work, during the year the Committee received input from the Group Chief Executive, Group Chief Financial Officer, Group Chief People Officer,
Group Chief Actuary, Group Chief Risk and Compliance Officer and Group Reward Director. Such input, however, did not relate to their own remuneration.
40
Ecclesiastical Insurance Office public limited company
Governance
Remuneration Policy summary
The full Benefact Group Directors’ Remuneration Policy can be found in the 2024 Directors’ Remuneration Report, which sets out the full details of the
remuneration policy and how it will be implemented, as well as a full description of the principles which underpin the Group’s reward structure. The
remuneration structure for the Executive Directors comprises of:
- Fixed annual elements including salary, pension contribution that is aligned with the wider employer population, and benefits. These are set in
order to recognise the responsibility and experience of the Executive Directors and to ensure current market competitiveness.
- Variable incentive elements including an annual bonus, with one-third of the total bonus deferred over three years, and a long-term incentive
plan. These are set in order to incentivise and reward the Executive Directors for making the Group successful on a sustainable basis. Both the
annual bonus and long-term incentive plan are subject to a balanced scorecard of financial and non-financial measures aligned to our strategy.
Annual Report on Remuneration
This section of the Remuneration Review sets out how the above Remuneration Policy was implemented in 2024 and the resulting payments the highest
paid director received. The financial information contained in this review has been audited where indicated.
Highest paid Director
The table below shows a single total figure of remuneration received in respect of qualifying services for the 2024 financial year for the highest paid
director, together with comparative figures for 2023. The remuneration disclosures for the other Board Directors are set out in full in the Benefact Group
plc 2024 Directors’ Remuneration Report. The disclosure in this review is not specific to time allocated within EIO as remuneration relates to Group-wide
accountability.
Fixed remuneration
Variable remuneration
Total
£000
£000
remuneration
£000
1
Salary Benefits
Pension
Total Annual
Long Term
Total Total
2
3
benefit
bonus
Incentive Plan
4
(LTIP)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
576 517 31 14 60 54 667 585 884 356 423 362 1,307 718 1,974 1,303
1
Benefits include car allowance and private medical insurance which are valued at their taxable value. Provision of benefits during 2024 was in line with
the Directors’ Remuneration Policy. From 2024, the highest paid director’s benefits now include taxable benefits
2
The highest paid director received a cash allowance in lieu of pension of 12% of salary
3
In line with the deferral policy, for annual bonus earned, one-third of the total bonus is deferred over a period of three years. The value of 2024 annual
bonus that is deferred is set out in the Benefact Group plc 2024 Directors’ Remuneration Report
4
LTIP represents the amount payable in respect of the three-year LTIP performance period 2022-2024 for 2024 and 2021-2023 for 2023, as disclosed
in the 2023 Directors’ Remuneration Report. The Group operates a cash LTIP scheme, therefore no part of the award was attributable to share price
appreciation. The director holds unvested LTIP awards in accordance with the rules of the LTIP plan
Annual bonus outcomes for 2024
The annual bonus outturns were determined taking into account both Group and individual performance and is set out in full in the Benefact Group plc
2024 Directors’ Remuneration Report.
LTIP outcomes in 2024 (audited)
The LTIP amount included in the single total figure of remuneration is the cash award resulting from the Group LTIP grant for the period 2022-2024.
Vesting was dependent on performance over the three financial years ending on 31 December 2024 is set out in full in the Benefact Group plc 2024
Directors’ Remuneration Report.
Wider stakeholder engagement
The Group consults with its recognised Union, Unite, regarding remuneration for employees within relevant UK businesses. Additionally, employees can
provide feedback via the Group’s employee engagement survey and to their managers or HR. The Group Chief People Officer attends the Committee
meetings and advises the Committee on HR strategy, including the effectiveness of the Group’s remuneration policies and how they are viewed by
employees. Furthermore, during 2024, the Committee consulted the shareholder throughout its review of Executive Director remuneration in order to
understand the shareholder’s views in relation to the evolving remuneration proposals.
41
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of Ecclesiastical Insurance
Office public limited company
Report on the audit of the financial statements
Opinion
In our opinion, Ecclesiastical Insurance Office public limited company’s group financial statements and company financial statements (the “financial
statements”):
give a true and fair view of the state of the group’s and of the company’s affairs as at 31 December 2024 and of the group’s profit and the group’s
and company’s cash flows for the year then ended;
have been properly prepared in accordance with UK-adopted international accounting standards as applied in accordance with the provisions of
the Companies Act 2006; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the 2024 Annual Report and Accounts (the “Annual Report”), which comprise: Consolidated and
Parent Statements of Financial Position as at 31 December 2024; Consolidated Statement of Profit or Loss, Consolidated and Parent Statements of
Comprehensive Income, Consolidated and Parent Statements of Cash Flows and Consolidated and Parent Statements of Changes in Equity for the year
then ended; and the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Ecclesiastical Insurance Office plc Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK)
are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in Note 12, we have provided no non-audit services to the company or its controlled undertakings in the period under audit.
Our audit approach
Overview
Audit scope
We have scoped the audit based on the significant components and material account balances within the group, which is described below.
Key audit matters
Assumptions used in calculating Physical and Sexual Abuse “PSA” reserves (group and parent)
Materiality
Overall group materiality: £11,500,000 (2023: £11,300,000) based on 1.8% of net assets.
Overall company materiality: £10,925,000 (2023: £10,700,000) based on 1.9% of net assets.
Performance materiality: £8,625,000 (2023: £8,500,000) (group) and £8,194,000 (2023: £8,100,000) (company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including
those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement
team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
42
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of Ecclesiastical Insurance
Office public limited company
The transition to IFRS 17 required a number of judgements and assumptions to be made, the most important being the appropriateness of the Premium
Allocation Approach "PAA" to certain contracts and the methodology and assumptions used in the calculation of the risk adjustment, which was a key audit
matter last year, is no longer included because of this being an area of risk during the year of transition to IFRS 17. Otherwise, the key audit matters below
are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Assumptions used in calculating Physical and Sexual Abuse “PSA”
reserves (group and parent)
As disclosed in the Audit Committee Report and notes 2, 3 and
We engaged our actuarial specialists and with their involvement,
27. The valuation of the general insurance liability for incurred
we have performed the following procedures in relation to the
claims is a complex process involving inherent uncertainty and
fulfilment cash flows:
is a significant area of management judgement within the
• Inspected the Reserving Committee control which reviews,
financial statements of the group and parent company. The
challenges and approves the assumptions used within the
uncertainty around claims frequency, claims severity, discount
calculation of the fulfilment cash flows;
rate, future inflation and risk adjustment require management
• Challenged the key assumptions used by management including
judgement and estimation in calculating the general insurance
evaluation of historical claims frequency, claims severity, future
liability for incurred claims. We consider the area of significant
inflation, as well as the specific allowance included within the risk
judgement to be specific to assumptions used in calculating the
adjustment;
fulfilment cash flows for PSA exposures, specifically in relation
• Evaluated reasonable alternative assumptions by performing
to the probability weighted best estimate of the liability for
independent sensitivity analysis and assessing the impact on the
incurred claims. Specifically, the assumptions requiring
value of fulfilment cash flows calculated;
significant judgement and estimation are claims frequency,
We have assessed the appropriateness of the resulting general
claims severity, future inflation and the specific allowance
insurance liability for incurred claims based on the assumptions
included within the risk adjustment.
selected. Based on the work performed and evidence obtained, we
consider the assumptions used in the calculation of the PSA
fulfilment cash flows to be appropriate.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking
into account the structure of the group and the company, the accounting processes and controls, and the industry in which they operate.
The group operates a general insurance business in the United Kingdom, Republic of Ireland, Canada and Australia and a life insurance business. The
group also includes certain non-insurance entities within the United Kingdom and Australia which are smaller and do not form part of our in-scope
components. We considered the United Kingdom, Australia and Canada general insurance businesses, as each of these include PSA liabilities, to be
significant components, as well as the consolidation adjustments. We performed a full scope audit of the United Kingdom general insurance business as
well as the consolidation adjustments, and an audit of specific large balances for Australia and Canada. The general insurance business in the Republic of
Ireland, Ansvar UK as well as the life insurance business, although not considered significant components, were also noted to include specific large
balances that have been brought into the scope of our audit. We considered the remaining untested amounts across the group to ensure sufficient
coverage has been obtained.
The impact of climate risk on our audit
As part of our audit, we made enquiries of management to understand the process management adopted to assess the extent of the potential impact of
climate risk on the Group’s and Parent company financial statements. In addition to enquiries with management, we also understood the governance
processes in place to assess climate risk. We have performed our own risk assessment of the climate risk faced by the Company, the commitments made
by the Group, how these may affect the financial statements and the audit procedures that we perform. We have assessed the risks of material
misstatement to the financial statements as a result of climate change and concluded that for the year end 31 December 2024, climate change does not
impact our audit risk assessment. We did however assess the consistency of disclosures included within the Annual Report and 'Other Information'
including the Strategic Report.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial
43
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of Ecclesiastical Insurance
Office public limited company
statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a
whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Financial statements - group Financial statements - company
Overall
£11,500,000 (2023: £11,300,000). £10,925,000 (2023: £10,700,000).
materiality
How we
1.8% of net assets 1.9% of net assets
determined it
Rationale for
The engagement team concluded that a net assets benchmark is the
In line with overall group materiality, the
benchmark
most appropriate when setting an overall materiality on the 2024 audit
engagement team concluded that a net
applied
engagement. In our view, we consider net assets to be the appropriate
assets benchmark is the most appropriate
benchmark as it best aligns with the underlying interest of the
when setting an overall materiality. This is
stakeholders. The quantum of materiality was determined by
capped at 95% of overall group materiality
considering the various benchmarks available to us as auditors, our
to allow for potential aggregation risk.
experience of auditing other insurance groups and the business
performance during 2024.
For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality. The range of materiality
allocated across components was between £2.0 million and £10.9 million. Certain components were audited to a local statutory audit materiality that was
also less than our overall group materiality.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements
exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent of our testing of
account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2023: 75%) of
overall materiality, amounting to £8,625,000 (2023: £8,500,000) for the group financial statements and £8,194,000 (2023: £8,100,000) for the company
financial statements.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and
the effectiveness of controls - and concluded that an amount in the middle of our normal range was appropriate.
We agreed with the Ecclesiastical Insurance Office plc Audit Committee that we would report to them misstatements identified during our audit above
£575,000 (group audit) (2023: £565,000) and £546,000 (company audit) (2023: £540,000) as well as misstatements below those amounts that, in our
view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group's and the company’s ability to continue to adopt the going concern basis of accounting included:
Obtained and reviewed management’s going concern assessment which included the board approved forecasts along with stressed and downside
scenarios;
Considered the forward looking assumptions and assessed the reasonableness of these based on recent historic performance;
Considered information obtained during the course of the audit and publicly available market information to identify any evidence that would
contradict management’s assessment; and
Considered our own independent alternative downside scenarios and whether these could impact the going concern assessment.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively,
may cast significant doubt on the group's and the company’s ability to continue as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial
statements is appropriate.
44
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of Ecclesiastical Insurance
Office public limited company
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's and the company's ability to
continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to
in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis
of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The
directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material
misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been
included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described
below.
Strategic report and Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' Report for the year
ended 31 December 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the group and company and their environment obtained in the course of the audit, we did not identify any
material misstatements in the Strategic report and Directors' Report.
Corporate governance statement
ISAs (UK) require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the corporate governance
statement relating to the company’s compliance with the provisions of the UK Corporate Governance Code, which the Listing Rules of the Financial Conduct
Authority specify for review by the auditor. Our additional responsibilities with respect to the corporate governance statement as other information are
described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement,
included within the Corporate Governance Report is materially consistent with the financial statements and our knowledge obtained during the audit, and
we have nothing material to add or draw attention to in relation to:
The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an explanation
of how these are being managed or mitigated;
The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting
in preparing them, and their identification of any material uncertainties to the group’s and company’s ability to continue to do so over a period of
at least twelve months from the date of approval of the financial statements;
The directors’ explanation as to their assessment of the group's and company’s prospects, the period this assessment covers and why the period
is appropriate; and
The directors’ statement as to whether they have a reasonable expectation that the company will be able to continue in operation and meet its
liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications or
assumptions.
45
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of Ecclesiastical Insurance
Office public limited company
Our review of the directors’ statement regarding the longer-term viability of the group and company was substantially less in scope than an audit and
only consisted of making inquiries and considering the directors’ process supporting their statement; checking that the statement is in alignment with the
relevant provisions of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial statements and our
knowledge and understanding of the group and company and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance
statement is materially consistent with the financial statements and our knowledge obtained during the audit:
The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the information
necessary for the members to assess the group’s and company's position, performance, business model and strategy;
The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
The section of the Annual Report describing the work of the Ecclesiastical Insurance Office plc Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s compliance with the Code
does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Directors' responsibilities statement, the directors are responsible for the preparation of the financial statements in
accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal
control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate
the group or the company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to
breaches of UK regulation, such as those governed by the Prudential Regulation Authority and the Financial Conduct Authority, and we considered the
extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct
impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation
of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal
entries to manipulate the financial statements, as well as management bias in accounting estimates, in particular the valuation of specific general insurance
contract liabilities including Physical and Sexual Abuse ("PSA") reserves. The group engagement team shared this risk assessment with the component
auditors so that they could include appropriate audit procedures in response to such risks in their work. Audit procedures performed by the group
engagement team and/or component auditors included:
Enquired of Group functions including compliance, risk and internal audit and consideration of known or suspected instances of non-compliance
with laws and regulation and fraud;
Read key correspondence with the Prudential Regulation Authority a
nd the Financial Conduct Authority in relation to compliance with laws and
regulations;
Reviewed relevant meeting minutes including those of the Board, Audit Committee and Group Audit, Risk & Compliance Committee;
Procedures related to the valuation of specific general insurance contract liabilities such as PSA reserves described in the related key audit matter;
Risk based target testing of journal entries, in particular any journal entries which include characteristics which were identified as potentially being
indicative of a fraudulent journal; and
46
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of Ecclesiastical Insurance
Office public limited company
Procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and
regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it
typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items
for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population
from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the
Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not
visited by us; or
certain disclosures of directors’ remuneration specified by law are not made; or
the company financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Ecclesiastical Insurance Office plc Audit Committee, we were appointed by the members on 18 June 2020 to audit
the financial statements for the year ended 31 December 2020 and subsequent financial periods. The period of total uninterrupted engagement is 5 years,
covering the years ended 31 December 2020 to 31 December 2024.
Other matter
The company is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules to include these financial statements in an
annual financial report prepared under the structured digital format required by DTR 4.1.15R - 4.1.18R and filed on the National Storage Mechanism of the
Financial Conduct Authority. This auditors’ report provides no assurance over whether the structured digital format annual financial report has been
prepared in accordance with those requirements.
Alexis Gish (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
20 March 2025
47
Ecclesiastical Insurance Office public limited company
Consolidated statement of profit or loss
for the year ended 31 December 2024
Notes | 2024 | 2023 | |
£000 | £000 | ||
Insurance revenue | 5, 6 | ||
Insurance service expenses | 7 | ( | ( |
Insurance service result before reinsurance contracts held | |||
Net expense from reinsurance contracts | ( | ( | |
Insurance service result | |||
Net insurance financial result | 8 | ( | ( |
Net investment result | 9 | ||
Fee and commission income | 10 | | |
| Other operating expenses | 11 | ( | ( |
Other finance costs | ( | ( | |
Profit before tax | |||
Tax expense | 14 | ( | ( |
Profit for the year from continuing operations | |||
Net profit attributable to discontinued operations | 16 | ||
Profit for the year | 11 |
48
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of comprehensive income
for the year ended 31 December 2024
Notes | 2024 | 2023 | |||
Group | Parent | Group | Parent | ||
£000 | £000 | £000 | £000 | ||
Profit for the year | 67,852 | 36,365 | |||
Other comprehensive (expense)/income | |||||
Items that will not be reclassified to profit or loss: | |||||
Fair value gains on property | - | 850 | |||
Actuarial (losses)/gains on retirement benefit plans | 18 | ( | (1,630) | 5,103 | |
Attributable tax | 408 | ( | (1,492) | ||
( | (1,222) | 4,461 | |||
Items that may be reclassified subsequently to profit or loss: | |||||
Losses on currency translation differences | 26 | ( | (5,105) | ( | (912) |
Gains on net investment hedges | 26 | 4,420 | 1,353 | ||
Attributable tax | 26 | ( | (1,105) | ( | (338) |
( | (1,790) | 103 | |||
Net other comprehensive (expense)/income | ( | (3,012) | 4,564 | ||
Total comprehensive income | 64,840 | 40,929 |
49
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of changes in equity
for the year ended 31 December 2024
Translation | |||||||
Share | Share | Revaluation | and hedging | Retained | |||
capital | premium | reserve | reserve | earnings | Total | ||
Group | Notes | £000 | £000 | £000 | £000 | £000 | £000 |
At 1 January 2024 | |||||||
| Profit for the year | |||||||
Other net expense | ( | ( | ( | ||||
Total comprehensive income/(expense) | ( | ||||||
Dividends on ordinary shares | 15 | ( | ( | ||||
Dividends on preference shares | 15 | ( | ( | ||||
Gross charitable grant | 15 | ( | ( | ||||
Tax relief on charitable grant | 15 | ||||||
Reserve transfers | ( | ||||||
At 31 December 2024 | |||||||
At 1 January 2023 | |||||||
Profit for the year | |||||||
Other net income | |||||||
Total comprehensive income | |||||||
Dividends on ordinary shares | 15 | ( | ( | ||||
Dividends on preference shares | 15 | ( | ( | ||||
Gross charitable grant | 15 | ( | ( | ||||
Tax relief on charitable grant | 15 | ||||||
Group tax relief in excess of standard rate | ( | ( | |||||
At 31 December 2023 |
Parent
At 1 January 2024
120,477
4,632
857
8,335
425,750
560,051
Profit for the year
-
-
-
-
67,852
67,852
Other net expense
-
-
-
(1,790)
(1,222)
(3,012)
Total comprehensive income/(expense)
-
-
-
(1,790)
66,630
64,840
Dividends on ordinary shares
-
-
-
-
(30,000)
(30,000)
Dividends on preference shares
-
-
-
-
(9,181)
(9,181)
Gross charitable grant
-
-
-
-
(33,000)
(33,000)
Tax relief on charitable grant
-
-
-
-
8,250
8,250
Reserve transfers
-
-
(857)
-
857
-
At 31 December 2024
120,477
4,632
-
6,545
429,306
560,960
At 1 January 2023
120,477
4,632
223
8,232
409,188
542,752
Profit for the year
-
-
-
-
36,365
36,365
Other net income
-
-
634
103
3,827
4,564
Total comprehensive income
-
-
634
103
40,192
40,929
Dividends on ordinary shares - - - - (5,223) (5,223)
Dividends on preference shares - - - - (9,181) (9,181)
Gross charitable grant
-
-
-
-
(13,000)
(13,000)
Tax relief on charitable grant
-
-
-
-
3,837
3,837
Group tax relief in excess of standard rate
-
-
-
-
(63)
(63)
At 31 December 2023
120,477
4,632
857
8,335
425,750
560,051
The revaluation reserve represented cumulative net fair value gains on owner-occupied property with the movement in the year representing the
sale of a property. Details of the translation and hedging reserve are included in note 26.
50
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of financial position
at 31 December 2024
Notes | 31 December 2024 | 31 December 2023 | |||
Group | Parent | Group | Parent | ||
£000 | £000 | £000 | £000 | ||
Assets | |||||
Cash and cash equivalents | 24 | 80,330 | 83,436 | ||
Financial investments | 21 | 674,401 | 658,601 | ||
Other assets | 23 | 153,337 | 160,631 | ||
Current tax recoverable | 1,545 | 5,181 | |||
Reinsurance contract assets | 27 | 178,143 | 154,770 | ||
Investment property | 20 | 128,563 | 130,813 | ||
Property, plant and equipment | 19 | 32,509 | 31,570 | ||
Deferred tax assets | 29 | 6 | 229 | ||
Goodwill and other intangible assets | 17 | 26,425 | 23,769 | ||
Pension assets | 18 | 17,552 | 19,788 | ||
Total assets | 1,292,811 | 1,268,788 | |||
Equity | |||||
Share capital | 25 | 120,477 | 120,477 | ||
Share premium account | 4,632 | 4,632 | |||
Retained earnings and other reserves | 435,851 | 434,942 | |||
Total shareholders' equity | 560,960 | 560,051 | |||
Liabilities | |||||
Other liabilities | 30 | 66,640 | 42,920 | ||
Current tax liabilities | 96 | 2,931 | |||
Provisions for other liabilities | 28 | 5,886 | 6,177 | ||
Insurance contract liabilities | 27 | 567,572 | 569,833 | ||
Lease obligations | 33 | 22,906 | 19,551 | ||
Deferred tax liabilities | 29 | 39,307 | 36,671 | ||
Investment contract liabilities | 32 | - | - | ||
Subordinated liabilities | 31 | 25,112 | 25,853 | ||
Retirement benefit obligations | 18 | 4,332 | 4,801 | ||
Total liabilities | 731,851 | 708,737 | |||
Total shareholders' equity and liabilities | 1,292,811 | 1,268,788 |
No statement of profit or loss is presented for Ecclesiastical Insurance Office plc as permitted by Section 408 of the Companies Act 2006. The
profit after tax of the parent company for the year was £67.9m (2023: profit of £36.4m).
The financial statements of Ecclesiastical Insurance Office plc, registered number 00024869, on pages 48 to 134 were approved and authorised
for issue by the Board of Directors on 20 March 2025 and signed on its behalf by:
David Henderson
Mark Hews
Chair
Group Chief Executive
51
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of cash flows
for the year ended 31 December 2024
Notes | 2024 | 2023 | |||
Group | Parent | Group | Parent | ||
£000 | £000 | £000 | £000 | ||
Profit before tax from continuing operations | 84,749 | 41,903 | |||
Profit before tax from discontinued operations | - | 1,501 | |||
Adjustments for: | |||||
Depreciation of property, plant and equipment | 5,628 | 5,288 | |||
Revaluation of property, plant and equipment | - | ( | (35) | ||
(Profit)/loss on disposal of property, plant and equipment | ( | (178) | 3 | ||
Amortisation and impairment of intangible assets | 3,466 | 5,583 | |||
Movement in expected credit loss provision | ( | - | ( | (552) | |
Profit on disposal of subsidiary | - | ( | (1,501) | ||
Netfairvaluegainsonfinancialinstrumentsandinvestmentproperty | ( | (28,203) | ( | (7,728) | |
Dividend and interest income | ( | (31,311) | ( | (27,709) | |
Finance costs | 3,102 | 3,079 | |||
Other adjustments for non-cash items | 594 | 1,560 | |||
Changes in operating assets and liabilities: | |||||
Net (increase)/decrease in reinsurance contract assets | ( | (26,120) | (9,601) | ||
Net increase in investment contract liabilities | - | - | |||
Net increase in insurance contract liabilities | 7,229 | 35,512 | |||
Net increase in other assets | ( | (22,130) | ( | (19,001) | |
Net increase in other liabilities | 26,030 | 3,426 | |||
Cash generated by operations | 22,856 | 31,728 | |||
Purchases of financial instruments and investment property | ( | (103,820) | ( | (127,968) | |
Sale of financial instruments and investment property | 109,376 | 119,627 | |||
Dividends received | 11,708 | 9,526 | |||
Interest received | 18,441 | 17,354 | |||
Tax paid | ( | (5,579) | ( | (2,546) | |
Net cash from operating activities | 52,982 | 47,721 | |||
Cash flows from investing activities | |||||
Purchases of property, plant and equipment | ( | (3,273) | ( | (1,331) | |
Proceeds from the sale of property, plant and equipment | 1,961 | - | |||
Purchases of intangible assets | ( | (6,180) | ( | (1,245) | |
Net cash used by investing activities | ( | (7,492) | ( | (2,576) | |
Cash flows from financing activities | |||||
Interest paid | ( | (2,625) | ( | (2,419) | |
Payment of lease liabilities | ( | (1,796) | ( | (2,935) | |
Dividends paid to Company's shareholders | ( | (9,181) | ( | (9,181) | |
Charitable grant paid to ultimate parent undertaking | ( | (33,000) | ( | (13,000) | |
Net cash used by financing activities | ( | (46,602) | ( | (27,535) | |
Net (decrease)/increase in cash and cash equivalents | ( | (1,112) | 17,610 | ||
Cash and cash equivalents at beginning of year | 83,436 | 66,569 | |||
Exchange losses on cash and cash equivalents | ( | (1,994) | ( | (743) | |
Cash and cash equivalents at end of year | 24 | 80,330 | 83,436 |
52
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
53
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
66
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
2 Critical accounting estimates and judgements in applying accounting policies (continued)
67
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
2 Critical accounting estimates and judgements in applying accounting policies (continued)
68
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
69
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
70
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
71
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
included within 'Corporate costs'. The Group’s life insurance business is carried out within the United Kingdom.
83
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
84
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
85
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
9 Net investment result
General
Life
business
business
Total
£000
£000
£000
For the year ended 31 December 2024
Income from financial assets at fair value through profit or loss
- equity income
11,535
335
11,870
- debt income
13,634
2,316
15,950
- structured note income
-
1,119
1,119
Income from financial assets calculated using the effective interest rate method
- cash and cash equivalents income
2,645
236
2,881
- other income received
8,766
-
8,766
Other income
- rental income
8,730
-
8,730
- exchange movements
831
-
831
Investment income
46,141
4,006
50,147
Fair value movements on financial instruments at fair value through profit or loss
23,681
(2,287)
21,394
Fair value movements on investment property
291
-
291
Fair value movements on property, plant and equipment
-
-
-
Movement in expected credit loss allowance
18
-
18
Net investment return
70,131
1,719
71,850
For the year ended 31 December 2023
Income from financial assets at fair value through profit or loss
- equity income 9,836 196 10,032
- debt income
12,641
2,301
14,942
- structured note income
-
731
731
Income from financial assets calculated using the effective interest rate method
- cash and cash equivalents income
2,350
138
2,488
- other income received
6,879
-
6,879
Other income/(expense)
- rental income
8,647
-
8,647
- exchange movements
(820)
-
(820)
Investment income
39,533
3,366
42,899
Fair value movements on financial instruments at fair value through profit or loss
14,678
4,901
19,579
Fair value movements on investment property
(6,651)
-
(6,651)
Fair value movements on property, plant and equipment
35
-
35
Movement in expected credit loss allowance 1,607 - 1,607
Net investment return
49,202
8,267
57,469
Included within fair value movements on financial instruments at fair value through profit or loss are gains of £6.9m (2023: £4.3m gains) in respect
of derivative financial instruments.
87
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
90
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
15 Appropriations
2024
2023
£000
£000
Amounts paid directly from equity in the year:
Charitable grants
Gross charitable grants to the ultimate parent company, Benefact Trust Limited
33,000
13,000
Tax relief
(8,250)
(3,837)
Net appropriation for the year
24,750
9,163
91
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
16 Disposal of subsidiaries and discontinued operations (continued)
92
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
95
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
96
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
97
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
98
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
99
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
101
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
102
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
103
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
285,766
217,586
493,652
349,986
130,213
90,249
109,240
87,894
107
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
127
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
128
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
129
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
37 Reconciliation of Alternative Performance Measures
The Group uses alternative performance measures (APMs) in addition to the figures which are prepared in accordance with IFRS. The financial
measures in our key financial performance data include gross written premiums and the combined operating ratio and are used to manage the
Group's general insurance business. Similar measures are commonly used in the industries we operate in and we believe they provide useful
information and enhance the understanding of our results. No life insurance premiums were written in the year (2023: none) and the life insurance
revenue is the earning of the legacy business over its life, expected to be in excess of 10 years.
Users of the accounts should be aware that similarly titled APM reported by other companies may be calculated differently. For that reason, the
comparability of APM across companies might be limited.
2024
Other
Inv'mnt
Corporate
income and
Insurance return
costs
charges
Total
General
Life
£000 £000
£000
£000
£000
£000
Insurance revenue
[1]
623,195
6,078
735
*
-
(55)
629,953
Insurance service expenses
(465,905)
(5,033)
9,066
**
-
55
(461,817)
Insurance service result before reinsurance contracts held
157,290 1,045
9,801
-
-
168,136
Net expense from reinsurance contracts
(84,590)
-
-
-
-
(84,590)
Insurance service result
72,700
1,045
9,801
-
-
83,546
Net insurance financial result
-
319
(7,181)
-
-
(6,862)
Net investment result
-
1,318
70,532
-
-
71,850
Fee and commission income
- - -
-
544
544
Other operating expenses
(25,058)
(1,276)
(3,219)
(33,152)
(796)
(63,501)
Other finance costs
- - -
-
(3,102)
(3,102)
Profit/(loss) before tax
[2]
47,642
1,406
69,933
(33,152)
(3,354)
82,475
*
instalment handling charges
**
discounting on non-latent claims provisions
Combined operating ratio = ( [3] - [2] ) / [3]
86.9%
The underwriting profit/(loss) of the Group is defined as the profit/(loss) before tax of the general insurance business.
The Group uses the net combined operating ratio as a measure of underwriting efficiency. The combined operating ratio expresses the total
underwriting costs of the general insurance business as a percentage of net earned premiums. It is calculated as ( [3] - [2] ) / [3].
133
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
37 Reconciliation of Alternative Performance Measures (continued)
Group
2023
General insurance
£000
Insurance revenue
[1]
579,146
Deduct change in the gross unearned premium provision
35,861
Gross written premiums
615,007
Outward reinsurance premiums written (263,667)
Net written premiums
351,340
Change in the net unearned premium provision
(21,285)
Net earned premiums
[3]
330,055
2023
Other
Inv'mnt
Corporate
income and
Insurance return
costs
charges
Total
General
Life
£000 £000 £000
£000
£000
£000
Insurance revenue
[1]
579,146
6,509
832
*
-
(3)
586,484
Insurance service expenses
(415,686)
(5,702)
12,801
**
-
3
(408,584)
Insurance service result before reinsurance contracts held
163,460
807
13,633
-
-
177,900
Net expense from reinsurance contracts
(107,174)
-
-
-
-
(107,174)
Insurance service result
56,286 807
13,633
-
-
70,726
Net insurance financial result - (2,628) (16,912) - - (19,540)
Net investment result
-
4,274
53,195
-
-
57,469
Other operating expenses
(31,766)
(1,213)
(3,780)
(24,079)
87
(60,751)
Other finance costs
- - -
-
(3,151)
(3,151)
Profit/(loss) before tax
[2] 24,520
1,240
46,136
(24,079)
(3,064)
44,753
*
instalment handling charges
**
discounting on non-latent claims provisions
Combined operating ratio = ( [3] - [2] ) / [3]
92.6%
134