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Going concern
The Directors, as required by Capital Markets Rule 5.62 have considered the Group\u2019s and
Company\u2019s operational performance, the statement of financial position as at year end as well
as the business plans for the coming year, and declare that they have a reasonable expectation
that the Group and the Company have adequate resources to continue in operational existence
for the foreseeable future. For this reason, in preparing the financial statements, the Group
and Company are in a position to continue operating as a going concern for the foreseeable
future.
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These financial statements on pages 40 to 206 were approved by the Board of Directors and
authorised for issue on 24 March 2026 and signed on its behalf by Martin Galea (Chairman) and
Godfrey Swain (Director) as per the Directors' Declaration on ESEF Annual Financial report
submitted in conjunction with the Annual Report 2025.
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1.\u00a0 \u00a0 \u00a0 Basis of preparation
The financial statements of MAPFRE Middlesea p.l.c. are prepared in accordance with
International Financial Reporting Standards as adopted for use in the European Union
and the Companies Act, 1995. The financial statements of the Group to which the
Company is parent are prepared in accordance with Article 4 of Regulation (EC)
1606/2002 on the application of international accounting standards (the \u201cRegulation\u201d)
which requires that, for each financial period starting on or after 1 January 2005,
companies governed by the law of an EU Member State shall prepare their consolidated
financial statements in conformity with IFRS as adopted by the EU if, at their reporting
date, their securities are admitted to trading on a regulated market of any EU Member
State. The Regulation prevails over the provisions of the Companies Act, 1995 to the
extent that the said provisions of the Companies Act, 1995 are incompatible with the
provisions of the Regulation. Both sets of financial statements as referred to in the
Annual Report relate to both those of the Company and the Group and have also been
prepared in accordance with the Insurance Business Act, 1998.
The financial statements are prepared under the historical cost convention as modified
by the revaluation of property, investment property and financial assets and financial
liabilities (including derivatives) at fair value through profit or loss (FVTPL) or at fair
value through other comprehensive income (FVOCI).\u00a0 Investment in associated
undertaking is measured using equity method, that is, cost plus or minus net income or
loss of associate.
The preparation of financial statements in conformity with the above reporting
framework requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group\u2019s
accounting policies.\u00a0 The areas involving a higher degree of judgement or complexity,
or areas where assumptions and estimates are significant to the consolidated financial
statements, are disclosed in Note 3.
The statement of financial position is organised in increasing order of liquidity, with
additional disclosures on the maturity analysis of the Group\u2019s assets and liabilities
provided within the Notes to the financial statements. All amounts in the Notes are
shown in thousands of euro, rounded to the nearest thousand, unless otherwise stated.
Amendments to published standards effective in 2025
In 2025, the Group adopted amendments to existing standards that are mandatory for
the Group\u2019accounting period beginning on 1 January 2025. The adoption of these
amendments\u00a0 to standards as per the requirements of IFRSs as adopted by the EU did
not result in material changes to the Group\u2019s accounting policies.
Standards and amendments to published standards that are not yet effective
A number of new standards and amendments to existing standards are effective for
annual periods beginning after 1 January 2025. However, the Group has not early
adopted the new standards or amendments in preparing these financial statements and
management are of the opinion that there are no requirements that are expected to have
a material impact on the Group\u2019s financial statements in the period of initial application.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-320": { "value": "
1.\u00a0 \u00a0 \u00a0 Basis of preparation
The financial statements of MAPFRE Middlesea p.l.c. are prepared in accordance with
International Financial Reporting Standards as adopted for use in the European Union
and the Companies Act, 1995.The Regulation prevails over the provisions of the Companies Act, 1995 to the
extent that the said provisions of the Companies Act, 1995 are incompatible with the
provisions of the Regulation. Both sets of financial statements as referred to in the
Annual Report relate to both those of the Company and the Group and have also been
prepared in accordance with the Insurance Business Act, 1998.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-324": { "value": "
1.\u00a0 \u00a0 \u00a0 Basis of preparation
The preparation of financial statements in conformity with the above reporting
framework requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group\u2019s
accounting policies.\u00a0 The areas involving a higher degree of judgement or complexity,
or areas where assumptions and estimates are significant to the consolidated financial
statements, are disclosed in Note 3.
3.Use of accounting estimates and judgements in applying accounting policies
The Group makes estimates and assumptions concerning the future.\u00a0 Estimates and
judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under
the circumstances.
Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognised in the financial statements is included in
the following notes, which also include information about assumptions and
uncertainties at 31 December 2025 that have a significant risk of resulting in a material
adjustment in the carrying amounts of assets and liabilities in the next financial year.
(a) Long-term contracts - insurance contract assets, insurance contract liabilities and\u00a0
reinsurance contract liabilities
Insurance contract assets, insurance contract liabilities and reinsurance contract
liabilities are subject to an annual valuation using generally accepted accounting and
actuarial practice.
Different principles and valuation methodologies are adopted depending on the type
and generation of products.\u00a0 The key assumptions used in determining the measurement\u00a0
of insurance contract assets, insurance contract liabilities and reinsurance contract
liabilities are described in Note 24.6 to the financial statements.
b)\u00a0 Short-term insurance contracts under PAA - liability for incurred claims
Liability of incurred claims (LIC) of short-term business insurance contracts, measured
under the PAA, comprise of the estimates of future cash flows, adjusted to reflect the
time value of money and a risk adjustment for non-financial risks. The estimates of
future cash flows is derived using a standard actuarial claims projection technique, the
Chain Ladder method, other than for non-motor large losses. The key assumptions
underlying this technique is that past claims development experience can be used to
project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
More detail on the key assumptions used in determining the LIC in respect of short-
term insurance contracts under PAA are described in Note 24.2 (a) to the financial
statements.
(c) Consolidation of entities in which the Group holds less than majority of voting
rights
The Group considers that it controls MAPFRE MSV Life p.l.c. (\u2018MMSV\u2019) even though
it does not own more than 50% of the voting rights. This is because strategic, operating
and financing policies of MMSV are directed by means of shareholders\u2019 agreement
which provides MAPFRE Middlesea p.l.c. with the right to select, appoint and remove
the key management personnel of MMSV and approve its business plan and capital
expenditure.
For all the financial years up to 31 December 2010, MMSV was considered to be an
associate and was accounted for using the equity method.\u00a0 Following the shareholders\u2019
agreement, on 29 July 2011, MAPFRE Middlesea p.l.c. acquired control over MMSV
based on the factors explained in this note and started consolidating MMSV as from
that date.
4.\u00a0 \u00a0 \u00a0 Management of risk
4.1Insurance risk
(a) Short-term business insurance contracts
Sources of uncertainty in the estimation of future claim developments and payments
Claims on contracts are accounted for on a claims-occurrence basis.\u00a0 The Group is
liable for all insured events that occurred during the term of the contract, even if the
loss is discovered after the end of the contract term.\u00a0 Certain classes of business, most
notably those exposed to liability, can take several years to develop and are therefore
subject to a greater degree of uncertainty than other classes of business which are
typically settled in a shorter period of time.
The estimated cost of claims includes direct expenses to be incurred in settling claims,
net of the expected subrogation value and recoveries.\u00a0 The Group takes all reasonable
steps to ensure that it has appropriate information regarding its claims exposures.\u00a0
However, given the uncertainty in establishing the liability for incurred claims, it is
possible that the final outcome will prove to be different from the original liability
established.
In calculating the estimated cost of unpaid claims, the Group considers the results of
estimation techniques that are based partly on known information at year-end and partly
on statistical analysis of historical experience.\u00a0
Further details on the process of estimation is provided in Note 24.2 which also presents
the development of the estimate of future cash flows for claims incurred in a given year.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Company with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a 5% upwards and
downwards change in the ultimate loss amount while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions
might be correlated.
31 December 2025
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(308)
(270)
(200)
(176)
Ultimate loss \u2013 5% decrease
308
270
200
176
31 December 2024
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(385)
(334)
(250)
(217)
Ultimate loss \u2013 5% decrease
385
334
250
217
(b) Long term business insurance contracts
Policyholder lapse risk
Higher lapses than expected cause a loss of future profits and possibility of non-
recovery of sales expenses.
The amount of insurance risk is also subject to contract holder behaviour. On the
assumption that policyholders will make decisions rationally overall underwriting risk
can be assumed to be aggravated by such behaviour. For example, it is likely that
contract holders whose health has deteriorated significantly will be less inclined to
terminate contracts insuring death benefits than those contract holders remaining in
good health. This results in an increasing trend of expected mortality as the portfolio of
insurance contracts reduces due to voluntary terminations.
Unit-linked and with-profits policies, can be surrendered before maturity for a cash
surrender value specified in the contractual terms. Cash surrender value equals the
policyholder account/investment value at the time of termination, less any surrender
penalties. Through these penalties, policyholders are discouraged from surrendering
contracts earlier than policy maturity. As such, penalties mitigate the expense risk
arising from acquisition and other costs incurred when policies were issued, because
such costs were originally assumed to be spread over a longer period, since early
surrender was not expected.
The lapse assumptions applied are disclosed in Note 24.
Expense Risk
Expense risk is the risk of unexpected increases in policy maintenance, claim handling
and other costs relating to fulfilment of insurance contracts. The risk is managed
through budgeting and periodic cost evaluations. Investment contracts with DPF carry
negligible expense risk.
The expense assumptions applied are disclosed in Note 24.
Market Risk
This risk is covered in Note 4.2 (a). The investment assets return and discount rate
assumptions are disclosed in Note 24.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Group with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a change in an
assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions might be correlated.
31 December 2025
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,411)
(1,901)
174
92
113
60
Mortality rate \u2013 10% decrease
4,408
1,903
(179)
(94)
(116)
(61)
Lapse rates \u2013 10% increase
(1,822)
(288)
282
27
183
18
Lapse rates \u2013 10% decrease
1,822
288
(282)
(27)
(183)
(18)
Expenses \u2013 10% increase
(1,629)
(2,068)
14
16
9
10
Expenses \u2013 10% decrease
1,629
2,068
(14)
(16)
(9)
(10)
Investment contracts with DPF
Mortality rate \u2013 10% increase
(319)
(319)
3
3
2
2
Mortality rate \u2013 10% decrease
319
319
(3)
(3)
(2)
(2)
Lapse rates \u2013 10% increase
(455)
(455)
40
40
26
26
Lapse rates \u2013 10% decrease
455
455
(40)
(40)
(26)
(26)
Expenses \u2013 10% increase
(1,199)
(1,199)
(62)
(62)
(40)
(40)
Expenses \u2013 10% decrease
1,199
1,199
62
62
40
40
31 December 2024
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,274)
(1,870)
(174)
(63)
(113)
(41)
Mortality rate \u2013 10% decrease
4,269
1,872
172
63
112
41
Lapse rates \u2013 10% increase
(1,652)
(171)
149
118
97
77
Lapse rates \u2013 10% decrease
1,652
171
(149)
(118)
(97)
(77)
Expenses \u2013 10% increase
(1,649)
(2,045)
(86)
(108)
(56)
(70)
Expenses \u2013 10% decrease
1,649
2,045
86
108
56
70
Investment contracts with DPF
Mortality rate \u2013 10% increase
(311)
(311)
\u2014
\u2014
\u2014
\u2014
Mortality rate \u2013 10% decrease
311
311
\u2014
\u2014
\u2014
\u2014
Lapse rates \u2013 10% increase
53
53
98
98
64
64
Lapse rates \u2013 10% decrease
(53)
(53)
(98)
(98)
(64)
(64)
Expenses \u2013 10% increase
(1,707)
(1,707)
(116)
(116)
(76)
(76)
Expenses \u2013 10% decrease
1707
1707
116
116
76
76
Changes in underwriting risk variables mainly affect the CSM, profit or loss and equity
as follows.
GMM
VFA
a. CSM
Changes in fulfilment cash flows, other than those
\u00a0 recognised as\u00a0 insurance finance income or expenses
Changes in fulfilment
\u00a0 cash flows
b. Profit or
\u00a0 \u00a0 \u00a0 loss
Changes in fulfilment cash flows that are
\u00a0 recognised as insurance finance income or expenses
\u00a0 in profit or loss and change in CSM release and /or
\u00a0 coverage units
Changes in CSM
\u00a0 release and /or
\u00a0 coverage units
c. Equity
The effect on profit or loss under b.
\u00a0 after tax
The effect on profit or
\u00a0 loss under b. after tax
24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets
and reinsurance contract liabilities
24.2\u00a0 Short-term insurance contracts under PAA
Short-term insurance contracts \u2013 liability for incurred claims
The liability for incurred claims are largely based on claims incurred data. A Chain
Ladder approach using the Development Factor Method has been used projecting
separately each portfolio of contracts. In choosing the development factors, outliers that
would unrealistically favourably or adversely impact the estimation of the ultimate cost
are excluded. Large losses within each portfolio other than for Motor have not been
projected given the small and infrequent number of such claims over time and have
been taken at the case reserve. In the case of Motor, large losses, in the main involving
fatalities or serious bodily injury, are projected separately from attritional claims given
their severity and different development patterns.
(a)\u00a0 Assumptions
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. Under this approach, the discount rate is determined as the risk-free yield. Given
the short-term nature of its insurance contracts liabilities and liquidity of cash flows, the
Group has selected the risk-free rates as published by EIOPA as appropriate for the
nature of its liabilities taking a zero illiquidity premium.
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
1
5
10
1
5
10
Short term insurance contracts issued
\u00a0 and reinsurance contracts held
2.1%
2.5%
2.9%
2.2%
2.1%
2.3%
Risk adjustment for non-financial risk
Non-financial risk adjustment valuation reflects the compensation that the Group needs
to manage uncertainty regarding the amount and timing of future cash outflows, which
arise from non-financial risks from fulfilling insurance contract obligations.
Underwriting risks as well as other non-financial risks like portfolio expenses and
lapses are taken into consideration when determining this.
The non-financial risk adjustment has been estimated using a confidence-interval-based
approach, using Value at Risk (VaR) metrics for the probability distribution of the
current value of future cash flows, in line with Solvency II capital requirements, and
calibrating the target percentile confidence interval to 65 percentile. The Group
estimates an adjustment for non-financial risk separately from all other estimates.
Estimates of future cash flows to fulfil insurance contracts
LIC of short-term business insurance contracts, measured under the PAA, comprise of
the estimates of future cash flows. The estimates of future cash flows is derived using a
standard actuarial claims projection technique, the Chain Ladder method, other than for
non-motor large losses. The key assumptions underlying this technique is that past
claims development experience can be used to project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
(b)\u00a0 Sensitivity analysis
The directors have considered the sensitivity of the key variables underlying the liability
for short-term contracts.\u00a0 The most sensitive assumptions are the development factors
and discount rate changes. Development factors can be impacted by claims inflation,
increase in claims frequency and severity. Sensitivity analysis for insurance risk has
been disclosed in Note 4. Sensitivity analysis for interest rate risk has also been
disclosed in Note 4.
24.6\u00a0 Long term contracts - inputs, assumptions and estimation techniques
(a)Estimation techniques
Best estimate of future cash flows
The best estimate liability is the present value of expected future cash flows, discounted
using a\u00a0 yield curve (i.e. interest rates at different maturities at a given point in time).
The estimates of these future cash flows are based on probability-weighted expected
future cash flows. The Group estimates which cash flows are expected and the
probability that they will occur as at the measurement date. The projections allow for all
expected decrements and policyholder actions, including lapses. Future premiums are
taken into account up to the contract boundary. Allowance for future expenses take into
account both overheads and directly attributable expenses, and future expense inflation.
The cash flow projections is performed on a policy by policy basis.
Investment contracts with DPF liabilities include the cost of financial guarantees and
options. A market consistent stochastic valuation is used to calculate these costs.
Representative model pointing is used in these stochastic runs. For such contracts,
discretionary benefits are allowed for separately in the technical provisions. The
calculations reflect a pre-defined set of realistic management actions and policyholder
behaviour. The best estimate liability does not include the value of shareholder
transfers.
For unit-linked business, the unit and non-unit components are unbundled for the
purposes of determining the best estimate liability.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is the compensation that is required for
bearing the uncertainty about the amount and timing of cash flows that arises from non-
financial risk as the insurance contract is fulfilled. Because the risk adjustment
represents compensation for uncertainty, estimates are made on the degree of
diversification benefits and expected favourable and unfavourable outcomes in a way
that reflects the Group\u2019s degree of risk aversion. The Group estimates an adjustment for
non-financial risk separately from all other estimates. The Group considers separately
the effect of reinsurance in the risk adjustment for non-financial risk of the underlying
insurance contracts. The risk adjustment applied by the Group only includes mortality
risk, lapse risk, and expenses risk and catastrophic risk.
The risk adjustment was calculated at the issuing entity level and then allocated down to
each group of contracts in accordance with their risk profiles. The value at risk (\u2018VaR\u2019)
method was used to derive the overall risk adjustment for non-financial risk, whereby
the maximum loss that a portfolio can experience within a one year time horizon at a
confidence level of 85 percent is determined. This technique discounts future cash flows
of the best estimate liabilities under different possible scenarios to produce a risk
distribution. The risk adjustment is taken to be equal to the VaR with that confidence
interval less the value of the best estimate of the discounted cash flows.
(b)\u00a0 Assumptions
All assumptions are best estimate, with no prudential margins. The Group takes into
account all relevant available data, both internal and external, when arriving at
assumptions that best reflect the characteristics of the underlying insurance portfolio.
In calculating estimates of fulfilment cash flows, the Group uses information about past
events, current conditions and forecasts of future conditions. The Group\u2019s estimate of
future cash flows is the mean of a range of scenarios that reflect the full range of
possible outcomes. Each scenario specifies the amount, timing and probability of cash
flows.
Assumptions used to develop estimates about future cash flows are reassessed at each
reporting date and adjusted where required.
Investment assets returns
For with-profits contracts, assumptions about future underlying investment returns are
made. Due to the measurement models applied and the nature of the products,
particularly the determination of the discount rates used to discount future estimates of
cash flows that vary with returns on underlying items, assumptions about future
underlying investment returns do not impact contract measurement significantly. There
are limited financial guarantees in these products. The liabilities associated with these
guarantees are measured using a market-consistent stochastic model. The interest rate
guarantee embedded in investment contracts with DPF was measured using stochastic
modelling, because the guarantee does not move symmetrically with different interest
rate scenarios. The guarantee was measured using a full range of scenarios representing
possible future risk-free interest rate environments published by European Insurance
and Occupational Pensions Authority (\u2018EIOPA\u2019). Stochastic investment returns reflect
the volatility of the underlying assets.
For a sensitivity analysis, refer to Note 4.2(a).
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. This approach was used to derive the discount rate for the cash flows that do not
vary based on the returns on underlying items in the investment contracts with DPF.
Under this approach, the discount rate is determined as the risk-free yield, adjusted for
differences in liquidity characteristics between the financial assets used to derive the
risk-free yield and the relevant liability cash flows (known as an \u2018illiquidity premium\u2019).
The risk-free rates used were as published by EIOPA and the Group evaluates the
illiquidity premium on a yearly basis.
Management uses judgement to assess liquidity characteristics of the liability cash
flows. The Group\u2019s insurance contracts do not have a cash surrender value and hence,
its liabilities can be considered as illiquid which allows the Group to reflect the
illiquidity characteristics of these products via the illiquidity premium. The Group
decided to use a reference portfolio as an appropriate proxy for the term liabilities.
On the other hand, the Group\u2019s investment contracts with DPF have surrender value and
therefore, liabilities can be considered highly liquid. Thus, these are discounted using
the risk-free rates without applying any illiquidity adjustment. Cash flows varying based
on underlying items are discounted using a discount rate that reflects the volatility of the
underlying assets.
For a sensitivity analysis, refer to Note 4.2(a).
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
Product
5
10
5
10
Life risk (issued and
\u00a0 reinsurance held)
2.7%
3.4%
2.3%
2.4%
Investment contracts
\u00a0 with DPF
2.5%
2.9%
2.1%
2.3%
Policy acquisition and maintenance expenses
The Group projects estimates of future expenses relating to fulfilment of contracts
within the scope of IFRS 17 using current expense levels adjusted for inflation, non-
recurring expenses and new budgeted expenses that the Group is expected to incur in
the future. Expenses comprise expenses directly attributable to the groups of contracts,
including an allocation of fixed and variable overheads.
The short-term expense inflation assumption is based on forecasts issued by the Central
Bank of Malta, adjusted for the Group\u2019s own experience. The long-term expense
inflation assumption is based on the Central Bank of Malta long-term inflation target.
Expense inflation is considered to be a non-financial risk.
Where estimates of indirect expenses-related cash flows are determined at the portfolio
level or higher, they are allocated to groups of contracts on a systematic basis, such as
number of policies in force. A renewal per policy maintenance expense including
claims is derived for all portfolios.
2025
2024
\u20ac
\u20ac
Life Risk
\u20ac48.0
48.5
Investment contracts with DPF
105.2 - 109.0
76.5 - 102.3
Acquisition cash flows are typically allocated to the groups of contracts from which
they arise or to which they relate. This includes an allocation of acquisition cash flows
among existing new business. An acquisition expense per new business policy is
derived for all portfolios.
The Group provides investment-return services for the investment contracts with DPF
to manage assets in policyholder accounts and investment-related services for the
contracts measured under the VFA. An investment expense per asset under management
is derived.
For a sensitivity analysis, refer to Note 4.1.
Mortality rates
Mortality experience is reviewed annually and assumptions are set separately for term
and investment contracts with DPF having regard to past experience, events not in data\u00a0
and future expected mortality trends. The Group makes reference to the following
standard mortality table. This UK mortality table is based on male assured lives of
combined smoker status
2025
2024
Life Risk
44% TMC00
44% TMC00
Investment contracts with DPF
48% AMC00
48% AMC00
The Group fits its own experience as a percentage of the TMC00 and AMC00 (2024:
TMC00 and AMC00) mortality table and uses this as a basis for its mortality
assumption.
For a sensitivity analysis, refer to Note 4.1.
Lapse rates
The Group derives assumptions about lapse and surrender rates based on the Group's
own experience. Historical lapse and surrender rates are derived from the Group\u2019s
policy administration data. An analysis is then performed of the Group\u2019s historical rates
in comparison to the assumptions previously used. Statistical methods are used to derive
adjustments to reflect the Group\u2019s own experience and any trends in the data, to arrive
at the probability-weighted expected lapse and surrender rates. Analysis is performed
and assumptions are set by major product lines.
For investment contracts with DPF, the Group incorporates dynamic lapsing. For these
products lapse experience also vary by market conditions and outlook.
The following assumptions about lapse and surrender rates were used. Methods used to
derive these assumptions have not changed in 2025.
2025
2024
Life Risk
3.0% - 7.0%
3.0% - 7.0%
Investment contracts with DPF
0.5% - 5.5%
0.5% - 6.0%
For a sensitivity analysis, refer to note 4.1.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-323": { "value": "
1.\u00a0 \u00a0 \u00a0 Basis of preparation
The financial statements of the Group to which the
Company is parent are prepared in accordance with Article 4 of Regulation (EC)
1606/2002 on the application of international accounting standards (the \u201cRegulation\u201d)
which requires that, for each financial period starting on or after 1 January 2005,
companies governed by the law of an EU Member State shall prepare their consolidated
financial statements in conformity with IFRS as adopted by the EU if, at their reporting
date, their securities are admitted to trading on a regulated market of any EU Member
State. The Regulation prevails over the provisions of the Companies Act, 1995 to the
extent that the said provisions of the Companies Act, 1995 are incompatible with the
provisions of the Regulation. Both sets of financial statements as referred to in the
Annual Report relate to both those of the Company and the Group and have also been
prepared in accordance with the Insurance Business Act, 1998.
2.Accounting policies
2.3Foreign currency translation
Functional and presentation currency
The euro is the Group\u2019s and Company\u2019s functional and
presentation currency.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-322": { "value": "
1.\u00a0 \u00a0 \u00a0 Basis of preparation
Amendments to published standards effective in 2025
In 2025, the Group adopted amendments to existing standards that are mandatory for
the Group\u2019accounting period beginning on 1 January 2025. The adoption of these
amendments\u00a0 to standards as per the requirements of IFRSs as adopted by the EU did
not result in material changes to the Group\u2019s accounting policies.
Standards and amendments to published standards that are not yet effective
A number of new standards and amendments to existing standards are effective for
annual periods beginning after 1 January 2025. However, the Group has not early
adopted the new standards or amendments in preparing these financial statements and
management are of the opinion that there are no requirements that are expected to have
a material impact on the Group\u2019s financial statements in the period of initial application.
6.\u00a0 \u00a0 \u00a0 Amounts determined on transition to IFRS 17
Transition approach
At 1 January 2022, the Group applied the following approaches to identify and measure
certain groups of contracts on transition to IFRS 17.
Year of issue of contracts
Transition approach
After 2016 \u2013 term business including
\u00a0 reinsurance
Full retrospective approach
Before 2016 \u2013 term business including
\u00a0 reinsurance
Fair value approach
All with-profits and unit-linked business
Fair value approach
The transition approach was determined at the level of a group of insurance contracts
and affected the approach to calculating the CSM on initial adoption of IFRS 17.
The Group applied judgement in determining the transition amounts and the pre-
transition FCF and experience were not considered under this approach.
Applying the fair value approach, the Group determined the CSM to be the difference
between the fair value of a group of insurance contracts, measured in accordance with
IFRS 13 \u2018Fair Value Measurement\u2019 and its FCF at the transition date.
The fair value of an insurance liability is the price that a market participant would be
willing to pay to assume the obligation and the remaining risks of the in-force contracts
as at the transition date. A present value technique was used to value groups of
contracts.
In estimating the fair value of groups of insurance contracts, the following
considerations were applied:
\u2013 only future cash flows within the boundaries of the insurance contracts were
included in the fair value estimation, excluding future renewals and new business
that would be outside the contract boundary of the contracts under IFRS 17;
\u2013 assumptions about expected future cash flows and risk allowances, including
operational risk were adjusted for the market participant\u2019s view, as required by
IFRS 13;
\u2013 profit margins were included to reflect what a market participant would require
for accepting obligations under insurance contracts, beyond the risk adjustment
for non-financial risk; and
\u2013 diversification between market risk and life risk. Although market risk is
considered as a hedgeable risk, it was assumed that a buyer will be able to capture
this diversification from its other own modules.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-319": { "value": "
1.\u00a0 \u00a0 \u00a0 Basis of preparation
Amendments to published standards effective in 2025
In 2025, the Group adopted amendments to existing standards that are mandatory for
the Group\u2019accounting period beginning on 1 January 2025. The adoption of these
amendments\u00a0 to standards as per the requirements of IFRSs as adopted by the EU did
not result in material changes to the Group\u2019s accounting policies.
Standards and amendments to published standards that are not yet effective
A number of new standards and amendments to existing standards are effective for
annual periods beginning after 1 January 2025. However, the Group has not early
adopted the new standards or amendments in preparing these financial statements and
management are of the opinion that there are no requirements that are expected to have
a material impact on the Group\u2019s financial statements in the period of initial application.
6.\u00a0 \u00a0 \u00a0 Amounts determined on transition to IFRS 17
Transition approach
At 1 January 2022, the Group applied the following approaches to identify and measure
certain groups of contracts on transition to IFRS 17.
Year of issue of contracts
Transition approach
After 2016 \u2013 term business including
\u00a0 reinsurance
Full retrospective approach
Before 2016 \u2013 term business including
\u00a0 reinsurance
Fair value approach
All with-profits and unit-linked business
Fair value approach
The transition approach was determined at the level of a group of insurance contracts
and affected the approach to calculating the CSM on initial adoption of IFRS 17.
The Group applied judgement in determining the transition amounts and the pre-
transition FCF and experience were not considered under this approach.
Applying the fair value approach, the Group determined the CSM to be the difference
between the fair value of a group of insurance contracts, measured in accordance with
IFRS 13 \u2018Fair Value Measurement\u2019 and its FCF at the transition date.
The fair value of an insurance liability is the price that a market participant would be
willing to pay to assume the obligation and the remaining risks of the in-force contracts
as at the transition date. A present value technique was used to value groups of
contracts.
In estimating the fair value of groups of insurance contracts, the following
considerations were applied:
\u2013 only future cash flows within the boundaries of the insurance contracts were
included in the fair value estimation, excluding future renewals and new business
that would be outside the contract boundary of the contracts under IFRS 17;
\u2013 assumptions about expected future cash flows and risk allowances, including
operational risk were adjusted for the market participant\u2019s view, as required by
IFRS 13;
\u2013 profit margins were included to reflect what a market participant would require
for accepting obligations under insurance contracts, beyond the risk adjustment
for non-financial risk; and
\u2013 diversification between market risk and life risk. Although market risk is
considered as a hedgeable risk, it was assumed that a buyer will be able to capture
this diversification from its other own modules.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-318": { "value": "
1.\u00a0 \u00a0 \u00a0 Basis of preparation
The preparation of financial statements in conformity with the above reporting
framework requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group\u2019s
accounting policies.\u00a0 The areas involving a higher degree of judgement or complexity,
or areas where assumptions and estimates are significant to the consolidated financial
statements, are disclosed in Note 3.
3.Use of accounting estimates and judgements in applying accounting policies
The Group makes estimates and assumptions concerning the future.\u00a0 Estimates and
judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under
the circumstances.
Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognised in the financial statements is included in
the following notes, which also include information about assumptions and
uncertainties at 31 December 2025 that have a significant risk of resulting in a material
adjustment in the carrying amounts of assets and liabilities in the next financial year.
(a) Long-term contracts - insurance contract assets, insurance contract liabilities and\u00a0
reinsurance contract liabilities
Insurance contract assets, insurance contract liabilities and reinsurance contract
liabilities are subject to an annual valuation using generally accepted accounting and
actuarial practice.
Different principles and valuation methodologies are adopted depending on the type
and generation of products.\u00a0 The key assumptions used in determining the measurement\u00a0
of insurance contract assets, insurance contract liabilities and reinsurance contract
liabilities are described in Note 24.6 to the financial statements.
b)\u00a0 Short-term insurance contracts under PAA - liability for incurred claims
Liability of incurred claims (LIC) of short-term business insurance contracts, measured
under the PAA, comprise of the estimates of future cash flows, adjusted to reflect the
time value of money and a risk adjustment for non-financial risks. The estimates of
future cash flows is derived using a standard actuarial claims projection technique, the
Chain Ladder method, other than for non-motor large losses. The key assumptions
underlying this technique is that past claims development experience can be used to
project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
More detail on the key assumptions used in determining the LIC in respect of short-
term insurance contracts under PAA are described in Note 24.2 (a) to the financial
statements.
(c) Consolidation of entities in which the Group holds less than majority of voting
rights
The Group considers that it controls MAPFRE MSV Life p.l.c. (\u2018MMSV\u2019) even though
it does not own more than 50% of the voting rights. This is because strategic, operating
and financing policies of MMSV are directed by means of shareholders\u2019 agreement
which provides MAPFRE Middlesea p.l.c. with the right to select, appoint and remove
the key management personnel of MMSV and approve its business plan and capital
expenditure.
For all the financial years up to 31 December 2010, MMSV was considered to be an
associate and was accounted for using the equity method.\u00a0 Following the shareholders\u2019
agreement, on 29 July 2011, MAPFRE Middlesea p.l.c. acquired control over MMSV
based on the factors explained in this note and started consolidating MMSV as from
that date.
4.\u00a0 \u00a0 \u00a0 Management of risk
4.1Insurance risk
(a) Short-term business insurance contracts
Sources of uncertainty in the estimation of future claim developments and payments
Claims on contracts are accounted for on a claims-occurrence basis.\u00a0 The Group is
liable for all insured events that occurred during the term of the contract, even if the
loss is discovered after the end of the contract term.\u00a0 Certain classes of business, most
notably those exposed to liability, can take several years to develop and are therefore
subject to a greater degree of uncertainty than other classes of business which are
typically settled in a shorter period of time.
The estimated cost of claims includes direct expenses to be incurred in settling claims,
net of the expected subrogation value and recoveries.\u00a0 The Group takes all reasonable
steps to ensure that it has appropriate information regarding its claims exposures.\u00a0
However, given the uncertainty in establishing the liability for incurred claims, it is
possible that the final outcome will prove to be different from the original liability
established.
In calculating the estimated cost of unpaid claims, the Group considers the results of
estimation techniques that are based partly on known information at year-end and partly
on statistical analysis of historical experience.\u00a0
Further details on the process of estimation is provided in Note 24.2 which also presents
the development of the estimate of future cash flows for claims incurred in a given year.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Company with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a 5% upwards and
downwards change in the ultimate loss amount while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions
might be correlated.
31 December 2025
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(308)
(270)
(200)
(176)
Ultimate loss \u2013 5% decrease
308
270
200
176
31 December 2024
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(385)
(334)
(250)
(217)
Ultimate loss \u2013 5% decrease
385
334
250
217
(b) Long term business insurance contracts
Policyholder lapse risk
Higher lapses than expected cause a loss of future profits and possibility of non-
recovery of sales expenses.
The amount of insurance risk is also subject to contract holder behaviour. On the
assumption that policyholders will make decisions rationally overall underwriting risk
can be assumed to be aggravated by such behaviour. For example, it is likely that
contract holders whose health has deteriorated significantly will be less inclined to
terminate contracts insuring death benefits than those contract holders remaining in
good health. This results in an increasing trend of expected mortality as the portfolio of
insurance contracts reduces due to voluntary terminations.
Unit-linked and with-profits policies, can be surrendered before maturity for a cash
surrender value specified in the contractual terms. Cash surrender value equals the
policyholder account/investment value at the time of termination, less any surrender
penalties. Through these penalties, policyholders are discouraged from surrendering
contracts earlier than policy maturity. As such, penalties mitigate the expense risk
arising from acquisition and other costs incurred when policies were issued, because
such costs were originally assumed to be spread over a longer period, since early
surrender was not expected.
The lapse assumptions applied are disclosed in Note 24.
Expense Risk
Expense risk is the risk of unexpected increases in policy maintenance, claim handling
and other costs relating to fulfilment of insurance contracts. The risk is managed
through budgeting and periodic cost evaluations. Investment contracts with DPF carry
negligible expense risk.
The expense assumptions applied are disclosed in Note 24.
Market Risk
This risk is covered in Note 4.2 (a). The investment assets return and discount rate
assumptions are disclosed in Note 24.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Group with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a change in an
assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions might be correlated.
31 December 2025
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,411)
(1,901)
174
92
113
60
Mortality rate \u2013 10% decrease
4,408
1,903
(179)
(94)
(116)
(61)
Lapse rates \u2013 10% increase
(1,822)
(288)
282
27
183
18
Lapse rates \u2013 10% decrease
1,822
288
(282)
(27)
(183)
(18)
Expenses \u2013 10% increase
(1,629)
(2,068)
14
16
9
10
Expenses \u2013 10% decrease
1,629
2,068
(14)
(16)
(9)
(10)
Investment contracts with DPF
Mortality rate \u2013 10% increase
(319)
(319)
3
3
2
2
Mortality rate \u2013 10% decrease
319
319
(3)
(3)
(2)
(2)
Lapse rates \u2013 10% increase
(455)
(455)
40
40
26
26
Lapse rates \u2013 10% decrease
455
455
(40)
(40)
(26)
(26)
Expenses \u2013 10% increase
(1,199)
(1,199)
(62)
(62)
(40)
(40)
Expenses \u2013 10% decrease
1,199
1,199
62
62
40
40
31 December 2024
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,274)
(1,870)
(174)
(63)
(113)
(41)
Mortality rate \u2013 10% decrease
4,269
1,872
172
63
112
41
Lapse rates \u2013 10% increase
(1,652)
(171)
149
118
97
77
Lapse rates \u2013 10% decrease
1,652
171
(149)
(118)
(97)
(77)
Expenses \u2013 10% increase
(1,649)
(2,045)
(86)
(108)
(56)
(70)
Expenses \u2013 10% decrease
1,649
2,045
86
108
56
70
Investment contracts with DPF
Mortality rate \u2013 10% increase
(311)
(311)
\u2014
\u2014
\u2014
\u2014
Mortality rate \u2013 10% decrease
311
311
\u2014
\u2014
\u2014
\u2014
Lapse rates \u2013 10% increase
53
53
98
98
64
64
Lapse rates \u2013 10% decrease
(53)
(53)
(98)
(98)
(64)
(64)
Expenses \u2013 10% increase
(1,707)
(1,707)
(116)
(116)
(76)
(76)
Expenses \u2013 10% decrease
1707
1707
116
116
76
76
Changes in underwriting risk variables mainly affect the CSM, profit or loss and equity
as follows.
GMM
VFA
a. CSM
Changes in fulfilment cash flows, other than those
\u00a0 recognised as\u00a0 insurance finance income or expenses
Changes in fulfilment
\u00a0 cash flows
b. Profit or
\u00a0 \u00a0 \u00a0 loss
Changes in fulfilment cash flows that are
\u00a0 recognised as insurance finance income or expenses
\u00a0 in profit or loss and change in CSM release and /or
\u00a0 coverage units
Changes in CSM
\u00a0 release and /or
\u00a0 coverage units
c. Equity
The effect on profit or loss under b.
\u00a0 after tax
The effect on profit or
\u00a0 loss under b. after tax
24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets
and reinsurance contract liabilities
24.2\u00a0 Short-term insurance contracts under PAA
Short-term insurance contracts \u2013 liability for incurred claims
The liability for incurred claims are largely based on claims incurred data. A Chain
Ladder approach using the Development Factor Method has been used projecting
separately each portfolio of contracts. In choosing the development factors, outliers that
would unrealistically favourably or adversely impact the estimation of the ultimate cost
are excluded. Large losses within each portfolio other than for Motor have not been
projected given the small and infrequent number of such claims over time and have
been taken at the case reserve. In the case of Motor, large losses, in the main involving
fatalities or serious bodily injury, are projected separately from attritional claims given
their severity and different development patterns.
(a)\u00a0 Assumptions
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. Under this approach, the discount rate is determined as the risk-free yield. Given
the short-term nature of its insurance contracts liabilities and liquidity of cash flows, the
Group has selected the risk-free rates as published by EIOPA as appropriate for the
nature of its liabilities taking a zero illiquidity premium.
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
1
5
10
1
5
10
Short term insurance contracts issued
\u00a0 and reinsurance contracts held
2.1%
2.5%
2.9%
2.2%
2.1%
2.3%
Risk adjustment for non-financial risk
Non-financial risk adjustment valuation reflects the compensation that the Group needs
to manage uncertainty regarding the amount and timing of future cash outflows, which
arise from non-financial risks from fulfilling insurance contract obligations.
Underwriting risks as well as other non-financial risks like portfolio expenses and
lapses are taken into consideration when determining this.
The non-financial risk adjustment has been estimated using a confidence-interval-based
approach, using Value at Risk (VaR) metrics for the probability distribution of the
current value of future cash flows, in line with Solvency II capital requirements, and
calibrating the target percentile confidence interval to 65 percentile. The Group
estimates an adjustment for non-financial risk separately from all other estimates.
Estimates of future cash flows to fulfil insurance contracts
LIC of short-term business insurance contracts, measured under the PAA, comprise of
the estimates of future cash flows. The estimates of future cash flows is derived using a
standard actuarial claims projection technique, the Chain Ladder method, other than for
non-motor large losses. The key assumptions underlying this technique is that past
claims development experience can be used to project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
(b)\u00a0 Sensitivity analysis
The directors have considered the sensitivity of the key variables underlying the liability
for short-term contracts.\u00a0 The most sensitive assumptions are the development factors
and discount rate changes. Development factors can be impacted by claims inflation,
increase in claims frequency and severity. Sensitivity analysis for insurance risk has
been disclosed in Note 4. Sensitivity analysis for interest rate risk has also been
disclosed in Note 4.
24.6\u00a0 Long term contracts - inputs, assumptions and estimation techniques
(a)Estimation techniques
Best estimate of future cash flows
The best estimate liability is the present value of expected future cash flows, discounted
using a\u00a0 yield curve (i.e. interest rates at different maturities at a given point in time).
The estimates of these future cash flows are based on probability-weighted expected
future cash flows. The Group estimates which cash flows are expected and the
probability that they will occur as at the measurement date. The projections allow for all
expected decrements and policyholder actions, including lapses. Future premiums are
taken into account up to the contract boundary. Allowance for future expenses take into
account both overheads and directly attributable expenses, and future expense inflation.
The cash flow projections is performed on a policy by policy basis.
Investment contracts with DPF liabilities include the cost of financial guarantees and
options. A market consistent stochastic valuation is used to calculate these costs.
Representative model pointing is used in these stochastic runs. For such contracts,
discretionary benefits are allowed for separately in the technical provisions. The
calculations reflect a pre-defined set of realistic management actions and policyholder
behaviour. The best estimate liability does not include the value of shareholder
transfers.
For unit-linked business, the unit and non-unit components are unbundled for the
purposes of determining the best estimate liability.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is the compensation that is required for
bearing the uncertainty about the amount and timing of cash flows that arises from non-
financial risk as the insurance contract is fulfilled. Because the risk adjustment
represents compensation for uncertainty, estimates are made on the degree of
diversification benefits and expected favourable and unfavourable outcomes in a way
that reflects the Group\u2019s degree of risk aversion. The Group estimates an adjustment for
non-financial risk separately from all other estimates. The Group considers separately
the effect of reinsurance in the risk adjustment for non-financial risk of the underlying
insurance contracts. The risk adjustment applied by the Group only includes mortality
risk, lapse risk, and expenses risk and catastrophic risk.
The risk adjustment was calculated at the issuing entity level and then allocated down to
each group of contracts in accordance with their risk profiles. The value at risk (\u2018VaR\u2019)
method was used to derive the overall risk adjustment for non-financial risk, whereby
the maximum loss that a portfolio can experience within a one year time horizon at a
confidence level of 85 percent is determined. This technique discounts future cash flows
of the best estimate liabilities under different possible scenarios to produce a risk
distribution. The risk adjustment is taken to be equal to the VaR with that confidence
interval less the value of the best estimate of the discounted cash flows.
(b)\u00a0 Assumptions
All assumptions are best estimate, with no prudential margins. The Group takes into
account all relevant available data, both internal and external, when arriving at
assumptions that best reflect the characteristics of the underlying insurance portfolio.
In calculating estimates of fulfilment cash flows, the Group uses information about past
events, current conditions and forecasts of future conditions. The Group\u2019s estimate of
future cash flows is the mean of a range of scenarios that reflect the full range of
possible outcomes. Each scenario specifies the amount, timing and probability of cash
flows.
Assumptions used to develop estimates about future cash flows are reassessed at each
reporting date and adjusted where required.
Investment assets returns
For with-profits contracts, assumptions about future underlying investment returns are
made. Due to the measurement models applied and the nature of the products,
particularly the determination of the discount rates used to discount future estimates of
cash flows that vary with returns on underlying items, assumptions about future
underlying investment returns do not impact contract measurement significantly. There
are limited financial guarantees in these products. The liabilities associated with these
guarantees are measured using a market-consistent stochastic model. The interest rate
guarantee embedded in investment contracts with DPF was measured using stochastic
modelling, because the guarantee does not move symmetrically with different interest
rate scenarios. The guarantee was measured using a full range of scenarios representing
possible future risk-free interest rate environments published by European Insurance
and Occupational Pensions Authority (\u2018EIOPA\u2019). Stochastic investment returns reflect
the volatility of the underlying assets.
For a sensitivity analysis, refer to Note 4.2(a).
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. This approach was used to derive the discount rate for the cash flows that do not
vary based on the returns on underlying items in the investment contracts with DPF.
Under this approach, the discount rate is determined as the risk-free yield, adjusted for
differences in liquidity characteristics between the financial assets used to derive the
risk-free yield and the relevant liability cash flows (known as an \u2018illiquidity premium\u2019).
The risk-free rates used were as published by EIOPA and the Group evaluates the
illiquidity premium on a yearly basis.
Management uses judgement to assess liquidity characteristics of the liability cash
flows. The Group\u2019s insurance contracts do not have a cash surrender value and hence,
its liabilities can be considered as illiquid which allows the Group to reflect the
illiquidity characteristics of these products via the illiquidity premium. The Group
decided to use a reference portfolio as an appropriate proxy for the term liabilities.
On the other hand, the Group\u2019s investment contracts with DPF have surrender value and
therefore, liabilities can be considered highly liquid. Thus, these are discounted using
the risk-free rates without applying any illiquidity adjustment. Cash flows varying based
on underlying items are discounted using a discount rate that reflects the volatility of the
underlying assets.
For a sensitivity analysis, refer to Note 4.2(a).
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
Product
5
10
5
10
Life risk (issued and
\u00a0 reinsurance held)
2.7%
3.4%
2.3%
2.4%
Investment contracts
\u00a0 with DPF
2.5%
2.9%
2.1%
2.3%
Policy acquisition and maintenance expenses
The Group projects estimates of future expenses relating to fulfilment of contracts
within the scope of IFRS 17 using current expense levels adjusted for inflation, non-
recurring expenses and new budgeted expenses that the Group is expected to incur in
the future. Expenses comprise expenses directly attributable to the groups of contracts,
including an allocation of fixed and variable overheads.
The short-term expense inflation assumption is based on forecasts issued by the Central
Bank of Malta, adjusted for the Group\u2019s own experience. The long-term expense
inflation assumption is based on the Central Bank of Malta long-term inflation target.
Expense inflation is considered to be a non-financial risk.
Where estimates of indirect expenses-related cash flows are determined at the portfolio
level or higher, they are allocated to groups of contracts on a systematic basis, such as
number of policies in force. A renewal per policy maintenance expense including
claims is derived for all portfolios.
2025
2024
\u20ac
\u20ac
Life Risk
\u20ac48.0
48.5
Investment contracts with DPF
105.2 - 109.0
76.5 - 102.3
Acquisition cash flows are typically allocated to the groups of contracts from which
they arise or to which they relate. This includes an allocation of acquisition cash flows
among existing new business. An acquisition expense per new business policy is
derived for all portfolios.
The Group provides investment-return services for the investment contracts with DPF
to manage assets in policyholder accounts and investment-related services for the
contracts measured under the VFA. An investment expense per asset under management
is derived.
For a sensitivity analysis, refer to Note 4.1.
Mortality rates
Mortality experience is reviewed annually and assumptions are set separately for term
and investment contracts with DPF having regard to past experience, events not in data\u00a0
and future expected mortality trends. The Group makes reference to the following
standard mortality table. This UK mortality table is based on male assured lives of
combined smoker status
2025
2024
Life Risk
44% TMC00
44% TMC00
Investment contracts with DPF
48% AMC00
48% AMC00
The Group fits its own experience as a percentage of the TMC00 and AMC00 (2024:
TMC00 and AMC00) mortality table and uses this as a basis for its mortality
assumption.
For a sensitivity analysis, refer to Note 4.1.
Lapse rates
The Group derives assumptions about lapse and surrender rates based on the Group's
own experience. Historical lapse and surrender rates are derived from the Group\u2019s
policy administration data. An analysis is then performed of the Group\u2019s historical rates
in comparison to the assumptions previously used. Statistical methods are used to derive
adjustments to reflect the Group\u2019s own experience and any trends in the data, to arrive
at the probability-weighted expected lapse and surrender rates. Analysis is performed
and assumptions are set by major product lines.
For investment contracts with DPF, the Group incorporates dynamic lapsing. For these
products lapse experience also vary by market conditions and outlook.
The following assumptions about lapse and surrender rates were used. Methods used to
derive these assumptions have not changed in 2025.
2025
2024
Life Risk
3.0% - 7.0%
3.0% - 7.0%
Investment contracts with DPF
0.5% - 5.5%
0.5% - 6.0%
For a sensitivity analysis, refer to note 4.1.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-321": { "value": "1.\u00a0 \u00a0 \u00a0 Basis of preparationThe preparation of financial statements in conformity with the above reporting framework requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group\u2019s accounting policies.\u00a0 The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 3. 3.Use of accounting estimates and judgements in applying accounting policiesThe Group makes estimates and assumptions concerning the future.\u00a0 Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following notes, which also include information about assumptions and uncertainties at 31 December 2025 that have a significant risk of resulting in a material adjustment in the carrying amounts of assets and liabilities in the next financial year.(a) Long-term contracts - insurance contract assets, insurance contract liabilities and\u00a0 reinsurance contract liabilities Insurance contract assets, insurance contract liabilities and reinsurance contract liabilities are subject to an annual valuation using generally accepted accounting and actuarial practice.Different principles and valuation methodologies are adopted depending on the type and generation of products.\u00a0 The key assumptions used in determining the measurement\u00a0 of insurance contract assets, insurance contract liabilities and reinsurance contract liabilities are described in Note 24.6 to the financial statements.b)\u00a0 Short-term insurance contracts under PAA - liability for incurred claimsLiability of incurred claims (LIC) of short-term business insurance contracts, measured under the PAA, comprise of the estimates of future cash flows, adjusted to reflect the time value of money and a risk adjustment for non-financial risks. The estimates of future cash flows is derived using a standard actuarial claims projection technique, the Chain Ladder method, other than for non-motor large losses. The key assumptions underlying this technique is that past claims development experience can be used to project future claims development. Claims reserves which exceed a certain quantum (large losses), particularly those involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-case reserve estimate. The measurement of claim payments due by the Group involves the assessment of future settlements and is therefore dependent on assumptions around determining such reserves based on, among others, legal precedent and current trends in compensation awards. Specifically for Motor large losses, the Chain Ladder Method is subsequently used to project the ultimate cost of these claims. More detail on the key assumptions used in determining the LIC in respect of short-term insurance contracts under PAA are described in Note 24.2 (a) to the financial statements.(c) Consolidation of entities in which the Group holds less than majority of voting rightsThe Group considers that it controls MAPFRE MSV Life p.l.c. (\u2018MMSV\u2019) even though it does not own more than 50% of the voting rights. This is because strategic, operating and financing policies of MMSV are directed by means of shareholders\u2019 agreement which provides MAPFRE Middlesea p.l.c. with the right to select, appoint and remove the key management personnel of MMSV and approve its business plan and capital expenditure.For all the financial years up to 31 December 2010, MMSV was considered to be an associate and was accounted for using the equity method.\u00a0 Following the shareholders\u2019 agreement, on 29 July 2011, MAPFRE Middlesea p.l.c. acquired control over MMSV based on the factors explained in this note and started consolidating MMSV as from that date.4.\u00a0 \u00a0 \u00a0 Management of risk4.1Insurance risk(a) Short-term business insurance contractsSources of uncertainty in the estimation of future claim developments and paymentsClaims on contracts are accounted for on a claims-occurrence basis.\u00a0 The Group is liable for all insured events that occurred during the term of the contract, even if the loss is discovered after the end of the contract term.\u00a0 Certain classes of business, most notably those exposed to liability, can take several years to develop and are therefore subject to a greater degree of uncertainty than other classes of business which are typically settled in a shorter period of time.The estimated cost of claims includes direct expenses to be incurred in settling claims, net of the expected subrogation value and recoveries.\u00a0 The Group takes all reasonable steps to ensure that it has appropriate information regarding its claims exposures.\u00a0 However, given the uncertainty in establishing the liability for incurred claims, it is possible that the final outcome will prove to be different from the original liability established.In calculating the estimated cost of unpaid claims, the Group considers the results of estimation techniques that are based partly on known information at year-end and partly on statistical analysis of historical experience.\u00a0 Further details on the process of estimation is provided in Note 24.2 which also presents the development of the estimate of future cash flows for claims incurred in a given year.Sensitivity analysis to underwriting risk variablesThe following tables present information on how reasonably possible changes in assumptions made by the Company with regard to underwriting risk variables impact product line insurance liabilities and profit or loss and equity before and after risk mitigation by reinsurance contracts held. The analysis is based on a 5% upwards and downwards change in the ultimate loss amount while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions might be correlated. 31 December 2025 Impact on profit before income taxImpact on equity Gross Net Gross Net \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 Non-life Ultimate loss \u2013 5% increase (308)(270)(200)(176)Ultimate loss \u2013 5% decrease 308 270 200 176 31 December 2024 Impact on profit before income taxImpact on equity Gross Net Gross Net \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 Non-life Ultimate loss \u2013 5% increase (385)(334)(250)(217)Ultimate loss \u2013 5% decrease 385 334 250 217 (b) Long term business insurance contractsPolicyholder lapse riskHigher lapses than expected cause a loss of future profits and possibility of non-recovery of sales expenses. The amount of insurance risk is also subject to contract holder behaviour. On the assumption that policyholders will make decisions rationally overall underwriting risk can be assumed to be aggravated by such behaviour. For example, it is likely that contract holders whose health has deteriorated significantly will be less inclined to terminate contracts insuring death benefits than those contract holders remaining in good health. This results in an increasing trend of expected mortality as the portfolio of insurance contracts reduces due to voluntary terminations.Unit-linked and with-profits policies, can be surrendered before maturity for a cash surrender value specified in the contractual terms. Cash surrender value equals the policyholder account/investment value at the time of termination, less any surrender penalties. Through these penalties, policyholders are discouraged from surrendering contracts earlier than policy maturity. As such, penalties mitigate the expense risk arising from acquisition and other costs incurred when policies were issued, because such costs were originally assumed to be spread over a longer period, since early surrender was not expected.The lapse assumptions applied are disclosed in Note 24.Expense RiskExpense risk is the risk of unexpected increases in policy maintenance, claim handling and other costs relating to fulfilment of insurance contracts. The risk is managed through budgeting and periodic cost evaluations. Investment contracts with DPF carry negligible expense risk.The expense assumptions applied are disclosed in Note 24.Market RiskThis risk is covered in Note 4.2 (a). The investment assets return and discount rate assumptions are disclosed in Note 24.Sensitivity analysis to underwriting risk variablesThe following tables present information on how reasonably possible changes in assumptions made by the Group with regard to underwriting risk variables impact product line insurance liabilities and profit or loss and equity before and after risk mitigation by reinsurance contracts held. The analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions might be correlated. 31 December 2025 Impact on CSM Impact on profit before income taxImpact on equity Gross Net Gross Net Gross Net \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 Life Risk (Net) Mortality rate \u2013 10% increase (4,411)(1,901)1749211360Mortality rate \u2013 10% decrease 4,4081,903(179)(94)(116)(61)Lapse rates \u2013 10% increase (1,822)(288)2822718318Lapse rates \u2013 10% decrease 1,822288(282)(27)(183)(18)Expenses \u2013 10% increase (1,629)(2,068)1416910Expenses \u2013 10% decrease 1,6292,068(14)(16)(9)(10)Investment contracts with DPF Mortality rate \u2013 10% increase (319)(319)3322Mortality rate \u2013 10% decrease 319319(3)(3)(2)(2)Lapse rates \u2013 10% increase (455)(455)40402626Lapse rates \u2013 10% decrease 455455(40)(40)(26)(26)Expenses \u2013 10% increase (1,199)(1,199)(62)(62)(40)(40)Expenses \u2013 10% decrease 1,1991,1996262404031 December 2024 Impact on CSM Impact on profit before income taxImpact on equity Gross Net Gross Net Gross Net \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 \u20ac'000 Life Risk (Net) Mortality rate \u2013 10% increase (4,274)(1,870)(174)(63)(113)(41)Mortality rate \u2013 10% decrease 4,2691,8721726311241Lapse rates \u2013 10% increase (1,652)(171)1491189777Lapse rates \u2013 10% decrease 1,652171(149)(118)(97)(77)Expenses \u2013 10% increase (1,649)(2,045)(86)(108)(56)(70)Expenses \u2013 10% decrease 1,6492,045861085670Investment contracts with DPF Mortality rate \u2013 10% increase (311)(311)\u2014\u2014\u2014\u2014Mortality rate \u2013 10% decrease 311311\u2014\u2014\u2014\u2014Lapse rates \u2013 10% increase 535398986464Lapse rates \u2013 10% decrease (53)(53)(98)(98)(64)(64)Expenses \u2013 10% increase (1,707)(1,707)(116)(116)(76)(76)Expenses \u2013 10% decrease 1707 1707 116 116 76 76 Changes in underwriting risk variables mainly affect the CSM, profit or loss and equity as follows.GMM VFA a. CSM Changes in fulfilment cash flows, other than those \u00a0 recognised as\u00a0 insurance finance income or expenses Changes in fulfilment \u00a0 cash flows b. Profit or \u00a0 \u00a0 \u00a0 loss Changes in fulfilment cash flows that are \u00a0 recognised as insurance finance income or expenses \u00a0 in profit or loss and change in CSM release and /or \u00a0 coverage units Changes in CSM \u00a0 release and /or \u00a0 coverage units c. Equity The effect on profit or loss under b. \u00a0 after tax The effect on profit or \u00a0 loss under b. after tax 24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets and reinsurance contract liabilities24.2\u00a0 Short-term insurance contracts under PAAShort-term insurance contracts \u2013 liability for incurred claimsThe liability for incurred claims are largely based on claims incurred data. A Chain Ladder approach using the Development Factor Method has been used projecting separately each portfolio of contracts. In choosing the development factors, outliers that would unrealistically favourably or adversely impact the estimation of the ultimate cost are excluded. Large losses within each portfolio other than for Motor have not been projected given the small and infrequent number of such claims over time and have been taken at the case reserve. In the case of Motor, large losses, in the main involving fatalities or serious bodily injury, are projected separately from attritional claims given their severity and different development patterns. (a)\u00a0 AssumptionsDiscount ratesThe bottom-up approach was adopted by the Group in determining a suitable discount rate. Under this approach, the discount rate is determined as the risk-free yield. Given the short-term nature of its insurance contracts liabilities and liquidity of cash flows, the Group has selected the risk-free rates as published by EIOPA as appropriate for the nature of its liabilities taking a zero illiquidity premium. The yield curves used to discount the estimates of future cash flows that do not vary based on the returns of the underlying items are as follows:2025 2024 No. of years No. of years 1 5 10 1 5 10 Short term insurance contracts issued \u00a0 and reinsurance contracts held 2.1%2.5%2.9%2.2%2.1%2.3%Risk adjustment for non-financial riskNon-financial risk adjustment valuation reflects the compensation that the Group needs to manage uncertainty regarding the amount and timing of future cash outflows, which arise from non-financial risks from fulfilling insurance contract obligations. Underwriting risks as well as other non-financial risks like portfolio expenses and lapses are taken into consideration when determining this.The non-financial risk adjustment has been estimated using a confidence-interval-based approach, using Value at Risk (VaR) metrics for the probability distribution of the current value of future cash flows, in line with Solvency II capital requirements, and calibrating the target percentile confidence interval to 65 percentile. The Group estimates an adjustment for non-financial risk separately from all other estimates.Estimates of future cash flows to fulfil insurance contractsLIC of short-term business insurance contracts, measured under the PAA, comprise of the estimates of future cash flows. The estimates of future cash flows is derived using a standard actuarial claims projection technique, the Chain Ladder method, other than for non-motor large losses. The key assumptions underlying this technique is that past claims development experience can be used to project future claims development. Claims reserves which exceed a certain quantum (large losses), particularly those involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-case reserve estimate. The measurement of claim payments due by the Group involves the assessment of future settlements and is therefore dependent on assumptions around determining such reserves based on, among others, legal precedent and current trends in compensation awards. Specifically for Motor large losses, the Chain Ladder Method is subsequently used to project the ultimate cost of these claims.(b)\u00a0 Sensitivity analysis The directors have considered the sensitivity of the key variables underlying the liability for short-term contracts.\u00a0 The most sensitive assumptions are the development factors and discount rate changes. Development factors can be impacted by claims inflation, increase in claims frequency and severity. Sensitivity analysis for insurance risk has been disclosed in Note 4. Sensitivity analysis for interest rate risk has also been disclosed in Note 4. 24.6\u00a0 Long term contracts - inputs, assumptions and estimation techniques(a)Estimation techniquesBest estimate of future cash flowsThe best estimate liability is the present value of expected future cash flows, discounted using a\u00a0 yield curve (i.e. interest rates at different maturities at a given point in time). The estimates of these future cash flows are based on probability-weighted expected future cash flows. The Group estimates which cash flows are expected and the probability that they will occur as at the measurement date. The projections allow for all expected decrements and policyholder actions, including lapses. Future premiums are taken into account up to the contract boundary. Allowance for future expenses take into account both overheads and directly attributable expenses, and future expense inflation. The cash flow projections is performed on a policy by policy basis.Investment contracts with DPF liabilities include the cost of financial guarantees and options. A market consistent stochastic valuation is used to calculate these costs. Representative model pointing is used in these stochastic runs. For such contracts, discretionary benefits are allowed for separately in the technical provisions. The calculations reflect a pre-defined set of realistic management actions and policyholder behaviour. The best estimate liability does not include the value of shareholder transfers. For unit-linked business, the unit and non-unit components are unbundled for the purposes of determining the best estimate liability. Risk adjustment for non-financial riskThe risk adjustment for non-financial risk is the compensation that is required for bearing the uncertainty about the amount and timing of cash flows that arises from non-financial risk as the insurance contract is fulfilled. Because the risk adjustment represents compensation for uncertainty, estimates are made on the degree of diversification benefits and expected favourable and unfavourable outcomes in a way that reflects the Group\u2019s degree of risk aversion. The Group estimates an adjustment for non-financial risk separately from all other estimates. The Group considers separately the effect of reinsurance in the risk adjustment for non-financial risk of the underlying insurance contracts. The risk adjustment applied by the Group only includes mortality risk, lapse risk, and expenses risk and catastrophic risk. The risk adjustment was calculated at the issuing entity level and then allocated down to each group of contracts in accordance with their risk profiles. The value at risk (\u2018VaR\u2019) method was used to derive the overall risk adjustment for non-financial risk, whereby the maximum loss that a portfolio can experience within a one year time horizon at a confidence level of 85 percent is determined. This technique discounts future cash flows of the best estimate liabilities under different possible scenarios to produce a risk distribution. The risk adjustment is taken to be equal to the VaR with that confidence interval less the value of the best estimate of the discounted cash flows.(b)\u00a0 AssumptionsAll assumptions are best estimate, with no prudential margins. The Group takes into account all relevant available data, both internal and external, when arriving at assumptions that best reflect the characteristics of the underlying insurance portfolio.In calculating estimates of fulfilment cash flows, the Group uses information about past events, current conditions and forecasts of future conditions. The Group\u2019s estimate of future cash flows is the mean of a range of scenarios that reflect the full range of possible outcomes. Each scenario specifies the amount, timing and probability of cash flows.Assumptions used to develop estimates about future cash flows are reassessed at each reporting date and adjusted where required. Investment assets returnsFor with-profits contracts, assumptions about future underlying investment returns are made. Due to the measurement models applied and the nature of the products, particularly the determination of the discount rates used to discount future estimates of cash flows that vary with returns on underlying items, assumptions about future underlying investment returns do not impact contract measurement significantly. There are limited financial guarantees in these products. The liabilities associated with these guarantees are measured using a market-consistent stochastic model. The interest rate guarantee embedded in investment contracts with DPF was measured using stochastic modelling, because the guarantee does not move symmetrically with different interest rate scenarios. The guarantee was measured using a full range of scenarios representing possible future risk-free interest rate environments published by European Insurance and Occupational Pensions Authority (\u2018EIOPA\u2019). Stochastic investment returns reflect the volatility of the underlying assets.For a sensitivity analysis, refer to Note 4.2(a).Discount ratesThe bottom-up approach was adopted by the Group in determining a suitable discount rate. This approach was used to derive the discount rate for the cash flows that do not vary based on the returns on underlying items in the investment contracts with DPF. Under this approach, the discount rate is determined as the risk-free yield, adjusted for differences in liquidity characteristics between the financial assets used to derive the risk-free yield and the relevant liability cash flows (known as an \u2018illiquidity premium\u2019). The risk-free rates used were as published by EIOPA and the Group evaluates the illiquidity premium on a yearly basis.Management uses judgement to assess liquidity characteristics of the liability cash flows. The Group\u2019s insurance contracts do not have a cash surrender value and hence, its liabilities can be considered as illiquid which allows the Group to reflect the illiquidity characteristics of these products via the illiquidity premium. The Group decided to use a reference portfolio as an appropriate proxy for the term liabilities.On the other hand, the Group\u2019s investment contracts with DPF have surrender value and therefore, liabilities can be considered highly liquid. Thus, these are discounted using the risk-free rates without applying any illiquidity adjustment. Cash flows varying based on underlying items are discounted using a discount rate that reflects the volatility of the underlying assets. For a sensitivity analysis, refer to Note 4.2(a).The yield curves used to discount the estimates of future cash flows that do not vary based on the returns of the underlying items are as follows:2025 2024 No. of years No. of years Product 5 10 5 10 Life risk (issued and \u00a0 reinsurance held) 2.7%3.4%2.3%2.4%Investment contracts \u00a0 with DPF 2.5%2.9%2.1%2.3%Policy acquisition and maintenance expensesThe Group projects estimates of future expenses relating to fulfilment of contracts within the scope of IFRS 17 using current expense levels adjusted for inflation, non-recurring expenses and new budgeted expenses that the Group is expected to incur in the future. Expenses comprise expenses directly attributable to the groups of contracts, including an allocation of fixed and variable overheads. The short-term expense inflation assumption is based on forecasts issued by the Central Bank of Malta, adjusted for the Group\u2019s own experience. The long-term expense inflation assumption is based on the Central Bank of Malta long-term inflation target. Expense inflation is considered to be a non-financial risk.Where estimates of indirect expenses-related cash flows are determined at the portfolio level or higher, they are allocated to groups of contracts on a systematic basis, such as number of policies in force. A renewal per policy maintenance expense including claims is derived for all portfolios.20252024 \u20ac \u20ac Life Risk \u20ac48.048.5 Investment contracts with DPF 105.2 - 109.0 76.5 - 102.3 Acquisition cash flows are typically allocated to the groups of contracts from which they arise or to which they relate. This includes an allocation of acquisition cash flows among existing new business. An acquisition expense per new business policy is derived for all portfolios.The Group provides investment-return services for the investment contracts with DPF to manage assets in policyholder accounts and investment-related services for the contracts measured under the VFA. An investment expense per asset under management is derived.For a sensitivity analysis, refer to Note 4.1.Mortality ratesMortality experience is reviewed annually and assumptions are set separately for term and investment contracts with DPF having regard to past experience, events not in data\u00a0 and future expected mortality trends. The Group makes reference to the following standard mortality table. This UK mortality table is based on male assured lives of combined smoker status 2025 2024 Life Risk 44% TMC00 44% TMC00 Investment contracts with DPF 48% AMC00 48% AMC00 The Group fits its own experience as a percentage of the TMC00 and AMC00 (2024: TMC00 and AMC00) mortality table and uses this as a basis for its mortality assumption.For a sensitivity analysis, refer to Note 4.1.Lapse ratesThe Group derives assumptions about lapse and surrender rates based on the Group's own experience. Historical lapse and surrender rates are derived from the Group\u2019s policy administration data. An analysis is then performed of the Group\u2019s historical rates in comparison to the assumptions previously used. Statistical methods are used to derive adjustments to reflect the Group\u2019s own experience and any trends in the data, to arrive at the probability-weighted expected lapse and surrender rates. Analysis is performed and assumptions are set by major product lines.For investment contracts with DPF, the Group incorporates dynamic lapsing. For these products lapse experience also vary by market conditions and outlook. The following assumptions about lapse and surrender rates were used. Methods used to derive these assumptions have not changed in 2025.2025 2024 Life Risk 3.0% - 7.0% 3.0% - 7.0% Investment contracts with DPF 0.5% - 5.5% 0.5% - 6.0% For a sensitivity analysis, refer to note 4.1.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-374": { "value": "
2.Accounting policies
The material accounting policies adopted in the preparation of these consolidated
financial statements are set out below. These policies have been consistently applied to
all the years presented, unless otherwise stated.
2.1Consolidation
(a) Subsidiary undertakings
The consolidated financial statements incorporate the assets, liabilities and results of
the Company and its subsidiary undertakings drawn up to 31 December each year.\u00a0
Subsidiary undertakings are those companies over which the Group has control, either
by way of majority shareholding, through contractual agreements with the other vote
holders of the investee or rights arising from other contractual agreements, giving it the
power to govern the financial and operating policies of the investee. Specifically, the
Group controls an investee if and only if the Group has:
\u2013 Power over the investee (i.e. existing rights that give it the current ability to direct
the relevant activities of the investee);
\u2013 Exposure, or rights, to variable returns from its involvement with the investee; and
\u2013 The ability to use its power over the investee to affect its returns.
The Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control.
Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are
included in the statement of financial position and the statement of comprehensive
income from the date the Group gains control until the date the Group ceases to control
the subsidiary.
The Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of
any asset or liability resulting from a contingent consideration arrangement. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the
recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the
acquirer\u2019s previously held equity interest in the acquiree is re-measured to fair value at
the acquisition date through profit or loss.
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Profit or loss and each component of other comprehensive income are attributed to the
equity holders of the parent of the Group and to the non-controlling interests, even if
this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Group\u2019s accounting policies. All intra-group assets
and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation. A list of the Group\u2019s
subsidiaries is set out in Note 20.
(b)\u00a0 Associated undertakings
An associate is an entity over which the Group has significant influence.\u00a0 Significant
influence is the power to participate in the financial and operating policy decisions of
the investee, but is not control or joint control over those policies.\u00a0 The considerations
made in determining significant influence are similar to those necessary to determine
control over subsidiaries. Except for investment-linked insurance funds, interests in
associated undertakings are accounted for by the equity method of accounting and are
initially recognised at cost and the carrying amount is increased or decreased to
recognise the investor\u2019s share of profit or loss of the investee after the date of
acquisition.
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition. Equity accounting involves recognising in
the profit or loss the share of the associated undertaking\u2019s post-acquisition profits or
losses.\u00a0 The interest in the associated undertaking is carried in the statement of financial
position at an amount that reflects the share of the net assets of the associated
undertaking.\u00a0 When the Group\u2019s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured receivables, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
Intra-group gains on transactions between the Group and its associates are eliminated to
the extent of the Group\u2019s interest in the associates. Intra-group losses are also
eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies for associated undertakings are changed where
necessary to ensure consistency with the policies adopted by the Group. A list of the
Group\u2019s associated undertakings is set out in Note 21.
Interests in associated undertakings that are allocated to the insurance fund are
designated as financial assets at fair value through profit or loss.\u00a0 They are accounted
for in accordance with the recognition and measurement principles described in Note
2.9.
2.2Segment reporting
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision-maker.\u00a0 The chief operating decision-maker,
responsible for allocating resources and assessing performance of the operating
segments, has been identified as the executive management which implements the
strategic decisions taken by the Board.\u00a0 In identifying the Group\u2019s business segments,
the chief operating decision-maker has considered the different categories of insurance
classes of business. \u00a0
2.3Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured
using the currency of the primary economic environment in which the entity operates
(the \u2018functional currency\u2019). The euro is the Group\u2019s and Company\u2019s functional and
presentation currency.
Transactions and balances
Transactions in foreign currencies have been converted into the functional currency at
the rates of exchange ruling on the date of the transaction or valuation where items are
re-measured.\u00a0 Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the profit or loss account.
All other foreign exchange gains and losses are presented in the profit or loss account
within \u2018Other investment revenue\u2019.
Translation differences on non-monetary items, mainly arising on equities held at fair
value through profit or loss, are reported as part of 'Other investment revenue'.
2.4Intangible assets
(a)Computer software
Acquired computer software licences are measured at cost less any accumulated
amortization and any accumulated impairment losses. Acquired computer software
licenses are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software.\u00a0 These costs are amortised using the straight-line method over their
useful lives, not exceeding a period of ten years.\u00a0 All costs associated with maintaining
computer software programmes are recognised as an expense as incurred.
(b) Deferred policy acquisition costs
Incremental costs that are incurred in acquiring new investment contracts without DPF
are capitalised as deferred acquisition costs (DAC).
The DAC is subsequently amortised over the life of the contracts as follows:
\u2013 For long-term investment contracts with a fixed maturity date, DAC is amortised
over the life of the contract.
\u2013 For long term investment contracts with no fixed date of maturity, DAC is
amortised over the estimated life of the contract. This basis is reviewed periodically
with reference to the historical experience of surrenders for these contracts.
2.5Property, plant and equipment
All property, plant and equipment is initially recorded at historical cost. Freehold land
and buildings are subsequently shown at revalued amount being its fair value at the end
of the revaluation less accumulated depreciation for buildings and any accumulated
impairment losses. Fair value is based on periodic valuations by qualified valuers to
ensure that the carrying amount of property does not differ materially from that which
would be determined using fair values at the end of the reporting period. Any
accumulated depreciation at the date of revaluation is eliminated against the gross
carrying amount of the asset, and the net amount is restated to the revalued amount of
the asset.\u00a0 All other property, plant and equipment is stated at historical cost less
depreciation and impairment losses.\u00a0 Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset\u2019s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can be measured reliably.
The carrying amount of the replaced part is derecognised. All other repairs and
maintenance costs are charged to the profit or loss account during the financial period
in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings are
credited to other comprehensive income as other reserves in shareholders\u2019 equity.\u00a0
Decreases that offset previous increases of the same asset are charged against other
comprehensive income as other reserves directly in equity; all other decreases are
charged to the profit or loss account.\u00a0 Each year the difference between depreciation
based on the revalued carrying amount of the asset charged to the profit or loss account
and depreciation based on the asset\u2019s original cost is transferred from \u2018other reserves\u2019 to
\u2018retained earnings\u2019.\u00a0
Freehold land is not depreciated as it is deemed to have an indefinite life.\u00a0 Depreciation
on other assets is calculated using the straight-line method to allocate their cost or
revalued amounts to their residual values over their estimated useful lives as follows:
Buildings
100 years
Leasehold improvements
10 - 40 years
Motor vehicles
5 years
Furniture, fittings and equipment
3 - 10 years
The assets\u2019 residual values and useful lives are reviewed at the end of each reporting
period and adjusted if appropriate.
An asset\u2019s carrying amount is written down immediately to its recoverable amount if
the asset\u2019s carrying amount is greater than its estimated recoverable amount (accounting
policy 2.16).
Gains and losses on disposals are determined by comparing proceeds with carrying
amounts and are included in the profit or loss account. When revalued assets are sold,
the amounts included in other reserves relating to the assets are transferred to retained
earnings.
2.6Investment property
Freehold and leasehold properties treated as investment property principally comprise
office and other commercial buildings that are held for long term rental yields and that
are not occupied by the Group or Company respectively. Investment property is initially
measured at cost and subsequently carried at fair value.\u00a0 Fair value is based on active
market prices, adjusted, if necessary for any difference in the nature, location or
condition of the specific asset. If this information is not available, the Group uses
alternative valuation methods such as discounted cash flow projections or recent prices
in less active markets. These valuations are reviewed annually by qualified valuers.\u00a0
Investment property that is being redeveloped for continuing use as investment
property, or for which the market has become less active, continues to be measured at
fair value.\u00a0 Changes in fair values are reported in the profit or loss account.
If an investment property becomes owner-occupied, it is reclassified as property, plant
and equipment, and its fair value at the date of reclassification becomes its cost for
subsequent accounting purposes.
2.9Financial instruments
(a) Summary of measurement categories
The Group classifies its financial assets and financial liabilities into the following
categories:
Classification
Reason
Cash and cash equivalents
Amortised Cost
SPPI, hold to collect business model
Other investments
FVTPL
Trading or portfolio managed at FV
Other investments
FVOCI
SPPI, hold to collect and sell business model
Other investments
Amortised Cost
SPPI, hold to collect business model
Trade and other receivables
Amortised Cost
SPPI, hold to collect business model
Other payables
Amortised Cost
Not managed at FV
Investment contract liabilities
FVTPL
Managed at FV
The Group does not apply hedge accounting.
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss. Immediately after initial recognition, an ECL allowance is
recognised for financial assets measured at AC and investments in debt instruments
measured at FVOCI.
When the fair value of financial assets and liabilities differs from the transaction price
on initial recognition, the entity recognises the difference as follows:
a. When the fair value is evidenced by a quoted price in an active market for an
identical asset or liability (that is, a Level 1 input) or based on a valuation technique
that uses only data from observable markets, the difference is recognised as a gain
or loss.
b. In all other cases, the difference is deferred and the timing of recognition of
deferred day one profit or loss is determined individually. It is either amortised over
the life of the instrument, deferred until the instrument\u2019s fair value can be
determined using market observable inputs, or realised through settlement.
(c) Amortised cost and effective interest rate
Amortised cost (AC) is the amount at which the financial asset or financial liability is
measured at initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method for any difference between
the initial amount and the maturity amount and, for financial assets, adjusted for any
loss allowance.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial asset or financial liability
to the gross carrying amount of a financial asset (that is, its AC before any impairment
allowance) or to the AC of a financial liability. The calculation does not consider the
ECL and includes transaction costs, premiums or discounts and fees and points paid or
received that are integral to the EIR.
When the Group revises the estimates of future cash flows, the carrying amount of the
respective financial asset or financial liability is adjusted to reflect the new estimate
discounted using the original EIR. Any changes are recognised in profit or loss.\u00a0
Interest revenue is calculated by applying the EIR to the gross carrying amount of
financial assets recognised at AC or FVOCI.
2.9.1 Financial assets
(a) Business model
The business model reflects how the Group manages assets in order to generate cash
flows. That is, it reflects whether the Group\u2019s objective is solely to collect the
contractual cash flows from assets or to collect both the contractual cash flows and cash
flows arising from the sale of assets. If neither of these is applicable (for example,
financial assets are held for trading purposes), the financial assets are classified as part
of the other business model and measured at FVTPL.
Factors considered by the Group in determining the business model for a group of
assets include past experience on how the cash flows for these assets were collected,
how the asset\u2019s performance is evaluated and reported to key management personnel,
how risks are assessed and managed, and how managers are compensated. For example,
the business model for the investments underlying investment contracts with DPF is to
hold to collect and sell contractual cash flows. The proceeds from the contractual cash
flows of the financial assets are used to settle insurance contract liabilities as they
become due.
(b) Solely payments of principal and interest ('SPPI')
Where the business model is to hold assets to collect contractual cash flows or to collect
contractual cash flows and sell, the Group assesses whether the financial instruments\u2019
cash flows represent SPPI (the SPPI test). In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic lending
arrangement (that is, interest includes only consideration or the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic
lending arrangement). Where the contractual terms introduce exposure to risk or
volatility that are inconsistent with a basic lending arrangement, the related financial
asset is classified and measured at FVTPL.
(c)\u00a0 Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability
from the issuer\u2019s perspective, such as government and corporate bonds.
The classification and subsequent measurement of debt instruments depend on:
\u2013 the Group\u2019s business model for managing the asset; and
\u2013 the cash flow characteristics of the asset (represented by SPPI).
Based on these factors, the Group classifies its debt instruments into one of the following
three measurement categories:
a. AC: Assets that are held for collection of contractual cash flows where those cash
flows represent SPPI, and that are not designated at FVTPL, are measured at AC. The
carrying amount of these assets is adjusted by any ECL allowance recognised and
measured, as described further below. Interest revenue from these financial assets is
included in the profit or loss under interest revenue calculated using the effective
interest method.
b. FVOCI: Financial assets that are held for collection of contractual cash flows and for
selling the assets, where the assets\u2019 cash flows represent SPPI, and that are not
designated at FVTPL, are measured at FVOCI. Movements in the carrying amount are
taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses on the instrument\u2019s AC, which are
recognised in profit or loss. When the financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is reclassified from equity to profit or loss
and recognised in other investment revenue. Interest revenue from these financial
assets is included in interest revenue calculated using the effective interest method.
c. FVTPL: Assets that do not meet the criteria for AC or FVOCI are measured at
FVTPL. Also, some assets are voluntarily measured at FVTPL, because this
significantly reduces an accounting mismatch. A gain or loss on a debt investment
that is subsequently measured at FVTPL is recognised and presented in the
consolidated statement of profit or loss within other investment revenue in the period
in which it arises.
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
(d) Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer\u2019s
perspective (that is, instruments that do not contain a contractual obligation to pay and
that evidence a residual interest in the issuer\u2019s net assets). Examples of equity
instruments include basic ordinary shares.
The Group subsequently measures all equity investments at FVTPL. Gains and losses on
equity investments at FVTPL are included in the line \u2018Other investment revenue\u2019 in the
consolidated statement of profit or loss.
(e) Cash and cash equivalents
Cash and cash equivalents include cash balances and financial instruments with original
maturities of three months or less from the date of acquisition that are subject to an
insignificant risk of changes in their fair value, and are used by the Group in the
management of its short-term commitments. Cash and cash equivalents are carried in the
statement of financial position at AC net of ECL.
(f) Fair Value Measurement
For financial instruments traded in active markets, the determination of fair values of
financial assets and financial liabilities is based on quoted market prices or dealer price
quotations. This includes listed equity securities and quoted debt instruments on major
exchanges. The quoted market price used for financial assets held by the Group is the
current bid price or closing price as appropriate. A financial instrument is regarded as
quoted in an active market if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an arm\u2019s length
basis. If the market for a financial asset is not active, the Group establishes fair value by
using valuation techniques.\u00a0 These include the use of recent arm\u2019s length transactions,
reference to other instruments that are substantially the same or valued by reference to
the net assets of the underlying investment.\u00a0
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
The Group enters into transactions where it retains the contractual rights to receive cash
flows from assets but assumes a contractual obligation to pay those cash flows to other
entities and transfers substantially all of the risks and rewards. These transactions are
accounted for as pass-through transfers that result in derecognition if the Group:
a. has no obligation to make payments unless it collects equivalent amounts from the
assets;
b. is prohibited from selling or pledging the assets; and
c.\u00a0 has an obligation to remit any cash that it collects from the assets without material
delay
(i)\u00a0 Modification
If cash flows are modified when the debtor is in financial difficulties, then the objective
of the modification is usually to maximise recovery of the original contractual cash
flows rather than to originate a new asset with substantially different terms. If the Group
plans to modify a financial asset in a way that would result in forgiveness of cash flows,
then it first considers whether a portion of the asset should be written off before the
modification takes place.
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at AC, except for
derivatives and investment contracts without DPF, which are measured at FVTPL.
Investment contracts without DPF are financial liabilities whose fair value is dependent
on the fair value of underlying financial assets and are designated at inception at
FVTPL. The Group designates these investment contracts to be measured at FVTPL,
because it eliminates or significantly reduces a measurement or recognition
inconsistency (that is, an accounting mismatch) that would otherwise arise from
measuring assets or liabilities or recognising the gains and losses on them on different
bases.
The Group\u2019s main valuation techniques incorporate all factors that market participants
would consider and make maximum use of observable market data. The fair value of
financial liabilities for investment contracts without DPF is determined using the
current unit values in which the contractual benefits are denominated. These unit values
reflect the fair values of the financial assets contained within the Group\u2019s unitised
investment funds linked to the financial liability. The fair value of the financial
liabilities is obtained by multiplying the number of units attributed to each contract
holder at the end of the reporting period by the unit value for the same date.
When the investment contract has a surrender option, the fair value of the financial
liability is never less than the amount payable on surrender.
Changes in the fair value of financial liabilities measured at FVTPL are presented in the
statement of profit or loss.
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(c) Modification
If a financial liability measured at amortised cost is modified but not substantially, then
it is not derecognised.
(d)\u00a0 Derivatives
Derivatives are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value. All derivatives
are carried as assets when fair value is positive and as liabilities when fair value is
negative. Fair values are obtained from quoted market prices in active markets, and
other valuation techniques, as appropriate.\u00a0 Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
2.10\u00a0 Insurance and investment contracts issued and reinsurance contracts held
The Group issues contracts that transfer insurance risk or financial risk or both.
(a)Definition and classification
The following table provides an overview of the Group\u2019s assessment of its products
and whether these fall in scope of IFRS 17:
Type of
contract
Contracts
issued
Within scope
of IFRS 17
Measurement
model
Description of benefit
Short-term
insurance
contracts
Insurance
contracts -
Non-Life and
Group Life\u00a0
contracts
Yes
PAA
Pure insurance contracts carrying
significant insurance risk where the
obligation of the Group towards the insured
is the payment for loss incurred if the
insured event occurs whilst the policy is in
force.
Long-term
insurance
contracts -
Life risk
Insurance
contracts -
Term
assurance
including
term riders
Yes
General
Measurement
Model
('GMM')
Pure insurance contracts carrying
significant insurance risk where the
obligation of the Group towards the insured
is the payment of a death benefit, if the
death occurs whilst the policy is in force.
Long-term
insurance
contracts -
Life risk
Unit-linked \u2013
Maximum
Investment
Plan
Yes
GMM
A unit-linked contract with significant
insurance risk is one that incorporates a
material sum assured within the contract
(i.e. the sum assured/minimum death
benefit provided, exceeds the investment
value of the product). This group of
contracts was substantially modified
resulting to derecognition during 2025.
Direct
participating
contracts
With-profits
(Investment
contracts
with DPF)
Yes
Variable Fee
Approach
('VFA')
Investment contracts with DPF where the
obligation of the Group towards the
insured also includes an annual
discretionary investment return (declared
bonus rate).
Direct
participating
contracts
Hybrids
(Investment
contracts
with DPF)
Yes
VFA
These are mainly unit-linked products
including with-profits components
(investment contract with DPF).
Investment
contracts
Unit-linked -
others
(Investment
contracts
without DPF)
No
FVTPL
Investment contracts which pays the
policyholder an additional 1% of the fund
value at the time of death, this component
is deemed to be immaterial to the overall
value of the fund and therefore, no
significant insurance risk is deemed to
arise from it. Therefore, these contracts are\u00a0
valued in line with IFRS 9 'Financial
Instruments'.
Insurance contracts are contracts under which the Group accepts significant insurance
risk from a policyholder by agreeing to compensate the policyholder if a specified
uncertain future event adversely affects the policyholder. In making this assessment, all
substantive rights and obligations, including those arising from law or regulation, are
considered on a contract by contract basis. Judgement is used to assess whether a
contract transfers insurance risk and whether the accepted insurance risk is significant.
Generally, the Group defines as significant insurance risk the possibility of having to
pay benefits on the occurrence of an insured event that at least 5% more than the
benefits payable (on a present value basis) if the insured event did not occur. The
Group accounts for these contracts under IFRS 17.
The Group also issues term riders which represent an add-on to a basic policy that
provides additional benefits to policyholders (at additional cost). They can be
purchased by a policyholder concurrently to a basic policy or at a subsequent date, i.e.
a date after the inception of the basic policy. The addition of a term rider triggers
medical underwriting at the point in time the rider is added, giving the Group the
ability to reprice the policy at that point in time. The Group has concluded that term
riders are to be separated from the host contract and will form part of the term
portfolio.
Contracts that have a legal form of insurance but do not transfer significant insurance
risk and expose the Group to financial risk are classified as investment contracts, and
they follow financial instruments accounting under IFRS 9, unless they have DPF as
described below, in which case they are accounted for as insurance contracts.
A number of investment contracts contain a DPF. This feature entitles the holder to
receive, as a supplement to guaranteed benefits (i.e. amounts not subject to the Group's
discretion), additional benefits or bonuses:
\u2013 that are likely to be a significant portion of the total contractual benefits;
\u2013 whose amount or timing is contractually at the discretion of the Group; and
\u2013 that are based on realised and/or unrealised investment returns on specified pools
of underlying assets held by the Group.
The Group also issues a \u2018hybrid\u2019 product which is a unit-linked product that gives
policyholders the possibility to initially allocate, and subsequently switch, a portion of
the premium to a \u2018with-profits\u2019 DPF holding as well as a unit-linked holding. This
product was deemed to fall within scope of IFRS 17 when the policyholder allocates a
percentage holding in the with-profits fund as at inception or transition date.
Furthermore, management concluded that the unit-linked component of the product
does not constitute a distinct investment component, given that both elements of the
\u2018hybrid\u2019 product cannot be measured and presented separately and are interdependent
on each other.
Since this product is primarily a unit-linked product with the option to hold a
percentage of the holding in the with-profits fund, management has determined that for
such a contract to be in scope of IFRS 17, it needs to hold a 5% level of significant
discretionary benefit.
Local statutory regulations and the terms and conditions of both investment contracts
with DPF and hybrids set out the basis for the determination of the amounts on which
the additional discretionary benefits are based (the DPF eligible surplus), and within
which the Group may exercise its discretion as to the quantum and timing of their
payment to contract holders, also considering the advice of the Approved Actuary.\u00a0 The
Group accounts for these contracts under IFRS 17, as it also issues insurance contracts.
The Group assesses investment contracts that qualify as having direct participation
features as a result of the nature of their design (i.e. they are primarily investment
related contracts where the investment risk is substantially borne by the policyholder) to
ascertain whether or not they meet the VFA eligibility criteria.
IFRS 17 requires these criteria to be assessed at the individual contract level. The
Group assessed the criteria at the product level. The assessment is carried out based on
the Group's expectations at inception, and is not reassessed subsequently, unless the
product is modified.
The with-profits policies are ring fenced, meaning, a barrier clearly segregates the
policyholder assets participating in the fund from the shareholders\u2019 ones. Therefore, the
pool of assets is clearly identifiable. The \u2018underlying items\u2019 in this case would be the
with-profits assets.
Investment contracts with direct participation features are viewed as creating an
obligation to pay policyholders an amount that is equal to the fair value of the
underlying items, less a variable fee for service. The variable fee comprises the amount
of the Group\u2019s share of the fair value of the underlying items less the fulfillment cash
flows ('FCF') that do not vary based on the returns on underlying items. Therefore, on
an average probability-weighted basis, the Group considers that the amount it expects to
pay to policyholders comprises a substantial portion of the fair value returns on
underlying items.
The variability in cash flows is assessed over the duration of the insurance contracts and
on the basis of the average of the probability-weighted present value. The duration of
the contract takes into account all the cash flows in the contract boundary. The major
component of the liability (the present value of the future net cash outflows) is made up
of claims which vary substantially with the underlying items.
In the normal course of business, the Group uses reinsurance to mitigate its risk
exposures. A reinsurance contract transfers significant risk if it transfers substantially
all of the insurance risk resulting from the insured portion of the underlying insurance
contracts, even if it does not expose the reinsurer to the possibility of a significant loss.
For short-term insurance contracts, the Group uses the PAA simplified method to
measure groups of contracts. All short-term insurance contracts originated by the
Group, are without direct participation features.
All references to insurance contracts in these consolidated financial statements apply to
insurance contracts issued or acquired, reinsurance contracts held and investment
contracts with DPF, unless specifically stated otherwise.
(b)\u00a0 \u00a0 Unit of account
The Group manages insurance contracts issued by product type, where each product
type includes contracts which are subject to similar risks and are managed together. The
Group has determined that contracts have similar risk and are managed together if they
are priced together, have the same underwriting process, have common reporting, and
claims and risks underlying the contracts are managed together. All insurance contracts
of the same product type represent a portfolio. Each portfolio is further disaggregated
into groups of contracts that are issued within a calendar year (annual cohorts) and are
at initial recognition:
\u2013 contracts that are onerous; or
\u2013 all remaining contracts.
In variation to the above, as further described below, in contrast with all other contracts
in scope of IFRS 17, investment contracts with DPF are not grouped by annual cohort.
As per Article 2 of the Commission Regulation (EU) 2021/2036 and 2023/1803, a
Group may choose not to apply the annual cohorting requirement to groups of
investment contracts with discretionary participation features and with cash flows that
affect or are affected by cash flows to policyholders of other contracts.
The Group\u2019s with-profits fund is a pool of policies sharing in the same pool of
underlying items. Therefore, the risk that a particular policy becomes onerous (i.e. the
possibility of the with-profits fund assets being lower than the present value of its future
liabilities) is shared between the policyholders within this pool. In such instances,
policies, which do not exhibit such onerosity, will make good for those policies which
are onerous.
Given that the Group\u2019s with-profits fund has all mutualisation features described above,
the Group has chosen to apply the option to avoid allocating policies to annual cohorts
as these are groups of investment contracts with DPF and with cash flows that affect or
are affected by cash flows to policyholders of other contracts. All with-profits and
hybrid policies will therefore be allocated to a single cohort.
Portfolios of reinsurance contracts held are assessed for aggregation separately from
portfolios of insurance contracts issued. Separate portfolios for reinsurance contracts
held were therefore established and the Group has a number of reinsurance portfolios.
In groups of reinsurance contracts held, the amount an entity pays generally exceeds the
expected present value of the cash flows generated by that reinsurance contract plus the
risk adjustment for non-financial risk and thus the Group is usually in a net cost
position. The Group has determined that the reinsurance contracts held will be grouped
by calendar or underwriting year (annual cohorts) depending whether they are loss
occurring or risk attaching under the category \u2018all remaining contracts\u2019 which includes
reinsurance contracts held with an initial net cost but with a possibility of a future net
gain.
Transition approaches that were applied by the Group on adoption of IFRS 17 with
respect to contracts aggregation requirements are included in Note 6.
Before the Group accounts for an insurance contract based on the guidance in IFRS 17,
it analyses whether the contract contains components that should be separated. IFRS 17
distinguishes three categories of components that have to be accounted for separately:
-\u00a0 \u00a0 cash flows relating to embedded derivatives that are required to be separated;
-\u00a0 \u00a0 cash flows relating to distinct investment components; and
-\u00a0 promises to transfer distinct goods or distinct services other than insurance contract
services.
The Group applies IFRS 17 to all remaining components of the contract. The Group
does not have any contracts that require further separation (except for term riders \u2013 refer
to note 2.10(a). The Group also does not have any contracts that require combination.
(c)\u00a0 \u00a0 Recognition, modification and derecognition
Recognition
Groups of insurance contracts issued are initially recognised from the earliest of the
following:
-\u00a0 \u00a0 the beginning of the coverage period;
-\u00a0 \u00a0 the date when the first payment from the policyholder is due or actually received, if
there is no due date; and
-\u00a0 \u00a0 when the Group determines that a group of contracts becomes onerous.
Investment contracts with DPF are initially recognised at the date when the Group
becomes a party to the contract.
Reinsurance contracts held are recognised from the later of the following:
\u00a0 \u00a0 \u00a0 \u00a0 -\u00a0 the beginning of the coverage period of the group; and
-\u00a0 \u00a0 the initial recognition of any underlying insurance contract;
Unless the Group entered into the reinsurance contract held at or before the date when
an onerous group of underlying contracts is recognised prior to the beginning of the
coverage period of the group of reinsurance contracts held, in which case the
reinsurance contract held is recognised at the same time as the group of underlying
insurance contracts is recognised.\u00a0
Only contracts that individually meet the recognition criteria by the end of the reporting
period are included in the groups. When contracts meet the recognition criteria in the
groups after the reporting date, they are added to the groups in the reporting period in
which they meet the recognition criteria, subject to the annual cohorts restriction.
Composition of the groups is not reassessed in subsequent periods.
Modification and derecognition
An insurance contract is derecognised when it is extinguished (that is, when the
obligation specified in the insurance contract expires or is discharged or cancelled), or
when the contractual terms are modified in a way that would have changed the
accounting for the contract significantly had the new terms always existed, in which
case a new insurance contract is recognised.
If a contract modification is not significant, the changes in cash flows caused by the
modification are treated as changes in estimates of FCF.
When an insurance contract is derecognised from within a group of insurance contracts, the
Group:
\u2013 adjusts the FCF to eliminate the present value of future cash flows and risk adjustment
for non-financial risk relating to the rights and obligations removed from the group;
\u2013 adjusts the CSM; and
\u2013 adjusts the number of coverage units for the expected remaining insurance contract
services, to reflect the number of coverage units removed.
On the other hand, when an insurance contract accounted for under the PAA is
derecognised, adjustments to the future cash flows to remove related rights and
obligations to account for the effect of the derecognition result in the following amounts
being charged immediately to profit or loss:
a. if the contract is extinguished, any net difference between the derecognised part of
the Liability for Remaining Coverage (LRC) of the original contract and any other
cash flows arising from extinguishment.
b. if the contract is transferred to the third party, any net difference between the
derecognised part of the LRC of the original contract and the premium charged by
the third party; or
c. if the original contract is modified resulting in its derecognition, any net difference
between the derecognised part of the LRC and the hypothetical premium that the
entity would have charged if it had entered into a contract with equivalent terms as
the new contract at the date of the contract modification, less any additional
premium charged for the modification.
(d)Measurement
Fulfilment cash flows
Fulfilment cash flows (\u2018FCF\u2019) are the current estimates of the future cash flows within
the contract boundary of a group of contracts that the Group expects to collect from
premiums and pay out for claims, benefits and expenses, adjusted to reflect the timing
and the uncertainty of those amounts.
Estimates of future cash flows:
a. are based on a probability-weighted average of all possible outcomes;
b. are reflective of the Group\u2019s perspective, provided estimates of any relevant market
variables are consistent with observable market prices for those variables; and
c. are reflective of conditions existing at measurement date.
An explicit risk adjustment for non-financial risk is estimated separately from the other
estimates for Assets for Remaining Coverage ('ARC') and Liability for Remaining
Coverage ('LRC'). For contracts measured under the PAA, unless the contracts are
onerous, the explicit risk adjustment for non-financial risk is only estimated for the
measurement of the Liability for Incurred Claims ('LIC').
The estimates of future cash flows are also adjusted using current discount rates to
reflect the time value of money and financial risks relating to these cash flows. The
discount rates reflect the characteristics of the cash flows arising from the groups of
insurance contracts, including timing, currency and liquidity of cash flows. The
determination of the discount rate that reflects the characteristics of the cash flows and
liquidity characteristics of the insurance contracts requires judgement and estimation.
Risk of non-performance is not included in the measurement of groups of insurance
contracts issued. In the measurement of reinsurance contracts held, the probability-
weighted estimates of the present value of future cash flows include the potential credit
losses and other disputes of the reinsurer to reflect the non-performance risk of the
reinsurer.
The Group estimates certain FCF at the portfolio level or higher and then allocates such
estimates to groups of contracts.
The Group uses consistent assumptions to measure the estimates of the present value of
future cash flows for the group of reinsurance contracts held and such estimates for the
groups of underlying insurance contracts.
Contract boundary
The Group uses the concept of contract boundary to determine what cash flows should
be considered in the measurement of groups of insurance contracts.
Cash flows are within the boundary of an insurance contract if they arise from
substantive rights and obligations that exist during the reporting period in which the
Group can compel the policyholder to pay the premiums or in which the Group has a
substantive obligation to provide the policyholder with insurance contract services.
A substantive obligation lasts until:
a) the Group has the practical ability to reassess the risks of a particular policyholder,
and hence, can set a price to fully reflect those risks; or
b) both of the following criteria are satisfied:
i. the Group has a practical ability to reassess the risks of the portfolio of insurance
contracts, as a result of which it can set a price to fully reflect those risks; and
ii. the pricing of premiums up to the date when the risks are reassessed does not take
into account the risks that relate to periods after the reassessment date.
In assessing the practical ability to reprice, risks transferred from the policyholder to the
Group, such as insurance risk and financial risk, are considered; other risks, such as
lapse or surrender and expense risk, are not included.
For contracts issued under the PAA, riders, representing add-on provisions to a basic
insurance policy that provide additional benefits to the policyholder at additional cost,
that are issued together with the main insurance contracts, form part of a single
insurance contract with all the cash flows within its boundary.
Cash flows outside the insurance contracts boundary relate to future insurance contracts
and are recognised when those contracts meet the recognition criteria.
Cash flows are within the boundaries of investment contracts with DPF if they result
from a substantive obligation of the Group to deliver cash at a present or future date.
For groups of reinsurance contracts held, cash flows are within the contract boundary if
they arise from substantive rights and obligations of the Group that exist during the
reporting period in which the Group is compelled to pay amounts to the reinsurer or in
which the Group has a substantive right to receive insurance contract services from the
reinsurer.
The Group's quota share, surplus and facultative reinsurance contracts have an annual
term and cover underlying contracts issued within the term on a risk-attaching basis.
Meaning that they cover policies ceded for the entire duration of the contract, even if
this duration exceeds that of the reinsurance contract itself.
The Group treats such reinsurance contracts as a series of annual contracts that cover
underlying business issued within a year. Estimates of future cash flows arising from all
underlying contracts issued and expected to be issued within the reinsurance contracts\u2019
one-year boundary are included in the measurement of the reinsurance contracts.
The excess of loss contracts held provide coverage for claims incurred during an
accident year. Thus, all cash flows arising from claims incurred and expected to be
incurred in the accident year are included in the measurement of the reinsurance
contracts held. Some of these contracts include mandatory reinstatement reinsurance
premiums, which are included within the respective reinsurance contracts\u2019 boundaries.
Cash flows that are not directly attributable to a portfolio of insurance contracts are
recognised in other operating expenses as incurred.
Insurance acquisition costs
Insurance acquisition cash flows are cash flows arising from the costs of selling,
underwriting and starting a group of insurance contracts that are directly attributable to
the portfolio of insurance contracts to which the group belongs. Insurance acquisition
cash flows for the Group comprise commission paid to intermediaries for new business
and salaries of employees whose efforts are directly related to the acquisition of new
insurance business.
Insurance acquisition cash flows that are directly attributable to a group of insurance
contracts shall be allocated to that group. IFRS 17 requires that insurance acquisition
cash flows are also allocated to groups that will include insurance contracts that are
expected to arise from renewals of the insurance contracts in that group. The latter does
not apply to the Group as it does not incur acquisition costs in relation to future
renewals.
Insurance acquisition cash flows not directly attributable to a group of contracts but
directly attributable to a portfolio of contracts are allocated to groups of contracts in the
portfolio or expected to be in a portfolio.
The Group does not incur any material directly attributable acquisition cash flows, or
other inflows or outflows, before a group of insurance contracts is recognised.
Consequently, it does not recognise any \u2018pre-recognition cash flows\u2019.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is applied to the present value of the
estimated future cash flows, and it reflects the compensation that the Group requires for
bearing the uncertainty about the amount and timing of the cash flows from non-
financial risk as the Group fulfils insurance contracts.
For reinsurance contracts held, the risk adjustment for non-financial risk represents the
amount of risk being transferred by the Group to the reinsurer.
Methods and assumptions used to determine the risk adjustment for non-financial risks
are discussed in Note 24.
Contracts not measured under the PAA
Initial measurement and CSM
The CSM is a component of the carrying amount of the asset or liability for a group of
insurance contracts issued representing the unearned profit that the Group will
recognise as it provides insurance contract services in the future. At initial recognition,
the CSM is an amount that results in no income or expenses arising from:
-\u00a0 \u00a0 the initial recognition of the FCF;
-\u00a0 \u00a0 cash flows arising from the contracts in the group at that date;
When the above calculation results in a net outflow, the group of insurance contracts
would be onerous. A loss arising from onerous insurance contracts is recognised
immediately in profit or loss, with no CSM recognised in the statement of financial
position and a loss component is established in the amount of loss recognised.
No onerous contracts have been identified by the Group.
For groups of reinsurance contracts held, any net gain or loss at initial recognition is
recognised as the CSM unless the net cost of purchasing reinsurance relates to past
events, in which case the Group recognises the net cost immediately in profit or loss.
For reinsurance contracts held, the CSM represents a deferred gain or loss that the
Group will recognise as a reinsurance expense as it receives insurance contract services
from the reinsurer in the future.
Subsequent measurement
The carrying amount at the end of each reporting period of a group of insurance contracts
issued is the sum of:
\u2013 the LRC, comprising:
\u2013 the FCF related to future service allocated to the group at that date; and
\u2013 the CSM of the group at that date; and
\u2013 the liability for incurred claims ('LIC'), comprising the FCF related to past service
allocated to the group at the reporting date.
The carrying amount at the end of each reporting period of a group of reinsurance contracts
held is the sum of:
\u2013 the remaining coverage, comprising:
\u2013 the FCF related to future service allocated to the group at that date; and
\u2013 the CSM of the group at that date; and
\u2013 the incurred claims, comprising the FCF related to past service allocated to the group at
the reporting date.
i. Changes in fulfilment cash flows
The FCF are updated by the Group for current assumptions at the end of every reporting
period, using the current estimates of the amount, timing and uncertainty of future cash
flows and of discount rates.
The way in which the changes in estimates of the FCF are treated depends on which
estimate is being updated:
\u2013 changes that relate to current or past service are recognised in profit or loss; and
\u2013 changes that relate to future service are recognised by adjusting the CSM or the loss
component within the LRC as per the policy below.
For insurance contracts measured under the General Measurement Model (\u2018GMM\u2019), the
following adjustments relate to future service and thus adjust the CSM:
a. experience adjustments \u2013 arising from premiums received in the period that relate to
future service and related cash flows;
b. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
c. differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period; and
d. changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments a. and b. above are measured using discount rates determined on initial
recognition (the locked in discount rates).
For insurance contracts under the GMM, the following adjustments do not adjust the
CSM:
a. changes in the FCF for the effect of the time value of money and the effect of
financial risk and changes thereof;
b. changes in the FCF relating to the LIC;
c. experience adjustments arising from premiums received in the period that do not
relate to future service and related cash flows; and
d. experience adjustments relating to insurance service expenses (excluding insurance
acquisition cash flows).
When measuring a group of investment contracts with DPF, the Group adjusts the
fulfilment cash flows for the whole of the changes in the obligation to pay policyholders
an amount equal to the fair value of the underlying items. These changes do not relate
to future services and are recognised in profit or loss. The Group then adjusts any CSM
for changes in the amount of the Group\u2019s share of the fair value of the underlying items,
which relate to future services, as explained below.
For contracts measured under the VFA, the following adjustments relate to future
service and thus adjust the CSM:
\u2013 changes in the amount of the Group\u2019s share of the fair value of the underlying
items; and
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
a. changes in the effect of the time value of money and financial risks including the
effect of financial guarantees;
b. experience adjustments arising from premiums received in the period that relate to
future service and related cash flows;
c. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
d.differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period;
and
e.\u00a0 changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments b. to e. are measured using the current discount rates.
For contracts under the VFA, the following adjustments do not adjust the CSM:
\u2013 changes in the obligation to pay the policyholder the amount equal to the fair value
of the underlying items;
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
\u2013 changes in the FCF relating to the LIC; and
\u2013 experience adjustments arising from premiums received in the period that do not
relate to future service and related cash flows; and
\u2013 experience adjustments relating to insurance service expenses (excluding
insurance acquisition cash flows).
The Group does not have any products with complex guarantees and does not use
derivatives as economic hedges of the risks.
ii\u00a0 Changes to the contractual service margin
For insurance contracts issued, at the end of each reporting period the carrying amount
of the CSM is adjusted by the Group to reflect the effect of the following changes:
a. The effect of any new contracts added to the group.
b. For contracts measured under the GMM, interest accreted on the carrying amount of
the CSM.
c. Changes in the FCF relating to future service are recognised by adjusting the CSM.
Changes in the FCF are recognised in the CSM to the extent that the CSM is
available. When an increase in the FCF exceeds the carrying amount of the CSM,
the CSM is reduced to zero, the excess is recognised in insurance service expenses
and a loss component is recognised within the LRC. When the CSM is zero,
changes in the FCF adjust the loss component within the LRC with correspondence
to insurance service expenses. The excess of any decrease in the FCF over the loss
component reduces the loss component to zero and reinstates the CSM.
d. The effect of any currency exchange differences.
e. The amount recognised as insurance revenue for insurance contract services
provided during the period, determined after all other adjustments above.
For a group of reinsurance contracts held, the carrying amount of the CSM at the end of
each reporting period is adjusted to reflect changes in the FCF in the same manner as a
group of underlying insurance contracts issued.
iii. Interest accretion on the CSM
Under the GMM, interest is accreted on the CSM using discount rates determined at
initial recognition that are applied to nominal cash flows that do not vary based on the
returns of underlying items. The Group uses the discount curves at the middle of each
quarter during the year. MMSV will be assuming equal weighting per quarter given the
stability of new business written.
iv. Adjusting the CSM for changes in the FCF relating to future service
The CSM is adjusted for changes in the FCF, measured applying the discount rates as
specified in the Changes in fulfilment cash flows section above.
v. Release of the CSM to profit or loss
The amount of the CSM recognised in profit or loss for insurance contract services in
the period is determined by the allocation of the CSM remaining at the end of the
reporting period over the current and remaining expected coverage period of the group
of insurance contracts based on coverage units.
The coverage period is defined as a period during which the entity provides insurance
contract services. Insurance contract services include coverage for an insured event
(insurance coverage), the generation of an investment return for the policyholder, if
applicable (investment-return service) for the contracts under the GMM, and the
management of underlying items on behalf of the policyholder (investment-related
service) for the contracts under the VFA. The period of investment-return service or
investment-related service ends at or before the date when all amounts due to current
policyholders relating to those services have been paid. Investment-return services are
provided only when an investment component exists in insurance contracts or the
policyholder has a right to withdraw an amount, and the Group expects these amounts
to include an investment return that is achieved by the Group by performing investment
activities to generate that investment return.
For contracts issued, the Group determines the coverage period for the CSM
recognition as follows:
-\u00a0 for investment contracts with DPF (including hybrids), the coverage period
corresponds to the period in which investment-return services are expected to be
provided; and
-\u00a0 \u00a0 for term life risk contracts, no investment-return services are provided and, thus, the
coverage period is determined by insurance coverage;
The total number of coverage units in a group is the quantity of service provided by the
contracts in the group over the expected coverage period. The coverage units are
determined at each reporting period-end prospectively by considering:
\u2013 the quantity of benefits provided by contracts in the group;
\u2013 the expected coverage period of contracts in the group; and
\u2013 the likelihood of insured events occurring, only to the extent that they affect the
expected coverage period of contracts in the group.
The Group determines coverage units as follows:
\u2013 for term life insurance contracts, coverage units are determined based on the
policies\u2019 face values that are equal to the fixed death benefit amounts in force and
\u2013 for investment contracts with DPF, including with-profits and unit-linked hybrids,
coverage units are based on the fund assets and value of the fund.
The Group does not reflect the time value of money in the allocation of the CSM to
coverage units.
For reinsurance contracts held, the CSM is released to profit or loss as insurance
contract services are received from the reinsurer in the period.
Coverage units for the proportionate term life reinsurance contracts held are based on
the insurance coverage provided by the reinsurer, and they are determined by the ceded
policies\u2019 fixed face values in force, taking into account new business projected within
the reinsurance contract boundary.
The coverage period for these contracts is determined based on the coverage period of
all underlying contracts whose cash flows are included in the reinsurance contract
boundary.
Contracts measured under the PAA
The Group uses the PAA for measuring contracts with a coverage period of one year or
less. In addition to the contracts with coverage of less than one year, the PAA can be
used for measurement of groups of contracts where the entity reasonably expects that
such a simplification would produce a measurement of the LRC that would not differ
materially from the one that would be produced by applying the GMM.
For insurance contracts issued, insurance acquisition cash flows allocated to a group are
deferred and recognised over the coverage period of contracts in a group.
For insurance contracts issued, on initial recognition, the Group measures the LRC at
the amount of premiums received, less any acquisition cash flows paid.
For reinsurance contracts held, on initial recognition, the Group measures the remaining
coverage at the amount of ceding premiums paid.
The carrying amount of a group of insurance contracts issued at the end of each
reporting period is the sum of:
a. the LRC; and
b. the LIC, comprising the FCF related to past service allocated to the group at the
reporting date.
The carrying amount of a group of reinsurance contracts held at the end of each
reporting period is the sum of:
a. the remaining coverage; and
b. the incurred claims, comprising the FCF related to past service allocated to the
group at the reporting date.
For insurance contracts issued, at each of the subsequent reporting dates, the LRC is:
a. increased for premiums received in the period;
b. decreased for insurance acquisition cash flows paid in the period;
c. decreased for the amounts of expected premium receipts recognised as insurance
revenue for the services provided in the period; and
d.increased for the amortisation of insurance acquisition cash flows in the period
recognised as insurance service expenses.
For reinsurance contracts held, at each of the subsequent reporting dates, the remaining
coverage is:
a. increased for ceding premiums paid in the period;
b. decreased for the expected amounts of ceding premiums, net of reinsurance
commissions, recognised as reinsurance expenses for the services received in the
period.
The Group does not adjust the LRC for insurance contracts issued and the remaining
coverage for reinsurance contracts held for the effect of the time value of money,
because insurance premiums are due within the coverage period of contracts, which is
one year or less.
For contracts measured under the PAA, the LIC is measured similarly to the LIC\u2019s
measurement under the GMM. Future cash flows are adjusted for the time value of
money, since insurance contracts issued by the Group and measured under the PAA
may have a settlement period of over one year.
If facts and circumstances indicate that a group of insurance contracts measured under
the PAA is onerous on initial recognition or becomes onerous subsequently, the Group
increases the carrying amount of the LRC by the loss component which is determined
by the percentage of onerosity as a function of the LRC for the remaining period.
Subsequently, the loss component is remeasured at each reporting date as the change in
the percentage of onerosity as a function of the LRC for the remaining period.
Movements in the loss component are recorded in the insurance service expenses.
Onerosity of a group of insurance contracts does not automatically indicate that a
reinsurance contract held, protecting such onerous underlying group of contracts will
result in a net gain at initial recognition. However, for reinsurance contract held for
which there is a net gain at initial recognition or becomes so subsequently, the carrying
amount of the asset for remaining coverage (ARC) for reinsurance contracts held
measured under the PAA is increased by the amount of loss-recovery component.\u00a0 The
loss-recovery component is calculated by multiplying the percentage of onerosity as a
function of reinsurance ARC for the remaining period. Movements in the loss-recovery
component are recorded in the net reinsurance expenses.
The Company does not have any reinsurance contracts held measured under the PAA
with underlying contracts measured under the GMM.
(e)\u00a0 Amounts recognised in profit or loss
Insurance revenue
As the Group provides insurance contract services under the group of insurance
contracts, it reduces the LRC and recognises insurance revenue. The amount of
insurance revenue recognised in the reporting period depicts the transfer of promised
services at an amount that reflects the portion of consideration that the Group expects to
be entitled to in exchange for those services.
For contracts not measured under the PAA, insurance revenue comprises the following:
\u2022 Amounts relating to the changes in the LRC:
a. claims and other directly attributable expenses incurred in the period measured
at the amounts expected at the beginning of the period, excluding:\u00a0
\u2013 repayments of investment components and policyholder rights to withdraw
an amount;
\u2013 amounts of transaction-based taxes collected in a fiduciary capacity;
\u2013 insurance acquisition expenses; and
\u2013 amounts related to the risk adjustment for non-financial risk (see (b));
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in insurance finance income (expenses);and
\u2013 changes that relate to future coverage (which adjust the CSM);
c. amounts of the CSM recognised for the services provided in the period;
d. experience adjustments \u2013 arising from premiums received in the period other
than those that relate to future service; and
e. other amounts.
\u2022 Insurance acquisition cash flows recovery is determined by allocating the portion of
premiums related to the recovery of those cash flows on the basis of the passage of
time over the expected coverage of a group of contracts.
For groups of insurance contracts measured under the PAA, the Group recognises
insurance revenue based on the passage of time over the coverage period of a group of
contracts.
Insurance service expense
Insurance service expenses include the following:
a. incurred claims and benefits, excluding investment components;
b. other incurred directly attributable expenses;
c.insurance acquisition cash flows amortisation;
d. changes that relate to past service \u2013 changes in the FCF relating to the LIC; and
e.\u00a0 \u00a0 onerous contract losses or reversals of those losses.
For contracts measured under the PAA, amortisation of insurance acquisition cash
flows is based on the passage of time.
Other expenses that do not meet the above criteria are included as other operating
expenses in the consolidated statement of profit or loss.
Net income (expenses) from reinsurance contracts held
The Group presents financial performance of groups of reinsurance contracts held on a
net basis in net income (expenses) from reinsurance contracts held, comprising the
following amounts:
a. reinsurance expenses;
b. incurred claims recovery;
c. other incurred directly attributable expenses;
d. changes that relate to past service i.e. changes in the FCF relating to incurred claims
recovery; and
e. effect of changes in the risk of reinsurers\u2019 non-performance.
Reinsurance expenses are recognised similarly to insurance revenue. The amount of
reinsurance expenses recognised in the reporting period depicts the transfer of received
insurance contract services at an amount that reflects the portion of ceding premiums
that the Group expects to pay in exchange for those services.
For contracts not measured under PAA, reinsurance expenses comprise the following
amounts relating to the changes in the remaining coverage:
a. claims and other directly attributable expenses recovery in the period, measured at
the amounts expected to be incurred at the beginning of the period, excluding
amounts related to the risk adjustment for non-financial risk (see b);
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in finance income (expenses) from reinsurance contracts held;
and
\u2013 changes that relate to future coverage (which adjust the CSM);\u00a0
c. amounts of the CSM recognised for the services received in the period; and
d. experience adjustments arising from premiums paid in the period other than those
relating to future service.
For groups of reinsurance contracts held measured under the PAA, the Group
recognises reinsurance expenses based on the passage of time over the coverage period
of a group of contracts.
Ceding commissions that are not contingent on claims of the underlying contracts issued
reduce ceding premiums and are accounted for as part of reinsurance expenses. Ceding
commissions that are contingent on claims of the underlying contracts issued reduce
incurred claims recovery.
Insurance finance income or expenses
Insurance finance income or expenses comprise the change in the carrying amount of
the group of insurance contracts arising from:
a. the effect of the time value of money and changes in the time value of money; and
b. the effect of financial risk and changes in financial risk.
For contracts measured under the PAA, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the LIC; and
b. the effect of changes in interest rates and other financial assumptions.
The Group disaggregates changes in the risk adjustment for non-financial risk between
insurance service result and insurance finance income or expenses.
For contracts measured under the GMM, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the FCF and the CSM; and
b.the effect of changes in interest rates and other financial assumptions.
For contracts measured under the VFA, insurance finance income or expenses comprise
changes in the value of underlying items (excluding additions and withdrawals).
The Group has opted to include all its insurance finance income and expenses in profit
or loss for all of its insurance contracts. The Group does not issue insurance contracts
that generate cash flows in a foreign currency.
2.11Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in
the profit or loss account, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the statement of financial position date in the countries where
the Company\u2019s subsidiaries and associates operate and generate taxable income.\u00a0
Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and establishes
provision where appropriate.
Deferred income tax is recognised in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial
statements.\u00a0 However, if the deferred income tax arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss, it is not accounted
for.\u00a0 Deferred income tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, using tax rates (and laws) that have been
enacted or substantively enacted at the reporting date and reflect uncertainty relating to
income taxes, if any. Deferred tax is expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that future taxable profit or taxable
capital gains will be available such that realisation of the related tax benefit is probable.
Deferred income tax is provided on temporary differences arising on investments in
subsidiaries and associates, except where the Group controls the timing of the reversal
of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
If the amount of taxable temporary differences is insufficient to recognise a deferred tax
asset in full, then future taxable profits, adjusted for reversals of existing temporary
differences are considered. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profit
improves.
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets against current tax liabilities and when the deferred
income tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balance on a net basis.
Deferred tax related to fair value re-measurements charged or credited directly in other
comprehensive income or to equity, is also credited or charged directly to equity and
subsequently recognised in the profit or loss account together with the deferred gain or
loss.
2.12Provisions for pension obligations
Provisions are recognised when the Group has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation, and a reliable estimate of the amount can be made.
A defined benefit plan defines an amount of pension that an employee will receive on
retirement.\u00a0 In the Group\u2019s case, this amount is dependent upon an employee\u2019s final
compensation upon retirement.
The liability recognised in the statement of financial position is the present value of the
defined benefit obligation at the end of the reporting period.\u00a0 The present value of a
defined benefit obligation is determined by discounting the estimated future cash
outflows using interest rate yields of government or high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms
to maturity approximating to the terms of the related pension liability. Actuarial gains
and losses arising from experience adjustments and changes in assumptions are charged
or credited to other comprehensive income in the period in which they arise.
2.13\u00a0 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the
sale of services in the ordinary course of the Group\u2019s activities. The Group recognises
revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and when specific criteria have been met as
described below.
Rendering of services
Insurance revenue recognition is described in Note 2.10 dealing with insurance
contracts and investment contracts with DPF.
Revenue arising from the issue of investment contracts without DPF and other related
services offered by the Group, is recognised in the accounting period in which the
services are rendered.
Fees include investment management fees arising from services rendered in
conjunction with the issue and management of investment contracts where the Group
actively manages the consideration received from its customers to fund a return that is
based on the investment profile that the customer selected on origination of the
instrument.\u00a0 The Group recognises these fees on a straight-line basis over the estimated
life of the contract.
The Group charges its customers for management and other related services using the
following different approaches:
\u2013 Front-end fees are charged to the client on inception.\u00a0 The consideration received is
deferred as a liability and recognised over the life of the contract on a straight-line\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
basis.
\u2013 Regular fees are charged to the customer periodically (monthly, quarterly, half
yearly or annually) either directly or by making a deduction from invested funds.\u00a0
Regular charges billed in advance are recognised on a straight-line basis over the
billing period.
Other revenue receivable by the Group mainly comprises commission or trailer fees
receivable on account of investment or other services provided in an intermediary
capacity which is accounted for on an accruals basis.
2.14Investment return
Investment return includes dividend income, net gains or losses on financial assets at
fair value through profit or loss, interest income from financial assets not classified as
fair value through profit or loss, rental income receivable, share of associated
undertaking\u2019s result, and other fair value movements of investment properties, and is
net of other investment expenses.
(a)\u00a0 Dividend income
Dividend income from subsidiary and associated undertakings is recognised in the
profit or loss account as part of investment income when the right to receive payment is
established.
(b)\u00a0 Net fair value gains/(losses) from financial assets at fair value through profit or
loss
This category includes gains or losses arising from changes in the fair value of the
financial assets at fair value through profit or loss in the year in which they arise,
dividend income recognised when the right to receive payment is established and
interest income received on financial assets at fair value through profit or loss.
(c)\u00a0 Interest income
Interest income from financial assets not classified as fair value through profit or loss is
recognised using the effective interest method.
(d)\u00a0 Investment income from investment properties
Rental income from investment property is accounted for on an accruals basis in
accordance with the substance of the relevant lease agreements.
2.15Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease.
A contract is or contains a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Group uses the
definition of a lease in IFRS 16.
(a) As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a
finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease
transfers substantially all of the risks and rewards incidental to ownership of the
underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an
operating lease. As part of this assessment, the Group considers certain indicators such
as whether the lease is for the major part of the economic life of the asset.
The Group recognises lease payments received under operating leases as income on a
straight-line basis over the lease term as part of \u2018other income\u2019 \u2013 Note 9.
(b) As a lessee
At commencement or on modification of a contract that contains a lease component, the
Group allocates the consideration in the contract to each lease component on the basis
of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred. The right-of-
use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that
are not paid at the commencement date, discounted using the interest rate implicit in the
lease or, if that rate cannot be readily determined, the Group\u2019s incremental borrowing
rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise of fixed
payments.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments. When the lease liability is
remeasured in this way, a corresponding adjustment is made to the carrying amount of
the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-
of-use asset has been reduced to zero.
2.16Impairment of non-financial assets
Assets that have an indefinite useful life and are not subject to amortisation, or assets
not yet available for use, are tested annually for impairment.\u00a0 Assets that are subject to
amortisation or depreciation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable.\u00a0 An
impairment loss is recognised for the amount by which the asset\u2019s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair
value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable and
independent cash flows (cash-generating units).
2.17Offsetting
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when, and only when the Group currently has a legally enforceable
right to set-off the recognised amounts and it intends to settle them on a net basis, or to
realise the asset and settle the liability simultaneously. Income and expenses are
presented on a net basis only when it is required or permitted by a standard \u2013 e.g. gains
and losses arising from a group of similar transactions such as the gains and losses on
financial assets measured at FVTPL.
2.18Dividend distribution
Dividend distribution to the Company\u2019s shareholders is recognised as a liability in the
period in which an obligation to pay a dividend is established.
2.19Share capital
Shares are classified as equity when there is no obligation to transfer cash or other
assets. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction from the proceeds net of tax.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-376": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
The Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of
any asset or liability resulting from a contingent consideration arrangement. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the
recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the
acquirer\u2019s previously held equity interest in the acquiree is re-measured to fair value at
the acquisition date through profit or loss.
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.
(b)\u00a0 Associated undertakings
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-375": { "value": "
2.Accounting policies
2.9Financial instruments
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss.
2.9.1 Financial assets
(c)\u00a0 Debt instruments
FVTPL: Assets that do not meet the criteria for AC or FVOCI are measured at
FVTPL. Also, some assets are voluntarily measured at FVTPL, because this
significantly reduces an accounting mismatch. A gain or loss on a debt investment
that is subsequently measured at FVTPL is recognised and presented in the
consolidated statement of profit or loss within other investment revenue in the period
in which it arises.
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
(d) Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer\u2019s
perspective (that is, instruments that do not contain a contractual obligation to pay and
that evidence a residual interest in the issuer\u2019s net assets). Examples of equity
instruments include basic ordinary shares.
The Group subsequently measures all equity investments at FVTPL. Gains and losses on
equity investments at FVTPL are included in the line \u2018Other investment revenue\u2019 in the
consolidated statement of profit or loss.
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
The Group enters into transactions where it retains the contractual rights to receive cash
flows from assets but assumes a contractual obligation to pay those cash flows to other
entities and transfers substantially all of the risks and rewards. These transactions are
accounted for as pass-through transfers that result in derecognition if the Group:
a. has no obligation to make payments unless it collects equivalent amounts from the
assets;
b. is prohibited from selling or pledging the assets; and
c.\u00a0 has an obligation to remit any cash that it collects from the assets without material
delay
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at AC, except for
derivatives and investment contracts without DPF, which are measured at FVTPL.
Investment contracts without DPF are financial liabilities whose fair value is dependent
on the fair value of underlying financial assets and are designated at inception at
FVTPL. The Group designates these investment contracts to be measured at FVTPL,
because it eliminates or significantly reduces a measurement or recognition
inconsistency (that is, an accounting mismatch) that would otherwise arise from
measuring assets or liabilities or recognising the gains and losses on them on different
bases.
The Group\u2019s main valuation techniques incorporate all factors that market participants
would consider and make maximum use of observable market data. The fair value of
financial liabilities for investment contracts without DPF is determined using the
current unit values in which the contractual benefits are denominated. These unit values
reflect the fair values of the financial assets contained within the Group\u2019s unitised
investment funds linked to the financial liability. The fair value of the financial
liabilities is obtained by multiplying the number of units attributed to each contract
holder at the end of the reporting period by the unit value for the same date.
When the investment contract has a surrender option, the fair value of the financial
liability is never less than the amount payable on surrender.
Changes in the fair value of financial liabilities measured at FVTPL are presented in the
statement of profit or loss.
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(d)\u00a0 Derivatives
Derivatives are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value. All derivatives
are carried as assets when fair value is positive and as liabilities when fair value is
negative. Fair values are obtained from quoted market prices in active markets, and
other valuation techniques, as appropriate.\u00a0 Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-373": { "value": "
2.Accounting policies
2.9Financial instruments
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss.
(c) Amortised cost and effective interest rate
Amortised cost (AC) is the amount at which the financial asset or financial liability is
measured at initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method for any difference between
the initial amount and the maturity amount and, for financial assets, adjusted for any
loss allowance.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial asset or financial liability
to the gross carrying amount of a financial asset (that is, its AC before any impairment
allowance) or to the AC of a financial liability. The calculation does not consider the
ECL and includes transaction costs, premiums or discounts and fees and points paid or
received that are integral to the EIR.
When the Group revises the estimates of future cash flows, the carrying amount of the
respective financial asset or financial liability is adjusted to reflect the new estimate
discounted using the original EIR. Any changes are recognised in profit or loss.\u00a0
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at AC, except for
derivatives and investment contracts without DPF, which are measured at FVTPL.
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(c) Modification
If a financial liability measured at amortised cost is modified but not substantially, then
it is not derecognised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-372": { "value": "
2.Accounting policies
2.6Investment property
Freehold and leasehold properties treated as investment property principally comprise
office and other commercial buildings that are held for long term rental yields and that
are not occupied by the Group or Company respectively. Investment property is initially
measured at cost and subsequently carried at fair value.\u00a0 Fair value is based on active
market prices, adjusted, if necessary for any difference in the nature, location or
condition of the specific asset. If this information is not available, the Group uses
alternative valuation methods such as discounted cash flow projections or recent prices
in less active markets. These valuations are reviewed annually by qualified valuers.\u00a0
Investment property that is being redeveloped for continuing use as investment
property, or for which the market has become less active, continues to be measured at
fair value.\u00a0 Changes in fair values are reported in the profit or loss account.
If an investment property becomes owner-occupied, it is reclassified as property, plant
and equipment, and its fair value at the date of reclassification becomes its cost for
subsequent accounting purposes.
2.9Financial instruments
(a) Summary of measurement categories
The Group classifies its financial assets and financial liabilities into the following
categories:
Classification
Reason
Cash and cash equivalents
Amortised Cost
SPPI, hold to collect business model
Other investments
FVTPL
Trading or portfolio managed at FV
Other investments
FVOCI
SPPI, hold to collect and sell business model
Other investments
Amortised Cost
SPPI, hold to collect business model
Trade and other receivables
Amortised Cost
SPPI, hold to collect business model
Other payables
Amortised Cost
Not managed at FV
Investment contract liabilities
FVTPL
Managed at FV
The Group does not apply hedge accounting.
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss. Immediately after initial recognition, an ECL allowance is
recognised for financial assets measured at AC and investments in debt instruments
measured at FVOCI.
When the fair value of financial assets and liabilities differs from the transaction price
on initial recognition, the entity recognises the difference as follows:
a. When the fair value is evidenced by a quoted price in an active market for an
identical asset or liability (that is, a Level 1 input) or based on a valuation technique
that uses only data from observable markets, the difference is recognised as a gain
or loss.
b. In all other cases, the difference is deferred and the timing of recognition of
deferred day one profit or loss is determined individually. It is either amortised over
the life of the instrument, deferred until the instrument\u2019s fair value can be
determined using market observable inputs, or realised through settlement.
(c) Amortised cost and effective interest rate
Amortised cost (AC) is the amount at which the financial asset or financial liability is
measured at initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method for any difference between
the initial amount and the maturity amount and, for financial assets, adjusted for any
loss allowance.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial asset or financial liability
to the gross carrying amount of a financial asset (that is, its AC before any impairment
allowance) or to the AC of a financial liability. The calculation does not consider the
ECL and includes transaction costs, premiums or discounts and fees and points paid or
received that are integral to the EIR.
When the Group revises the estimates of future cash flows, the carrying amount of the
respective financial asset or financial liability is adjusted to reflect the new estimate
discounted using the original EIR. Any changes are recognised in profit or loss.\u00a0
Interest revenue is calculated by applying the EIR to the gross carrying amount of
financial assets recognised at AC or FVOCI.
2.9.1 Financial assets
(a) Business model
The business model reflects how the Group manages assets in order to generate cash
flows. That is, it reflects whether the Group\u2019s objective is solely to collect the
contractual cash flows from assets or to collect both the contractual cash flows and cash
flows arising from the sale of assets. If neither of these is applicable (for example,
financial assets are held for trading purposes), the financial assets are classified as part
of the other business model and measured at FVTPL.
Factors considered by the Group in determining the business model for a group of
assets include past experience on how the cash flows for these assets were collected,
how the asset\u2019s performance is evaluated and reported to key management personnel,
how risks are assessed and managed, and how managers are compensated. For example,
the business model for the investments underlying investment contracts with DPF is to
hold to collect and sell contractual cash flows. The proceeds from the contractual cash
flows of the financial assets are used to settle insurance contract liabilities as they
become due.
(b) Solely payments of principal and interest ('SPPI')
Where the business model is to hold assets to collect contractual cash flows or to collect
contractual cash flows and sell, the Group assesses whether the financial instruments\u2019
cash flows represent SPPI (the SPPI test). In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic lending
arrangement (that is, interest includes only consideration or the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic
lending arrangement). Where the contractual terms introduce exposure to risk or
volatility that are inconsistent with a basic lending arrangement, the related financial
asset is classified and measured at FVTPL.
(c)\u00a0 Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability
from the issuer\u2019s perspective, such as government and corporate bonds.
The classification and subsequent measurement of debt instruments depend on:
\u2013 the Group\u2019s business model for managing the asset; and
\u2013 the cash flow characteristics of the asset (represented by SPPI).
Based on these factors, the Group classifies its debt instruments into one of the following
three measurement categories:
a. AC: Assets that are held for collection of contractual cash flows where those cash
flows represent SPPI, and that are not designated at FVTPL, are measured at AC. The
carrying amount of these assets is adjusted by any ECL allowance recognised and
measured, as described further below. Interest revenue from these financial assets is
included in the profit or loss under interest revenue calculated using the effective
interest method.
b. FVOCI: Financial assets that are held for collection of contractual cash flows and for
selling the assets, where the assets\u2019 cash flows represent SPPI, and that are not
designated at FVTPL, are measured at FVOCI. Movements in the carrying amount are
taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses on the instrument\u2019s AC, which are
recognised in profit or loss. When the financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is reclassified from equity to profit or loss
and recognised in other investment revenue. Interest revenue from these financial
assets is included in interest revenue calculated using the effective interest method.
c. FVTPL: Assets that do not meet the criteria for AC or FVOCI are measured at
FVTPL. Also, some assets are voluntarily measured at FVTPL, because this
significantly reduces an accounting mismatch. A gain or loss on a debt investment
that is subsequently measured at FVTPL is recognised and presented in the
consolidated statement of profit or loss within other investment revenue in the period
in which it arises.
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
(d) Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer\u2019s
perspective (that is, instruments that do not contain a contractual obligation to pay and
that evidence a residual interest in the issuer\u2019s net assets). Examples of equity
instruments include basic ordinary shares.
The Group subsequently measures all equity investments at FVTPL. Gains and losses on
equity investments at FVTPL are included in the line \u2018Other investment revenue\u2019 in the
consolidated statement of profit or loss.
(e) Cash and cash equivalents
Cash and cash equivalents include cash balances and financial instruments with original
maturities of three months or less from the date of acquisition that are subject to an
insignificant risk of changes in their fair value, and are used by the Group in the
management of its short-term commitments. Cash and cash equivalents are carried in the
statement of financial position at AC net of ECL.
(f) Fair Value Measurement
For financial instruments traded in active markets, the determination of fair values of
financial assets and financial liabilities is based on quoted market prices or dealer price
quotations. This includes listed equity securities and quoted debt instruments on major
exchanges. The quoted market price used for financial assets held by the Group is the
current bid price or closing price as appropriate. A financial instrument is regarded as
quoted in an active market if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an arm\u2019s length
basis. If the market for a financial asset is not active, the Group establishes fair value by
using valuation techniques.\u00a0 These include the use of recent arm\u2019s length transactions,
reference to other instruments that are substantially the same or valued by reference to
the net assets of the underlying investment.\u00a0
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
The Group enters into transactions where it retains the contractual rights to receive cash
flows from assets but assumes a contractual obligation to pay those cash flows to other
entities and transfers substantially all of the risks and rewards. These transactions are
accounted for as pass-through transfers that result in derecognition if the Group:
a. has no obligation to make payments unless it collects equivalent amounts from the
assets;
b. is prohibited from selling or pledging the assets; and
c.\u00a0 has an obligation to remit any cash that it collects from the assets without material
delay
(i)\u00a0 Modification
If cash flows are modified when the debtor is in financial difficulties, then the objective
of the modification is usually to maximise recovery of the original contractual cash
flows rather than to originate a new asset with substantially different terms. If the Group
plans to modify a financial asset in a way that would result in forgiveness of cash flows,
then it first considers whether a portion of the asset should be written off before the
modification takes place.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-371": { "value": "
2.Accounting policies
2.14Investment return
(c)\u00a0 Interest income
Interest income from financial assets not classified as fair value through profit or loss is
recognised using the effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-370": { "value": "
2.Accounting policies
2.19Share capital
Shares are classified as equity when there is no obligation to transfer cash or other
assets. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction from the proceeds net of tax.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-369": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(c)\u00a0 Debt instruments
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-368": { "value": "
2.Accounting policies
2.10\u00a0 Insurance and investment contracts issued and reinsurance contracts held
The Group issues contracts that transfer insurance risk or financial risk or both.
(a)Definition and classification
The following table provides an overview of the Group\u2019s assessment of its products
and whether these fall in scope of IFRS 17:
Type of
contract
Contracts
issued
Within scope
of IFRS 17
Measurement
model
Description of benefit
Short-term
insurance
contracts
Insurance
contracts -
Non-Life and
Group Life\u00a0
contracts
Yes
PAA
Pure insurance contracts carrying
significant insurance risk where the
obligation of the Group towards the insured
is the payment for loss incurred if the
insured event occurs whilst the policy is in
force.
Long-term
insurance
contracts -
Life risk
Insurance
contracts -
Term
assurance
including
term riders
Yes
General
Measurement
Model
('GMM')
Pure insurance contracts carrying
significant insurance risk where the
obligation of the Group towards the insured
is the payment of a death benefit, if the
death occurs whilst the policy is in force.
Long-term
insurance
contracts -
Life risk
Unit-linked \u2013
Maximum
Investment
Plan
Yes
GMM
A unit-linked contract with significant
insurance risk is one that incorporates a
material sum assured within the contract
(i.e. the sum assured/minimum death
benefit provided, exceeds the investment
value of the product). This group of
contracts was substantially modified
resulting to derecognition during 2025.
Direct
participating
contracts
With-profits
(Investment
contracts
with DPF)
Yes
Variable Fee
Approach
('VFA')
Investment contracts with DPF where the
obligation of the Group towards the
insured also includes an annual
discretionary investment return (declared
bonus rate).
Direct
participating
contracts
Hybrids
(Investment
contracts
with DPF)
Yes
VFA
These are mainly unit-linked products
including with-profits components
(investment contract with DPF).
Investment
contracts
Unit-linked -
others
(Investment
contracts
without DPF)
No
FVTPL
Investment contracts which pays the
policyholder an additional 1% of the fund
value at the time of death, this component
is deemed to be immaterial to the overall
value of the fund and therefore, no
significant insurance risk is deemed to
arise from it. Therefore, these contracts are\u00a0
valued in line with IFRS 9 'Financial
Instruments'.
Insurance contracts are contracts under which the Group accepts significant insurance
risk from a policyholder by agreeing to compensate the policyholder if a specified
uncertain future event adversely affects the policyholder. In making this assessment, all
substantive rights and obligations, including those arising from law or regulation, are
considered on a contract by contract basis. Judgement is used to assess whether a
contract transfers insurance risk and whether the accepted insurance risk is significant.
Generally, the Group defines as significant insurance risk the possibility of having to
pay benefits on the occurrence of an insured event that at least 5% more than the
benefits payable (on a present value basis) if the insured event did not occur. The
Group accounts for these contracts under IFRS 17.
The Group also issues term riders which represent an add-on to a basic policy that
provides additional benefits to policyholders (at additional cost). They can be
purchased by a policyholder concurrently to a basic policy or at a subsequent date, i.e.
a date after the inception of the basic policy. The addition of a term rider triggers
medical underwriting at the point in time the rider is added, giving the Group the
ability to reprice the policy at that point in time. The Group has concluded that term
riders are to be separated from the host contract and will form part of the term
portfolio.
Contracts that have a legal form of insurance but do not transfer significant insurance
risk and expose the Group to financial risk are classified as investment contracts, and
they follow financial instruments accounting under IFRS 9, unless they have DPF as
described below, in which case they are accounted for as insurance contracts.
A number of investment contracts contain a DPF. This feature entitles the holder to
receive, as a supplement to guaranteed benefits (i.e. amounts not subject to the Group's
discretion), additional benefits or bonuses:
\u2013 that are likely to be a significant portion of the total contractual benefits;
\u2013 whose amount or timing is contractually at the discretion of the Group; and
\u2013 that are based on realised and/or unrealised investment returns on specified pools
of underlying assets held by the Group.
The Group also issues a \u2018hybrid\u2019 product which is a unit-linked product that gives
policyholders the possibility to initially allocate, and subsequently switch, a portion of
the premium to a \u2018with-profits\u2019 DPF holding as well as a unit-linked holding. This
product was deemed to fall within scope of IFRS 17 when the policyholder allocates a
percentage holding in the with-profits fund as at inception or transition date.
Furthermore, management concluded that the unit-linked component of the product
does not constitute a distinct investment component, given that both elements of the
\u2018hybrid\u2019 product cannot be measured and presented separately and are interdependent
on each other.
Since this product is primarily a unit-linked product with the option to hold a
percentage of the holding in the with-profits fund, management has determined that for
such a contract to be in scope of IFRS 17, it needs to hold a 5% level of significant
discretionary benefit.
Local statutory regulations and the terms and conditions of both investment contracts
with DPF and hybrids set out the basis for the determination of the amounts on which
the additional discretionary benefits are based (the DPF eligible surplus), and within
which the Group may exercise its discretion as to the quantum and timing of their
payment to contract holders, also considering the advice of the Approved Actuary.\u00a0 The
Group accounts for these contracts under IFRS 17, as it also issues insurance contracts.
The Group assesses investment contracts that qualify as having direct participation
features as a result of the nature of their design (i.e. they are primarily investment
related contracts where the investment risk is substantially borne by the policyholder) to
ascertain whether or not they meet the VFA eligibility criteria.
IFRS 17 requires these criteria to be assessed at the individual contract level. The
Group assessed the criteria at the product level. The assessment is carried out based on
the Group's expectations at inception, and is not reassessed subsequently, unless the
product is modified.
The with-profits policies are ring fenced, meaning, a barrier clearly segregates the
policyholder assets participating in the fund from the shareholders\u2019 ones. Therefore, the
pool of assets is clearly identifiable. The \u2018underlying items\u2019 in this case would be the
with-profits assets.
Investment contracts with direct participation features are viewed as creating an
obligation to pay policyholders an amount that is equal to the fair value of the
underlying items, less a variable fee for service. The variable fee comprises the amount
of the Group\u2019s share of the fair value of the underlying items less the fulfillment cash
flows ('FCF') that do not vary based on the returns on underlying items. Therefore, on
an average probability-weighted basis, the Group considers that the amount it expects to
pay to policyholders comprises a substantial portion of the fair value returns on
underlying items.
The variability in cash flows is assessed over the duration of the insurance contracts and
on the basis of the average of the probability-weighted present value. The duration of
the contract takes into account all the cash flows in the contract boundary. The major
component of the liability (the present value of the future net cash outflows) is made up
of claims which vary substantially with the underlying items.
In the normal course of business, the Group uses reinsurance to mitigate its risk
exposures. A reinsurance contract transfers significant risk if it transfers substantially
all of the insurance risk resulting from the insured portion of the underlying insurance
contracts, even if it does not expose the reinsurer to the possibility of a significant loss.
For short-term insurance contracts, the Group uses the PAA simplified method to
measure groups of contracts. All short-term insurance contracts originated by the
Group, are without direct participation features.
All references to insurance contracts in these consolidated financial statements apply to
insurance contracts issued or acquired, reinsurance contracts held and investment
contracts with DPF, unless specifically stated otherwise.
(b)\u00a0 \u00a0 Unit of account
The Group manages insurance contracts issued by product type, where each product
type includes contracts which are subject to similar risks and are managed together. The
Group has determined that contracts have similar risk and are managed together if they
are priced together, have the same underwriting process, have common reporting, and
claims and risks underlying the contracts are managed together. All insurance contracts
of the same product type represent a portfolio. Each portfolio is further disaggregated
into groups of contracts that are issued within a calendar year (annual cohorts) and are
at initial recognition:
\u2013 contracts that are onerous; or
\u2013 all remaining contracts.
In variation to the above, as further described below, in contrast with all other contracts
in scope of IFRS 17, investment contracts with DPF are not grouped by annual cohort.
As per Article 2 of the Commission Regulation (EU) 2021/2036 and 2023/1803, a
Group may choose not to apply the annual cohorting requirement to groups of
investment contracts with discretionary participation features and with cash flows that
affect or are affected by cash flows to policyholders of other contracts.
The Group\u2019s with-profits fund is a pool of policies sharing in the same pool of
underlying items. Therefore, the risk that a particular policy becomes onerous (i.e. the
possibility of the with-profits fund assets being lower than the present value of its future
liabilities) is shared between the policyholders within this pool. In such instances,
policies, which do not exhibit such onerosity, will make good for those policies which
are onerous.
Given that the Group\u2019s with-profits fund has all mutualisation features described above,
the Group has chosen to apply the option to avoid allocating policies to annual cohorts
as these are groups of investment contracts with DPF and with cash flows that affect or
are affected by cash flows to policyholders of other contracts. All with-profits and
hybrid policies will therefore be allocated to a single cohort.
Portfolios of reinsurance contracts held are assessed for aggregation separately from
portfolios of insurance contracts issued. Separate portfolios for reinsurance contracts
held were therefore established and the Group has a number of reinsurance portfolios.
In groups of reinsurance contracts held, the amount an entity pays generally exceeds the
expected present value of the cash flows generated by that reinsurance contract plus the
risk adjustment for non-financial risk and thus the Group is usually in a net cost
position. The Group has determined that the reinsurance contracts held will be grouped
by calendar or underwriting year (annual cohorts) depending whether they are loss
occurring or risk attaching under the category \u2018all remaining contracts\u2019 which includes
reinsurance contracts held with an initial net cost but with a possibility of a future net
gain.
Transition approaches that were applied by the Group on adoption of IFRS 17 with
respect to contracts aggregation requirements are included in Note 6.
Before the Group accounts for an insurance contract based on the guidance in IFRS 17,
it analyses whether the contract contains components that should be separated. IFRS 17
distinguishes three categories of components that have to be accounted for separately:
-\u00a0 \u00a0 cash flows relating to embedded derivatives that are required to be separated;
-\u00a0 \u00a0 cash flows relating to distinct investment components; and
-\u00a0 promises to transfer distinct goods or distinct services other than insurance contract
services.
The Group applies IFRS 17 to all remaining components of the contract. The Group
does not have any contracts that require further separation (except for term riders \u2013 refer
to note 2.10(a). The Group also does not have any contracts that require combination.
(c)\u00a0 \u00a0 Recognition, modification and derecognition
Recognition
Groups of insurance contracts issued are initially recognised from the earliest of the
following:
-\u00a0 \u00a0 the beginning of the coverage period;
-\u00a0 \u00a0 the date when the first payment from the policyholder is due or actually received, if
there is no due date; and
-\u00a0 \u00a0 when the Group determines that a group of contracts becomes onerous.
Investment contracts with DPF are initially recognised at the date when the Group
becomes a party to the contract.
Reinsurance contracts held are recognised from the later of the following:
\u00a0 \u00a0 \u00a0 \u00a0 -\u00a0 the beginning of the coverage period of the group; and
-\u00a0 \u00a0 the initial recognition of any underlying insurance contract;
Unless the Group entered into the reinsurance contract held at or before the date when
an onerous group of underlying contracts is recognised prior to the beginning of the
coverage period of the group of reinsurance contracts held, in which case the
reinsurance contract held is recognised at the same time as the group of underlying
insurance contracts is recognised.\u00a0
Only contracts that individually meet the recognition criteria by the end of the reporting
period are included in the groups. When contracts meet the recognition criteria in the
groups after the reporting date, they are added to the groups in the reporting period in
which they meet the recognition criteria, subject to the annual cohorts restriction.
Composition of the groups is not reassessed in subsequent periods.
Modification and derecognition
An insurance contract is derecognised when it is extinguished (that is, when the
obligation specified in the insurance contract expires or is discharged or cancelled), or
when the contractual terms are modified in a way that would have changed the
accounting for the contract significantly had the new terms always existed, in which
case a new insurance contract is recognised.
If a contract modification is not significant, the changes in cash flows caused by the
modification are treated as changes in estimates of FCF.
When an insurance contract is derecognised from within a group of insurance contracts, the
Group:
\u2013 adjusts the FCF to eliminate the present value of future cash flows and risk adjustment
for non-financial risk relating to the rights and obligations removed from the group;
\u2013 adjusts the CSM; and
\u2013 adjusts the number of coverage units for the expected remaining insurance contract
services, to reflect the number of coverage units removed.
On the other hand, when an insurance contract accounted for under the PAA is
derecognised, adjustments to the future cash flows to remove related rights and
obligations to account for the effect of the derecognition result in the following amounts
being charged immediately to profit or loss:
a. if the contract is extinguished, any net difference between the derecognised part of
the Liability for Remaining Coverage (LRC) of the original contract and any other
cash flows arising from extinguishment.
b. if the contract is transferred to the third party, any net difference between the
derecognised part of the LRC of the original contract and the premium charged by
the third party; or
c. if the original contract is modified resulting in its derecognition, any net difference
between the derecognised part of the LRC and the hypothetical premium that the
entity would have charged if it had entered into a contract with equivalent terms as
the new contract at the date of the contract modification, less any additional
premium charged for the modification.
(d)Measurement
Fulfilment cash flows
Fulfilment cash flows (\u2018FCF\u2019) are the current estimates of the future cash flows within
the contract boundary of a group of contracts that the Group expects to collect from
premiums and pay out for claims, benefits and expenses, adjusted to reflect the timing
and the uncertainty of those amounts.
Estimates of future cash flows:
a. are based on a probability-weighted average of all possible outcomes;
b. are reflective of the Group\u2019s perspective, provided estimates of any relevant market
variables are consistent with observable market prices for those variables; and
c. are reflective of conditions existing at measurement date.
An explicit risk adjustment for non-financial risk is estimated separately from the other
estimates for Assets for Remaining Coverage ('ARC') and Liability for Remaining
Coverage ('LRC'). For contracts measured under the PAA, unless the contracts are
onerous, the explicit risk adjustment for non-financial risk is only estimated for the
measurement of the Liability for Incurred Claims ('LIC').
The estimates of future cash flows are also adjusted using current discount rates to
reflect the time value of money and financial risks relating to these cash flows. The
discount rates reflect the characteristics of the cash flows arising from the groups of
insurance contracts, including timing, currency and liquidity of cash flows. The
determination of the discount rate that reflects the characteristics of the cash flows and
liquidity characteristics of the insurance contracts requires judgement and estimation.
Risk of non-performance is not included in the measurement of groups of insurance
contracts issued. In the measurement of reinsurance contracts held, the probability-
weighted estimates of the present value of future cash flows include the potential credit
losses and other disputes of the reinsurer to reflect the non-performance risk of the
reinsurer.
The Group estimates certain FCF at the portfolio level or higher and then allocates such
estimates to groups of contracts.
The Group uses consistent assumptions to measure the estimates of the present value of
future cash flows for the group of reinsurance contracts held and such estimates for the
groups of underlying insurance contracts.
Contract boundary
The Group uses the concept of contract boundary to determine what cash flows should
be considered in the measurement of groups of insurance contracts.
Cash flows are within the boundary of an insurance contract if they arise from
substantive rights and obligations that exist during the reporting period in which the
Group can compel the policyholder to pay the premiums or in which the Group has a
substantive obligation to provide the policyholder with insurance contract services.
A substantive obligation lasts until:
a) the Group has the practical ability to reassess the risks of a particular policyholder,
and hence, can set a price to fully reflect those risks; or
b) both of the following criteria are satisfied:
i. the Group has a practical ability to reassess the risks of the portfolio of insurance
contracts, as a result of which it can set a price to fully reflect those risks; and
ii. the pricing of premiums up to the date when the risks are reassessed does not take
into account the risks that relate to periods after the reassessment date.
In assessing the practical ability to reprice, risks transferred from the policyholder to the
Group, such as insurance risk and financial risk, are considered; other risks, such as
lapse or surrender and expense risk, are not included.
For contracts issued under the PAA, riders, representing add-on provisions to a basic
insurance policy that provide additional benefits to the policyholder at additional cost,
that are issued together with the main insurance contracts, form part of a single
insurance contract with all the cash flows within its boundary.
Cash flows outside the insurance contracts boundary relate to future insurance contracts
and are recognised when those contracts meet the recognition criteria.
Cash flows are within the boundaries of investment contracts with DPF if they result
from a substantive obligation of the Group to deliver cash at a present or future date.
For groups of reinsurance contracts held, cash flows are within the contract boundary if
they arise from substantive rights and obligations of the Group that exist during the
reporting period in which the Group is compelled to pay amounts to the reinsurer or in
which the Group has a substantive right to receive insurance contract services from the
reinsurer.
The Group's quota share, surplus and facultative reinsurance contracts have an annual
term and cover underlying contracts issued within the term on a risk-attaching basis.
Meaning that they cover policies ceded for the entire duration of the contract, even if
this duration exceeds that of the reinsurance contract itself.
The Group treats such reinsurance contracts as a series of annual contracts that cover
underlying business issued within a year. Estimates of future cash flows arising from all
underlying contracts issued and expected to be issued within the reinsurance contracts\u2019
one-year boundary are included in the measurement of the reinsurance contracts.
The excess of loss contracts held provide coverage for claims incurred during an
accident year. Thus, all cash flows arising from claims incurred and expected to be
incurred in the accident year are included in the measurement of the reinsurance
contracts held. Some of these contracts include mandatory reinstatement reinsurance
premiums, which are included within the respective reinsurance contracts\u2019 boundaries.
Cash flows that are not directly attributable to a portfolio of insurance contracts are
recognised in other operating expenses as incurred.
Insurance acquisition costs
Insurance acquisition cash flows are cash flows arising from the costs of selling,
underwriting and starting a group of insurance contracts that are directly attributable to
the portfolio of insurance contracts to which the group belongs. Insurance acquisition
cash flows for the Group comprise commission paid to intermediaries for new business
and salaries of employees whose efforts are directly related to the acquisition of new
insurance business.
Insurance acquisition cash flows that are directly attributable to a group of insurance
contracts shall be allocated to that group. IFRS 17 requires that insurance acquisition
cash flows are also allocated to groups that will include insurance contracts that are
expected to arise from renewals of the insurance contracts in that group. The latter does
not apply to the Group as it does not incur acquisition costs in relation to future
renewals.
Insurance acquisition cash flows not directly attributable to a group of contracts but
directly attributable to a portfolio of contracts are allocated to groups of contracts in the
portfolio or expected to be in a portfolio.
The Group does not incur any material directly attributable acquisition cash flows, or
other inflows or outflows, before a group of insurance contracts is recognised.
Consequently, it does not recognise any \u2018pre-recognition cash flows\u2019.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is applied to the present value of the
estimated future cash flows, and it reflects the compensation that the Group requires for
bearing the uncertainty about the amount and timing of the cash flows from non-
financial risk as the Group fulfils insurance contracts.
For reinsurance contracts held, the risk adjustment for non-financial risk represents the
amount of risk being transferred by the Group to the reinsurer.
Methods and assumptions used to determine the risk adjustment for non-financial risks
are discussed in Note 24.
Contracts not measured under the PAA
Initial measurement and CSM
The CSM is a component of the carrying amount of the asset or liability for a group of
insurance contracts issued representing the unearned profit that the Group will
recognise as it provides insurance contract services in the future. At initial recognition,
the CSM is an amount that results in no income or expenses arising from:
-\u00a0 \u00a0 the initial recognition of the FCF;
-\u00a0 \u00a0 cash flows arising from the contracts in the group at that date;
When the above calculation results in a net outflow, the group of insurance contracts
would be onerous. A loss arising from onerous insurance contracts is recognised
immediately in profit or loss, with no CSM recognised in the statement of financial
position and a loss component is established in the amount of loss recognised.
No onerous contracts have been identified by the Group.
For groups of reinsurance contracts held, any net gain or loss at initial recognition is
recognised as the CSM unless the net cost of purchasing reinsurance relates to past
events, in which case the Group recognises the net cost immediately in profit or loss.
For reinsurance contracts held, the CSM represents a deferred gain or loss that the
Group will recognise as a reinsurance expense as it receives insurance contract services
from the reinsurer in the future.
Subsequent measurement
The carrying amount at the end of each reporting period of a group of insurance contracts
issued is the sum of:
\u2013 the LRC, comprising:
\u2013 the FCF related to future service allocated to the group at that date; and
\u2013 the CSM of the group at that date; and
\u2013 the liability for incurred claims ('LIC'), comprising the FCF related to past service
allocated to the group at the reporting date.
The carrying amount at the end of each reporting period of a group of reinsurance contracts
held is the sum of:
\u2013 the remaining coverage, comprising:
\u2013 the FCF related to future service allocated to the group at that date; and
\u2013 the CSM of the group at that date; and
\u2013 the incurred claims, comprising the FCF related to past service allocated to the group at
the reporting date.
i. Changes in fulfilment cash flows
The FCF are updated by the Group for current assumptions at the end of every reporting
period, using the current estimates of the amount, timing and uncertainty of future cash
flows and of discount rates.
The way in which the changes in estimates of the FCF are treated depends on which
estimate is being updated:
\u2013 changes that relate to current or past service are recognised in profit or loss; and
\u2013 changes that relate to future service are recognised by adjusting the CSM or the loss
component within the LRC as per the policy below.
For insurance contracts measured under the General Measurement Model (\u2018GMM\u2019), the
following adjustments relate to future service and thus adjust the CSM:
a. experience adjustments \u2013 arising from premiums received in the period that relate to
future service and related cash flows;
b. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
c. differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period; and
d. changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments a. and b. above are measured using discount rates determined on initial
recognition (the locked in discount rates).
For insurance contracts under the GMM, the following adjustments do not adjust the
CSM:
a. changes in the FCF for the effect of the time value of money and the effect of
financial risk and changes thereof;
b. changes in the FCF relating to the LIC;
c. experience adjustments arising from premiums received in the period that do not
relate to future service and related cash flows; and
d. experience adjustments relating to insurance service expenses (excluding insurance
acquisition cash flows).
When measuring a group of investment contracts with DPF, the Group adjusts the
fulfilment cash flows for the whole of the changes in the obligation to pay policyholders
an amount equal to the fair value of the underlying items. These changes do not relate
to future services and are recognised in profit or loss. The Group then adjusts any CSM
for changes in the amount of the Group\u2019s share of the fair value of the underlying items,
which relate to future services, as explained below.
For contracts measured under the VFA, the following adjustments relate to future
service and thus adjust the CSM:
\u2013 changes in the amount of the Group\u2019s share of the fair value of the underlying
items; and
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
a. changes in the effect of the time value of money and financial risks including the
effect of financial guarantees;
b. experience adjustments arising from premiums received in the period that relate to
future service and related cash flows;
c. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
d.differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period;
and
e.\u00a0 changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments b. to e. are measured using the current discount rates.
For contracts under the VFA, the following adjustments do not adjust the CSM:
\u2013 changes in the obligation to pay the policyholder the amount equal to the fair value
of the underlying items;
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
\u2013 changes in the FCF relating to the LIC; and
\u2013 experience adjustments arising from premiums received in the period that do not
relate to future service and related cash flows; and
\u2013 experience adjustments relating to insurance service expenses (excluding
insurance acquisition cash flows).
The Group does not have any products with complex guarantees and does not use
derivatives as economic hedges of the risks.
ii\u00a0 Changes to the contractual service margin
For insurance contracts issued, at the end of each reporting period the carrying amount
of the CSM is adjusted by the Group to reflect the effect of the following changes:
a. The effect of any new contracts added to the group.
b. For contracts measured under the GMM, interest accreted on the carrying amount of
the CSM.
c. Changes in the FCF relating to future service are recognised by adjusting the CSM.
Changes in the FCF are recognised in the CSM to the extent that the CSM is
available. When an increase in the FCF exceeds the carrying amount of the CSM,
the CSM is reduced to zero, the excess is recognised in insurance service expenses
and a loss component is recognised within the LRC. When the CSM is zero,
changes in the FCF adjust the loss component within the LRC with correspondence
to insurance service expenses. The excess of any decrease in the FCF over the loss
component reduces the loss component to zero and reinstates the CSM.
d. The effect of any currency exchange differences.
e. The amount recognised as insurance revenue for insurance contract services
provided during the period, determined after all other adjustments above.
For a group of reinsurance contracts held, the carrying amount of the CSM at the end of
each reporting period is adjusted to reflect changes in the FCF in the same manner as a
group of underlying insurance contracts issued.
iii. Interest accretion on the CSM
Under the GMM, interest is accreted on the CSM using discount rates determined at
initial recognition that are applied to nominal cash flows that do not vary based on the
returns of underlying items. The Group uses the discount curves at the middle of each
quarter during the year. MMSV will be assuming equal weighting per quarter given the
stability of new business written.
iv. Adjusting the CSM for changes in the FCF relating to future service
The CSM is adjusted for changes in the FCF, measured applying the discount rates as
specified in the Changes in fulfilment cash flows section above.
v. Release of the CSM to profit or loss
The amount of the CSM recognised in profit or loss for insurance contract services in
the period is determined by the allocation of the CSM remaining at the end of the
reporting period over the current and remaining expected coverage period of the group
of insurance contracts based on coverage units.
The coverage period is defined as a period during which the entity provides insurance
contract services. Insurance contract services include coverage for an insured event
(insurance coverage), the generation of an investment return for the policyholder, if
applicable (investment-return service) for the contracts under the GMM, and the
management of underlying items on behalf of the policyholder (investment-related
service) for the contracts under the VFA. The period of investment-return service or
investment-related service ends at or before the date when all amounts due to current
policyholders relating to those services have been paid. Investment-return services are
provided only when an investment component exists in insurance contracts or the
policyholder has a right to withdraw an amount, and the Group expects these amounts
to include an investment return that is achieved by the Group by performing investment
activities to generate that investment return.
For contracts issued, the Group determines the coverage period for the CSM
recognition as follows:
-\u00a0 for investment contracts with DPF (including hybrids), the coverage period
corresponds to the period in which investment-return services are expected to be
provided; and
-\u00a0 \u00a0 for term life risk contracts, no investment-return services are provided and, thus, the
coverage period is determined by insurance coverage;
The total number of coverage units in a group is the quantity of service provided by the
contracts in the group over the expected coverage period. The coverage units are
determined at each reporting period-end prospectively by considering:
\u2013 the quantity of benefits provided by contracts in the group;
\u2013 the expected coverage period of contracts in the group; and
\u2013 the likelihood of insured events occurring, only to the extent that they affect the
expected coverage period of contracts in the group.
The Group determines coverage units as follows:
\u2013 for term life insurance contracts, coverage units are determined based on the
policies\u2019 face values that are equal to the fixed death benefit amounts in force and
\u2013 for investment contracts with DPF, including with-profits and unit-linked hybrids,
coverage units are based on the fund assets and value of the fund.
The Group does not reflect the time value of money in the allocation of the CSM to
coverage units.
For reinsurance contracts held, the CSM is released to profit or loss as insurance
contract services are received from the reinsurer in the period.
Coverage units for the proportionate term life reinsurance contracts held are based on
the insurance coverage provided by the reinsurer, and they are determined by the ceded
policies\u2019 fixed face values in force, taking into account new business projected within
the reinsurance contract boundary.
The coverage period for these contracts is determined based on the coverage period of
all underlying contracts whose cash flows are included in the reinsurance contract
boundary.
Contracts measured under the PAA
The Group uses the PAA for measuring contracts with a coverage period of one year or
less. In addition to the contracts with coverage of less than one year, the PAA can be
used for measurement of groups of contracts where the entity reasonably expects that
such a simplification would produce a measurement of the LRC that would not differ
materially from the one that would be produced by applying the GMM.
For insurance contracts issued, insurance acquisition cash flows allocated to a group are
deferred and recognised over the coverage period of contracts in a group.
For insurance contracts issued, on initial recognition, the Group measures the LRC at
the amount of premiums received, less any acquisition cash flows paid.
For reinsurance contracts held, on initial recognition, the Group measures the remaining
coverage at the amount of ceding premiums paid.
The carrying amount of a group of insurance contracts issued at the end of each
reporting period is the sum of:
a. the LRC; and
b. the LIC, comprising the FCF related to past service allocated to the group at the
reporting date.
The carrying amount of a group of reinsurance contracts held at the end of each
reporting period is the sum of:
a. the remaining coverage; and
b. the incurred claims, comprising the FCF related to past service allocated to the
group at the reporting date.
For insurance contracts issued, at each of the subsequent reporting dates, the LRC is:
a. increased for premiums received in the period;
b. decreased for insurance acquisition cash flows paid in the period;
c. decreased for the amounts of expected premium receipts recognised as insurance
revenue for the services provided in the period; and
d.increased for the amortisation of insurance acquisition cash flows in the period
recognised as insurance service expenses.
For reinsurance contracts held, at each of the subsequent reporting dates, the remaining
coverage is:
a. increased for ceding premiums paid in the period;
b. decreased for the expected amounts of ceding premiums, net of reinsurance
commissions, recognised as reinsurance expenses for the services received in the
period.
The Group does not adjust the LRC for insurance contracts issued and the remaining
coverage for reinsurance contracts held for the effect of the time value of money,
because insurance premiums are due within the coverage period of contracts, which is
one year or less.
For contracts measured under the PAA, the LIC is measured similarly to the LIC\u2019s
measurement under the GMM. Future cash flows are adjusted for the time value of
money, since insurance contracts issued by the Group and measured under the PAA
may have a settlement period of over one year.
If facts and circumstances indicate that a group of insurance contracts measured under
the PAA is onerous on initial recognition or becomes onerous subsequently, the Group
increases the carrying amount of the LRC by the loss component which is determined
by the percentage of onerosity as a function of the LRC for the remaining period.
Subsequently, the loss component is remeasured at each reporting date as the change in
the percentage of onerosity as a function of the LRC for the remaining period.
Movements in the loss component are recorded in the insurance service expenses.
Onerosity of a group of insurance contracts does not automatically indicate that a
reinsurance contract held, protecting such onerous underlying group of contracts will
result in a net gain at initial recognition. However, for reinsurance contract held for
which there is a net gain at initial recognition or becomes so subsequently, the carrying
amount of the asset for remaining coverage (ARC) for reinsurance contracts held
measured under the PAA is increased by the amount of loss-recovery component.\u00a0 The
loss-recovery component is calculated by multiplying the percentage of onerosity as a
function of reinsurance ARC for the remaining period. Movements in the loss-recovery
component are recorded in the net reinsurance expenses.
The Company does not have any reinsurance contracts held measured under the PAA
with underlying contracts measured under the GMM.
(e)\u00a0 Amounts recognised in profit or loss
Insurance revenue
As the Group provides insurance contract services under the group of insurance
contracts, it reduces the LRC and recognises insurance revenue. The amount of
insurance revenue recognised in the reporting period depicts the transfer of promised
services at an amount that reflects the portion of consideration that the Group expects to
be entitled to in exchange for those services.
For contracts not measured under the PAA, insurance revenue comprises the following:
\u2022 Amounts relating to the changes in the LRC:
a. claims and other directly attributable expenses incurred in the period measured
at the amounts expected at the beginning of the period, excluding:\u00a0
\u2013 repayments of investment components and policyholder rights to withdraw
an amount;
\u2013 amounts of transaction-based taxes collected in a fiduciary capacity;
\u2013 insurance acquisition expenses; and
\u2013 amounts related to the risk adjustment for non-financial risk (see (b));
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in insurance finance income (expenses);and
\u2013 changes that relate to future coverage (which adjust the CSM);
c. amounts of the CSM recognised for the services provided in the period;
d. experience adjustments \u2013 arising from premiums received in the period other
than those that relate to future service; and
e. other amounts.
\u2022 Insurance acquisition cash flows recovery is determined by allocating the portion of
premiums related to the recovery of those cash flows on the basis of the passage of
time over the expected coverage of a group of contracts.
For groups of insurance contracts measured under the PAA, the Group recognises
insurance revenue based on the passage of time over the coverage period of a group of
contracts.
Insurance service expense
Insurance service expenses include the following:
a. incurred claims and benefits, excluding investment components;
b. other incurred directly attributable expenses;
c.insurance acquisition cash flows amortisation;
d. changes that relate to past service \u2013 changes in the FCF relating to the LIC; and
e.\u00a0 \u00a0 onerous contract losses or reversals of those losses.
For contracts measured under the PAA, amortisation of insurance acquisition cash
flows is based on the passage of time.
Other expenses that do not meet the above criteria are included as other operating
expenses in the consolidated statement of profit or loss.
Net income (expenses) from reinsurance contracts held
The Group presents financial performance of groups of reinsurance contracts held on a
net basis in net income (expenses) from reinsurance contracts held, comprising the
following amounts:
a. reinsurance expenses;
b. incurred claims recovery;
c. other incurred directly attributable expenses;
d. changes that relate to past service i.e. changes in the FCF relating to incurred claims
recovery; and
e. effect of changes in the risk of reinsurers\u2019 non-performance.
Reinsurance expenses are recognised similarly to insurance revenue. The amount of
reinsurance expenses recognised in the reporting period depicts the transfer of received
insurance contract services at an amount that reflects the portion of ceding premiums
that the Group expects to pay in exchange for those services.
For contracts not measured under PAA, reinsurance expenses comprise the following
amounts relating to the changes in the remaining coverage:
a. claims and other directly attributable expenses recovery in the period, measured at
the amounts expected to be incurred at the beginning of the period, excluding
amounts related to the risk adjustment for non-financial risk (see b);
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in finance income (expenses) from reinsurance contracts held;
and
\u2013 changes that relate to future coverage (which adjust the CSM);\u00a0
c. amounts of the CSM recognised for the services received in the period; and
d. experience adjustments arising from premiums paid in the period other than those
relating to future service.
For groups of reinsurance contracts held measured under the PAA, the Group
recognises reinsurance expenses based on the passage of time over the coverage period
of a group of contracts.
Ceding commissions that are not contingent on claims of the underlying contracts issued
reduce ceding premiums and are accounted for as part of reinsurance expenses. Ceding
commissions that are contingent on claims of the underlying contracts issued reduce
incurred claims recovery.
Insurance finance income or expenses
Insurance finance income or expenses comprise the change in the carrying amount of
the group of insurance contracts arising from:
a. the effect of the time value of money and changes in the time value of money; and
b. the effect of financial risk and changes in financial risk.
For contracts measured under the PAA, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the LIC; and
b. the effect of changes in interest rates and other financial assumptions.
The Group disaggregates changes in the risk adjustment for non-financial risk between
insurance service result and insurance finance income or expenses.
For contracts measured under the GMM, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the FCF and the CSM; and
b.the effect of changes in interest rates and other financial assumptions.
For contracts measured under the VFA, insurance finance income or expenses comprise
changes in the value of underlying items (excluding additions and withdrawals).
The Group has opted to include all its insurance finance income and expenses in profit
or loss for all of its insurance contracts. The Group does not issue insurance contracts
that generate cash flows in a foreign currency.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInsuranceContracts", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-367": { "value": "
2.Accounting policies
2.4Intangible assets
(a)Computer software
Acquired computer software licences are measured at cost less any accumulated
amortization and any accumulated impairment losses. Acquired computer software
licenses are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software.\u00a0 These costs are amortised using the straight-line method over their
useful lives, not exceeding a period of ten years.\u00a0 All costs associated with maintaining
computer software programmes are recognised as an expense as incurred.
(b) Deferred policy acquisition costs
Incremental costs that are incurred in acquiring new investment contracts without DPF
are capitalised as deferred acquisition costs (DAC).
The DAC is subsequently amortised over the life of the contracts as follows:
\u2013 For long-term investment contracts with a fixed maturity date, DAC is amortised
over the life of the contract.
\u2013 For long term investment contracts with no fixed date of maturity, DAC is
amortised over the estimated life of the contract. This basis is reviewed periodically
with reference to the historical experience of surrenders for these contracts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-366": { "value": "
2.Accounting policies
2.10\u00a0 Insurance and investment contracts issued and reinsurance contracts held
(a)Definition and classification
In the normal course of business, the Group uses reinsurance to mitigate its risk
exposures. A reinsurance contract transfers significant risk if it transfers substantially
all of the insurance risk resulting from the insured portion of the underlying insurance
contracts, even if it does not expose the reinsurer to the possibility of a significant loss.
All references to insurance contracts in these consolidated financial statements apply to
insurance contracts issued or acquired, reinsurance contracts held and investment
contracts with DPF, unless specifically stated otherwise.
(b)\u00a0 \u00a0 Unit of account
Portfolios of reinsurance contracts held are assessed for aggregation separately from
portfolios of insurance contracts issued. Separate portfolios for reinsurance contracts
held were therefore established and the Group has a number of reinsurance portfolios.
In groups of reinsurance contracts held, the amount an entity pays generally exceeds the
expected present value of the cash flows generated by that reinsurance contract plus the
risk adjustment for non-financial risk and thus the Group is usually in a net cost
position. The Group has determined that the reinsurance contracts held will be grouped
by calendar or underwriting year (annual cohorts) depending whether they are loss
occurring or risk attaching under the category \u2018all remaining contracts\u2019 which includes
reinsurance contracts held with an initial net cost but with a possibility of a future net
gain.
Transition approaches that were applied by the Group on adoption of IFRS 17 with
respect to contracts aggregation requirements are included in Note 6.
(c)\u00a0 \u00a0 Recognition, modification and derecognition
Recognition
Groups of insurance contracts issued are initially recognised from the earliest of the
following:
-\u00a0 \u00a0 the beginning of the coverage period;
-\u00a0 \u00a0 the date when the first payment from the policyholder is due or actually received, if
there is no due date; and
-\u00a0 \u00a0 when the Group determines that a group of contracts becomes onerous.
Reinsurance contracts held are recognised from the later of the following:
\u00a0 \u00a0 \u00a0 \u00a0 -\u00a0 the beginning of the coverage period of the group; and
-\u00a0 \u00a0 the initial recognition of any underlying insurance contract;
Unless the Group entered into the reinsurance contract held at or before the date when
an onerous group of underlying contracts is recognised prior to the beginning of the
coverage period of the group of reinsurance contracts held, in which case the
reinsurance contract held is recognised at the same time as the group of underlying
insurance contracts is recognised.\u00a0
Only contracts that individually meet the recognition criteria by the end of the reporting
period are included in the groups. When contracts meet the recognition criteria in the
groups after the reporting date, they are added to the groups in the reporting period in
which they meet the recognition criteria, subject to the annual cohorts restriction.
Composition of the groups is not reassessed in subsequent periods.
Modification and derecognition
An insurance contract is derecognised when it is extinguished (that is, when the
obligation specified in the insurance contract expires or is discharged or cancelled), or
when the contractual terms are modified in a way that would have changed the
accounting for the contract significantly had the new terms always existed, in which
case a new insurance contract is recognised.
If a contract modification is not significant, the changes in cash flows caused by the
modification are treated as changes in estimates of FCF.
When an insurance contract is derecognised from within a group of insurance contracts, the
Group:
\u2013 adjusts the FCF to eliminate the present value of future cash flows and risk adjustment
for non-financial risk relating to the rights and obligations removed from the group;
\u2013 adjusts the CSM; and
\u2013 adjusts the number of coverage units for the expected remaining insurance contract
services, to reflect the number of coverage units removed.
On the other hand, when an insurance contract accounted for under the PAA is
derecognised, adjustments to the future cash flows to remove related rights and
obligations to account for the effect of the derecognition result in the following amounts
being charged immediately to profit or loss:
a. if the contract is extinguished, any net difference between the derecognised part of
the Liability for Remaining Coverage (LRC) of the original contract and any other
cash flows arising from extinguishment.
b. if the contract is transferred to the third party, any net difference between the
derecognised part of the LRC of the original contract and the premium charged by
the third party; or
c. if the original contract is modified resulting in its derecognition, any net difference
between the derecognised part of the LRC and the hypothetical premium that the
entity would have charged if it had entered into a contract with equivalent terms as
the new contract at the date of the contract modification, less any additional
premium charged for the modification.
(d)Measurement
Fulfilment cash flows
Fulfilment cash flows (\u2018FCF\u2019) are the current estimates of the future cash flows within
the contract boundary of a group of contracts that the Group expects to collect from
premiums and pay out for claims, benefits and expenses, adjusted to reflect the timing
and the uncertainty of those amounts.
Estimates of future cash flows:
a. are based on a probability-weighted average of all possible outcomes;
b. are reflective of the Group\u2019s perspective, provided estimates of any relevant market
variables are consistent with observable market prices for those variables; and
c. are reflective of conditions existing at measurement date.
An explicit risk adjustment for non-financial risk is estimated separately from the other
estimates for Assets for Remaining Coverage ('ARC') and Liability for Remaining
Coverage ('LRC'). For contracts measured under the PAA, unless the contracts are
onerous, the explicit risk adjustment for non-financial risk is only estimated for the
measurement of the Liability for Incurred Claims ('LIC').
The estimates of future cash flows are also adjusted using current discount rates to
reflect the time value of money and financial risks relating to these cash flows. The
discount rates reflect the characteristics of the cash flows arising from the groups of
insurance contracts, including timing, currency and liquidity of cash flows. The
determination of the discount rate that reflects the characteristics of the cash flows and
liquidity characteristics of the insurance contracts requires judgement and estimation.
Risk of non-performance is not included in the measurement of groups of insurance
contracts issued. In the measurement of reinsurance contracts held, the probability-
weighted estimates of the present value of future cash flows include the potential credit
losses and other disputes of the reinsurer to reflect the non-performance risk of the
reinsurer.
The Group estimates certain FCF at the portfolio level or higher and then allocates such
estimates to groups of contracts.
The Group uses consistent assumptions to measure the estimates of the present value of
future cash flows for the group of reinsurance contracts held and such estimates for the
groups of underlying insurance contracts.
Contract boundary
The Group uses the concept of contract boundary to determine what cash flows should
be considered in the measurement of groups of insurance contracts.
Cash flows are within the boundary of an insurance contract if they arise from
substantive rights and obligations that exist during the reporting period in which the
Group can compel the policyholder to pay the premiums or in which the Group has a
substantive obligation to provide the policyholder with insurance contract services.
A substantive obligation lasts until:
a) the Group has the practical ability to reassess the risks of a particular policyholder,
and hence, can set a price to fully reflect those risks; or
b) both of the following criteria are satisfied:
i. the Group has a practical ability to reassess the risks of the portfolio of insurance
contracts, as a result of which it can set a price to fully reflect those risks; and
ii. the pricing of premiums up to the date when the risks are reassessed does not take
into account the risks that relate to periods after the reassessment date.
In assessing the practical ability to reprice, risks transferred from the policyholder to the
Group, such as insurance risk and financial risk, are considered; other risks, such as
lapse or surrender and expense risk, are not included.
For groups of reinsurance contracts held, cash flows are within the contract boundary if
they arise from substantive rights and obligations of the Group that exist during the
reporting period in which the Group is compelled to pay amounts to the reinsurer or in
which the Group has a substantive right to receive insurance contract services from the
reinsurer.
The Group's quota share, surplus and facultative reinsurance contracts have an annual
term and cover underlying contracts issued within the term on a risk-attaching basis.
Meaning that they cover policies ceded for the entire duration of the contract, even if
this duration exceeds that of the reinsurance contract itself.
The Group treats such reinsurance contracts as a series of annual contracts that cover
underlying business issued within a year. Estimates of future cash flows arising from all
underlying contracts issued and expected to be issued within the reinsurance contracts\u2019
one-year boundary are included in the measurement of the reinsurance contracts.
The excess of loss contracts held provide coverage for claims incurred during an
accident year. Thus, all cash flows arising from claims incurred and expected to be
incurred in the accident year are included in the measurement of the reinsurance
contracts held. Some of these contracts include mandatory reinstatement reinsurance
premiums, which are included within the respective reinsurance contracts\u2019 boundaries.
Cash flows that are not directly attributable to a portfolio of insurance contracts are
recognised in other operating expenses as incurred.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is applied to the present value of the
estimated future cash flows, and it reflects the compensation that the Group requires for
bearing the uncertainty about the amount and timing of the cash flows from non-
financial risk as the Group fulfils insurance contracts.
For reinsurance contracts held, the risk adjustment for non-financial risk represents the
amount of risk being transferred by the Group to the reinsurer.
Methods and assumptions used to determine the risk adjustment for non-financial risks
are discussed in Note 24.
Contracts not measured under the PAA
Initial measurement and CSM
The CSM is a component of the carrying amount of the asset or liability for a group of
insurance contracts issued representing the unearned profit that the Group will
recognise as it provides insurance contract services in the future. At initial recognition,
the CSM is an amount that results in no income or expenses arising from:
-\u00a0 \u00a0 the initial recognition of the FCF;
-\u00a0 \u00a0 cash flows arising from the contracts in the group at that date;
When the above calculation results in a net outflow, the group of insurance contracts
would be onerous. A loss arising from onerous insurance contracts is recognised
immediately in profit or loss, with no CSM recognised in the statement of financial
position and a loss component is established in the amount of loss recognised.
No onerous contracts have been identified by the Group.
For groups of reinsurance contracts held, any net gain or loss at initial recognition is
recognised as the CSM unless the net cost of purchasing reinsurance relates to past
events, in which case the Group recognises the net cost immediately in profit or loss.
For reinsurance contracts held, the CSM represents a deferred gain or loss that the
Group will recognise as a reinsurance expense as it receives insurance contract services
from the reinsurer in the future.
Subsequent measurement
The carrying amount at the end of each reporting period of a group of reinsurance contracts
held is the sum of:
\u2013 the remaining coverage, comprising:
\u2013 the FCF related to future service allocated to the group at that date; and
\u2013 the CSM of the group at that date; and
\u2013 the incurred claims, comprising the FCF related to past service allocated to the group at
the reporting date.
i. Changes in fulfilment cash flows
The FCF are updated by the Group for current assumptions at the end of every reporting
period, using the current estimates of the amount, timing and uncertainty of future cash
flows and of discount rates.
The way in which the changes in estimates of the FCF are treated depends on which
estimate is being updated:
\u2013 changes that relate to current or past service are recognised in profit or loss; and
\u2013 changes that relate to future service are recognised by adjusting the CSM or the loss
component within the LRC as per the policy below.
For insurance contracts measured under the General Measurement Model (\u2018GMM\u2019), the
following adjustments relate to future service and thus adjust the CSM:
a. experience adjustments \u2013 arising from premiums received in the period that relate to
future service and related cash flows;
b. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
c. differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period; and
d. changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments a. and b. above are measured using discount rates determined on initial
recognition (the locked in discount rates).
For insurance contracts under the GMM, the following adjustments do not adjust the
CSM:
a. changes in the FCF for the effect of the time value of money and the effect of
financial risk and changes thereof;
b. changes in the FCF relating to the LIC;
c. experience adjustments arising from premiums received in the period that do not
relate to future service and related cash flows; and
d. experience adjustments relating to insurance service expenses (excluding insurance
acquisition cash flows).
When measuring a group of investment contracts with DPF, the Group adjusts the
fulfilment cash flows for the whole of the changes in the obligation to pay policyholders
an amount equal to the fair value of the underlying items. These changes do not relate
to future services and are recognised in profit or loss. The Group then adjusts any CSM
for changes in the amount of the Group\u2019s share of the fair value of the underlying items,
which relate to future services, as explained below.
For contracts measured under the VFA, the following adjustments relate to future
service and thus adjust the CSM:
\u2013 changes in the amount of the Group\u2019s share of the fair value of the underlying
items; and
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
a. changes in the effect of the time value of money and financial risks including the
effect of financial guarantees;
b. experience adjustments arising from premiums received in the period that relate to
future service and related cash flows;
c. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
d.differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period;
and
e.\u00a0 changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments b. to e. are measured using the current discount rates.
For contracts under the VFA, the following adjustments do not adjust the CSM:
\u2013 changes in the obligation to pay the policyholder the amount equal to the fair value
of the underlying items;
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
\u2013 changes in the FCF relating to the LIC; and
\u2013 experience adjustments arising from premiums received in the period that do not
relate to future service and related cash flows; and
\u2013 experience adjustments relating to insurance service expenses (excluding
insurance acquisition cash flows).
The Group does not have any products with complex guarantees and does not use
derivatives as economic hedges of the risks.
ii\u00a0 Changes to the contractual service margin
For a group of reinsurance contracts held, the carrying amount of the CSM at the end of
each reporting period is adjusted to reflect changes in the FCF in the same manner as a
group of underlying insurance contracts issued.
iii. Interest accretion on the CSM
Under the GMM, interest is accreted on the CSM using discount rates determined at
initial recognition that are applied to nominal cash flows that do not vary based on the
returns of underlying items. The Group uses the discount curves at the middle of each
quarter during the year. MMSV will be assuming equal weighting per quarter given the
stability of new business written.
iv. Adjusting the CSM for changes in the FCF relating to future service
The CSM is adjusted for changes in the FCF, measured applying the discount rates as
specified in the Changes in fulfilment cash flows section above.
v. Release of the CSM to profit or loss
For reinsurance contracts held, the CSM is released to profit or loss as insurance
contract services are received from the reinsurer in the period.
Coverage units for the proportionate term life reinsurance contracts held are based on
the insurance coverage provided by the reinsurer, and they are determined by the ceded
policies\u2019 fixed face values in force, taking into account new business projected within
the reinsurance contract boundary.
The coverage period for these contracts is determined based on the coverage period of
all underlying contracts whose cash flows are included in the reinsurance contract
boundary.
For reinsurance contracts held, on initial recognition, the Group measures the remaining
coverage at the amount of ceding premiums paid.
The carrying amount of a group of reinsurance contracts held at the end of each
reporting period is the sum of:
a. the remaining coverage; and
b. the incurred claims, comprising the FCF related to past service allocated to the
group at the reporting date.
For reinsurance contracts held, at each of the subsequent reporting dates, the remaining
coverage is:
a. increased for ceding premiums paid in the period;
b. decreased for the expected amounts of ceding premiums, net of reinsurance
commissions, recognised as reinsurance expenses for the services received in the
period.
The Group does not adjust the LRC for insurance contracts issued and the remaining
coverage for reinsurance contracts held for the effect of the time value of money,
because insurance premiums are due within the coverage period of contracts, which is
one year or less.
For contracts measured under the PAA, the LIC is measured similarly to the LIC\u2019s
measurement under the GMM. Future cash flows are adjusted for the time value of
money, since insurance contracts issued by the Group and measured under the PAA
may have a settlement period of over one year.
If facts and circumstances indicate that a group of insurance contracts measured under
the PAA is onerous on initial recognition or becomes onerous subsequently, the Group
increases the carrying amount of the LRC by the loss component which is determined
by the percentage of onerosity as a function of the LRC for the remaining period.
Subsequently, the loss component is remeasured at each reporting date as the change in
the percentage of onerosity as a function of the LRC for the remaining period.
Movements in the loss component are recorded in the insurance service expenses.
Onerosity of a group of insurance contracts does not automatically indicate that a
reinsurance contract held, protecting such onerous underlying group of contracts will
result in a net gain at initial recognition. However, for reinsurance contract held for
which there is a net gain at initial recognition or becomes so subsequently, the carrying
amount of the asset for remaining coverage (ARC) for reinsurance contracts held
measured under the PAA is increased by the amount of loss-recovery component.\u00a0 The
loss-recovery component is calculated by multiplying the percentage of onerosity as a
function of reinsurance ARC for the remaining period. Movements in the loss-recovery
component are recorded in the net reinsurance expenses.
(e)\u00a0 Amounts recognised in profit or loss
Net income (expenses) from reinsurance contracts held
The Group presents financial performance of groups of reinsurance contracts held on a
net basis in net income (expenses) from reinsurance contracts held, comprising the
following amounts:
a. reinsurance expenses;
b. incurred claims recovery;
c. other incurred directly attributable expenses;
d. changes that relate to past service i.e. changes in the FCF relating to incurred claims
recovery; and
e. effect of changes in the risk of reinsurers\u2019 non-performance.
Reinsurance expenses are recognised similarly to insurance revenue. The amount of
reinsurance expenses recognised in the reporting period depicts the transfer of received
insurance contract services at an amount that reflects the portion of ceding premiums
that the Group expects to pay in exchange for those services.
For contracts not measured under PAA, reinsurance expenses comprise the following
amounts relating to the changes in the remaining coverage:
a. claims and other directly attributable expenses recovery in the period, measured at
the amounts expected to be incurred at the beginning of the period, excluding
amounts related to the risk adjustment for non-financial risk (see b);
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in finance income (expenses) from reinsurance contracts held;
and
\u2013 changes that relate to future coverage (which adjust the CSM);\u00a0
c. amounts of the CSM recognised for the services received in the period; and
d. experience adjustments arising from premiums paid in the period other than those
relating to future service.
For groups of reinsurance contracts held measured under the PAA, the Group
recognises reinsurance expenses based on the passage of time over the coverage period
of a group of contracts.
Ceding commissions that are not contingent on claims of the underlying contracts issued
reduce ceding premiums and are accounted for as part of reinsurance expenses. Ceding
commissions that are contingent on claims of the underlying contracts issued reduce
incurred claims recovery.
Insurance finance income or expenses
Insurance finance income or expenses comprise the change in the carrying amount of
the group of insurance contracts arising from:
a. the effect of the time value of money and changes in the time value of money; and
b. the effect of financial risk and changes in financial risk.
For contracts measured under the PAA, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the LIC; and
b. the effect of changes in interest rates and other financial assumptions.
The Group disaggregates changes in the risk adjustment for non-financial risk between
insurance service result and insurance finance income or expenses.
For contracts measured under the GMM, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the FCF and the CSM; and
b.the effect of changes in interest rates and other financial assumptions.
For contracts measured under the VFA, insurance finance income or expenses comprise
changes in the value of underlying items (excluding additions and withdrawals).
The Group has opted to include all its insurance finance income and expenses in profit
or loss for all of its insurance contracts. The Group does not issue insurance contracts
that generate cash flows in a foreign currency.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReinsuranceExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-365": { "value": "
2.Accounting policies
2.12Provisions for pension obligations
Provisions are recognised when the Group has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation, and a reliable estimate of the amount can be made.
A defined benefit plan defines an amount of pension that an employee will receive on
retirement.\u00a0 In the Group\u2019s case, this amount is dependent upon an employee\u2019s final
compensation upon retirement.
The liability recognised in the statement of financial position is the present value of the
defined benefit obligation at the end of the reporting period.\u00a0 The present value of a
defined benefit obligation is determined by discounting the estimated future cash
outflows using interest rate yields of government or high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms
to maturity approximating to the terms of the related pension liability. Actuarial gains
and losses arising from experience adjustments and changes in assumptions are charged
or credited to other comprehensive income in the period in which they arise.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-364": { "value": "
2.Accounting policies
2.10\u00a0 Insurance and investment contracts issued and reinsurance contracts held
(e)\u00a0 Amounts recognised in profit or loss
Insurance revenue
As the Group provides insurance contract services under the group of insurance
contracts, it reduces the LRC and recognises insurance revenue. The amount of
insurance revenue recognised in the reporting period depicts the transfer of promised
services at an amount that reflects the portion of consideration that the Group expects to
be entitled to in exchange for those services.
For contracts not measured under the PAA, insurance revenue comprises the following:
\u2022 Amounts relating to the changes in the LRC:
a. claims and other directly attributable expenses incurred in the period measured
at the amounts expected at the beginning of the period, excluding:\u00a0
\u2013 repayments of investment components and policyholder rights to withdraw
an amount;
\u2013 amounts of transaction-based taxes collected in a fiduciary capacity;
\u2013 insurance acquisition expenses; and
\u2013 amounts related to the risk adjustment for non-financial risk (see (b));
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in insurance finance income (expenses);and
\u2013 changes that relate to future coverage (which adjust the CSM);
c. amounts of the CSM recognised for the services provided in the period;
d. experience adjustments \u2013 arising from premiums received in the period other
than those that relate to future service; and
e. other amounts.
\u2022 Insurance acquisition cash flows recovery is determined by allocating the portion of
premiums related to the recovery of those cash flows on the basis of the passage of
time over the expected coverage of a group of contracts.
For groups of insurance contracts measured under the PAA, the Group recognises
insurance revenue based on the passage of time over the coverage period of a group of
contracts.
2.13\u00a0 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the
sale of services in the ordinary course of the Group\u2019s activities. The Group recognises
revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and when specific criteria have been met as
described below.
Rendering of services
Insurance revenue recognition is described in Note 2.10 dealing with insurance
contracts and investment contracts with DPF.
Revenue arising from the issue of investment contracts without DPF and other related
services offered by the Group, is recognised in the accounting period in which the
services are rendered.
Fees include investment management fees arising from services rendered in
conjunction with the issue and management of investment contracts where the Group
actively manages the consideration received from its customers to fund a return that is
based on the investment profile that the customer selected on origination of the
instrument.\u00a0 The Group recognises these fees on a straight-line basis over the estimated
life of the contract.
The Group charges its customers for management and other related services using the
following different approaches:
\u2013 Front-end fees are charged to the client on inception.\u00a0 The consideration received is
deferred as a liability and recognised over the life of the contract on a straight-line\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
basis.
\u2013 Regular fees are charged to the customer periodically (monthly, quarterly, half
yearly or annually) either directly or by making a deduction from invested funds.\u00a0
Regular charges billed in advance are recognised on a straight-line basis over the
billing period.
Other revenue receivable by the Group mainly comprises commission or trailer fees
receivable on account of investment or other services provided in an intermediary
capacity which is accounted for on an accruals basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-363": { "value": "
2.Accounting policies
2.17Offsetting
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when, and only when the Group currently has a legally enforceable
right to set-off the recognised amounts and it intends to settle them on a net basis, or to
realise the asset and settle the liability simultaneously. Income and expenses are
presented on a net basis only when it is required or permitted by a standard \u2013 e.g. gains
and losses arising from a group of similar transactions such as the gains and losses on
financial assets measured at FVTPL.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-362": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(e) Cash and cash equivalents
Cash and cash equivalents include cash balances and financial instruments with original
maturities of three months or less from the date of acquisition that are subject to an
insignificant risk of changes in their fair value, and are used by the Group in the
management of its short-term commitments. Cash and cash equivalents are carried in the
statement of financial position at AC net of ECL.
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-361": { "value": "
2.Accounting policies
2.4Intangible assets
(b) Deferred policy acquisition costs
Incremental costs that are incurred in acquiring new investment contracts without DPF
are capitalised as deferred acquisition costs (DAC).
The DAC is subsequently amortised over the life of the contracts as follows:
\u2013 For long-term investment contracts with a fixed maturity date, DAC is amortised
over the life of the contract.
\u2013 For long term investment contracts with no fixed date of maturity, DAC is
amortised over the estimated life of the contract. This basis is reviewed periodically
with reference to the historical experience of surrenders for these contracts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredAcquisitionCostsArisingFromInsuranceContractsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-360": { "value": "
2.Accounting policies
2.3Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured
using the currency of the primary economic environment in which the entity operates
(the \u2018functional currency\u2019). The euro is the Group\u2019s and Company\u2019s functional and
presentation currency.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-359": { "value": "
2.Accounting policies
2.3Foreign currency translation
Transactions and balances
Transactions in foreign currencies have been converted into the functional currency at
the rates of exchange ruling on the date of the transaction or valuation where items are
re-measured.\u00a0 Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the profit or loss account.
All other foreign exchange gains and losses are presented in the profit or loss account
within \u2018Other investment revenue\u2019.
Translation differences on non-monetary items, mainly arising on equities held at fair
value through profit or loss, are reported as part of 'Other investment revenue'.
2.4Intangible assets
(a)Computer software
Acquired computer software licences are measured at cost less any accumulated
amortization and any accumulated impairment losses. Acquired computer software
licenses are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software.\u00a0 These costs are amortised using the straight-line method over their
useful lives, not exceeding a period of ten years.\u00a0 All costs associated with maintaining
computer software programmes are recognised as an expense as incurred.
(b) Deferred policy acquisition costs
Incremental costs that are incurred in acquiring new investment contracts without DPF
are capitalised as deferred acquisition costs (DAC).
The DAC is subsequently amortised over the life of the contracts as follows:
\u2013 For long-term investment contracts with a fixed maturity date, DAC is amortised
over the life of the contract.
\u2013 For long term investment contracts with no fixed date of maturity, DAC is
amortised over the estimated life of the contract. This basis is reviewed periodically
with reference to the historical experience of surrenders for these contracts.
2.5Property, plant and equipment
Freehold land is not depreciated as it is deemed to have an indefinite life.\u00a0 Depreciation
on other assets is calculated using the straight-line method to allocate their cost or
revalued amounts to their residual values over their estimated useful lives as follows:
Buildings
100 years
Leasehold improvements
10 - 40 years
Motor vehicles
5 years
Furniture, fittings and equipment
3 - 10 years
The assets\u2019 residual values and useful lives are reviewed at the end of each reporting
period and adjusted if appropriate.
An asset\u2019s carrying amount is written down immediately to its recoverable amount if
the asset\u2019s carrying amount is greater than its estimated recoverable amount (accounting
policy 2.16).
Gains and losses on disposals are determined by comparing proceeds with carrying
amounts and are included in the profit or loss account.
2.6Investment property
\u00a0 Changes in fair values are reported in the profit or loss account.
2.9Financial instruments
(b)Initial recognition and measurement\u00a0
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss. Immediately after initial recognition, an ECL allowance is
recognised for financial assets measured at AC and investments in debt instruments
measured at FVOCI.
When the fair value of financial assets and liabilities differs from the transaction price
on initial recognition, the entity recognises the difference as follows:
a. When the fair value is evidenced by a quoted price in an active market for an
identical asset or liability (that is, a Level 1 input) or based on a valuation technique
that uses only data from observable markets, the difference is recognised as a gain
or loss.
b. In all other cases, the difference is deferred and the timing of recognition of
deferred day one profit or loss is determined individually. It is either amortised over
the life of the instrument, deferred until the instrument\u2019s fair value can be
determined using market observable inputs, or realised through settlement.
2.9.1 Financial assets
(c)\u00a0 Debt instruments
FVTPL:A gain or loss on a debt investment
that is subsequently measured at FVTPL is recognised and presented in the
consolidated statement of profit or loss within other investment revenue in the period
in which it arises.
(d) Equity instruments
Gains and losses on
equity investments at FVTPL are included in the line \u2018Other investment revenue\u2019 in the
consolidated statement of profit or loss.
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Changes in the fair value of financial liabilities measured at FVTPL are presented in the
statement of profit or loss.
(b)\u00a0 Derecognition
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(d)\u00a0 Derivatives
Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
2.10\u00a0 Insurance and investment contracts issued and reinsurance contracts held
(e)\u00a0 Amounts recognised in profit or loss
Insurance service expense
Insurance service expenses include the following:
a. incurred claims and benefits, excluding investment components;
b. other incurred directly attributable expenses;
c.insurance acquisition cash flows amortisation;
d. changes that relate to past service \u2013 changes in the FCF relating to the LIC; and
e.\u00a0 \u00a0 onerous contract losses or reversals of those losses.
For contracts measured under the PAA, amortisation of insurance acquisition cash
flows is based on the passage of time.
Other expenses that do not meet the above criteria are included as other operating
expenses in the consolidated statement of profit or loss.
Net income (expenses) from reinsurance contracts held
The Group presents financial performance of groups of reinsurance contracts held on a
net basis in net income (expenses) from reinsurance contracts held, comprising the
following amounts:
a. reinsurance expenses;
b. incurred claims recovery;
c. other incurred directly attributable expenses;
d. changes that relate to past service i.e. changes in the FCF relating to incurred claims
recovery; and
e. effect of changes in the risk of reinsurers\u2019 non-performance.
Reinsurance expenses are recognised similarly to insurance revenue. The amount of
reinsurance expenses recognised in the reporting period depicts the transfer of received
insurance contract services at an amount that reflects the portion of ceding premiums
that the Group expects to pay in exchange for those services.
For contracts not measured under PAA, reinsurance expenses comprise the following
amounts relating to the changes in the remaining coverage:
a. claims and other directly attributable expenses recovery in the period, measured at
the amounts expected to be incurred at the beginning of the period, excluding
amounts related to the risk adjustment for non-financial risk (see b);
b. changes in the risk adjustment for non-financial risk, excluding:
\u2013 changes included in finance income (expenses) from reinsurance contracts held;
and
\u2013 changes that relate to future coverage (which adjust the CSM);\u00a0
c. amounts of the CSM recognised for the services received in the period; and
d. experience adjustments arising from premiums paid in the period other than those
relating to future service.
For groups of reinsurance contracts held measured under the PAA, the Group
recognises reinsurance expenses based on the passage of time over the coverage period
of a group of contracts.
Ceding commissions that are not contingent on claims of the underlying contracts issued
reduce ceding premiums and are accounted for as part of reinsurance expenses. Ceding
commissions that are contingent on claims of the underlying contracts issued reduce
incurred claims recovery.
Insurance finance income or expenses
Insurance finance income or expenses comprise the change in the carrying amount of
the group of insurance contracts arising from:
a. the effect of the time value of money and changes in the time value of money; and
b. the effect of financial risk and changes in financial risk.
For contracts measured under the PAA, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the LIC; and
b. the effect of changes in interest rates and other financial assumptions.
The Group disaggregates changes in the risk adjustment for non-financial risk between
insurance service result and insurance finance income or expenses.
For contracts measured under the GMM, the main amounts within insurance finance
income or expenses are:
a. interest accreted on the FCF and the CSM; and
b.the effect of changes in interest rates and other financial assumptions.
For contracts measured under the VFA, insurance finance income or expenses comprise
changes in the value of underlying items (excluding additions and withdrawals).
The Group has opted to include all its insurance finance income and expenses in profit
or loss for all of its insurance contracts. The Group does not issue insurance contracts
that generate cash flows in a foreign currency.
2.11Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in
the profit or loss account, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the statement of financial position date in the countries where
the Company\u2019s subsidiaries and associates operate and generate taxable income.\u00a0
Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and establishes
provision where appropriate.
Deferred income tax is recognised in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial
statements.\u00a0 However, if the deferred income tax arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss, it is not accounted
for.\u00a0 Deferred income tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, using tax rates (and laws) that have been
enacted or substantively enacted at the reporting date and reflect uncertainty relating to
income taxes, if any. Deferred tax is expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that future taxable profit or taxable
capital gains will be available such that realisation of the related tax benefit is probable.
Deferred income tax is provided on temporary differences arising on investments in
subsidiaries and associates, except where the Group controls the timing of the reversal
of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
If the amount of taxable temporary differences is insufficient to recognise a deferred tax
asset in full, then future taxable profits, adjusted for reversals of existing temporary
differences are considered. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profit
improves.
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets against current tax liabilities and when the deferred
income tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balance on a net basis.
Deferred tax related to fair value re-measurements charged or credited directly in other
comprehensive income or to equity, is also credited or charged directly to equity and
subsequently recognised in the profit or loss account together with the deferred gain or
loss.
2.14Investment return
(b)\u00a0 Net fair value gains/(losses) from financial assets at fair value through profit or
loss
This category includes gains or losses arising from changes in the fair value of the
financial assets at fair value through profit or loss in the year in which they arise,
dividend income recognised when the right to receive payment is established and
interest income received on financial assets at fair value through profit or loss.
2.15Leases
The right-of-
use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
2.16Impairment of non-financial assets
Assets that have an indefinite useful life and are not subject to amortisation, or assets
not yet available for use, are tested annually for impairment.\u00a0 Assets that are subject to
amortisation or depreciation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable.\u00a0 An
impairment loss is recognised for the amount by which the asset\u2019s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair
value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable and
independent cash flows (cash-generating units).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-358": { "value": "
2.Accounting policies
2.15Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease.
A contract is or contains a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Group uses the
definition of a lease in IFRS 16.
(a) As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a
finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease
transfers substantially all of the risks and rewards incidental to ownership of the
underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an
operating lease. As part of this assessment, the Group considers certain indicators such
as whether the lease is for the major part of the economic life of the asset.
The Group recognises lease payments received under operating leases as income on a
straight-line basis over the lease term as part of \u2018other income\u2019 \u2013 Note 9.
(b) As a lessee
At commencement or on modification of a contract that contains a lease component, the
Group allocates the consideration in the contract to each lease component on the basis
of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred. The right-of-
use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that
are not paid at the commencement date, discounted using the interest rate implicit in the
lease or, if that rate cannot be readily determined, the Group\u2019s incremental borrowing
rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise of fixed
payments.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments. When the lease liability is
remeasured in this way, a corresponding adjustment is made to the carrying amount of
the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-
of-use asset has been reduced to zero.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-357": { "value": "
2.Accounting policies
2.18Dividend distribution
Dividend distribution to the Company\u2019s shareholders is recognised as a liability in the
period in which an obligation to pay a dividend is established.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-356": { "value": "
2.Accounting policies
2.6Investment property
Freehold and leasehold properties treated as investment property principally comprise
office and other commercial buildings that are held for long term rental yields and that
are not occupied by the Group or Company respectively. Investment property is initially
measured at cost and subsequently carried at fair value.\u00a0 Fair value is based on active
market prices, adjusted, if necessary for any difference in the nature, location or
condition of the specific asset. If this information is not available, the Group uses
alternative valuation methods such as discounted cash flow projections or recent prices
in less active markets. These valuations are reviewed annually by qualified valuers.\u00a0
Investment property that is being redeveloped for continuing use as investment
property, or for which the market has become less active, continues to be measured at
fair value.\u00a0 Changes in fair values are reported in the profit or loss account.
If an investment property becomes owner-occupied, it is reclassified as property, plant
and equipment, and its fair value at the date of reclassification becomes its cost for
subsequent accounting purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-355": { "value": "
2.Accounting policies
2.9Financial instruments
(a) Summary of measurement categories
The Group does not apply hedge accounting.
2.9.1 Financial assets
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
2.9.2 Financial liabilities
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(d)\u00a0 Derivatives
Derivatives are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value. All derivatives
are carried as assets when fair value is positive and as liabilities when fair value is
negative. Fair values are obtained from quoted market prices in active markets, and
other valuation techniques, as appropriate.\u00a0 Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-354": { "value": "
2.Accounting policies
2.2Segment reporting
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision-maker.\u00a0 The chief operating decision-maker,
responsible for allocating resources and assessing performance of the operating
segments, has been identified as the executive management which implements the
strategic decisions taken by the Board.\u00a0 In identifying the Group\u2019s business segments,
the chief operating decision-maker has considered the different categories of insurance
classes of business.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-353": { "value": "
2.Accounting policies
2.9Financial instruments
(a) Summary of measurement categories
Classification
Reason
Cash and cash equivalents
Amortised Cost
SPPI, hold to collect business model
Other investments
FVTPL
Trading or portfolio managed at FV
Other investments
FVOCI
SPPI, hold to collect and sell business model
Other investments
Amortised Cost
SPPI, hold to collect business model
Trade and other receivables
Amortised Cost
SPPI, hold to collect business model
Other payables
Amortised Cost
Not managed at FV
Investment contract liabilities
FVTPL
Managed at FV
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at AC, except for
derivatives and investment contracts without DPF, which are measured at FVTPL.
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(c) Modification
If a financial liability measured at amortised cost is modified but not substantially, then
it is not derecognised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-352": { "value": "
2.Accounting policies
2.3Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured
using the currency of the primary economic environment in which the entity operates
(the \u2018functional currency\u2019). The euro is the Group\u2019s and Company\u2019s functional and
presentation currency.
Transactions and balances
Transactions in foreign currencies have been converted into the functional currency at
the rates of exchange ruling on the date of the transaction or valuation where items are
re-measured.\u00a0 Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the profit or loss account.
All other foreign exchange gains and losses are presented in the profit or loss account
within \u2018Other investment revenue\u2019.
Translation differences on non-monetary items, mainly arising on equities held at fair
value through profit or loss, are reported as part of 'Other investment revenue'.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-351": { "value": "
2.Accounting policies
2.5Property, plant and equipment
Freehold land is not depreciated as it is deemed to have an indefinite life.\u00a0 Depreciation
on other assets is calculated using the straight-line method to allocate their cost or
revalued amounts to their residual values over their estimated useful lives as follows:
Buildings
100 years
Leasehold improvements
10 - 40 years
Motor vehicles
5 years
Furniture, fittings and equipment
3 - 10 years
The assets\u2019 residual values and useful lives are reviewed at the end of each reporting
period and adjusted if appropriate.
2.15Leases
(b) As a lessee
The right-of-
use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-350": { "value": "
2.Accounting policies
2.11Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in
the profit or loss account, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the statement of financial position date in the countries where
the Company\u2019s subsidiaries and associates operate and generate taxable income.\u00a0
Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and establishes
provision where appropriate.
Deferred income tax is recognised in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial
statements.\u00a0 However, if the deferred income tax arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss, it is not accounted
for.\u00a0 Deferred income tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, using tax rates (and laws) that have been
enacted or substantively enacted at the reporting date and reflect uncertainty relating to
income taxes, if any. Deferred tax is expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that future taxable profit or taxable
capital gains will be available such that realisation of the related tax benefit is probable.
Deferred income tax is provided on temporary differences arising on investments in
subsidiaries and associates, except where the Group controls the timing of the reversal
of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
If the amount of taxable temporary differences is insufficient to recognise a deferred tax
asset in full, then future taxable profits, adjusted for reversals of existing temporary
differences are considered. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profit
improves.
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets against current tax liabilities and when the deferred
income tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balance on a net basis.
Deferred tax related to fair value re-measurements charged or credited directly in other
comprehensive income or to equity, is also credited or charged directly to equity and
subsequently recognised in the profit or loss account together with the deferred gain or
loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-349": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
The consolidated financial statements incorporate the assets, liabilities and results of
the Company and its subsidiary undertakings drawn up to 31 December each year.\u00a0
Subsidiary undertakings are those companies over which the Group has control, either
by way of majority shareholding, through contractual agreements with the other vote
holders of the investee or rights arising from other contractual agreements, giving it the
power to govern the financial and operating policies of the investee. Specifically, the
Group controls an investee if and only if the Group has:
\u2013 Power over the investee (i.e. existing rights that give it the current ability to direct
the relevant activities of the investee);
\u2013 Exposure, or rights, to variable returns from its involvement with the investee; and
\u2013 The ability to use its power over the investee to affect its returns.
The Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control.
Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are
included in the statement of financial position and the statement of comprehensive
income from the date the Group gains control until the date the Group ceases to control
the subsidiary.
The Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of
any asset or liability resulting from a contingent consideration arrangement. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the
recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the
acquirer\u2019s previously held equity interest in the acquiree is re-measured to fair value at
the acquisition date through profit or loss.
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Profit or loss and each component of other comprehensive income are attributed to the
equity holders of the parent of the Group and to the non-controlling interests, even if
this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Group\u2019s accounting policies. All intra-group assets
and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation. A list of the Group\u2019s
subsidiaries is set out in Note 20.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-348": { "value": "
2.Accounting policies
2.12Provisions for pension obligations
Provisions are recognised when the Group has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation, and a reliable estimate of the amount can be made.
A defined benefit plan defines an amount of pension that an employee will receive on
retirement.\u00a0 In the Group\u2019s case, this amount is dependent upon an employee\u2019s final
compensation upon retirement.
The liability recognised in the statement of financial position is the present value of the
defined benefit obligation at the end of the reporting period.\u00a0 The present value of a
defined benefit obligation is determined by discounting the estimated future cash
outflows using interest rate yields of government or high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms
to maturity approximating to the terms of the related pension liability. Actuarial gains
and losses arising from experience adjustments and changes in assumptions are charged
or credited to other comprehensive income in the period in which they arise.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-347": { "value": "
2.Accounting policies
2.16Impairment of non-financial assets
Assets that have an indefinite useful life and are not subject to amortisation, or assets
not yet available for use, are tested annually for impairment.\u00a0 Assets that are subject to
amortisation or depreciation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable.\u00a0 An
impairment loss is recognised for the amount by which the asset\u2019s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair
value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable and
independent cash flows (cash-generating units).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-346": { "value": "
2.Accounting policies
2.5Property, plant and equipment
All property, plant and equipment is initially recorded at historical cost. Freehold land
and buildings are subsequently shown at revalued amount being its fair value at the end
of the revaluation less accumulated depreciation for buildings and any accumulated
impairment losses. Fair value is based on periodic valuations by qualified valuers to
ensure that the carrying amount of property does not differ materially from that which
would be determined using fair values at the end of the reporting period. Any
accumulated depreciation at the date of revaluation is eliminated against the gross
carrying amount of the asset, and the net amount is restated to the revalued amount of
the asset.\u00a0 All other property, plant and equipment is stated at historical cost less
depreciation and impairment losses.\u00a0 Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset\u2019s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can be measured reliably.
The carrying amount of the replaced part is derecognised. All other repairs and
maintenance costs are charged to the profit or loss account during the financial period
in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings are
credited to other comprehensive income as other reserves in shareholders\u2019 equity.\u00a0
Decreases that offset previous increases of the same asset are charged against other
comprehensive income as other reserves directly in equity; all other decreases are
charged to the profit or loss account.\u00a0 Each year the difference between depreciation
based on the revalued carrying amount of the asset charged to the profit or loss account
and depreciation based on the asset\u2019s original cost is transferred from \u2018other reserves\u2019 to
\u2018retained earnings\u2019.\u00a0
Freehold land is not depreciated as it is deemed to have an indefinite life.\u00a0 Depreciation
on other assets is calculated using the straight-line method to allocate their cost or
revalued amounts to their residual values over their estimated useful lives as follows:
Buildings
100 years
Leasehold improvements
10 - 40 years
Motor vehicles
5 years
Furniture, fittings and equipment
3 - 10 years
The assets\u2019 residual values and useful lives are reviewed at the end of each reporting
period and adjusted if appropriate.
An asset\u2019s carrying amount is written down immediately to its recoverable amount if
the asset\u2019s carrying amount is greater than its estimated recoverable amount (accounting
policy 2.16).
Gains and losses on disposals are determined by comparing proceeds with carrying
amounts and are included in the profit or loss account. When revalued assets are sold,
the amounts included in other reserves relating to the assets are transferred to retained
earnings.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-345": { "value": "
2.Accounting policies
2.1Consolidation
(b)\u00a0 Associated undertakings
An associate is an entity over which the Group has significant influence.\u00a0 Significant
influence is the power to participate in the financial and operating policy decisions of
the investee, but is not control or joint control over those policies.\u00a0 The considerations
made in determining significant influence are similar to those necessary to determine
control over subsidiaries. Except for investment-linked insurance funds, interests in
associated undertakings are accounted for by the equity method of accounting and are
initially recognised at cost and the carrying amount is increased or decreased to
recognise the investor\u2019s share of profit or loss of the investee after the date of
acquisition.
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition. Equity accounting involves recognising in
the profit or loss the share of the associated undertaking\u2019s post-acquisition profits or
losses.\u00a0 The interest in the associated undertaking is carried in the statement of financial
position at an amount that reflects the share of the net assets of the associated
undertaking.\u00a0 When the Group\u2019s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured receivables, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
Intra-group gains on transactions between the Group and its associates are eliminated to
the extent of the Group\u2019s interest in the associates. Intra-group losses are also
eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies for associated undertakings are changed where
necessary to ensure consistency with the policies adopted by the Group. A list of the
Group\u2019s associated undertakings is set out in Note 21.
Interests in associated undertakings that are allocated to the insurance fund are
designated as financial assets at fair value through profit or loss.\u00a0 They are accounted
for in accordance with the recognition and measurement principles described in Note
2.9.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-344": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at AC, except for
derivatives and investment contracts without DPF, which are measured at FVTPL.
Investment contracts without DPF are financial liabilities whose fair value is dependent
on the fair value of underlying financial assets and are designated at inception at
FVTPL. The Group designates these investment contracts to be measured at FVTPL,
because it eliminates or significantly reduces a measurement or recognition
inconsistency (that is, an accounting mismatch) that would otherwise arise from
measuring assets or liabilities or recognising the gains and losses on them on different
bases.
The Group\u2019s main valuation techniques incorporate all factors that market participants
would consider and make maximum use of observable market data. The fair value of
financial liabilities for investment contracts without DPF is determined using the
current unit values in which the contractual benefits are denominated. These unit values
reflect the fair values of the financial assets contained within the Group\u2019s unitised
investment funds linked to the financial liability. The fair value of the financial
liabilities is obtained by multiplying the number of units attributed to each contract
holder at the end of the reporting period by the unit value for the same date.
When the investment contract has a surrender option, the fair value of the financial
liability is never less than the amount payable on surrender.
Changes in the fair value of financial liabilities measured at FVTPL are presented in the
statement of profit or loss.
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(c) Modification
If a financial liability measured at amortised cost is modified but not substantially, then
it is not derecognised.
(d)\u00a0 Derivatives
Derivatives are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value. All derivatives
are carried as assets when fair value is positive and as liabilities when fair value is
negative. Fair values are obtained from quoted market prices in active markets, and
other valuation techniques, as appropriate.\u00a0 Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
2.17Offsetting
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when, and only when the Group currently has a legally enforceable
right to set-off the recognised amounts and it intends to settle them on a net basis, or to
realise the asset and settle the liability simultaneously. Income and expenses are
presented on a net basis only when it is required or permitted by a standard \u2013 e.g. gains
and losses arising from a group of similar transactions such as the gains and losses on
financial assets measured at FVTPL.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-343": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
2.16Impairment of non-financial assets
Assets that have an indefinite useful life and are not subject to amortisation, or assets
not yet available for use, are tested annually for impairment.\u00a0 Assets that are subject to
amortisation or depreciation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable.\u00a0 An
impairment loss is recognised for the amount by which the asset\u2019s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair
value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable and
independent cash flows (cash-generating units).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-342": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.
(b)\u00a0 Associated undertakings
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition.
2.4Intangible assets
(a)Computer software
Acquired computer software licences are measured at cost less any accumulated
amortization and any accumulated impairment losses. Acquired computer software
licenses are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software.\u00a0 These costs are amortised using the straight-line method over their
useful lives, not exceeding a period of ten years.\u00a0 All costs associated with maintaining
computer software programmes are recognised as an expense as incurred.
(b) Deferred policy acquisition costs
Incremental costs that are incurred in acquiring new investment contracts without DPF
are capitalised as deferred acquisition costs (DAC).
The DAC is subsequently amortised over the life of the contracts as follows:
\u2013 For long-term investment contracts with a fixed maturity date, DAC is amortised
over the life of the contract.
\u2013 For long term investment contracts with no fixed date of maturity, DAC is
amortised over the estimated life of the contract. This basis is reviewed periodically
with reference to the historical experience of surrenders for these contracts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-341": { "value": "
2.Accounting policies
2.9Financial instruments
(a) Summary of measurement categories
Classification
Reason
Cash and cash equivalents
Amortised Cost
SPPI, hold to collect business model
Other investments
FVTPL
Trading or portfolio managed at FV
Other investments
FVOCI
SPPI, hold to collect and sell business model
Other investments
Amortised Cost
SPPI, hold to collect business model
Trade and other receivables
Amortised Cost
SPPI, hold to collect business model
Other payables
Amortised Cost
Not managed at FV
Investment contract liabilities
FVTPL
Managed at FV
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss. Immediately after initial recognition, an ECL allowance is
recognised for financial assets measured at AC and investments in debt instruments
measured at FVOCI.
(c) Amortised cost and effective interest rate
Amortised cost (AC) is the amount at which the financial asset or financial liability is
measured at initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method for any difference between
the initial amount and the maturity amount and, for financial assets, adjusted for any
loss allowance.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial asset or financial liability
to the gross carrying amount of a financial asset (that is, its AC before any impairment
allowance) or to the AC of a financial liability. The calculation does not consider the
ECL and includes transaction costs, premiums or discounts and fees and points paid or
received that are integral to the EIR.
When the Group revises the estimates of future cash flows, the carrying amount of the
respective financial asset or financial liability is adjusted to reflect the new estimate
discounted using the original EIR. Any changes are recognised in profit or loss.\u00a0
Interest revenue is calculated by applying the EIR to the gross carrying amount of
financial assets recognised at AC or FVOCI.
2.9.1 Financial assets
(c)\u00a0 Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability
from the issuer\u2019s perspective, such as government and corporate bonds.
The classification and subsequent measurement of debt instruments depend on:
\u2013 the Group\u2019s business model for managing the asset; and
\u2013 the cash flow characteristics of the asset (represented by SPPI).
AC: Assets that are held for collection of contractual cash flows where those cash
flows represent SPPI, and that are not designated at FVTPL, are measured at AC. The
carrying amount of these assets is adjusted by any ECL allowance recognised and
measured, as described further below. Interest revenue from these financial assets is
included in the profit or loss under interest revenue calculated using the effective
interest method.
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
(g) Impairment
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
(i)\u00a0 Modification
If cash flows are modified when the debtor is in financial difficulties, then the objective
of the modification is usually to maximise recovery of the original contractual cash
flows rather than to originate a new asset with substantially different terms. If the Group
plans to modify a financial asset in a way that would result in forgiveness of cash flows,
then it first considers whether a portion of the asset should be written off before the
modification takes place.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-340": { "value": "
2.Accounting policies
2.14Investment return
(a)\u00a0 Dividend income
Dividend income from subsidiary and associated undertakings is recognised in the
profit or loss account as part of investment income when the right to receive payment is
established.
(b)\u00a0 Net fair value gains/(losses) from financial assets at fair value through profit or
loss
This category includes gains or losses arising from changes in the fair value of the
financial assets at fair value through profit or loss in the year in which they arise,
dividend income recognised when the right to receive payment is established and
interest income received on financial assets at fair value through profit or loss.
(c)\u00a0 Interest income
Interest income from financial assets not classified as fair value through profit or loss is
recognised using the effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-339": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-338": { "value": "
2.Accounting policies
2.3Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured
using the currency of the primary economic environment in which the entity operates
(the \u2018functional currency\u2019). The euro is the Group\u2019s and Company\u2019s functional and
presentation currency.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-337": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.
(b)\u00a0 Associated undertakings
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-336": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
2.9.2 Financial liabilities
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(d)\u00a0 Derivatives
Derivatives are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value. All derivatives
are carried as assets when fair value is positive and as liabilities when fair value is
negative. Fair values are obtained from quoted market prices in active markets, and
other valuation techniques, as appropriate.\u00a0 Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-335": { "value": "
2.Accounting policies
2.1Consolidation
(b)\u00a0 Associated undertakings
An associate is an entity over which the Group has significant influence.\u00a0 Significant
influence is the power to participate in the financial and operating policy decisions of
the investee, but is not control or joint control over those policies.\u00a0 The considerations
made in determining significant influence are similar to those necessary to determine
control over subsidiaries. Except for investment-linked insurance funds, interests in
associated undertakings are accounted for by the equity method of accounting and are
initially recognised at cost and the carrying amount is increased or decreased to
recognise the investor\u2019s share of profit or loss of the investee after the date of
acquisition.
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition. Equity accounting involves recognising in
the profit or loss the share of the associated undertaking\u2019s post-acquisition profits or
losses.\u00a0 The interest in the associated undertaking is carried in the statement of financial
position at an amount that reflects the share of the net assets of the associated
undertaking.\u00a0 When the Group\u2019s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured receivables, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
Intra-group gains on transactions between the Group and its associates are eliminated to
the extent of the Group\u2019s interest in the associates. Intra-group losses are also
eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies for associated undertakings are changed where
necessary to ensure consistency with the policies adopted by the Group. A list of the
Group\u2019s associated undertakings is set out in Note 21.
Interests in associated undertakings that are allocated to the insurance fund are
designated as financial assets at fair value through profit or loss.\u00a0 They are accounted
for in accordance with the recognition and measurement principles described in Note
2.9.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-334": { "value": "
2.Accounting policies
2.10\u00a0 Insurance and investment contracts issued and reinsurance contracts held
(d)Measurement
Contracts not measured under the PAA
Subsequent measurement
i. Changes in fulfilment cash flows
For contracts measured under the VFA, the following adjustments relate to future
service and thus adjust the CSM:
\u2013 changes in the amount of the Group\u2019s share of the fair value of the underlying
items; and
\u2013 changes in the FCF that do not vary based on the returns of underlying items:
a. changes in the effect of the time value of money and financial risks including the
effect of financial guarantees;
b. experience adjustments arising from premiums received in the period that relate to
future service and related cash flows;
c. changes in estimates of the present value of future cash flows in the LRC, except
those described in the following paragraph;
d.differences between any investment component expected to become payable in the
period and the actual investment component that becomes payable in the period;
and
e.\u00a0 changes in the risk adjustment for non-financial risk that relate to future service.
Adjustments b. to e. are measured using the current discount rates.
The Group does not have any products with complex guarantees and does not use
derivatives as economic hedges of the risks.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialGuaranteesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-333": { "value": "
2.Accounting policies
2.11Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in
the profit or loss account, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any.
Deferred income tax is recognised in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial
statements.\u00a0 However, if the deferred income tax arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss, it is not accounted
for.\u00a0 Deferred income tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, using tax rates (and laws) that have been
enacted or substantively enacted at the reporting date and reflect uncertainty relating to
income taxes, if any. Deferred tax is expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that future taxable profit or taxable
capital gains will be available such that realisation of the related tax benefit is probable.
Deferred income tax is provided on temporary differences arising on investments in
subsidiaries and associates, except where the Group controls the timing of the reversal
of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
If the amount of taxable temporary differences is insufficient to recognise a deferred tax
asset in full, then future taxable profits, adjusted for reversals of existing temporary
differences are considered. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profit
improves.
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets against current tax liabilities and when the deferred
income tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balance on a net basis.
Deferred tax related to fair value re-measurements charged or credited directly in other
comprehensive income or to equity, is also credited or charged directly to equity and
subsequently recognised in the profit or loss account together with the deferred gain or
loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-332": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
The Group enters into transactions where it retains the contractual rights to receive cash
flows from assets but assumes a contractual obligation to pay those cash flows to other
entities and transfers substantially all of the risks and rewards. These transactions are
accounted for as pass-through transfers that result in derecognition if the Group:
a. has no obligation to make payments unless it collects equivalent amounts from the
assets;
b. is prohibited from selling or pledging the assets; and
c.\u00a0 has an obligation to remit any cash that it collects from the assets without material
delay
2.9.2 Financial liabilities
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-331": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
The consolidated financial statements incorporate the assets, liabilities and results of
the Company and its subsidiary undertakings drawn up to 31 December each year.\u00a0
Subsidiary undertakings are those companies over which the Group has control, either
by way of majority shareholding, through contractual agreements with the other vote
holders of the investee or rights arising from other contractual agreements, giving it the
power to govern the financial and operating policies of the investee. Specifically, the
Group controls an investee if and only if the Group has:
\u2013 Power over the investee (i.e. existing rights that give it the current ability to direct
the relevant activities of the investee);
\u2013 Exposure, or rights, to variable returns from its involvement with the investee; and
\u2013 The ability to use its power over the investee to affect its returns.
The Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control.
Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are
included in the statement of financial position and the statement of comprehensive
income from the date the Group gains control until the date the Group ceases to control
the subsidiary.
The Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of
any asset or liability resulting from a contingent consideration arrangement. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the
recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the
acquirer\u2019s previously held equity interest in the acquiree is re-measured to fair value at
the acquisition date through profit or loss.
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Profit or loss and each component of other comprehensive income are attributed to the
equity holders of the parent of the Group and to the non-controlling interests, even if
this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Group\u2019s accounting policies. All intra-group assets
and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation. A list of the Group\u2019s
subsidiaries is set out in Note 20.
(b)\u00a0 Associated undertakings
An associate is an entity over which the Group has significant influence.\u00a0 Significant
influence is the power to participate in the financial and operating policy decisions of
the investee, but is not control or joint control over those policies.\u00a0 The considerations
made in determining significant influence are similar to those necessary to determine
control over subsidiaries. Except for investment-linked insurance funds, interests in
associated undertakings are accounted for by the equity method of accounting and are
initially recognised at cost and the carrying amount is increased or decreased to
recognise the investor\u2019s share of profit or loss of the investee after the date of
acquisition.
The Group\u2019s investment in associates includes goodwill (net of any accumulated
impairment loss) identified on acquisition. Equity accounting involves recognising in
the profit or loss the share of the associated undertaking\u2019s post-acquisition profits or
losses.\u00a0 The interest in the associated undertaking is carried in the statement of financial
position at an amount that reflects the share of the net assets of the associated
undertaking.\u00a0 When the Group\u2019s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured receivables, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
Intra-group gains on transactions between the Group and its associates are eliminated to
the extent of the Group\u2019s interest in the associates. Intra-group losses are also
eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies for associated undertakings are changed where
necessary to ensure consistency with the policies adopted by the Group. A list of the
Group\u2019s associated undertakings is set out in Note 21.
Interests in associated undertakings that are allocated to the insurance fund are
designated as financial assets at fair value through profit or loss.\u00a0 They are accounted
for in accordance with the recognition and measurement principles described in Note
2.9.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-330": { "value": "
2.Accounting policies
2.13\u00a0 Revenue recognition
Rendering of services
Fees include investment management fees arising from services rendered in
conjunction with the issue and management of investment contracts where the Group
actively manages the consideration received from its customers to fund a return that is
based on the investment profile that the customer selected on origination of the
instrument.\u00a0 The Group recognises these fees on a straight-line basis over the estimated
life of the contract.
The Group charges its customers for management and other related services using the
following different approaches:
\u2013 Front-end fees are charged to the client on inception.\u00a0 The consideration received is
deferred as a liability and recognised over the life of the contract on a straight-line\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
basis.
\u2013 Regular fees are charged to the customer periodically (monthly, quarterly, half
yearly or annually) either directly or by making a deduction from invested funds.\u00a0
Regular charges billed in advance are recognised on a straight-line basis over the
billing period.
Other revenue receivable by the Group mainly comprises commission or trailer fees
receivable on account of investment or other services provided in an intermediary
capacity which is accounted for on an accruals basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-329": { "value": "
2.Accounting policies
2.9Financial instruments
2.9.1 Financial assets
(f) Fair Value Measurement
For financial instruments traded in active markets, the determination of fair values of
financial assets and financial liabilities is based on quoted market prices or dealer price
quotations. This includes listed equity securities and quoted debt instruments on major
exchanges. The quoted market price used for financial assets held by the Group is the
current bid price or closing price as appropriate. A financial instrument is regarded as
quoted in an active market if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an arm\u2019s length
basis. If the market for a financial asset is not active, the Group establishes fair value by
using valuation techniques.\u00a0 These include the use of recent arm\u2019s length transactions,
reference to other instruments that are substantially the same or valued by reference to
the net assets of the underlying investment.\u00a0
4.\u00a0 \u00a0 \u00a0 Management of risk
4.3Fair values
The following table presents the assets measured in the statement of financial position
at fair value by level of the following fair value measurement hierarchy at 31 December
2025:
\u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
\u2022 Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2); and
\u2022 Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
The Group recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
6.\u00a0 \u00a0 \u00a0 Amounts determined on transition to IFRS 17
Transition approach
Applying the fair value approach, the Group determined the CSM to be the difference
between the fair value of a group of insurance contracts, measured in accordance with
IFRS 13 \u2018Fair Value Measurement\u2019 and its FCF at the transition date.
The fair value of an insurance liability is the price that a market participant would be
willing to pay to assume the obligation and the remaining risks of the in-force contracts
as at the transition date. A present value technique was used to value groups of
contracts.
In estimating the fair value of groups of insurance contracts, the following
considerations were applied:
\u2013 only future cash flows within the boundaries of the insurance contracts were
included in the fair value estimation, excluding future renewals and new business
that would be outside the contract boundary of the contracts under IFRS 17;
\u2013 assumptions about expected future cash flows and risk allowances, including
operational risk were adjusted for the market participant\u2019s view, as required by
IFRS 13;
\u2013 profit margins were included to reflect what a market participant would require
for accepting obligations under insurance contracts, beyond the risk adjustment
for non-financial risk; and
\u2013 diversification between market risk and life risk. Although market risk is
considered as a hedgeable risk, it was assumed that a buyer will be able to capture
this diversification from its other own modules.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-328": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
The Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of
any asset or liability resulting from a contingent consideration arrangement. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the
recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the
acquirer\u2019s previously held equity interest in the acquiree is re-measured to fair value at
the acquisition date through profit or loss.
Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is recognised in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-327": { "value": "
2.Accounting policies
2.9Financial instruments
(a) Summary of measurement categories
The Group classifies its financial assets and financial liabilities into the following
categories:
Classification
Reason
Cash and cash equivalents
Amortised Cost
SPPI, hold to collect business model
Other investments
FVTPL
Trading or portfolio managed at FV
Other investments
FVOCI
SPPI, hold to collect and sell business model
Other investments
Amortised Cost
SPPI, hold to collect business model
Trade and other receivables
Amortised Cost
SPPI, hold to collect business model
Other payables
Amortised Cost
Not managed at FV
Investment contract liabilities
FVTPL
Managed at FV
The Group does not apply hedge accounting.
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss. Immediately after initial recognition, an ECL allowance is
recognised for financial assets measured at AC and investments in debt instruments
measured at FVOCI.
When the fair value of financial assets and liabilities differs from the transaction price
on initial recognition, the entity recognises the difference as follows:
a. When the fair value is evidenced by a quoted price in an active market for an
identical asset or liability (that is, a Level 1 input) or based on a valuation technique
that uses only data from observable markets, the difference is recognised as a gain
or loss.
b. In all other cases, the difference is deferred and the timing of recognition of
deferred day one profit or loss is determined individually. It is either amortised over
the life of the instrument, deferred until the instrument\u2019s fair value can be
determined using market observable inputs, or realised through settlement.
(c) Amortised cost and effective interest rate
Amortised cost (AC) is the amount at which the financial asset or financial liability is
measured at initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method for any difference between
the initial amount and the maturity amount and, for financial assets, adjusted for any
loss allowance.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial asset or financial liability
to the gross carrying amount of a financial asset (that is, its AC before any impairment
allowance) or to the AC of a financial liability. The calculation does not consider the
ECL and includes transaction costs, premiums or discounts and fees and points paid or
received that are integral to the EIR.
When the Group revises the estimates of future cash flows, the carrying amount of the
respective financial asset or financial liability is adjusted to reflect the new estimate
discounted using the original EIR. Any changes are recognised in profit or loss.\u00a0
Interest revenue is calculated by applying the EIR to the gross carrying amount of
financial assets recognised at AC or FVOCI.
2.9.1 Financial assets
(a) Business model
The business model reflects how the Group manages assets in order to generate cash
flows. That is, it reflects whether the Group\u2019s objective is solely to collect the
contractual cash flows from assets or to collect both the contractual cash flows and cash
flows arising from the sale of assets. If neither of these is applicable (for example,
financial assets are held for trading purposes), the financial assets are classified as part
of the other business model and measured at FVTPL.
Factors considered by the Group in determining the business model for a group of
assets include past experience on how the cash flows for these assets were collected,
how the asset\u2019s performance is evaluated and reported to key management personnel,
how risks are assessed and managed, and how managers are compensated. For example,
the business model for the investments underlying investment contracts with DPF is to
hold to collect and sell contractual cash flows. The proceeds from the contractual cash
flows of the financial assets are used to settle insurance contract liabilities as they
become due.
(b) Solely payments of principal and interest ('SPPI')
Where the business model is to hold assets to collect contractual cash flows or to collect
contractual cash flows and sell, the Group assesses whether the financial instruments\u2019
cash flows represent SPPI (the SPPI test). In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic lending
arrangement (that is, interest includes only consideration or the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic
lending arrangement). Where the contractual terms introduce exposure to risk or
volatility that are inconsistent with a basic lending arrangement, the related financial
asset is classified and measured at FVTPL.
(c)\u00a0 Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability
from the issuer\u2019s perspective, such as government and corporate bonds.
The classification and subsequent measurement of debt instruments depend on:
\u2013 the Group\u2019s business model for managing the asset; and
\u2013 the cash flow characteristics of the asset (represented by SPPI).
Based on these factors, the Group classifies its debt instruments into one of the following
three measurement categories:
a. AC: Assets that are held for collection of contractual cash flows where those cash
flows represent SPPI, and that are not designated at FVTPL, are measured at AC. The
carrying amount of these assets is adjusted by any ECL allowance recognised and
measured, as described further below. Interest revenue from these financial assets is
included in the profit or loss under interest revenue calculated using the effective
interest method.
b. FVOCI: Financial assets that are held for collection of contractual cash flows and for
selling the assets, where the assets\u2019 cash flows represent SPPI, and that are not
designated at FVTPL, are measured at FVOCI. Movements in the carrying amount are
taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses on the instrument\u2019s AC, which are
recognised in profit or loss. When the financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is reclassified from equity to profit or loss
and recognised in other investment revenue. Interest revenue from these financial
assets is included in interest revenue calculated using the effective interest method.
c. FVTPL: Assets that do not meet the criteria for AC or FVOCI are measured at
FVTPL. Also, some assets are voluntarily measured at FVTPL, because this
significantly reduces an accounting mismatch. A gain or loss on a debt investment
that is subsequently measured at FVTPL is recognised and presented in the
consolidated statement of profit or loss within other investment revenue in the period
in which it arises.
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
(d) Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer\u2019s
perspective (that is, instruments that do not contain a contractual obligation to pay and
that evidence a residual interest in the issuer\u2019s net assets). Examples of equity
instruments include basic ordinary shares.
The Group subsequently measures all equity investments at FVTPL. Gains and losses on
equity investments at FVTPL are included in the line \u2018Other investment revenue\u2019 in the
consolidated statement of profit or loss.
(e) Cash and cash equivalents
Cash and cash equivalents include cash balances and financial instruments with original
maturities of three months or less from the date of acquisition that are subject to an
insignificant risk of changes in their fair value, and are used by the Group in the
management of its short-term commitments. Cash and cash equivalents are carried in the
statement of financial position at AC net of ECL.
(f) Fair Value Measurement
For financial instruments traded in active markets, the determination of fair values of
financial assets and financial liabilities is based on quoted market prices or dealer price
quotations. This includes listed equity securities and quoted debt instruments on major
exchanges. The quoted market price used for financial assets held by the Group is the
current bid price or closing price as appropriate. A financial instrument is regarded as
quoted in an active market if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an arm\u2019s length
basis. If the market for a financial asset is not active, the Group establishes fair value by
using valuation techniques.\u00a0 These include the use of recent arm\u2019s length transactions,
reference to other instruments that are substantially the same or valued by reference to
the net assets of the underlying investment.\u00a0
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
The Group enters into transactions where it retains the contractual rights to receive cash
flows from assets but assumes a contractual obligation to pay those cash flows to other
entities and transfers substantially all of the risks and rewards. These transactions are
accounted for as pass-through transfers that result in derecognition if the Group:
a. has no obligation to make payments unless it collects equivalent amounts from the
assets;
b. is prohibited from selling or pledging the assets; and
c.\u00a0 has an obligation to remit any cash that it collects from the assets without material
delay
(i)\u00a0 Modification
If cash flows are modified when the debtor is in financial difficulties, then the objective
of the modification is usually to maximise recovery of the original contractual cash
flows rather than to originate a new asset with substantially different terms. If the Group
plans to modify a financial asset in a way that would result in forgiveness of cash flows,
then it first considers whether a portion of the asset should be written off before the
modification takes place.
2.17Offsetting
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when, and only when the Group currently has a legally enforceable
right to set-off the recognised amounts and it intends to settle them on a net basis, or to
realise the asset and settle the liability simultaneously. Income and expenses are
presented on a net basis only when it is required or permitted by a standard \u2013 e.g. gains
and losses arising from a group of similar transactions such as the gains and losses on
financial assets measured at FVTPL.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-326": { "value": "
2.Accounting policies
2.9Financial instruments
(a) Summary of measurement categories
The Group classifies its financial assets and financial liabilities into the following
categories:
Classification
Reason
Cash and cash equivalents
Amortised Cost
SPPI, hold to collect business model
Other investments
FVTPL
Trading or portfolio managed at FV
Other investments
FVOCI
SPPI, hold to collect and sell business model
Other investments
Amortised Cost
SPPI, hold to collect business model
Trade and other receivables
Amortised Cost
SPPI, hold to collect business model
Other payables
Amortised Cost
Not managed at FV
Investment contract liabilities
FVTPL
Managed at FV
The Group does not apply hedge accounting.
(b)Initial recognition and measurement\u00a0 \u00a0 \u00a0 \u00a0
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the instrument. Regular way purchases and sales of
financial assets are recognised on the trade date (that is, the date on which the Group
commits to purchase or sell the asset).
At initial recognition, the Group measures a financial asset or financial liability at its
fair value, plus or minus, in the case of a financial asset or financial liability not at
FVTPL, transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit or loss. Immediately after initial recognition, an ECL allowance is
recognised for financial assets measured at AC and investments in debt instruments
measured at FVOCI.
When the fair value of financial assets and liabilities differs from the transaction price
on initial recognition, the entity recognises the difference as follows:
a. When the fair value is evidenced by a quoted price in an active market for an
identical asset or liability (that is, a Level 1 input) or based on a valuation technique
that uses only data from observable markets, the difference is recognised as a gain
or loss.
b. In all other cases, the difference is deferred and the timing of recognition of
deferred day one profit or loss is determined individually. It is either amortised over
the life of the instrument, deferred until the instrument\u2019s fair value can be
determined using market observable inputs, or realised through settlement.
(c) Amortised cost and effective interest rate
Amortised cost (AC) is the amount at which the financial asset or financial liability is
measured at initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method for any difference between
the initial amount and the maturity amount and, for financial assets, adjusted for any
loss allowance.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial asset or financial liability
to the gross carrying amount of a financial asset (that is, its AC before any impairment
allowance) or to the AC of a financial liability. The calculation does not consider the
ECL and includes transaction costs, premiums or discounts and fees and points paid or
received that are integral to the EIR.
When the Group revises the estimates of future cash flows, the carrying amount of the
respective financial asset or financial liability is adjusted to reflect the new estimate
discounted using the original EIR. Any changes are recognised in profit or loss.\u00a0
Interest revenue is calculated by applying the EIR to the gross carrying amount of
financial assets recognised at AC or FVOCI.
2.9.1 Financial assets
(a) Business model
The business model reflects how the Group manages assets in order to generate cash
flows. That is, it reflects whether the Group\u2019s objective is solely to collect the
contractual cash flows from assets or to collect both the contractual cash flows and cash
flows arising from the sale of assets. If neither of these is applicable (for example,
financial assets are held for trading purposes), the financial assets are classified as part
of the other business model and measured at FVTPL.
Factors considered by the Group in determining the business model for a group of
assets include past experience on how the cash flows for these assets were collected,
how the asset\u2019s performance is evaluated and reported to key management personnel,
how risks are assessed and managed, and how managers are compensated. For example,
the business model for the investments underlying investment contracts with DPF is to
hold to collect and sell contractual cash flows. The proceeds from the contractual cash
flows of the financial assets are used to settle insurance contract liabilities as they
become due.
(b) Solely payments of principal and interest ('SPPI')
Where the business model is to hold assets to collect contractual cash flows or to collect
contractual cash flows and sell, the Group assesses whether the financial instruments\u2019
cash flows represent SPPI (the SPPI test). In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic lending
arrangement (that is, interest includes only consideration or the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic
lending arrangement). Where the contractual terms introduce exposure to risk or
volatility that are inconsistent with a basic lending arrangement, the related financial
asset is classified and measured at FVTPL.
(c)\u00a0 Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability
from the issuer\u2019s perspective, such as government and corporate bonds.
The classification and subsequent measurement of debt instruments depend on:
\u2013 the Group\u2019s business model for managing the asset; and
\u2013 the cash flow characteristics of the asset (represented by SPPI).
Based on these factors, the Group classifies its debt instruments into one of the following
three measurement categories:
a. AC: Assets that are held for collection of contractual cash flows where those cash
flows represent SPPI, and that are not designated at FVTPL, are measured at AC. The
carrying amount of these assets is adjusted by any ECL allowance recognised and
measured, as described further below. Interest revenue from these financial assets is
included in the profit or loss under interest revenue calculated using the effective
interest method.
b. FVOCI: Financial assets that are held for collection of contractual cash flows and for
selling the assets, where the assets\u2019 cash flows represent SPPI, and that are not
designated at FVTPL, are measured at FVOCI. Movements in the carrying amount are
taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses on the instrument\u2019s AC, which are
recognised in profit or loss. When the financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is reclassified from equity to profit or loss
and recognised in other investment revenue. Interest revenue from these financial
assets is included in interest revenue calculated using the effective interest method.
c. FVTPL: Assets that do not meet the criteria for AC or FVOCI are measured at
FVTPL. Also, some assets are voluntarily measured at FVTPL, because this
significantly reduces an accounting mismatch. A gain or loss on a debt investment
that is subsequently measured at FVTPL is recognised and presented in the
consolidated statement of profit or loss within other investment revenue in the period
in which it arises.
The Group reclassifies debt instruments only when its business model for managing
those assets changes. The reclassification takes place from the start of the first
reporting period following the change. Such changes are expected to be very
infrequent, and none occurred during the period.
(d) Equity instruments
Equity instruments are instruments that meet the definition of equity from the issuer\u2019s
perspective (that is, instruments that do not contain a contractual obligation to pay and
that evidence a residual interest in the issuer\u2019s net assets). Examples of equity
instruments include basic ordinary shares.
The Group subsequently measures all equity investments at FVTPL. Gains and losses on
equity investments at FVTPL are included in the line \u2018Other investment revenue\u2019 in the
consolidated statement of profit or loss.
(e) Cash and cash equivalents
Cash and cash equivalents include cash balances and financial instruments with original
maturities of three months or less from the date of acquisition that are subject to an
insignificant risk of changes in their fair value, and are used by the Group in the
management of its short-term commitments. Cash and cash equivalents are carried in the
statement of financial position at AC net of ECL.
(f) Fair Value Measurement
For financial instruments traded in active markets, the determination of fair values of
financial assets and financial liabilities is based on quoted market prices or dealer price
quotations. This includes listed equity securities and quoted debt instruments on major
exchanges. The quoted market price used for financial assets held by the Group is the
current bid price or closing price as appropriate. A financial instrument is regarded as
quoted in an active market if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an arm\u2019s length
basis. If the market for a financial asset is not active, the Group establishes fair value by
using valuation techniques.\u00a0 These include the use of recent arm\u2019s length transactions,
reference to other instruments that are substantially the same or valued by reference to
the net assets of the underlying investment.\u00a0
(g) Impairment
(i) Debt instruments and cash and cash equivalents
The Group assesses the ECL associated with its debt instruments measured at AC and
debt instrument assets carried at FVOCI. The Group recognises a loss allowance for
such losses at each reporting date. The measurement of the ECL reflects:
a. an unbiased evaluation of a range of possible outcomes and their probabilities of
occurrence;
\u00a0 b. discounting for the time value of money; and
\u00a0 c. reasonable and supportable information that is available without undue cost or effort
at the reporting date about past events, current conditions and forecasts of future
economic conditions
However, IFRS 9 emphasises that estimating ECL may not necessarily need to be a
complex process and that an entity need not identify every possible scenario. In some
cases, relatively simple modelling may be sufficient without the need for many detailed
simulations or scenarios.
The Group calculates the ECL at an instrument level, using three main components:
\u2013 a probability of default (\u2018PD\u2019),
\u2013 a loss given default (\u2018LGD\u2019),
\u2013 and the exposure at default (\u2018EAD\u2019).
At initial recognition, an allowance is required for ECL resulting from default events
that are possible within the next 12 months, or less, where the remaining life is less than
12 months (\u201812-month ECL\u2019).
In the event of a \u2018significant increase in credit risk\u2019 (SICR), an allowance is required for
ECL resulting from all possible default events over the expected life of the financial
instrument (\u2018Lifetime ECL\u2019). In the case of a non-maturity deposit, the Group assumes a
lifetime of 1 month.
Financial assets where 12-month ECL is recognised are considered to be \u2018stage 1\u2019;
financial assets which are considered to have experienced a SICR are classified as \u2018stage
2\u2019; and financial assets for which there is objective evidence of impairment, and which
are so considered to be in default or otherwise credit impaired, are classified as \u2018stage 3\u2019.
The ECL allowance and any changes to it are recognised by recognising impairment
gains and losses in profit or loss.
(ii) Trade receivables
For trade receivables, the Company applies the simplified approach required by IFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
receivables. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The provision rates are based on
days past due for groupings of various customer segments with similar loss patterns. The
Company considers trade receivables in default when contractual payments are past their
credit terms.
Trade receivables are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the
probability of insolvency or significant financial difficulties of the debtor.\u00a0
(h) Derecognition
Financial assets, or a portion thereof, are derecognised when the contractual rights to
receive the cash flows from the assets have expired, or when they have been transferred
and either (i) the Group transfers substantially all of the risks and rewards of ownership;
or (ii) the Group neither transfers nor retains substantially all of the risks and rewards of
ownership and the Group has not retained control.
The Group enters into transactions where it retains the contractual rights to receive cash
flows from assets but assumes a contractual obligation to pay those cash flows to other
entities and transfers substantially all of the risks and rewards. These transactions are
accounted for as pass-through transfers that result in derecognition if the Group:
a. has no obligation to make payments unless it collects equivalent amounts from the
assets;
b. is prohibited from selling or pledging the assets; and
c.\u00a0 has an obligation to remit any cash that it collects from the assets without material
delay
(i)\u00a0 Modification
If cash flows are modified when the debtor is in financial difficulties, then the objective
of the modification is usually to maximise recovery of the original contractual cash
flows rather than to originate a new asset with substantially different terms. If the Group
plans to modify a financial asset in a way that would result in forgiveness of cash flows,
then it first considers whether a portion of the asset should be written off before the
modification takes place.
2.9.2 Financial liabilities
(a)\u00a0 Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at AC, except for
derivatives and investment contracts without DPF, which are measured at FVTPL.
Investment contracts without DPF are financial liabilities whose fair value is dependent
on the fair value of underlying financial assets and are designated at inception at
FVTPL. The Group designates these investment contracts to be measured at FVTPL,
because it eliminates or significantly reduces a measurement or recognition
inconsistency (that is, an accounting mismatch) that would otherwise arise from
measuring assets or liabilities or recognising the gains and losses on them on different
bases.
The Group\u2019s main valuation techniques incorporate all factors that market participants
would consider and make maximum use of observable market data. The fair value of
financial liabilities for investment contracts without DPF is determined using the
current unit values in which the contractual benefits are denominated. These unit values
reflect the fair values of the financial assets contained within the Group\u2019s unitised
investment funds linked to the financial liability. The fair value of the financial
liabilities is obtained by multiplying the number of units attributed to each contract
holder at the end of the reporting period by the unit value for the same date.
When the investment contract has a surrender option, the fair value of the financial
liability is never less than the amount payable on surrender.
Changes in the fair value of financial liabilities measured at FVTPL are presented in the
statement of profit or loss.
(b)\u00a0 Derecognition
Financial liabilities are derecognised when they are extinguished (that is, when the
obligation specified in the contract is discharged, is cancelled or expires). The Group
also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount
extinguished and the consideration paid (including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.
(c) Modification
If a financial liability measured at amortised cost is modified but not substantially, then
it is not derecognised.
(d)\u00a0 Derivatives
Derivatives are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value. All derivatives
are carried as assets when fair value is positive and as liabilities when fair value is
negative. Fair values are obtained from quoted market prices in active markets, and
other valuation techniques, as appropriate.\u00a0 Subsequent changes in the fair value of any
derivative instruments are recognised immediately in profit or loss.
2.17Offsetting
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when, and only when the Group currently has a legally enforceable
right to set-off the recognised amounts and it intends to settle them on a net basis, or to
realise the asset and settle the liability simultaneously. Income and expenses are
presented on a net basis only when it is required or permitted by a standard \u2013 e.g. gains
and losses arising from a group of similar transactions such as the gains and losses on
financial assets measured at FVTPL.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-325": { "value": "
2.Accounting policies
2.1Consolidation
(a) Subsidiary undertakings
The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the
recognised amounts of acquiree\u2019s identifiable net assets.
Profit or loss and each component of other comprehensive income are attributed to the
equity holders of the parent of the Group and to the non-controlling interests, even if
this results in the non-controlling interests having a deficit balance.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-378": { "value": "
3.Use of accounting estimates and judgements in applying accounting policies
The Group makes estimates and assumptions concerning the future.\u00a0 Estimates and
judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under
the circumstances.
Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognised in the financial statements is included in
the following notes, which also include information about assumptions and
uncertainties at 31 December 2025 that have a significant risk of resulting in a material
adjustment in the carrying amounts of assets and liabilities in the next financial year.
(a) Long-term contracts - insurance contract assets, insurance contract liabilities and\u00a0
reinsurance contract liabilities
Insurance contract assets, insurance contract liabilities and reinsurance contract
liabilities are subject to an annual valuation using generally accepted accounting and
actuarial practice.
Different principles and valuation methodologies are adopted depending on the type
and generation of products.\u00a0 The key assumptions used in determining the measurement\u00a0
of insurance contract assets, insurance contract liabilities and reinsurance contract
liabilities are described in Note 24.6 to the financial statements.
b)\u00a0 Short-term insurance contracts under PAA - liability for incurred claims
Liability of incurred claims (LIC) of short-term business insurance contracts, measured
under the PAA, comprise of the estimates of future cash flows, adjusted to reflect the
time value of money and a risk adjustment for non-financial risks. The estimates of
future cash flows is derived using a standard actuarial claims projection technique, the
Chain Ladder method, other than for non-motor large losses. The key assumptions
underlying this technique is that past claims development experience can be used to
project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
More detail on the key assumptions used in determining the LIC in respect of short-
term insurance contracts under PAA are described in Note 24.2 (a) to the financial
statements.
4.\u00a0 \u00a0 \u00a0 Management of risk
4.1Insurance risk
The risk under any one insurance contract is the possibility that the insured event occurs
and the uncertainty of the amount of the resulting claim.\u00a0 By the very nature of an
insurance contract, this risk is fortuitous, however, it can be predicted with a certain
disclosed level of reliability.
For a portfolio of insurance contracts where the theory of probability is applied to
pricing and provisioning, the principal risk that the Group faces under its insurance
contracts is that the actual claims and benefit payments are significantly different to the
amounts included within insurance/reinsurance contract liabilities and assets.\u00a0 This
could occur because the frequency or severity of claims and benefits are greater than
estimated.\u00a0 Insurance events are fortuitous and the actual number and amount of claims
and benefits may vary from year to year from the estimate established using statistical
and actuarial techniques.\u00a0
Experience shows that the larger the portfolio of similar insurance contracts, the smaller
the relative variability of the expected outcome will be.\u00a0 In addition, a more diversified
portfolio is less likely to be affected across the board by a change in any subset of the
portfolio.\u00a0 The Group manages this risk through adequate reinsurance arrangements and
proactive claims handling.
The Group has developed its insurance underwriting strategy to diversify the type of
insurance risk accepted and within each of these categories to achieve a sufficiently
large population of risks to reduce the variability of the expected outcome. The
objective of the underwriting strategy is to ensure that the underwritten risks are well
diversified in terms of type and amount of risk. The variability of risks is improved by
the careful selection and implementation of underwriting strategies, which are designed
to ensure that risks are diversified in terms of type of risk and level of insured benefits.
Key risks arising from insurance contracts issued:
Contract
Key risks
Risk mitigation
Short-term contracts
Insurance risk \u2013 frequency and
\u00a0 severity of claims
Underwriting strategy, adequate
reinsurance arrangements and
proactive claim handling
Life risk - Term
Mortality risk: death of
\u00a0 policyholder earlier than expected
Reinsurance with financially
strong reinsurer and adequate
underwriting
Investment contracts with DPF
Market risk: investment return on
\u00a0 underlying items falling below
\u00a0 guaranteed minimum rates
Management discretion to
determine amount and timing of
policyholder bonus rates
Interest rate risk: difference in
\u00a0 duration and yield of assets and
\u00a0 liabilities
Matching of asset and liability
cash flows
Unit-linked
Lapse risk: insufficient charges to
\u00a0 cover acquisition expenses
Surrender penalties and review of
charges
Factors that aggravate insurance risk include lack of risk diversification in terms of type
and amount of risk and lack of geographical spread. The Group is largely exposed to
insurance risk in one geographical area, Malta and in one currency, the Euro.
(a) Short-term business insurance contracts
Frequency and severity of claims
The terms and conditions of the contracts set out the bases for the determination of the
Group\u2019s liability should the insured event occur.\u00a0 The risks underwritten include motor
(including third party liability), health, fire and other damage to property, other classes
and group life.\u00a0 Details of insurance revenue as well as insurance service expenses
analysed by segment are provided in the \u201cSegment information\u201d (Note 7).
The frequency and severity of claims can be affected by several factors.\u00a0 The following
are considered by the Group to be the most significant:
-The increasing levels of court awards in cases where damages are suffered as a
result of injuries, the divergence of awards that is dependent on the territory of the
claim and the jurisdiction of the court, the effect of inflation due to the prolonged
period typically required to settle such cases; and
- The risk of a single event that can extensively affect a multiple of individual risks
to which the Group is exposed.
The Group manages these risks through its underwriting strategy, adequate reinsurance
arrangements and proactive claims handling.
The underwriting strategy ensures that the risks underwritten are well diversified in
terms of type and amount of risk. The Group follows strict underwriting guidelines and
sets limits on the overall retention of risk that it carries. Any risk in excess of this limit
is either reinsured under a facultative cover note or is declined. Underwriting limits are
in place to enforce appropriate risk selection criteria. In certain circumstances, certain
exclusions to risks are included within these guidelines. For example, the Group does
not insure US risks unless they are incidental. The Group can impose deductibles to
help manage its costs.\u00a0 It also uses its experience and expertise to mitigate the risk of
fraudulent claims.\u00a0 Insurance contracts also entitle the Group to pursue third parties for
payment of some or all of the costs (i.e. subrogation). A significant portion of the
Group\u2019s business is underwritten through an agency distribution network.\u00a0
Underwriting authority limits are set for individual agencies or branches, and any
contracts through which the Group is committed to cover risks in excess of these
authority limits require head office approval.
The Group has reinsurance protection in place for all classes of business.\u00a0 The type of
reinsurance cover, and the level of retention, is based on the Group\u2019s internal risk
management assessment which takes into account the risk being covered, the sums
assured and the geographical location of the risk.\u00a0 The Board approves each reinsurance
programme on an annual basis. The reinsurance arrangements include a mix of
proportional, facultative and non-proportional covers, which limit the liability of the
Group to any one individual claim or event. Generally, the Group\u2019s policy is to place
reinsurance with listed multinational reinsurance companies whose credit rating is not
less than BBB. No rating limitation shall apply to treaty placements with MAPFRE Re
or any MAPFRE Group company designated to write any or all of the MAPFRE Group
Reinsurance treaties. At 31 December 2025, MAPFRE Re\u2019s rating stood at A. The
Board monitors the security rating of MAPFRE on a periodic basis.
The Group has specialised claims units dealing with the mitigation of risks surrounding
known claims.\u00a0 These units investigate and adjust claims as appropriate.\u00a0 Claims are
individually reviewed regularly, and are adjusted to reflect the latest information on the
underlying facts, current law, jurisdiction, contractual terms and conditions and other
factors.\u00a0 The Group actively manages and pursues early settlement of claims to reduce
its exposure to unpredictable developments.\u00a0 Authority limits are set for the settlement
of claims through the individual agents. Any claims incurred above these limits are
referred to head office for handling. In addition, all claims involving bodily injury are
referred to head office irrespective of their amount.
Concentration of insurance risk
Up until 31 December 2025, 100% of the Group\u2019s business was written in Malta (2024:
100%). The portfolio is diversified in terms of type of business written, with motor
business comprising 44% (2024: 47%) and health comprising 20% (2024: 17%) and fire
and other property damage 19% (2023: 19%) of the total portfolio (including short-term
Group Life business).\u00a0 The remaining 17% (2024: 17%) of premium revenue is
generated across a spread of classes including marine, income protection, general
liability, travel and short-term group life.\u00a0 Further information on insurance revenue,
and insurance service expenses by insurance business class is provided in Note 7 to
these financial statements.\u00a0
Sources of uncertainty in the estimation of future claim developments and payments
Claims on contracts are accounted for on a claims-occurrence basis.\u00a0 The Group is
liable for all insured events that occurred during the term of the contract, even if the
loss is discovered after the end of the contract term.\u00a0 Certain classes of business, most
notably those exposed to liability, can take several years to develop and are therefore
subject to a greater degree of uncertainty than other classes of business which are
typically settled in a shorter period of time.
The estimated cost of claims includes direct expenses to be incurred in settling claims,
net of the expected subrogation value and recoveries.\u00a0 The Group takes all reasonable
steps to ensure that it has appropriate information regarding its claims exposures.\u00a0
However, given the uncertainty in establishing the liability for incurred claims, it is
possible that the final outcome will prove to be different from the original liability
established.
In calculating the estimated cost of unpaid claims, the Group considers the results of
estimation techniques that are based partly on known information at year-end and partly
on statistical analysis of historical experience.\u00a0
Further details on the process of estimation is provided in Note 24.2 which also presents
the development of the estimate of future cash flows for claims incurred in a given year.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Company with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a 5% upwards and
downwards change in the ultimate loss amount while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions
might be correlated.
31 December 2025
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(308)
(270)
(200)
(176)
Ultimate loss \u2013 5% decrease
308
270
200
176
31 December 2024
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(385)
(334)
(250)
(217)
Ultimate loss \u2013 5% decrease
385
334
250
217
(b) Long term business insurance contracts
Frequency and severity of claims (Mortality risk)
For contracts where death is the insured risk, the most significant factor that could
increase the overall frequency of claims are epidemics or wide spread changes in
lifestyle resulting in earlier or more claims than expected.
At present these risks do not vary significantly in relation to the location of the risk
insured by the Group. However, undue concentration by amounts could have an impact
on the severity of benefit payments on a portfolio basis.
For contracts with fixed and guaranteed benefits and fixed future premiums, there are
no mitigating terms and conditions that reduce the insurance risk accepted.\u00a0 For
investment contracts with DPF, the participating nature of the contracts results in a
portion of the insurance risk being reduced over the term of policy.\u00a0 Investment
contracts with DPF carry negligible mortality risk.
The Group manages these risks through its underwriting strategy and reinsurance
arrangements. The underwriting strategy is intended to ensure that the risks
underwritten are well diversified in terms of type of risk and level of insured benefits.
Medical selection is also included in the Group\u2019s underwriting procedures with
premiums varied to reflect the health condition and life expectancy of the applicants.
The Group has reinsurance protection in place to cover death claims.\u00a0 The type of
reinsurance cover and the level of retention for each risk are based on the Group\u2019s
internal risk management assessment, which takes account of the nature of the risk
covered and the sum assured. The reinsurance programme is approved by the Board of
Directors (\"the Board\") annually. The reinsurance arrangements in place include a mix
of quota share, facultative, excess of loss and catastrophe protection, which limits the
liability of the Group to any one individual life or event.\u00a0 The Group\u2019s reinsurance is
placed with listed multinational reinsurance companies whose rating is not less than A.
The mortality assumptions applied are disclosed in Note 24.
Policyholder lapse risk
Higher lapses than expected cause a loss of future profits and possibility of non-
recovery of sales expenses.
The amount of insurance risk is also subject to contract holder behaviour. On the
assumption that policyholders will make decisions rationally overall underwriting risk
can be assumed to be aggravated by such behaviour. For example, it is likely that
contract holders whose health has deteriorated significantly will be less inclined to
terminate contracts insuring death benefits than those contract holders remaining in
good health. This results in an increasing trend of expected mortality as the portfolio of
insurance contracts reduces due to voluntary terminations.
Unit-linked and with-profits policies, can be surrendered before maturity for a cash
surrender value specified in the contractual terms. Cash surrender value equals the
policyholder account/investment value at the time of termination, less any surrender
penalties. Through these penalties, policyholders are discouraged from surrendering
contracts earlier than policy maturity. As such, penalties mitigate the expense risk
arising from acquisition and other costs incurred when policies were issued, because
such costs were originally assumed to be spread over a longer period, since early
surrender was not expected.
The lapse assumptions applied are disclosed in Note 24.
Expense Risk
Expense risk is the risk of unexpected increases in policy maintenance, claim handling
and other costs relating to fulfilment of insurance contracts. The risk is managed
through budgeting and periodic cost evaluations. Investment contracts with DPF carry
negligible expense risk.
The expense assumptions applied are disclosed in Note 24.
Market Risk
This risk is covered in Note 4.2 (a). The investment assets return and discount rate
assumptions are disclosed in Note 24.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Group with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a change in an
assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions might be correlated.
31 December 2025
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,411)
(1,901)
174
92
113
60
Mortality rate \u2013 10% decrease
4,408
1,903
(179)
(94)
(116)
(61)
Lapse rates \u2013 10% increase
(1,822)
(288)
282
27
183
18
Lapse rates \u2013 10% decrease
1,822
288
(282)
(27)
(183)
(18)
Expenses \u2013 10% increase
(1,629)
(2,068)
14
16
9
10
Expenses \u2013 10% decrease
1,629
2,068
(14)
(16)
(9)
(10)
Investment contracts with DPF
Mortality rate \u2013 10% increase
(319)
(319)
3
3
2
2
Mortality rate \u2013 10% decrease
319
319
(3)
(3)
(2)
(2)
Lapse rates \u2013 10% increase
(455)
(455)
40
40
26
26
Lapse rates \u2013 10% decrease
455
455
(40)
(40)
(26)
(26)
Expenses \u2013 10% increase
(1,199)
(1,199)
(62)
(62)
(40)
(40)
Expenses \u2013 10% decrease
1,199
1,199
62
62
40
40
31 December 2024
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,274)
(1,870)
(174)
(63)
(113)
(41)
Mortality rate \u2013 10% decrease
4,269
1,872
172
63
112
41
Lapse rates \u2013 10% increase
(1,652)
(171)
149
118
97
77
Lapse rates \u2013 10% decrease
1,652
171
(149)
(118)
(97)
(77)
Expenses \u2013 10% increase
(1,649)
(2,045)
(86)
(108)
(56)
(70)
Expenses \u2013 10% decrease
1,649
2,045
86
108
56
70
Investment contracts with DPF
Mortality rate \u2013 10% increase
(311)
(311)
\u2014
\u2014
\u2014
\u2014
Mortality rate \u2013 10% decrease
311
311
\u2014
\u2014
\u2014
\u2014
Lapse rates \u2013 10% increase
53
53
98
98
64
64
Lapse rates \u2013 10% decrease
(53)
(53)
(98)
(98)
(64)
(64)
Expenses \u2013 10% increase
(1,707)
(1,707)
(116)
(116)
(76)
(76)
Expenses \u2013 10% decrease
1707
1707
116
116
76
76
Changes in underwriting risk variables mainly affect the CSM, profit or loss and equity
as follows.
GMM
VFA
a. CSM
Changes in fulfilment cash flows, other than those
\u00a0 recognised as\u00a0 insurance finance income or expenses
Changes in fulfilment
\u00a0 cash flows
b. Profit or
\u00a0 \u00a0 \u00a0 loss
Changes in fulfilment cash flows that are
\u00a0 recognised as insurance finance income or expenses
\u00a0 in profit or loss and change in CSM release and /or
\u00a0 coverage units
Changes in CSM
\u00a0 release and /or
\u00a0 coverage units
c. Equity
The effect on profit or loss under b.
\u00a0 after tax
The effect on profit or
\u00a0 loss under b. after tax
6.\u00a0 \u00a0 \u00a0 Amounts determined on transition to IFRS 17
Transition approach
At 1 January 2022, the Group applied the following approaches to identify and measure
certain groups of contracts on transition to IFRS 17.
Year of issue of contracts
Transition approach
After 2016 \u2013 term business including
\u00a0 reinsurance
Full retrospective approach
Before 2016 \u2013 term business including
\u00a0 reinsurance
Fair value approach
All with-profits and unit-linked business
Fair value approach
The transition approach was determined at the level of a group of insurance contracts
and affected the approach to calculating the CSM on initial adoption of IFRS 17.
The Group applied judgement in determining the transition amounts and the pre-
transition FCF and experience were not considered under this approach.
Applying the fair value approach, the Group determined the CSM to be the difference
between the fair value of a group of insurance contracts, measured in accordance with
IFRS 13 \u2018Fair Value Measurement\u2019 and its FCF at the transition date.
The fair value of an insurance liability is the price that a market participant would be
willing to pay to assume the obligation and the remaining risks of the in-force contracts
as at the transition date. A present value technique was used to value groups of
contracts.
In estimating the fair value of groups of insurance contracts, the following
considerations were applied:
\u2013 only future cash flows within the boundaries of the insurance contracts were
included in the fair value estimation, excluding future renewals and new business
that would be outside the contract boundary of the contracts under IFRS 17;
\u2013 assumptions about expected future cash flows and risk allowances, including
operational risk were adjusted for the market participant\u2019s view, as required by
IFRS 13;
\u2013 profit margins were included to reflect what a market participant would require
for accepting obligations under insurance contracts, beyond the risk adjustment
for non-financial risk; and
\u2013 diversification between market risk and life risk. Although market risk is
considered as a hedgeable risk, it was assumed that a buyer will be able to capture
this diversification from its other own modules.
Analysis by transition approach - insurance revenue and contractual service margin
For insurance contracts issued by the Group and reinsurance contracts held, an analysis
of insurance revenue for insurance contracts issued and the CSM by transition method
is included in the following tables.
31\u00a0 December 2025
Life Risk
Investment
contracts
with\u00a0 DPF
Total
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contracts issued
Insurance revenue
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(11,832)
(5,302)
(17,134)
Contracts measured under the fair value
\u00a0 approach at transition
(64)
(28,788)
(28,852)
(11,896)
(34,090)
(45,986)
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
32,946
17,191
50,137
Contracts measured under the fair value
\u00a0 approach at transition
6,592
64,072
70,664
39,538
81,263
120,801
31\u00a0 December 2025
Life Risk
\u20ac\u2019000
Reinsurance contracts held
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(11,472)
Contracts measured under the fair value
\u00a0 approach at transition
(4,184)
(15,656)
31\u00a0 December 2024
Life Risk
Investment
contracts
with\u00a0 DPF
Total
\u20ac'000
\u20ac'000
\u20ac\u2019000
Insurance revenue
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(13,182)
(4,116)
(17,298)
Contracts measured under the fair value
\u00a0 approach at transition
(128)
(29,344)
(29,472)
(13,310)
(33,460)
(46,770)
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
27,337
12,012
39,349
Contracts measured under the fair value
\u00a0 approach at transition
6,214
65,596
71,810
33,551
77,608
111,159
31\u00a0 December 2024
Life Risk
\u20ac\u2019000
Reinsurance contracts held
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(9,957)
Contracts measured under the fair value
\u00a0 approach at transition
(4,067)
(14,024)
Expected recognition of the contractual service margin
An analysis of the expected recognition of the CSM remaining at the end of the
reporting period in profit or loss is provided in the following table:
As at
31\u00a0December
2025
Insurance contracts issued
Reinsurance contracts held
Life Risk
Investment
contracts with
DPF
Total CSM for
insurance
contracts
issued
Life Risk
Total CSM for
reinsurance
contracts held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
1
(4,208)
(7,978)
(12,186)
1,752
1,752
2
(3,899)
(7,314)
(11,213)
1,613
1,613
3
(3,604)
(6,786)
(10,390)
1,482
1,482
4
(3,327)
(6,144)
(9,471)
1,361
1,361
5
(3,068)
(5,385)
(8,453)
1,250
1,250
6 \u2013 10
(11,942)
(17,624)
(29,566)
4,813
4,813
> 10
(16,736)
(30,032)
(46,768)
6,438
6,438
Total
(46,784)
(81,263)
(128,047)
18,709
18,709
As at
31\u00a0December
2024
Insurance contracts issued
Reinsurance contracts held
Life Risk
Investment
contracts with
DPF
Total CSM for
insurance
contracts
issued
Life Risk
Total CSM for
reinsurance
contracts held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
1
(3,576)
(7,025)
(10,601)
1,555
1,555
2
(3,313)
(6,454)
(9,767)
1,433
1,433
3
(3,054)
(5,904)
(8,958)
1,313
1,313
4
(2,811)
(5,466)
(8,277)
1,202
1,202
5
(2,586)
(4,943)
(7,529)
1,100
1,100
6 \u2013 10
(10,071)
(16,401)
(26,472)
4,226
4,226
> 10
(14,637)
(31,415)
(46,052)
5,753
5,753
Total
(40,048)
(77,608)
(117,656)
16,582
16,582
7.Segment information
Management has determined the operating segments based on the reports reviewed by
the Executive Management team that are used to make strategic decisions.\u00a0
The segment results for the years ended 31 December 2025 and 2024 are indicated
below.
(i)\u00a0 Insurance revenue and insurance service result
Short-term insurance contracts under PAA
Group and Company
31 December 2025
Motor
Fire and
other
property
damages
Health
Other
classes
Group
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
49,246
19,972
21,472
16,447
2,556
109,693
Insurance service expenses
(39,783)
(11,333)
(19,083)
(11,240)
(2,036)
(83,475)
Net expenses from reinsurance contracts held
(1,240)
(7,240)
(49)
(1,139)
(169)
(9,837)
Insurance service result
8,223
1,399
2,340
4,068
351
16,381
31 December 2024
Motor
Fire and
other
property
damages
Health
Other
classes
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
47,166
18,531
17,037
15,220
1,968
99,922
Insurance service expenses
(38,405)
(10,918)
(15,198)
(12,628)
(1,347)
(78,496)
Net expenses from reinsurance contracts held
(1,467)
(6,441)
(96)
(1,002)
(90)
(9,096)
Insurance service result
7,294
1,172
1,743
1,590
531
12,330
Long-term and linked long-term business
In the opinion of the directors, the subsidiary MAPFRE MSV Life p.l.c. primarily
operates in a single business segment being that of long-term and linked long-term
insurance business.
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
100% ( 2024: 100%) of consolidated insurance revenue emanate from contracts
concluded in or from Malta. All premiums emanate from external customers and there
is no business transacted between segments other than as disclosed in Note 34.
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets
and reinsurance contract liabilities
24.1\u00a0 Composition of statement of financial position
An analysis of the amounts presented on the statement of financial position for
insurance contracts assets, insurance contract liabilities, reinsurance contract assets and
reinsurance contract liabilities, is shown in the table below:
GROUP
Life Risk
Investment
Contracts
with DPF
Total long-term
business
Short-term
Under PAA
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
As at 31 December 2025
Insurance contract assets
4,484
\u2014
4,484
\u2014
4,484
Insurance contract liabilities
57
1,928,847
1,928,904
75,737
2,004,641
Reinsurance contract assets
\u2014
\u2014
\u2014
11,122
11,122
Reinsurance contract liabilities
15,225
\u2014
15,225
\u2014
15,225
GROUP
Life Risk
Investments
Contracts
with DPF
Total long-term
business
Short-term
Under PAA
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
As at 31 December 2024
Insurance contract assets
7,080
\u2014
7,080
\u2014
7,080
Insurance contract liabilities
6,400
1,948,078
1,954,478
72,968
2,027,446
Reinsurance contract assets
\u2014
\u2014
\u2014
11,815
11,815
Reinsurance contract liabilities
17,073
\u2014
17,073
\u2014
17,073
Insurance liabilities and reinsurance assets in relation to short-term insurance contracts
are classified as current liabilities, in that, liability for incurred claims represent events
that happened and which would normally be settled within the normal operating cycle.
The timing of payment can be dependent on factors, like court cases, that could defer
such payment to beyond a year from the reporting date. Insurance and investment
contract liabilities in relation to long-term contracts are substantially non-current.
24.2\u00a0 Short-term insurance contracts under PAA
Reconciliation of the liability for remaining coverage and the liability for incurred claims
The following tables present reconciliations from the opening to the closing balances of the
liability for remaining coverage (LRC) and liability for incurred claims (LIC).
Group and Company
2025
LRC
LIC
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contract liabilities at
\u00a0 1 January
35,072
186
36,792
918
72,968
Insurance revenue
(109,693)
\u2014
\u2014
\u2014
(109,693)
Insurance service expenses
Incurred claims and other directly
\u00a0 attributable expenses
\u2014
\u2014
51,650
377
52,027
Changes that relate to past service -
\u00a0 changes in FCF relating to the LIC
\u2014
\u2014
941
(432)
509
Losses on onerous contracts and reversals of
\u00a0 those losses
\u2014
(186)
\u2014
\u2014
(186)
Insurance acquisition cash flows
\u00a0 amortisation
31,125
\u2014
\u2014
\u2014
31,125
Insurance service expenses
31,125
(186)
52,591
(55)
83,475
Insurance service result
(78,568)
(186)
52,591
(55)
(26,218)
Finance expenses from insurance contracts
\u00a0 issued
\u2014
\u2014
355
9
364
Total amount recognised in
\u00a0 comprehensive income
(78,568)
(186)
52,946
(46)
(25,854)
Cash flows
Premiums received
113,449
\u2014
\u2014
\u2014
113,449
Claims and other directly attributable\u00a0
\u00a0 expenses paid
\u2014
\u2014
(52,954)
\u2014
(52,954)
Insurance acquisition cash flows
(31,872)
\u2014
\u2014
\u2014
(31,872)
Total cash flows
81,577
\u2014
(52,954)
\u2014
28,623
Insurance contract liabilities at
\u00a0 31 December
38,081
\u2014
36,784
872
75,737
Insurance contract liabilities at
\u00a0 31 December
38,081
37,656
75,737
Group and Company
2024
LRC
LIC
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contract liabilities at
\u00a0 1 January
32,021
\u2014
39,436
1,010
72,467
Insurance revenue
(99,922)
\u2014
\u2014
\u2014
(99,922)
Insurance service expenses
Incurred claims and other directly
\u00a0 attributable expenses
\u2014
\u2014
48,602
325
48,927
Changes that relate to past\u00a0 service -
\u00a0 changes in FCF relating to the LIC
\u2014
\u2014
1,260
(438)
822
Losses on onerous contracts and reversals of
\u00a0 those losses
\u2014
186
\u2014
\u2014
186
Insurance acquisition cash flows
\u00a0 amortisation
28,562
\u2014
\u2014
\u2014
28,562
Insurance service expenses
28,562
186
49,862
(113)
78,497
Insurance service result
(71,360)
186
49,862
(113)
(21,425)
Finance expenses from insurance contracts
\u00a0 issued
\u2014
\u2014
797
21
818
Total amount recognised in
\u00a0 comprehensive income
(71,360)
186
50,659
(92)
(20,607)
Cash flows
Premiums received
103,808
\u2014
\u2014
\u2014
103,808
Claims and other directly attributable\u00a0
\u00a0 expenses paid
\u2014
\u2014
(53,303)
\u2014
(53,303)
Insurance acquisition cash flows
(29,397)
\u2014
\u2014
\u2014
(29,397)
Total cash flows
74,411
\u2014
(53,303)
\u2014
21,108
Insurance contract liabilities at
\u00a0 31 December
35,072
186
36,792
918
72,968
Insurance contract liabilities at
\u00a0 31 December
35,258
37,710
72,968
Reconciliation of the asset for remaining coverage and the asset for incurred claims
The following tables present reconciliations from the opening to the closing balances of the
asset for remaining coverage (ARC) and asset for incurred claims (AIC).
Group and Company
2025
ARC
AIC
Remaining
coverage
excluding
loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract assets at 1 January
2,612
8,995
208
11,815
Net income/(expense) from reinsurance contracts
\u00a0 held
Reinsurance expenses
(13,242)
\u2014
\u2014
(13,242)
Incurred claims recovery
\u2014
2,798
32
2,830
Changes that relate to past service - changes in FCF
\u00a0 relating to the AIC
\u2014
611
(66)
545
Effect of changes in the risk of reinsurers' non-
\u00a0 performance
\u2014
30
\u2014
30
Net expense from reinsurance contracts
\u00a0 held
(13,242)
3,439
(34)
(9,837)
Finance income from reinsurance contracts held
\u2014
91
3
94
Total amount recognised in\u00a0 comprehensive
\u00a0 income
(13,242)
3,530
(31)
(9,743)
Cash flows
Premiums paid net of ceding commissions and other
\u00a0 directly attributable expenses paid
13,306
\u2014
\u2014
13,306
Recoveries from reinsurance
\u2014
(4,256)
\u2014
(4,256)
Total cash flows
13,306
(4,256)
\u2014
9,050
Reinsurance contract assets at 31 December
2,676
8,269
177
11,122
Group and Company
2024
ARC
Remaining
coverage
excluding
loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract assets at 1 January
2,625
10,467
267
13,359
Net income/(expense) from reinsurance contracts
\u00a0 held
Reinsurance expenses
(12,763)
\u2014
\u2014
(12,763)
Incurred claims recovery
\u2014
3,739
56
3,795
Changes that relate to past service - changes in FCF
\u00a0 relating to the AIC
\u2014
23
(120)
(97)
Effect of changes in the risk of reinsurers' non-
\u00a0 performance
\u2014
(30)
\u2014
(30)
Net expense from reinsurance contracts held
(12,763)
3,732
(64)
(9,095)
Finance income from reinsurance contracts held
\u2014
176
5
181
Total amount recognised in\u00a0 comprehensive
income
(12,763)
3,908
(59)
(8,914)
Cash flows
Premiums paid net of ceding commissions and other
\u00a0 directly attributable expenses paid
12,750
\u2014
\u2014
12,750
Recoveries from reinsurance
\u2014
(5,380)
\u2014
(5,380)
Total cash flows
12,750
(5,380)
\u2014
7,370
Reinsurance contract assets at 31 December
2,612
8,995
208
11,815
Short-term insurance contracts \u2013 liability for incurred claims
The gross claims reported are net of expected recoveries from salvage and subrogation.\u00a0
The liability for incurred claims are largely based on claims incurred data. A Chain
Ladder approach using the Development Factor Method has been used projecting
separately each portfolio of contracts. In choosing the development factors, outliers that
would unrealistically favourably or adversely impact the estimation of the ultimate cost
are excluded. Large losses within each portfolio other than for Motor have not been
projected given the small and infrequent number of such claims over time and have
been taken at the case reserve. In the case of Motor, large losses, in the main involving
fatalities or serious bodily injury, are projected separately from attritional claims given
their severity and different development patterns.
The development tables in this note give an indication of the time it takes to settle
certain claims.\u00a0 This is attributable to certain classes of business taking several years to
develop and is also due to the length of time it takes for the respective cases to be
resolved in court.
The top half of the tables below illustrates how the Company\u2019s estimate of the ultimate
total undiscounted claims cost for each accident year has changed at successive year-
ends on a gross and net basis. The bottom half of the table reconciles the cumulative
claims to the amount appearing in the statement of financial position on a gross and net
basis. The accident-year basis is the most appropriate for the general business written
by the Company.
The Group provides separately information on the gross and net basis the claims
development for the current reporting period and nine years prior to it. The diagonals
for financial years 2021 until 2024 show the undiscounted projected ultimate claims
incurred inclusive of claims related expenses as restated upon implementation of IFRS
17. The directors have considered that this does not detract the user from adequate
information as to how the claims have evolved from the particular accident year to the
current reporting period.
Insurance contracts under the PAA \u2013 gross liability for incurred claims
Group and Company
Accident year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Estimate of the ultimate claim cost undiscounted
-at end of accident year
34,704
38,545
43,006
43,700
32,634
37,770
42,727
44,496
43,317
47,849
-one year later
35,127
39,334
44,264
47,172
32,240
37,618
41,788
44,452
42,991
-two years later
33,780
39,377
44,724
47,326
32,727
35,321
43,365
44,323
-three years later
33,211
39,741
45,831
49,511
32,333
35,384
42,730
-four years later
33,159
38,328
46,109
48,483
32,465
35,043
-five years later
33,045
38,099
46,392
48,291
32,459
-six years later
32,750
37,715
46,843
48,211
-seven years later
31,792
37,756
46,978
-eight years later
31,799
37,792
-nine years later
31,828
Current estimates of cumulative claims
31,828
37,792
46,978
48,211
32,459
35,043
42,730
44,323
42,991
47,849
410,204
Cumulative payments to date
(31,559)
(37,481)
(44,078)
(46,494)
(30,920)
(34,079)
(39,501)
(40,450)
(39,308)
(30,316)
(374,186)
accident years from 2016 to 2025
269
311
2,900
1,717
1,539
964
3,229
3,873
3,683
17,533
36,018
Claims liabilities - prior accident years
1,979
Claims liabilities - Group Life
510
Effect of discounting
(1,723)
Liability for incurred claims for the contracts originated
36,784
Insurance contracts net of reinsurance contracts assets under the PAA \u2013 net liability for incurred claims
Group and Company
Accident year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Estimate of the ultimate claim cost undiscounted
-at end of accident year
30,079
33,106
33,539
33,848
28,126
34,463
39,334
40,287
40,049
45,232
-one year later
30,320
33,951
33,645
35,714
27,881
34,094
38,818
39,942
39,457
-two years later
29,171
33,638
33,846
36,367
28,372
32,035
40,309
39,822
-three years later
28,863
33,325
32,704
37,032
28,358
32,087
39,660
-four years later
29,038
32,961
32,524
36,587
28,499
31,796
-five years later
28,994
32,732
33,182
36,591
28,488
-six years later
28,746
32,680
33,222
36,492
-seven years later
28,382
32,624
33,111
-eight years later
28,391
32,602
-nine years later
28,420
Current estimates of cumulative claims
28,420
32,602
33,111
36,492
28,488
31,796
39,660
39,822
39,457
45,232
355,080
Cumulative payments to date
(28,213)
(32,684)
(32,699)
(35,886)
(27,007)
(30,958)
(36,610)
(36,222)
(37,111)
(29,392)
(326,782)
Liability recognised in statements of financial position
207
(82)
412
606
1,481
838
3,050
3,600
2,346
15,840
28,298
Liability in respect of prior years
1,110
Liability in respect of life risk claims
430
Discounting element
(1,323)
Total reserve included in the statements of the
\u00a0 financial position
28,515
(a)\u00a0 Assumptions
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. Under this approach, the discount rate is determined as the risk-free yield. Given
the short-term nature of its insurance contracts liabilities and liquidity of cash flows, the
Group has selected the risk-free rates as published by EIOPA as appropriate for the
nature of its liabilities taking a zero illiquidity premium.
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
1
5
10
1
5
10
Short term insurance contracts issued
\u00a0 and reinsurance contracts held
2.1%
2.5%
2.9%
2.2%
2.1%
2.3%
Risk adjustment for non-financial risk
Non-financial risk adjustment valuation reflects the compensation that the Group needs
to manage uncertainty regarding the amount and timing of future cash outflows, which
arise from non-financial risks from fulfilling insurance contract obligations.
Underwriting risks as well as other non-financial risks like portfolio expenses and
lapses are taken into consideration when determining this.
The non-financial risk adjustment has been estimated using a confidence-interval-based
approach, using Value at Risk (VaR) metrics for the probability distribution of the
current value of future cash flows, in line with Solvency II capital requirements, and
calibrating the target percentile confidence interval to 65 percentile. The Group
estimates an adjustment for non-financial risk separately from all other estimates.
Estimates of future cash flows to fulfil insurance contracts
LIC of short-term business insurance contracts, measured under the PAA, comprise of
the estimates of future cash flows. The estimates of future cash flows is derived using a
standard actuarial claims projection technique, the Chain Ladder method, other than for
non-motor large losses. The key assumptions underlying this technique is that past
claims development experience can be used to project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
(b)\u00a0 Sensitivity analysis
The directors have considered the sensitivity of the key variables underlying the liability
for short-term contracts.\u00a0 The most sensitive assumptions are the development factors
and discount rate changes. Development factors can be impacted by claims inflation,
increase in claims frequency and severity. Sensitivity analysis for insurance risk has
been disclosed in Note 4. Sensitivity analysis for interest rate risk has also been
disclosed in Note 4.
24.3\u00a0 Long-term insurance contracts - Life risk
Reconciliation of the asset or liability for remaining coverage and the liability for
incurred claims
The following tables present reconciliations from the opening to the closing balances of
the LRC (ARC) and LIC excluding any insurance acquisition cash flows assets and
other pre-recognition cash flows.
Group
2025
LRC (ARC)
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contracs assets at 1 January
(9,978)
2,898
(7,080)
Insurance contract liabilities at 1 January
6,329
71
6,400
Insurance revenue
(11,895)
\u2014
(11,895)
Insurance service expenses
Incurred claims and other directly attributable
\u00a0 expenses
12
4,466
4,478
Changes that relate to past service - changes in the FCF
\u00a0 relating to the LIC
\u2014
(4)
(4)
Insurance acquisition cash flows amortization
217
\u2014
217
Insurance service expenses
229
4,462
4,691
Insurance service result
(11,666)
4,462
(7,204)
Finance expenses from insurance contracts
\u00a0 issued
1,592
\u2014
1,592
Total amounts recognised in profit and loss
(10,074)
4,462
(5,612)
Investment components
(677)
677
\u2014
Transfer to the other items in the statement of financial
\u00a0 position (Note 25)
(6,023)
\u2014
(6,023)
Cash flows
Premium received
16,059
\u2014
16,059
Claims and other directly attributable expenses
\u2014
(6,045)
(6,045)
Insurance acquisition cash flows
(2,126)
\u2014
(2,126)
Total cash flows
13,933
(6,045)
7,888
Insurance contract assets at 31
\u00a0 December
(6,490)
2,006
(4,484)
Insurance contract liabilities at 31
\u00a0 December
\u2014
57
57
Group
2024
LRC (ARC)
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract assets at 1 January
(10,686)
1,741
(8,945)
Insurance contract liabilities\u00a0 at 1 January
6,441
47
6,488
Insurance revenue
(13,310)
\u2014
(13,310)
Insurance service expenses
Incurred claims and other directly attributable
\u00a0 expenses
\u2014
7,259
7,259
Insurance acquisition cash flows amortization
91
\u2014
91
Insurance service expenses
91
7,259
7,350
Insurance service result
(13,219)
7,259
(5,960)
Finance income from insurance contracts
\u00a0 issued
(836)
\u2014
(836)
Total amounts recognised in
\u00a0 profit or loss
(14,055)
7,259
(6,796)
Investment components
(934)
934
\u2014
Cash flows
Premium received
16,076
\u2014
16,076
Claims and other directly attributable expenses
\u2014
(7,012)
(7,012)
Insurance acquisition cash flows
(491)
\u2014
(491)
Total cash flows
15,585
(7,012)
8,573
Insurance contract assets at
\u00a0 31 December
(9,978)
2,898
(7,080)
Insurance contract liabilities at
\u00a0 31 December
6,329
71
6,400
Reconciliation of the measurement components of insurance contract balances
Group
2025
Life Risk - Insurance\u00a0 contract Issued
Present
value of
future cash
flows
Risk
adjustment
for non-
financial risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract\u00a0 assets at 1 January
(56,173)
15,542
33,551
(7,080)
Insurance contract liabilities at 1 January
6,400
\u2014
\u2014
6,400
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(4,315)
(4,315)
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
(1,626)
\u2014
(1,626)
Experience adjustment relating to insurance service
\u00a0 expenses
(1,259)
\u2014
\u2014
(1,259)
(1,259)
(1,626)
(4,315)
(7,200)
Changes that relate to future\u00a0 service
Changes in estimates that\u00a0 adjust the CSM
(5,174)
(53)
5,227
\u2014
Contracts initially recognised\u00a0 in the period
(6,447)
1,974
4,473
\u2014
(11,621)
1,921
9,700
\u2014
Changes that relate to past service
(4)
\u2014
\u2014
(4)
Insurance service result
(12,884)
295
5,385
(7,204)
Finance expenses from insurance contracts
\u00a0 issued
991
\u2014
601
1,592
Total amounts recognised in profit or loss
(11,893)
295
5,986
(5,612)
Cash flows
Premium received
16,059
\u2014
\u2014
16,059
Claims and other directly attributable expenses paid
(6,045)
\u2014
\u2014
(6,045)
Insurance acquisition cash flows
(2,126)
\u2014
\u2014
(2,126)
Total cash flows
7,888
\u2014
\u2014
7,888
Transfer to other items in the Statement of
\u00a0 Financial Position
(6,023)
\u2014
\u2014
(6,023)
Insurance contract assets at 31 December
(59,858)
15,837
39,537
(4,484)
Insurance contract\u00a0 liabilities at 31 December
57
\u2014
\u2014
57
Group
2024
Total
Present value
of future cash
flows
Risk
adjustment
for non-
financial risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract assets\u00a0 at 1 January
(56,044)
14,905
32,194
(8,945)
Insurance contract\u00a0 liabilities at 1 January
6,488
\u2014
\u2014
6,488
Changes that relate to current service
CSM recognised for the\u00a0 services provided
\u2014
\u2014
(3,664)
(3,664)
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
(1,596)
\u2014
(1,596)
Experience adjustment relating to insurance service
\u00a0 expenses
(700)
\u2014
\u2014
(700)
(700)
(1,596)
(3,664)
(5,960)
Changes that relate to future\u00a0 service
Changes in estimates that adjust the CSM
(1,810)
450
1,360
\u2014
Contracts initially recognised\u00a0 in the period
(4,940)
1,783
3,157
\u2014
(6,750)
2,233
4,517
\u2014
Insurance service result
(7,450)
637
853
(5,960)
Finance (income)/expense from insurance contracts
\u00a0 issued
(1,340)
\u2014
504
(836)
Total amounts recognised in profit or loss
(8,790)
637
1,357
(6,796)
Cash flows
Premium received
16,076
\u2014
\u2014
16,076
Claims and other directly\u00a0 attributable expenses paid
(7,012)
\u2014
\u2014
(7,012)
Insurance acquisition cash flows
(491)
\u2014
\u2014
(491)
Total cash flows
8,573
\u2014
\u2014
8,573
Insurance contract assets at 31 December
(56,173)
15,542
33,551
(7,080)
Insurance contract liabilities at 31 December
6,400
\u2014
\u2014
6,400
Impact of contracts recognised in the year
Group
2025
2024
Non-onerous
contracts originated
Non-onerous
contracts originated
\u20ac\u2019000
\u20ac\u2019000
Estimates of present value of future cash outflows
-\u00a0 Insurance acquisition cash flows
2,440
520
-\u00a0 Claims and other directly attributable expense
7,615
8,793
10,055
9,313
Estimates of the present value of future cash inflows
(16,502)
(14,253)
Risk adjustment for non-financial risk adjustment
1,974
1,783
CSM
4,473
3,157
Increase in insurance contract liabilities from
\u00a0 contracts recognised in the period
\u2014
\u2014
24.4\u00a0 Life risk - Reinsurance contracts held
Reconciliation of the remaining coverage and incurred claims
Group
2025
2024
Remaining
coverage
Incurred
Claims
Total
Remaining
coverage
Incurred
Claims
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract
\u00a0 liabilities at 1 January
21,788
(4,715)
17,073
19,171
(3,678)
15,493
Net expenses from
reinsurance
\u00a0 contracts held
Reinsurance expenses
4,022
\u2014
4,022
4,083
\u2014
4,083
Other directly
\u00a0 attributable expenses
\u2014
569
569
\u2014
519
519
Incurred claims
\u00a0 recovery
\u2014
(1,342)
(1,342)
\u2014
(1,858)
(1,858)
Net expense/(income)
from reinsurance
contracts held
4,022
(773)
3,249
4,083
(1,339)
2,744
Finance (income)/
\u00a0 expenses from\u00a0
\u00a0 reinsurance contracts
\u00a0 held
(2,063)
\u2014
(2,063)
697
\u2014
697
Total amounts
\u00a0 recognised in
\u00a0 profit or loss
1,959
(773)
1,186
4,780
(1,339)
3,441
Cash flows
Premium paid net of
\u00a0 ceding commission and
\u00a0 other directly attributable
\u00a0 expenses paid
(4,091)
(569)
(4,660)
(2,163)
(519)
(2,682)
Recoveries from
\u00a0 reinsurance
\u2014
1,626
1,626
\u2014
821
821
Total cash flows
(4,091)
1,057
(3,034)
(2,163)
302
(1,861)
Reinsurance contract
\u00a0 liabilities as at 31
\u00a0 December
19,656
(4,431)
15,225
21,788
(4,715)
17,073
Reconciliation of the measurement components of reinsurance contract balances
Group
2025
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract liabilities at 1 January
36,762
(5,665)
(14,024)
17,073
Changes that relate to current service
CSM recognised for the services received
\u2014
\u2014
1,860
1,860
Change in the risk adjustment for non- financial
\u00a0 risk for risk expired
\u2014
322
\u2014
322
Experience adjustment relating to incurred
\u00a0 claims and other directly\u00a0 attributable expenses\u00a0 \u00a0 \u00a0
\u00a0 recovery and reinsurance\u00a0 premium
1,067
\u2014
\u2014
1,067
1,067
322
1,860
3,249
Changes that relate to future service
Changes in estimates that adjust the CSM
2,339
71
(2,410)
\u2014
Contracts initially recognised in the period
1,206
(345)
(861)
\u2014
3,545
(274)
(3,271)
\u2014
Finance income from reinsurance
\u00a0 contracts held
(1,842)
\u2014
(221)
(2,063)
Total amounts recognised in profit or loss
2,770
48
(1,632)
1,186
Cash flows
Premium paid net of ceding commission and
\u00a0 other directly attributable expenses paid
(4,660)
\u2014
\u2014
(4,660)
Recoveries from insurance
1,626
\u2014
\u2014
1,626
Total cash flows
(3,034)
\u2014
\u2014
(3,034)
Reinsurance contract liabilities at 31
\u00a0 December
36,498
(5,617)
(15,656)
15,225
Group
2024
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract liabilities at
\u00a0 1 January
34,081
(5,626)
(12,962)
15,493
Changes that relate to current service
CSM recognised for the\u00a0 services received
\u2014
\u2014
1,651
1,651
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
283
\u2014
283
Experience adjustment relating to incurred
\u00a0 claims and other directly\u00a0 attributable expenses
\u00a0 recovery and reinsurance premium
810
\u2014
\u2014
810
810
283
1,651
2,744
Changes that relate to future\u00a0 service
Changes in estimates that adjust the CSM
2,276
(36)
(2,240)
\u2014
Contracts initially recognised in the period
587
(286)
(301)
\u2014
2,863
(322)
(2,541)
\u2014
Finance expenses/( income) from reinsurance
\u00a0 contracts held
869
\u2014
(172)
697
Total amounts recognised in profit or loss
4,542
(39)
(1,062)
3,441
Cash flows
Premium paid net of ceding commission and
\u00a0 other directly attributable expenses paid
(2,682)
\u2014
\u2014
(2,682)
Recoveries from insurance
821
\u2014
\u2014
821
Total cash flows
(1,861)
\u2014
\u2014
(1,861)
Reinsurance contract liabilities at 31
\u00a0 December
36,762
(5,665)
(14,024)
17,073
Impact of contracts recognised in the year
Group
2025
2024
Contracts originated not
in a net gain
Contracts originated in
a net gain
\u20ac\u2019000
\u20ac\u2019000
Estimates of the present value of future cash inflows
(3,669)
(3,632)
Estimates of the present value of future cash outflows
4,875
4,219
Risk adjustment for non-financial risk
(345)
(286)
CSM
(861)
(301)
Increase in reinsurance contract assets from
\u00a0 contracts recognised in the period
\u2014
\u2014
24.5\u00a0 Investment contracts with DPF
Reconciliation of the liability for remaining coverage and the liability for incurred
claims
Group
2025
2024
LRC
Excluding
Loss
Component
LIC
Total
LRC
Excluding
Loss
Component
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities
at 1 January
1,894,037
54,041
1,948,078
1,935,970
48,919
1,984,889
Insurance revenue
(34,090)
\u2014
(34,090)
(33,460)
\u2014
(33,460)
Insurance service expenses
Incurred claims and other
\u00a0 directly attributable
\u00a0 expenses
\u2014
18,689
18,689
\u2014
21,845
21,845
Insurance acquisition cash
\u00a0 flows amortization
7,268
\u2014
7,268
4,338
\u2014
4,338
Insurance service expenses
7,268
18,689
25,957
4,338
21,845
26,183
Insurance service result
(26,822)
18,689
(8,133)
(29,122)
21,845
(7,277)
Finance expenses from
\u00a0 insurance contracts
\u00a0 issued
80,510
\u2014
80,510
83,210
\u2014
83,210
Total amounts recognised in
\u00a0 profit or loss
53,688
18,689
72,377
54,088
21,845
75,933
Investment components
(211,796)
211,796
\u2014
(233,487)
233,487
\u2014
Cash flows
Premium received
150,150
\u2014
150,150
142,452
\u2014
142,452
Claims and other directly
\u00a0 attributable expenses
\u2014
(235,249)
(235,249)
\u2014
(250,210)
(250,210)
Insurance acquisition cash
\u00a0 flows
(6,902)
\u2014
(6,902)
(4,240)
\u2014
(4,240)
Decrease/(increase) in policy
\u00a0 loans
393
\u2014
393
(746)
\u2014
(746)
Total cash flows
143,641
(235,249)
(91,608)
137,466
(250,210)
(112,744)
Insurance contract liabilities
at 31 December\u00a0
1,879,570
49,277
1,928,847
1,894,037
54,041
1,948,078
Reconciliation of the measurement components of contract balances
Group
2025
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities at 1 January
1,866,991
3,479
77,608
1,948,078
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(8,049)
(8,049)
Change in the risk adjustment for non-financial risk for risk
\u00a0 expired
\u2014
(232)
\u2014
(232)
Experience adjustment
148
\u2014
\u2014
148
148
(232)
(8,049)
(8,133)
Changes that relate to future service
Changes in estimates that adjust the CSM
(5,201)
(804)
6,005
\u2014
Contracts initially recognised in the period
(5,647)
189
5,458
\u2014
Experience adjustments arising from premiums received
\u00a0 in the period that relate to future service
(241)
\u2014
241
\u2014
(11,089)
(615)
11,704
\u2014
Insurance service result
(10,941)
(847)
3,655
(8,133)
Finance expenses from insurance contracts issued
80,510
\u2014
\u2014
80,510
Total amounts recognised in profit or loss
69,569
(847)
3,655
72,377
Cash flows
Premium received
150,150
\u2014
\u2014
150,150
Claims and other directly attributable expenses paid
(235,249)
\u2014
\u2014
(235,249)
Insurance acquisition cash flows
(6,902)
\u2014
\u2014
(6,902)
Increase in policy loans
393
\u2014
\u2014
393
Total cash flows
(91,608)
\u2014
\u2014
(91,608)
Insurance contract liabilities at 31 December
1,844,952
2,632
81,263
1,928,847
Group
2024
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities at 1 January
1,910,347
2,815
71,727
1,984,889
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(7,128)
(7,128)
Change in the risk adjustment for non-financial risk for risk
\u00a0 expired
\u2014
(228)
\u2014
(228)
Experience adjustment relating to insurance service
\u00a0 expenses
79
\u2014
\u2014
79
79
(228)
(7,128)
(7,277)
Changes that relate to future service
Changes in estimates that adjust the CSM
(8,215)
669
7,546
\u2014
Contracts initially recognised in the period
(3,095)
223
2,872
\u2014
Experience adjustments arising from premiums received
\u00a0 in the period that relate to future service
(2,591)
\u2014
2,591
\u2014
(13,901)
892
13,009
\u2014
Insurance service result
(13,822)
664
5,881
(7,277)
Finance expenses from insurance contracts issued
83,210
\u2014
\u2014
83,210
Total amounts recognised in profit or loss
69,388
664
5,881
75,933
Cash flows
Premium received
142,452
\u2014
\u2014
142,452
Claims and other directly attributable expenses paid
(250,210)
\u2014
\u2014
(250,210)
Insurance acquisition cash flows
(4,240)
\u2014
\u2014
(4,240)
Increase in policy loans
(746)
\u2014
\u2014
(746)
Total cash flows
(112,744)
\u2014
\u2014
(112,744)
Insurance contract liabilities at 31 December
1,866,991
3,479
77,608
1,948,078
Impact of contracts recognised in the year
Group
2025
2024
Investment contracts with DPF
Non-onerous
contracts originated
Non-onerous
contracts originated
\u20ac\u2019000
\u20ac\u2019000
Estimates of present value of future cash outflows
-\u00a0\u00a0\u00a0 Insurance acquisition cash flows
6,421
4,014
-\u00a0\u00a0\u00a0 Claims and other directly attributable expense
144,181
149,277
150,602
153,291
Estimates of the present value of future cash inflows
(156,249)
(156,386)
Risk adjustment for non-financial risk adjustment
189
223
CSM
5,458
2,872
Increase in insurance contract liabilities from
contracts recognised in the period
\u2014
\u2014
24.6\u00a0 Long term contracts - inputs, assumptions and estimation techniques
In applying IFRS 17 measurement requirements, the below inputs, assumptions and
estimation techniques were used.
(a)Estimation techniques
Best estimate of future cash flows
The best estimate liability is the present value of expected future cash flows, discounted
using a\u00a0 yield curve (i.e. interest rates at different maturities at a given point in time).
The estimates of these future cash flows are based on probability-weighted expected
future cash flows. The Group estimates which cash flows are expected and the
probability that they will occur as at the measurement date. The projections allow for all
expected decrements and policyholder actions, including lapses. Future premiums are
taken into account up to the contract boundary. Allowance for future expenses take into
account both overheads and directly attributable expenses, and future expense inflation.
The cash flow projections is performed on a policy by policy basis.
Investment contracts with DPF liabilities include the cost of financial guarantees and
options. A market consistent stochastic valuation is used to calculate these costs.
Representative model pointing is used in these stochastic runs. For such contracts,
discretionary benefits are allowed for separately in the technical provisions. The
calculations reflect a pre-defined set of realistic management actions and policyholder
behaviour. The best estimate liability does not include the value of shareholder
transfers.
For unit-linked business, the unit and non-unit components are unbundled for the
purposes of determining the best estimate liability.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is the compensation that is required for
bearing the uncertainty about the amount and timing of cash flows that arises from non-
financial risk as the insurance contract is fulfilled. Because the risk adjustment
represents compensation for uncertainty, estimates are made on the degree of
diversification benefits and expected favourable and unfavourable outcomes in a way
that reflects the Group\u2019s degree of risk aversion. The Group estimates an adjustment for
non-financial risk separately from all other estimates. The Group considers separately
the effect of reinsurance in the risk adjustment for non-financial risk of the underlying
insurance contracts. The risk adjustment applied by the Group only includes mortality
risk, lapse risk, and expenses risk and catastrophic risk.
The risk adjustment was calculated at the issuing entity level and then allocated down to
each group of contracts in accordance with their risk profiles. The value at risk (\u2018VaR\u2019)
method was used to derive the overall risk adjustment for non-financial risk, whereby
the maximum loss that a portfolio can experience within a one year time horizon at a
confidence level of 85 percent is determined. This technique discounts future cash flows
of the best estimate liabilities under different possible scenarios to produce a risk
distribution. The risk adjustment is taken to be equal to the VaR with that confidence
interval less the value of the best estimate of the discounted cash flows.
(b)\u00a0 Assumptions
All assumptions are best estimate, with no prudential margins. The Group takes into
account all relevant available data, both internal and external, when arriving at
assumptions that best reflect the characteristics of the underlying insurance portfolio.
In calculating estimates of fulfilment cash flows, the Group uses information about past
events, current conditions and forecasts of future conditions. The Group\u2019s estimate of
future cash flows is the mean of a range of scenarios that reflect the full range of
possible outcomes. Each scenario specifies the amount, timing and probability of cash
flows.
Assumptions used to develop estimates about future cash flows are reassessed at each
reporting date and adjusted where required.
Investment assets returns
For with-profits contracts, assumptions about future underlying investment returns are
made. Due to the measurement models applied and the nature of the products,
particularly the determination of the discount rates used to discount future estimates of
cash flows that vary with returns on underlying items, assumptions about future
underlying investment returns do not impact contract measurement significantly. There
are limited financial guarantees in these products. The liabilities associated with these
guarantees are measured using a market-consistent stochastic model. The interest rate
guarantee embedded in investment contracts with DPF was measured using stochastic
modelling, because the guarantee does not move symmetrically with different interest
rate scenarios. The guarantee was measured using a full range of scenarios representing
possible future risk-free interest rate environments published by European Insurance
and Occupational Pensions Authority (\u2018EIOPA\u2019). Stochastic investment returns reflect
the volatility of the underlying assets.
For a sensitivity analysis, refer to Note 4.2(a).
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. This approach was used to derive the discount rate for the cash flows that do not
vary based on the returns on underlying items in the investment contracts with DPF.
Under this approach, the discount rate is determined as the risk-free yield, adjusted for
differences in liquidity characteristics between the financial assets used to derive the
risk-free yield and the relevant liability cash flows (known as an \u2018illiquidity premium\u2019).
The risk-free rates used were as published by EIOPA and the Group evaluates the
illiquidity premium on a yearly basis.
Management uses judgement to assess liquidity characteristics of the liability cash
flows. The Group\u2019s insurance contracts do not have a cash surrender value and hence,
its liabilities can be considered as illiquid which allows the Group to reflect the
illiquidity characteristics of these products via the illiquidity premium. The Group
decided to use a reference portfolio as an appropriate proxy for the term liabilities.
On the other hand, the Group\u2019s investment contracts with DPF have surrender value and
therefore, liabilities can be considered highly liquid. Thus, these are discounted using
the risk-free rates without applying any illiquidity adjustment. Cash flows varying based
on underlying items are discounted using a discount rate that reflects the volatility of the
underlying assets.
For a sensitivity analysis, refer to Note 4.2(a).
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
Product
5
10
5
10
Life risk (issued and
\u00a0 reinsurance held)
2.7%
3.4%
2.3%
2.4%
Investment contracts
\u00a0 with DPF
2.5%
2.9%
2.1%
2.3%
Policy acquisition and maintenance expenses
The Group projects estimates of future expenses relating to fulfilment of contracts
within the scope of IFRS 17 using current expense levels adjusted for inflation, non-
recurring expenses and new budgeted expenses that the Group is expected to incur in
the future. Expenses comprise expenses directly attributable to the groups of contracts,
including an allocation of fixed and variable overheads.
The short-term expense inflation assumption is based on forecasts issued by the Central
Bank of Malta, adjusted for the Group\u2019s own experience. The long-term expense
inflation assumption is based on the Central Bank of Malta long-term inflation target.
Expense inflation is considered to be a non-financial risk.
Where estimates of indirect expenses-related cash flows are determined at the portfolio
level or higher, they are allocated to groups of contracts on a systematic basis, such as
number of policies in force. A renewal per policy maintenance expense including
claims is derived for all portfolios.
2025
2024
\u20ac
\u20ac
Life Risk
\u20ac48.0
48.5
Investment contracts with DPF
105.2 - 109.0
76.5 - 102.3
Acquisition cash flows are typically allocated to the groups of contracts from which
they arise or to which they relate. This includes an allocation of acquisition cash flows
among existing new business. An acquisition expense per new business policy is
derived for all portfolios.
The Group provides investment-return services for the investment contracts with DPF
to manage assets in policyholder accounts and investment-related services for the
contracts measured under the VFA. An investment expense per asset under management
is derived.
For a sensitivity analysis, refer to Note 4.1.
Mortality rates
Mortality experience is reviewed annually and assumptions are set separately for term
and investment contracts with DPF having regard to past experience, events not in data\u00a0
and future expected mortality trends. The Group makes reference to the following
standard mortality table. This UK mortality table is based on male assured lives of
combined smoker status
2025
2024
Life Risk
44% TMC00
44% TMC00
Investment contracts with DPF
48% AMC00
48% AMC00
The Group fits its own experience as a percentage of the TMC00 and AMC00 (2024:
TMC00 and AMC00) mortality table and uses this as a basis for its mortality
assumption.
For a sensitivity analysis, refer to Note 4.1.
Lapse rates
The Group derives assumptions about lapse and surrender rates based on the Group's
own experience. Historical lapse and surrender rates are derived from the Group\u2019s
policy administration data. An analysis is then performed of the Group\u2019s historical rates
in comparison to the assumptions previously used. Statistical methods are used to derive
adjustments to reflect the Group\u2019s own experience and any trends in the data, to arrive
at the probability-weighted expected lapse and surrender rates. Analysis is performed
and assumptions are set by major product lines.
For investment contracts with DPF, the Group incorporates dynamic lapsing. For these
products lapse experience also vary by market conditions and outlook.
The following assumptions about lapse and surrender rates were used. Methods used to
derive these assumptions have not changed in 2025.
2025
2024
Life Risk
3.0% - 7.0%
3.0% - 7.0%
Investment contracts with DPF
0.5% - 5.5%
0.5% - 6.0%
For a sensitivity analysis, refer to note 4.1.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInsuranceContractsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-377": { "value": "
3.Use of accounting estimates and judgements in applying accounting policies
(c) Consolidation of entities in which the Group holds less than majority of voting
rights
The Group considers that it controls MAPFRE MSV Life p.l.c. (\u2018MMSV\u2019) even though
it does not own more than 50% of the voting rights. This is because strategic, operating
and financing policies of MMSV are directed by means of shareholders\u2019 agreement
which provides MAPFRE Middlesea p.l.c. with the right to select, appoint and remove
the key management personnel of MMSV and approve its business plan and capital
expenditure.
For all the financial years up to 31 December 2010, MMSV was considered to be an
associate and was accounted for using the equity method.\u00a0 Following the shareholders\u2019
agreement, on 29 July 2011, MAPFRE Middlesea p.l.c. acquired control over MMSV
based on the factors explained in this note and started consolidating MMSV as from
that date.
20.Investment in subsidiary undertakings
The subsidiary undertakings at 31 December are shown below:
Subsidiary undertakings
Registered office
Class of shares held
Percentage of shares held
2025
2024
Euro Globe Holdings
\u00a0 Limited (Struck off
\u00a0 effective 06.03.2025)
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
\u2014%
100%
Euromed Risk Solutions
\u00a0 Limited (Company in
\u00a0 liquidation)
4th Floor
Development
House
St. Anne Str
Floriana FRN9010
Malta
Ordinary shares
100%
100%
Bee Insurance Management
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
100%
100%
MAPFRE MSV Life plc
The Mall
Triq il-Mall
Floriana FRN1470
Malta
Ordinary shares
50%
50%
Church Wharf Properties
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
75%
75%
The Group\u2019s aggregated assets and liabilities and the results of its subsidiary
undertakings that have non-controlling interest, before elimination entries, are as
follows:
2025
% Held by
non-
controlling
interests
Assets
Liabilities
Revenues
Profit
before tax
Net cash
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
MAPFRE MSV Life p.l.c.
50%
2,383,956
2,201,467
209,892
15,669
(32,569)
Church Wharf\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
Properties Limited
25%
2,300
406
\u2014
(38)
\u2014
2024
% Held by
non-
controlling
interests
Assets
Liabilities
Revenues
Profit
before tax
Net cash
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
MAPFRE MSV Life p.l.c.
50%
2,357,236
2,182,904
205,847
14,983
31,053
Church Wharf\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
Properties Limited
25%
2,301
368
\u2014
(43)
\u2014
The amount of dividends that can be distributed in cash by MAPFRE MSV Life p.l.c. is
restricted by the solvency requirements imposed by the MFSA Regulations.
During 2011, the Company acquired control of MAPFRE MSV Life p.l.c. following a
shareholders\u2019 agreement. MAPFRE MSV Life p.l.c. had previously been accounted for
as an associated undertaking.\u00a0
As a result of this business combination, Church Wharf Properties Limited, which was
previously classified as an associated undertaking, also became a subsidiary in view of
the fact that the remaining interest in this company is held by MAPFRE MSV Life
p.l.c.
21.\u00a0 \u00a0 Investment in associated undertakings
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
14,480
294
Accumulated share of associated undertaking's equity
109
109
Accumulated fair value movements
9,334
\u2014
Net book amount
23,923
403
2024
Opening net book amount
23,923
403
Disposals
(17,900)
\u2014
Share of associated undertaking's movement in equity
(4)
(4)
Fair value movement
(793)
\u2014
Closing net book amount
5,226
399
At 31 December 2024
Cost
4,480
294
Accumulated share of associated undertaking's equity
105
105
Accumulated fair value movements
641
\u2014
Net book amount
5,226
399
Year ended 31 December 2025
Opening net book amount
5,226
399
Share of associated undertaking's movement in equity
(11)
\u2014
Disposal
(4,806)
\u2014
Fair value movement
(21)
(11)
Closing net book amount
388
388
At 31 December 2025
Cost
294
294
Accumulated share of associated undertaking's equity
94
105
Accumulated fair value movements
\u2014
(11)
Net book amount
388
388
The Group\u2019s aggregated assets and liabilities and the share of the results of its
associated undertaking, which is unlisted is as follows:
2025
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
958
66
2,936
294
49%
2024
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
1,507
520
3,208
309
49%
In addition to the associated undertakings above, MAPFRE MSV Life p.l.c. also held
the following investments in associated undertakings:
Associated
undertakings
Registered
office
Class of
shares held
Percentage of shares held
MSV
Group
2025
2024
2025
2024
Plaza Centres
\u00a0 p.l.c.
The Plaza
Commercial
Centre
Bisazza Street
Sliema
Ordinary
\u00a0 shares
0.00%
31.42%
0.00%
31.42%
Plaza Centres p.l.c. is listed on the Malta Stock Exchange and its share price as at 31
December 2025 was \u20ac0.90 (31 December 2024: \u20ac0.60 ).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-394": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(b)\u00a0 \u00a0 Credit risk
Credit risk is the risk of decreases in value when counterparties are not capable of
fulfilling their obligations or when a change in their credit status takes place. The Group
has exposure to credit risk, which is the risk that a counterparty will be unable to pay
amounts in full when due. Key areas where the Group is exposed to credit risk are:
\u2022 Investments and cash and cash equivalents
\u2022 Reinsurance contract assets
\u2022 Amounts due from insurance intermediaries
\u2022 Counterparty risk with respect to forward foreign exchange contracts
The Group places limits on the level of credit risk undertaken from the main categories
of financial instruments. These limits also take due consideration of the solvency
restrictions imposed by the relevant regulations. The investment strategy of the Group
considers the credit standing of the counterparty and control structures are in place to
assess and monitor these risk thresholds.
The Group structures the levels of credit risk it accepts by limiting as far as possible its
exposure to a single counterparty or groups of counterparties. The Group has in place
internal control structures to assess and monitor credit exposures and risk thresholds.
The Group\u2019s cash is placed with a number of core domestic credit institutions and
investment grade international banks, thereby reducing the concentration of
counterparty credit risk to an acceptable level.
Reinsurance is used to manage insurance risk. This does not, however, discharge the
Group\u2019s liability as primary insurer. If a reinsurer fails to pay a claim for any reason,
the Group remains liable for the payment to the policyholder.\u00a0 The creditworthiness of
reinsurers is monitored on a quarterly basis by reviewing credit grades provided by
rating agencies and other publicly available financial information, thereby ensuring the
continuous financial strength of the reinsurer. At the same time that the Board approves
the overall reinsurance protection of the Group, it ensures that the reinsurers\u2019 credit
rating (either Standard & Poor\u2019s or equivalent) is within the parameters set by it.
The Group is exposed to contract holders and intermediaries for insurance revenue.\u00a0
Credit agreements are in place in all cases where credit is granted, and in the case of
certain larger risks, premium payment warranties are in place.\u00a0 This limits the liability
of the Group towards the insured or any third party if the premium remains unsettled
after the credit period granted and allows the Group to cancel the policy ab initio, if
considered necessary. Records are kept of the payment history for significant contract
holders and intermediaries with whom regular business is conducted.\u00a0 Credit is not
granted to contract holders whose payment history is not satisfactory.\u00a0 Credit risk with
respect to debtors is further limited due to the large number of customers comprising
the Group\u2019s debtor base.
The exposure to individual counterparties is also managed by other mechanisms, such
as the right to offset where counterparties are both debtors and creditors of the Group.
Management information reported to the Group includes details of provisions for
impairment on receivables and subsequent write-offs.\u00a0 The Company performs risk-
based reviews to assess the degree of compliance with the Group\u2019s procedures on credit
and take action accordingly.\u00a0 In the case of MMSV, it is not normal for credit to be
extended to insurance policyholders due to the nature of their business, unless
automatic policy loans are advanced up to the surrender value of the contract.
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
The total assets bearing credit risk are the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Debt securities
1,012,362
1,020,445
22,069
16,273
Deposits with banks and credit institutions
59,983
39,657
\u2014
\u2014
Forward foreign exchange contracts and
\u00a0 swaps
2,209
\u2014
\u2014
\u2014
A component of reinsurance contract assets
6,395
8,084
6,395
8,084
Trade and other receivables
\u00a0 (excluding prepayments)
24,858
22,039
21,877
18,788
Cash and cash equivalents
50,244
81,899
14,559
13,908
Total
1,156,051
1,172,124
64,900
57,053
The carrying amounts disclosed above represent the maximum exposure to credit risk.
The component of reinsurance contract assets exposed to credit risk is analysed in the
table below using Standard & Poor\u2019s rating (or equivalent).
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
AA
167
122
A
5,896
7,446
Below BBB or not rated
332
516
6,395
8,084
These assets other than the reinsurance contract assets are analysed in the table below
using Standard & Poor\u2019s rating (or equivalent).
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
AAA
97,564
84,353
3,642
4,085
AA
129,341
232,871
5,265
2,522
A
505,410
440,982
13,720
7,690
BBB
314,384
317,688
10,926
13,013
Below BBB or not rated
102,957
88,146
24,952
21,659
1,149,656
1,164,040
58,505
48,969
Debt securities, receivables and cash and cash equivalents that are not rated are
primarily held with highly reputable financial institutions.
The Group does not hold any collateral as security to its credit risk.
Financial assets that are past due but not impaired
The following other assets are classified as past due but not impaired:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within credit terms
9,673
10,737
Not more than three months
3,712
3,821
Within three to twelve months
2,055
1,875
Over twelve months
921
1,063
16,361
17,496
IFRS 7 defines a financial asset as being past due when the counterparty has failed to
make a payment when contractually due. It goes further to stipulate that full disclosure
must be made of all balances due from this particular counterparty, including those,
which are still within credit terms and therefore not contractually due.
The overall exposure of the Group and Company in terms of IFRS 7 is \u20ac16.4 million
(2024: \u20ac17.5 million), of which \u20ac9.7 million (2024: \u20ac10.7 million) is not contractually
due. It is the view of the directors that no impairment charge is necessary, due to the
following reasons:
1. Settlements after year-end.
2. In cases where the amount has not been settled, agreement for settlement has been
reached or is being negotiated.
Trade receivables at 31 December 2025 did not comprise any amounts (2024: nil)
whose terms had been renegotiated from the original terms and which were classified as
fully performing.
Financial assets that are impaired
Within trade receivables are the following receivables that are classified as impaired
against which a provision for impairment has been provided as per Note 26:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Over twelve months (Note 26)
869
717
A decision to impair an asset is based on the following information that comes to the
attention of the Group:
\u2022 Significant financial difficulty of the debtor.
\u2022 It becoming probable that the debtor will enter bankruptcy or other financial
reorganisation.
\u2022 A breach of contract, such as protracted default in payments
\u2022 The debtor has been referred to the in-house legal office.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-393": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(a)\u00a0 Market risk
(ii)\u00a0 \u00a0 Equity price risk
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
\u00a0
4.3Fair values
The following table presents the assets measured in the statement of financial position
at fair value by level of the following fair value measurement hierarchy at 31 December
2025:
\u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
\u2022 Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2); and
\u2022 Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
The Group recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
The following tables present the assets and liabilities measured at fair value at 31
December 2025.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through profit or
\u00a0 loss
- Equity securities, units in unit trusts and
\u00a0 collective investment schemes
911,971
142,863
101,319
1,156,153
- Debt securities
549,047
392,209
\u2014
941,256
Debt securities at FVOCI
9,900
12,169
\u2014
22,069
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
2,209
\u2014
2,209
Total assets
1,470,918
549,450
101,319
2,121,687
Liabilities
Investment contract liabilities
\u2014
229,748
\u2014
229,748
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
638
\u2014
638
Total liabilities
\u2014
230,386
\u2014
230,386
The following tables present the assets measured at fair value at 31 December 2024.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through
\u00a0 profit or loss
- Equity Securities, units in unit trusts and
\u00a0 \u00a0 collective investment schemes
874,858
123,120
101,480
1,099,458
- Debt Securities
567,135
388,077
\u2014
955,212
Debt securities at FVOCI
8,946
7,327
\u2014
16,273
Forward foreign exchange contracts and\u00a0
\u00a0 swaps
\u2014
4,805
\u2014
4,805
Investment in associated undertakings
\u2014
\u2014
\u2014
\u2014
Total assets
1,450,939
523,329
101,480
2,075,748
Liabilities
Investment contract liabilities
\u2014
179,685
\u2014
179,685
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
6,816
\u2014
6,816
Total liabilities
\u2014
186,501
\u2014
186,501
Fair value measurements classified as Level 1 include government debt securities, units
in unit trusts and collective investments schemes and foreign listed equities.
Corporate debt securities are classified as Level 2 in view of their trading
characteristics. The financial liabilities for unit-linked contracts were also classified as
Level 2. The fair value of these contracts is determined using the current unit values
that reflect the fair values of the financial assets (classified as Level 1) linked to the
financial liability.\u00a0 Derivative foreign exchange forward contracts have been classified
as Level 2.\u00a0 The fair value of these instruments is determined by reference to market
observable forward currency rates and interest rates. Domestic equities are classified as
Level 2 in view of their trading characteristics.
At 31 December 2025, 4.8% (2024:4.9%) of the financial assets measured at fair value
on a recurring basis were classified as Level 3.\u00a0 They constitute investment in unlisted
equities. The Group has \u20ac101.3 million (2024:\u20ac101.5 million) assets classified as Level
3, the valuation of which has been determined by reference to the latest available net
asset values of the underlying investment or the latest transaction price.
The following table presents the changes in Level 3 instruments for the year ended 31
December:
Group
2024
Equity securities
\u20ac'000
Opening balance
94,839
Additions
5,300
Disposals
(1,749)
Total gains recognised in profit or loss
3,090
Closing balance
101,480
2025
Equity securities
\u20ac'000
Opening balance
101,480
Additions
1,682
Disposals
\u2014
Total losses recognised in profit or loss
(1,843)
Closing balance
101,319
22.\u00a0 \u00a0 Other investments
The investments are summarised by measurement category in the table below.
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
(a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
At 31 December 2025, the Group had \u20ac30.3 million financial commitments in respect
of uncalled capital (2024:\u00a0 \u20ac31.9 million).
Equity securities and collective investment schemes are considered to be substantially
non-current assets in nature.
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
Derivative financial liabilities amounting to \u20ac0.6 million (2024 \u20ac6.8 million), included
in the table above, are classified within liabilities in the statement of financial position.
25.Investment contract liabilities
The table shows a reconciliation of the opening to closing balance for the investment
contract liabilities.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Opening balance \u2013 1 January
179,685
123,253
Contributions received
43,350
47,684
Benefits paid
(5,684)
(4,308)
Investment return from underlying assets
7,052
13,131
Transfer from the other items in the Statement of Financial Position
\u00a0 (Note 24)
6,023
\u2014
Asset management fees charged
(678)
(75)
Closing balance \u2013 31 December
229,748
179,685
In the above reconciliation, the investment return from the underlying assets represents
changes in the fair value of the investment contract liabilities due to changes in market
conditions. Asset management fees charged in the profit or loss also includes trailer
fees.
The above liabilities are substantially non-current in nature.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-392": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(b)\u00a0 \u00a0 Credit risk
Financial assets that are impaired
Within trade receivables are the following receivables that are classified as impaired
against which a provision for impairment has been provided as per Note 26:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Over twelve months (Note 26)
869
717
A decision to impair an asset is based on the following information that comes to the
attention of the Group:
\u2022 Significant financial difficulty of the debtor.
\u2022 It becoming probable that the debtor will enter bankruptcy or other financial
reorganisation.
\u2022 A breach of contract, such as protracted default in payments
\u2022 The debtor has been referred to the in-house legal office.
26.\u00a0 Trade and other receivables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Receivables from intermediaries
21,548
18,313
21,548
18,313
Other prepayments and receivables:
- prepayments and other receivables
5,829
5,269
1,495
905
- accrued interest and rent
907
1,161
468
342
- receivables from group undertakings
\u2014
\u2014
715
624
- receivables from associated
\u00a0 \u00a0 undertaking
15
226
15
226
- other debtors
5
205
\u2014
\u2014
Provision for impairment of receivables
(869)
(717)
(869)
(717)
27,435
24,457
23,372
19,693
Current portion
27,435
24,457
23,372
19,693
Movements in the provision for impairment of receivables are as follows:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Balance as at 1 January
717
535
Increase in provision for impairment
152
182
Balance as at 31 December
869
717
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-391": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
The Group is exposed to financial risks through its financial assets, financial liabilities
and insurance contract assets and liabilities and reinsurance contracts assets and
liabilities.\u00a0 In particular, the key risk is that in the long term, the proceeds from its
financial assets are not sufficient to fund the obligations arising from its insurance and
investment contracts.\u00a0 The components of financial risks for the Group are market risk
(including cash flow and fair value interest rate risk, equity price risk and currency
risk), credit risk and liquidity risk. These risks arise from open positions in interest rate,
currency and equity products, all of which are exposed to general and specific market
movements.\u00a0 The risks that the Group primarily faces due to the nature of its assets and
liabilities are interest rate risk and equity price risk.
The Group has developed its Asset/Liability management framework to further support
the manner in which these risk positions are managed.\u00a0 It actively manages its assets to
achieve a competitive rate of return within risk objectives delineated by asset liquidity
measures, duration targets and credit quality parameters.\u00a0 The respective Investment
Committees review and approve investment strategies on a periodic basis ensuring that
assets are managed efficiently and within approved risk mandates.
(a)\u00a0 Market risk
Market risk comprises interest rate, equity price and foreign currency risks. These risks
arise from variability in fair values of financial instruments or related future cash flows,
as well as from variability of the FCF of insurance contracts due to variability in market
risk variables.
(i)\u00a0 Cash flow and fair value interest rate risk
Insurance and investment contracts with DPF at Group level have benefit payments that
are fixed and guaranteed at the inception of the contract (for example, sum assured), or
as annual discretionary bonuses are declared. The Group\u2019s primary financial risk on
these contracts is the risk that interest income and capital redemptions from the
financial assets backing the liabilities are insufficient to fund the guaranteed benefits
payable.
The Group does not guarantee a positive fixed rate of return to its long-term contract
policyholders at the inception of a contract. The declaration of discretionary bonuses is
guided by the bonus philosophy of the Board. Once a reversionary bonus is declared, it
is guaranteed to be paid in full at maturity or on the prior death of the life assured. Also
policyholders have the option to withdraw their current year\u2019s bonus without any
charges following the date the bonus is declared.
The bonus philosophy considers historic and current rates of return generated by the
Group\u2019s investment portfolio as well as the Group\u2019s expectations for future investment
returns. The impact of interest rate risk is mitigated by the presence of the DPF. These
guaranteed benefits increase as discretionary benefits are declared and allocated to
contract holders. The current rates of regular and final bonuses are determined by the
Board in consultation with the Approved Actuary.\u00a0 Different bonus rates are declared
on different generations of contracts depending on the type of product, cost structure,
past investment performance and premium rates.\u00a0 Different bonuses are declared to
maintain equity between different generations of contract holders and products with
different characteristics. Future bonus rates are not guaranteed and the assumptions are
set to allow for a fair and orderly run-off of the fund.
All unit-linked and investment contracts with a DPF feature can be surrendered before
maturity for a cash surrender value that is always less than the actual contract liability.
Cash surrender values are determined at the discretion of the Group, and can be varied
from time to time.
The primary factor affecting the level of cash surrender value is the investment return
earned on the assets of the Group. In addition, the cash surrender value is affected by
the expenses, tax and the cost of risk benefits (such as life cover) borne by the Group,
deductions to provide a return to shareholders, as well as profits and losses arising on
other contracts. The expenses include payment of commission, medical report expenses,
office administration costs and other expenses incurred in the setting up and
maintenance of the contract. At most, the cash surrender value will be the amount of the
actual liability reduced by the surrender charge (where applicable).
Furthermore, in respect of all with-profits (with the exception of some contracts that
have been in force more than a certain number of years), the Group reserves the right to
increase the level of the surrender charge and, if necessary, to apply a Market Value
Reduction (\u2018MVR\u2019). A MVR is a deduction which the Group may make on surrender of
a contract with DPF. For example, if the underlying investment return, after allowing
for expenses, tax, risk benefits, shareholder returns and adjustment for profits or losses
on other contracts is less than the return already provided for in the form of
reversionary bonuses, the Group may decide to apply a MVR.
The MVR serves to protect the interests of remaining investors and the Group, who
would otherwise have to subsidise the amount paid on surrendering contracts. The
Group does not apply a standard percentage deduction on all contracts but determines
the deduction to apply to each individual surrender at the time the surrender is made.
The amount depends on a number of factors including the length of time the contract
has been in force and the underlying investment return over the same time period. There
will be no MVR at maturity or on death. This means that at maturity or on death the
payment of the actual contract liability is guaranteed.
The cash surrender value may also be less than the total amount of premiums paid up to
the date of surrender.\u00a0 The Group is not required to, and does not, measure the effect of
the above embedded derivative at fair value.\u00a0
The Group matches its insurance contract liabilities with a diversified portfolio of assets
which includes equity, debt securities and property.\u00a0 The return from debt and cash-
based securities is subject to interest rate risk.\u00a0
In general, the Group is exposed to risk associated with the effects of fluctuations in the
prevailing levels of market interest rates. Assets/liabilities issued at variable rates
generally expose the Group to cash flow interest risk.\u00a0 Assets/liabilities issued at fixed
rates generally expose the Group to fair value interest rate risk. Group investment
parameters exist to limit exposure to any one particular issuer and any one particular
security. Periodic reports are prepared at portfolio, legal entity and asset class level that
are circulated to the Group\u2019s key management personnel. Note 22 incorporates maturity
information with respect to the Group's investments.
The total assets and liabilities exposed to interest rate risk are the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Assets at floating interest rates
100,729
93,884
\u2014
\u2014
Assets at fixed interest rates
1,303,915
1,290,280
26,069
18,773
1,404,644
1,384,164
26,069
18,773
Reconciled to the notes to the financial statements as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
\u20ac'000
Debt securities (Note 22)
1,012,362
1,020,445
22,069
16,273
Deposits with banks and credit institutions
\u00a0 (Note 22)
59,983
39,657
\u2014
\u2014
A component of equity securities and units
\u00a0 in unit trusts
328,142
321,387
\u2014
\u2014
Interest bearing cash and cash equivalents
4,157
2,675
4,000
2,500
1,404,644
1,384,164
26,069
18,773
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
\u20ac'000
Insurance and reinsurance contracts
Liabilities
(1,900,121)
(1,920,554)
(37,657)
(37,710)
Assets
15,437
19,783
8,446
9,203
(1,884,684)
(1,900,771)
(29,211)
(28,507)
Interest rate risk in relation to hybrid contracts, amounting to \u20ac38.2 million (2024:
\u20ac35.2 million) has been excluded as the directors consider the exposure to be
insignificant.
In managing its portfolio, the Group entered into fixed income security futures
contracts.\u00a0 Accordingly, it is exposed to movements in interest rates in the respective
markets of the underlying, which comprise short, medium and long-term sovereign
debt.\u00a0 The notional amount of futures contracts outstanding at 31 December is shown
below:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Long positions
- Federal Republic of Germany
70,690
65,488
- United States Government
11,154
17,884
81,844
83,372
Short positions
- Federal Republic of Germany
65,501
78,096
- United States Government
6,777
18,601
72,278
96,697
Up to the reporting date, the Group did not have any hedging policy with respect to
interest rate risk other than as described in note 2.9.
Sensitivity analysis \u2013 interest rate risk
An analysis of the Group\u2019s sensitivity to a 1% increase or decrease in market interest rates
at the reporting date, assuming that all other variables remain constant, is presented below.
An explanation of the method used in preparing such sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss before
tax
Equity
Increase
Decrease
Increase
Decrease
Increase
Decrease
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Insurance and reinsurance
\u00a0 contracts (net)
398
(440)
(221)
150
(143)
98
Investment contracts with
\u00a0 DPF
3,801
(12,290)
301
(1,098)
195
(714)
Other investments
\u2014
\u2014
\u2014
\u2014
(602)
623
4,199
(12,730)
80
(948)
(550)
7
31 December 2024
Insurance and\u00a0 reinsurance
\u00a0 contracts (net)
406
(449)
183
(284)
119
(185)
Investment contracts\u00a0 with
\u00a0 DPF
6,483
(19,019)
552
(1,714)
359
(1,114)
Other investments
\u2014
\u2014
\u2014
\u2014
(301)
281
6,889
(19,468)
735
(1,998)
177
(1,018)
(ii)\u00a0 \u00a0 Equity price risk
The Group\u2019s financial assets are susceptible to the risk of decreases in value due to
changes in the prices of equities. The directors manage the risk of price volatility by
entering into a diverse range of investments including equities and collective
investment schemes.\u00a0 In addition, the Group\u2019s investments are spread geographically in
a diverse number of different countries.\u00a0 The Group has active Investment Committees
that have established a set of investment guidelines that are also approved by the Board
of Directors.\u00a0 Investments over prescribed limits are directly approved by the respective
Boards.\u00a0 These guidelines provide parameters for investment management, including
contracts with external portfolio managers.\u00a0 They include, inter alia, reference to an
optimal spread of the investment portfolio, assessment of equity issuers and maximum
exposures by the Group to any one issuer and its connected parties (with the exception
of investments in Government paper). These parameters also consider solvency
restrictions imposed by the Regulator.
Management structures are in place to monitor all the Group\u2019s overall market positions
on a regular basis.\u00a0 Reports are prepared at portfolio, legal entity and asset and liability
class level that are circulated to the Group\u2019s relevant key management personnel. These
are also reviewed by the respective Investment Committees and Boards.
The total assets subject to equity price risk are the following:
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Group
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Assets subject to equity price risk
560,764
561,742
3,119
2,813
The above includes:
Component of\u00a0 investments in associated\u00a0
\u00a0 undertakings (Note 21)*
\u2014
4,805
\u2014
\u2014
A component of equity securities and units
\u00a0 in unit trusts
560,764
556,937
3,119
2,813
560,764
561,742
3,119
2,813
*Investments in associates (Note 21) amounting to \u20ac0.4 million (2024:\u20ac0.4 million) for
the Group and \u20ac0.4 million (2024: \u20ac0.4 million) for the Company have been excluded
from equity price risk since they are accounted for under the equity method.
In the case of assets held to cover unit-linked liabilities the exposure is carried by the
contract holder.\u00a0 In the case of capital guaranteed products any shortfalls guaranteed
upon maturity are mitigated by a back-to-back guarantee with international financial
service providers as further referred in 4.2 (a) (i).\u00a0
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
The Group\u2019s and Company\u2019s liabilities are substantially denominated in euro.\u00a0 The
Group\u2019s exposure to foreign currency risk arises primarily from both equity and debt
securities denominated in major foreign currencies. The Group hedges its foreign
currency denominated debt securities using foreign exchange forward contracts in order
to mitigate the risk that principal cash flows for these investments fluctuate as a result
of changes in foreign exchange rates.
The table below summarises the Group\u2019s exposure to foreign currencies other than
euro.
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
Credit risk is the risk of decreases in value when counterparties are not capable of
fulfilling their obligations or when a change in their credit status takes place. The Group
has exposure to credit risk, which is the risk that a counterparty will be unable to pay
amounts in full when due. Key areas where the Group is exposed to credit risk are:
\u2022 Investments and cash and cash equivalents
\u2022 Reinsurance contract assets
\u2022 Amounts due from insurance intermediaries
\u2022 Counterparty risk with respect to forward foreign exchange contracts
The Group places limits on the level of credit risk undertaken from the main categories
of financial instruments. These limits also take due consideration of the solvency
restrictions imposed by the relevant regulations. The investment strategy of the Group
considers the credit standing of the counterparty and control structures are in place to
assess and monitor these risk thresholds.
The Group structures the levels of credit risk it accepts by limiting as far as possible its
exposure to a single counterparty or groups of counterparties. The Group has in place
internal control structures to assess and monitor credit exposures and risk thresholds.
The Group\u2019s cash is placed with a number of core domestic credit institutions and
investment grade international banks, thereby reducing the concentration of
counterparty credit risk to an acceptable level.
Reinsurance is used to manage insurance risk. This does not, however, discharge the
Group\u2019s liability as primary insurer. If a reinsurer fails to pay a claim for any reason,
the Group remains liable for the payment to the policyholder.\u00a0 The creditworthiness of
reinsurers is monitored on a quarterly basis by reviewing credit grades provided by
rating agencies and other publicly available financial information, thereby ensuring the
continuous financial strength of the reinsurer. At the same time that the Board approves
the overall reinsurance protection of the Group, it ensures that the reinsurers\u2019 credit
rating (either Standard & Poor\u2019s or equivalent) is within the parameters set by it.
The Group is exposed to contract holders and intermediaries for insurance revenue.\u00a0
Credit agreements are in place in all cases where credit is granted, and in the case of
certain larger risks, premium payment warranties are in place.\u00a0 This limits the liability
of the Group towards the insured or any third party if the premium remains unsettled
after the credit period granted and allows the Group to cancel the policy ab initio, if
considered necessary. Records are kept of the payment history for significant contract
holders and intermediaries with whom regular business is conducted.\u00a0 Credit is not
granted to contract holders whose payment history is not satisfactory.\u00a0 Credit risk with
respect to debtors is further limited due to the large number of customers comprising
the Group\u2019s debtor base.
The exposure to individual counterparties is also managed by other mechanisms, such
as the right to offset where counterparties are both debtors and creditors of the Group.
Management information reported to the Group includes details of provisions for
impairment on receivables and subsequent write-offs.\u00a0 The Company performs risk-
based reviews to assess the degree of compliance with the Group\u2019s procedures on credit
and take action accordingly.\u00a0 In the case of MMSV, it is not normal for credit to be
extended to insurance policyholders due to the nature of their business, unless
automatic policy loans are advanced up to the surrender value of the contract.
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
The total assets bearing credit risk are the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Debt securities
1,012,362
1,020,445
22,069
16,273
Deposits with banks and credit institutions
59,983
39,657
\u2014
\u2014
Forward foreign exchange contracts and
\u00a0 swaps
2,209
\u2014
\u2014
\u2014
A component of reinsurance contract assets
6,395
8,084
6,395
8,084
Trade and other receivables
\u00a0 (excluding prepayments)
24,858
22,039
21,877
18,788
Cash and cash equivalents
50,244
81,899
14,559
13,908
Total
1,156,051
1,172,124
64,900
57,053
The carrying amounts disclosed above represent the maximum exposure to credit risk.
The component of reinsurance contract assets exposed to credit risk is analysed in the
table below using Standard & Poor\u2019s rating (or equivalent).
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
AA
167
122
A
5,896
7,446
Below BBB or not rated
332
516
6,395
8,084
These assets other than the reinsurance contract assets are analysed in the table below
using Standard & Poor\u2019s rating (or equivalent).
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
AAA
97,564
84,353
3,642
4,085
AA
129,341
232,871
5,265
2,522
A
505,410
440,982
13,720
7,690
BBB
314,384
317,688
10,926
13,013
Below BBB or not rated
102,957
88,146
24,952
21,659
1,149,656
1,164,040
58,505
48,969
Debt securities, receivables and cash and cash equivalents that are not rated are
primarily held with highly reputable financial institutions.
The Group does not hold any collateral as security to its credit risk.
Financial assets that are past due but not impaired
The following other assets are classified as past due but not impaired:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within credit terms
9,673
10,737
Not more than three months
3,712
3,821
Within three to twelve months
2,055
1,875
Over twelve months
921
1,063
16,361
17,496
IFRS 7 defines a financial asset as being past due when the counterparty has failed to
make a payment when contractually due. It goes further to stipulate that full disclosure
must be made of all balances due from this particular counterparty, including those,
which are still within credit terms and therefore not contractually due.
The overall exposure of the Group and Company in terms of IFRS 7 is \u20ac16.4 million
(2024: \u20ac17.5 million), of which \u20ac9.7 million (2024: \u20ac10.7 million) is not contractually
due. It is the view of the directors that no impairment charge is necessary, due to the
following reasons:
1. Settlements after year-end.
2. In cases where the amount has not been settled, agreement for settlement has been
reached or is being negotiated.
Trade receivables at 31 December 2025 did not comprise any amounts (2024: nil)
whose terms had been renegotiated from the original terms and which were classified as
fully performing.
Financial assets that are impaired
Within trade receivables are the following receivables that are classified as impaired
against which a provision for impairment has been provided as per Note 26:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Over twelve months (Note 26)
869
717
A decision to impair an asset is based on the following information that comes to the
attention of the Group:
\u2022 Significant financial difficulty of the debtor.
\u2022 It becoming probable that the debtor will enter bankruptcy or other financial
reorganisation.
\u2022 A breach of contract, such as protracted default in payments
\u2022 The debtor has been referred to the in-house legal office.
(c)\u00a0 Liquidity risk
The Group is exposed to daily calls on its available cash resources mainly from claims
and benefits arising from insurance contracts.\u00a0 Liquidity risk is the risk that cash may
not be available to pay obligations when due at a reasonable cost. The Group manages
its funds in such a manner as to ensure an adequate portion of available funds to meet
such calls. With respect to life insurance contracts this is principally managed through
limits set by the Board of MMSV on the minimum proportion of maturity funds
available to meet such calls. Furthermore, the Group invests a majority of its assets in
listed investments that can be readily disposed of.
The following table indicates the expected timing of cash flows arising from the
maturity or settlement of Group\u2019s liabilities. The expected cash flows do not consider
the impact of early surrenders on life insurance contracts.
Group expected cash flows (\u20ac millions) 2025
Payable on
demand
0-1 yr
1-2
yrs
2-3
yrs
3-4
yrs
4-5
yrs
>5 yrs
Total
Undiscounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Insurance contract assets -
\u00a0 Life insurance contracts
3.0
(10.0)
(8.0)
(7.0)
(6.0)
(5.0)
(27.0)
(60.0)
Insurance contract liabilities
\u00a0 - Life insurance contracts
50.0
186.0
142.0
163.0
182.0
176.0
910.0
1,809.0
Reinsurance contract
\u00a0 liabilities
7.0
3.0
3.0
2.0
2.0
2.0
17.0
36.0
Insurance contract liabilities
\u00a0 \u2013 liabilities for incurred
\u00a0 claims short- term
\u00a0 contracts under PAA
\u2014
19.5
6.1
3.4
2.4
1.4
3.5
36.3
Lease liabilities
\u2014
0.5
0.3
0.3
0.3
0.2
0.6
2.2
Other payables
19.9
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
19.9
\u00a0 \u00a0
Group expected cash flows (\u20ac millions) 2024
Payable on
demand
0-1 yr
1-2
yrs
2-3
yrs
3-4
yrs
4-5
yrs
>5 yrs
Total
Undiscounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Insurance contract assets -
\u00a0 Life insurance contracts
4.0
(9.0)
(8.0)
(7.0)
(6.0)
(5.0)
(25.0)
(56.0)
Insurance contract liabilities
\u00a0 - Life insurance contracts
56.0
175.0
163.0
133.0
152.0
171.0
984.0
1,834.0
Reinsurance contract
\u00a0 liabilities
6.0
3.0
2.0
2.0
2.0
2.0
20.0
37.0
Insurance contract liabilities
\u00a0 \u2013 liabilities for incurred
\u00a0 claims short-term\u00a0 contracts
\u00a0 under PAA
\u2014
18.2
6.3
3.4
2.9
2.2
3.8
36.8
Lease liabilities
\u2014
0.4
0.3
0.3
0.2
0.2
0.4
1.8
Other payables
18.2
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
18.2
Expected cash flows on unit linked liabilities, presented under investment contract
liabilities amounting to \u20ac229.7 million (2024:\u20ac179.7 million) and as part of insurance
contract liabilities \u20ac35.7 million (2024: \u20ac39.2 million), have not been included as the
directors consider that there is limited exposure to liquidity risk given that these are
principally backed by unit linked assets.
The amounts which are undiscounted and payable on demand mainly consist of long-
term contracts claims outstanding.
The table below analyses the Group\u2019s derivative financial instruments that will be
settled on a gross basis. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances,
as the impact of discounting is not significant.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At 31 December
Foreign exchange contracts
- outflow
(358,492)
(211,300)
- inflow
360,701
204,484
At 31 December 2025 and 2024, the above derivatives were due to be settled within
three months after year end.
4.3Fair values
At 31 December 2025 and 2024, the carrying amount of the Group\u2019s and Company\u2019s
other financial assets and liabilities approximated their fair values with the exception of
financial liabilities emanating from investment contracts with DPF. It is impracticable
to determine the fair value of these contracts due to the lack of a reliable basis to
measure the future discretionary return that is a material feature of these contracts.
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
22.\u00a0 \u00a0 Other investments
The investments are summarised by measurement category in the table below.
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
At 31 December 2025, the Group had \u20ac30.3 million financial commitments in respect
of uncalled capital (2024:\u00a0 \u20ac31.9 million).
Equity securities and collective investment schemes are considered to be substantially
non-current assets in nature.
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
Derivative financial liabilities amounting to \u20ac0.6 million (2024 \u20ac6.8 million), included
in the table above, are classified within liabilities in the statement of financial position.
The maturity of fixed income debt securities is summarised below:
Group
2025
2024
\u20ac'000
\u20ac'000
Within one year
42,032
19,239
Between 1 and 2 years
48,869
66,756
Between 2 and 5 years
310,217
246,539
Over 5 years
540,138
622,678
Closing net book amount
941,256
955,212
(b)Fair value through OCI
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Listed debt securities
22,069
16,273
The movement for the year is summarised as follows:
Listed debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December
Opening net book amount
16,273
13,804
Additions
14,058
6,120
Disposals
(8,324)
(3,909)
Net fair value gains
62
258
Closing net book amount
22,069
16,273
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within one year
3,394
6,347
Between 1 and 2 years
596
4,272
Between 2 and 5 years
16,415
4,312
Over 5 years
1,664
1,342
22,069
16,273
22.\u00a0 \u00a0 Other investments - continued
The movement for the year are summarised as follows:
Rating of fixed income debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
AAA
3,612
4,047
AA
5,251
2,517
A
9,441
5,032
BBB
3,765
4,677
BB or lower
\u2014
\u2014
22,069
16,273
\u00a0 (c)Amortised cost
Analysed by type of investment as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Deposits with banks or credit institutions
59,983
39,657
Debt securities
49,037
48,960
109,020
88,617
Analysed by type of investment as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
The movements for the year are summarised as follows:
Opening net book amount
88,617
150,781
Interest income earned
3,940
4,892
Interest income collected
(4,317)
(5,854)
Additions
60,000
54,311
Redemptions and disposals
(39,276)
(115,521)
ECL
56
8
Closing net book amount
109,020
88,617
Maturity of investments at amortised cost:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within 3 months
\u2014
\u2014
Within 1 year\u00a0 but exceeding 3 months
\u2014
\u2014
Between 1 and 5 years
100,852
80,442
Over 5 years
8,168
8,175
109,020
88,617
The above investments earn interest as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At fixed rates
109,020
88,617
25.Investment contract liabilities
The table shows a reconciliation of the opening to closing balance for the investment
contract liabilities.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Opening balance \u2013 1 January
179,685
123,253
Contributions received
43,350
47,684
Benefits paid
(5,684)
(4,308)
Investment return from underlying assets
7,052
13,131
Transfer from the other items in the Statement of Financial Position
\u00a0 (Note 24)
6,023
\u2014
Asset management fees charged
(678)
(75)
Closing balance \u2013 31 December
229,748
179,685
In the above reconciliation, the investment return from the underlying assets represents
changes in the fair value of the investment contract liabilities due to changes in market
conditions. Asset management fees charged in the profit or loss also includes trailer
fees.
The above liabilities are substantially non-current in nature.
26.\u00a0 Trade and other receivables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Receivables from intermediaries
21,548
18,313
21,548
18,313
Other prepayments and receivables:
- prepayments and other receivables
5,829
5,269
1,495
905
- accrued interest and rent
907
1,161
468
342
- receivables from group undertakings
\u2014
\u2014
715
624
- receivables from associated
\u00a0 \u00a0 undertaking
15
226
15
226
- other debtors
5
205
\u2014
\u2014
Provision for impairment of receivables
(869)
(717)
(869)
(717)
27,435
24,457
23,372
19,693
Current portion
27,435
24,457
23,372
19,693
Balances due from subsidiary undertakings, associated undertaking and other
receivables are unsecured and non-interest bearing.
Movements in the provision for impairment of receivables are as follows:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Balance as at 1 January
717
535
Increase in provision for impairment
152
182
Balance as at 31 December
869
717
27.Cash and cash equivalents
For the purpose of the statement of cash flows, the year-end cash and cash equivalents
comprise the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Cash at bank and in hand
46,244
79,399
10,559
11,408
T-Bills
4,000
2,500
4,000
2,500
50,244
81,899
14,559
13,908
As at 31 December 2025 an amount of \u20ac1.7 million (2024: \u20ac6.2 million) within
deposits with banks or credit institutions, was held in a margin account as collateral
against exchange traded futures.
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
33.Contingencies
The Group and Company have given guarantees to third parties amounting to \u20ac0.1
million (2024: \u20ac0.1) not arising under contracts of insurance.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-390": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.1Insurance risk
(a) Short-term business insurance contracts
Frequency and severity of claims
The terms and conditions of the contracts set out the bases for the determination of the
Group\u2019s liability should the insured event occur.\u00a0 The risks underwritten include motor
(including third party liability), health, fire and other damage to property, other classes
and group life.\u00a0 Details of insurance revenue as well as insurance service expenses
analysed by segment are provided in the \u201cSegment information\u201d (Note 7).
The frequency and severity of claims can be affected by several factors.\u00a0 The following
are considered by the Group to be the most significant:
-The increasing levels of court awards in cases where damages are suffered as a
result of injuries, the divergence of awards that is dependent on the territory of the
claim and the jurisdiction of the court, the effect of inflation due to the prolonged
period typically required to settle such cases; and
- The risk of a single event that can extensively affect a multiple of individual risks
to which the Group is exposed.
The Group manages these risks through its underwriting strategy, adequate reinsurance
arrangements and proactive claims handling.
The underwriting strategy ensures that the risks underwritten are well diversified in
terms of type and amount of risk. The Group follows strict underwriting guidelines and
sets limits on the overall retention of risk that it carries. Any risk in excess of this limit
is either reinsured under a facultative cover note or is declined. Underwriting limits are
in place to enforce appropriate risk selection criteria. In certain circumstances, certain
exclusions to risks are included within these guidelines. For example, the Group does
not insure US risks unless they are incidental. The Group can impose deductibles to
help manage its costs.\u00a0 It also uses its experience and expertise to mitigate the risk of
fraudulent claims.\u00a0 Insurance contracts also entitle the Group to pursue third parties for
payment of some or all of the costs (i.e. subrogation). A significant portion of the
Group\u2019s business is underwritten through an agency distribution network.\u00a0
Underwriting authority limits are set for individual agencies or branches, and any
contracts through which the Group is committed to cover risks in excess of these
authority limits require head office approval.
The Group has reinsurance protection in place for all classes of business.\u00a0 The type of
reinsurance cover, and the level of retention, is based on the Group\u2019s internal risk
management assessment which takes into account the risk being covered, the sums
assured and the geographical location of the risk.\u00a0 The Board approves each reinsurance
programme on an annual basis. The reinsurance arrangements include a mix of
proportional, facultative and non-proportional covers, which limit the liability of the
Group to any one individual claim or event. Generally, the Group\u2019s policy is to place
reinsurance with listed multinational reinsurance companies whose credit rating is not
less than BBB. No rating limitation shall apply to treaty placements with MAPFRE Re
or any MAPFRE Group company designated to write any or all of the MAPFRE Group
Reinsurance treaties. At 31 December 2025, MAPFRE Re\u2019s rating stood at A. The
Board monitors the security rating of MAPFRE on a periodic basis.
The Group has specialised claims units dealing with the mitigation of risks surrounding
known claims.\u00a0 These units investigate and adjust claims as appropriate.\u00a0 Claims are
individually reviewed regularly, and are adjusted to reflect the latest information on the
underlying facts, current law, jurisdiction, contractual terms and conditions and other
factors.\u00a0 The Group actively manages and pursues early settlement of claims to reduce
its exposure to unpredictable developments.\u00a0 Authority limits are set for the settlement
of claims through the individual agents. Any claims incurred above these limits are
referred to head office for handling. In addition, all claims involving bodily injury are
referred to head office irrespective of their amount.
Sources of uncertainty in the estimation of future claim developments and payments
Claims on contracts are accounted for on a claims-occurrence basis.\u00a0 The Group is
liable for all insured events that occurred during the term of the contract, even if the
loss is discovered after the end of the contract term.\u00a0 Certain classes of business, most
notably those exposed to liability, can take several years to develop and are therefore
subject to a greater degree of uncertainty than other classes of business which are
typically settled in a shorter period of time.
The estimated cost of claims includes direct expenses to be incurred in settling claims,
net of the expected subrogation value and recoveries.\u00a0 The Group takes all reasonable
steps to ensure that it has appropriate information regarding its claims exposures.\u00a0
However, given the uncertainty in establishing the liability for incurred claims, it is
possible that the final outcome will prove to be different from the original liability
established.
In calculating the estimated cost of unpaid claims, the Group considers the results of
estimation techniques that are based partly on known information at year-end and partly
on statistical analysis of historical experience.\u00a0
Further details on the process of estimation is provided in Note 24.2 which also presents
the development of the estimate of future cash flows for claims incurred in a given year.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Company with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a 5% upwards and
downwards change in the ultimate loss amount while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions
might be correlated.
31 December 2025
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(308)
(270)
(200)
(176)
Ultimate loss \u2013 5% decrease
308
270
200
176
31 December 2024
Impact on profit
before income tax
Impact on equity
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Non-life
Ultimate loss \u2013 5% increase
(385)
(334)
(250)
(217)
Ultimate loss \u2013 5% decrease
385
334
250
217
(b) Long term business insurance contracts
Frequency and severity of claims (Mortality risk)
For contracts where death is the insured risk, the most significant factor that could
increase the overall frequency of claims are epidemics or wide spread changes in
lifestyle resulting in earlier or more claims than expected.
At present these risks do not vary significantly in relation to the location of the risk
insured by the Group. However, undue concentration by amounts could have an impact
on the severity of benefit payments on a portfolio basis.
For contracts with fixed and guaranteed benefits and fixed future premiums, there are
no mitigating terms and conditions that reduce the insurance risk accepted.\u00a0 For
investment contracts with DPF, the participating nature of the contracts results in a
portion of the insurance risk being reduced over the term of policy.\u00a0 Investment
contracts with DPF carry negligible mortality risk.
The Group manages these risks through its underwriting strategy and reinsurance
arrangements. The underwriting strategy is intended to ensure that the risks
underwritten are well diversified in terms of type of risk and level of insured benefits.
Medical selection is also included in the Group\u2019s underwriting procedures with
premiums varied to reflect the health condition and life expectancy of the applicants.
The Group has reinsurance protection in place to cover death claims.\u00a0 The type of
reinsurance cover and the level of retention for each risk are based on the Group\u2019s
internal risk management assessment, which takes account of the nature of the risk
covered and the sum assured. The reinsurance programme is approved by the Board of
Directors (\"the Board\") annually. The reinsurance arrangements in place include a mix
of quota share, facultative, excess of loss and catastrophe protection, which limits the
liability of the Group to any one individual life or event.\u00a0 The Group\u2019s reinsurance is
placed with listed multinational reinsurance companies whose rating is not less than A.
The mortality assumptions applied are disclosed in Note 24.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Group with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a change in an
assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions might be correlated.
31 December 2025
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,411)
(1,901)
174
92
113
60
Mortality rate \u2013 10% decrease
4,408
1,903
(179)
(94)
(116)
(61)
Lapse rates \u2013 10% increase
(1,822)
(288)
282
27
183
18
Lapse rates \u2013 10% decrease
1,822
288
(282)
(27)
(183)
(18)
Expenses \u2013 10% increase
(1,629)
(2,068)
14
16
9
10
Expenses \u2013 10% decrease
1,629
2,068
(14)
(16)
(9)
(10)
Investment contracts with DPF
Mortality rate \u2013 10% increase
(319)
(319)
3
3
2
2
Mortality rate \u2013 10% decrease
319
319
(3)
(3)
(2)
(2)
Lapse rates \u2013 10% increase
(455)
(455)
40
40
26
26
Lapse rates \u2013 10% decrease
455
455
(40)
(40)
(26)
(26)
Expenses \u2013 10% increase
(1,199)
(1,199)
(62)
(62)
(40)
(40)
Expenses \u2013 10% decrease
1,199
1,199
62
62
40
40
31 December 2024
Impact on CSM
Impact on profit
before income
tax
Impact on equity
Gross
Net
Gross
Net
Gross
Net
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Life Risk (Net)
Mortality rate \u2013 10% increase
(4,274)
(1,870)
(174)
(63)
(113)
(41)
Mortality rate \u2013 10% decrease
4,269
1,872
172
63
112
41
Lapse rates \u2013 10% increase
(1,652)
(171)
149
118
97
77
Lapse rates \u2013 10% decrease
1,652
171
(149)
(118)
(97)
(77)
Expenses \u2013 10% increase
(1,649)
(2,045)
(86)
(108)
(56)
(70)
Expenses \u2013 10% decrease
1,649
2,045
86
108
56
70
Investment contracts with DPF
Mortality rate \u2013 10% increase
(311)
(311)
\u2014
\u2014
\u2014
\u2014
Mortality rate \u2013 10% decrease
311
311
\u2014
\u2014
\u2014
\u2014
Lapse rates \u2013 10% increase
53
53
98
98
64
64
Lapse rates \u2013 10% decrease
(53)
(53)
(98)
(98)
(64)
(64)
Expenses \u2013 10% increase
(1,707)
(1,707)
(116)
(116)
(76)
(76)
Expenses \u2013 10% decrease
1707
1707
116
116
76
76
Changes in underwriting risk variables mainly affect the CSM, profit or loss and equity
as follows.
GMM
VFA
a. CSM
Changes in fulfilment cash flows, other than those
\u00a0 recognised as\u00a0 insurance finance income or expenses
Changes in fulfilment
\u00a0 cash flows
b. Profit or
\u00a0 \u00a0 \u00a0 loss
Changes in fulfilment cash flows that are
\u00a0 recognised as insurance finance income or expenses
\u00a0 in profit or loss and change in CSM release and /or
\u00a0 coverage units
Changes in CSM
\u00a0 release and /or
\u00a0 coverage units
c. Equity
The effect on profit or loss under b.
\u00a0 after tax
The effect on profit or
\u00a0 loss under b. after tax
7.Segment information
(i)\u00a0 Insurance revenue and insurance service result
Long-term and linked long-term business
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets
and reinsurance contract liabilities
24.2\u00a0 Short-term insurance contracts under PAA
Reconciliation of the liability for remaining coverage and the liability for incurred claims
The following tables present reconciliations from the opening to the closing balances of the
liability for remaining coverage (LRC) and liability for incurred claims (LIC).
Group and Company
2025
LRC
LIC
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contract liabilities at
\u00a0 1 January
35,072
186
36,792
918
72,968
Insurance revenue
(109,693)
\u2014
\u2014
\u2014
(109,693)
Insurance service expenses
Incurred claims and other directly
\u00a0 attributable expenses
\u2014
\u2014
51,650
377
52,027
Changes that relate to past service -
\u00a0 changes in FCF relating to the LIC
\u2014
\u2014
941
(432)
509
Losses on onerous contracts and reversals of
\u00a0 those losses
\u2014
(186)
\u2014
\u2014
(186)
Insurance acquisition cash flows
\u00a0 amortisation
31,125
\u2014
\u2014
\u2014
31,125
Insurance service expenses
31,125
(186)
52,591
(55)
83,475
Insurance service result
(78,568)
(186)
52,591
(55)
(26,218)
Finance expenses from insurance contracts
\u00a0 issued
\u2014
\u2014
355
9
364
Total amount recognised in
\u00a0 comprehensive income
(78,568)
(186)
52,946
(46)
(25,854)
Cash flows
Premiums received
113,449
\u2014
\u2014
\u2014
113,449
Claims and other directly attributable\u00a0
\u00a0 expenses paid
\u2014
\u2014
(52,954)
\u2014
(52,954)
Insurance acquisition cash flows
(31,872)
\u2014
\u2014
\u2014
(31,872)
Total cash flows
81,577
\u2014
(52,954)
\u2014
28,623
Insurance contract liabilities at
\u00a0 31 December
38,081
\u2014
36,784
872
75,737
Insurance contract liabilities at
\u00a0 31 December
38,081
37,656
75,737
Group and Company
2024
LRC
LIC
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contract liabilities at
\u00a0 1 January
32,021
\u2014
39,436
1,010
72,467
Insurance revenue
(99,922)
\u2014
\u2014
\u2014
(99,922)
Insurance service expenses
Incurred claims and other directly
\u00a0 attributable expenses
\u2014
\u2014
48,602
325
48,927
Changes that relate to past\u00a0 service -
\u00a0 changes in FCF relating to the LIC
\u2014
\u2014
1,260
(438)
822
Losses on onerous contracts and reversals of
\u00a0 those losses
\u2014
186
\u2014
\u2014
186
Insurance acquisition cash flows
\u00a0 amortisation
28,562
\u2014
\u2014
\u2014
28,562
Insurance service expenses
28,562
186
49,862
(113)
78,497
Insurance service result
(71,360)
186
49,862
(113)
(21,425)
Finance expenses from insurance contracts
\u00a0 issued
\u2014
\u2014
797
21
818
Total amount recognised in
\u00a0 comprehensive income
(71,360)
186
50,659
(92)
(20,607)
Cash flows
Premiums received
103,808
\u2014
\u2014
\u2014
103,808
Claims and other directly attributable\u00a0
\u00a0 expenses paid
\u2014
\u2014
(53,303)
\u2014
(53,303)
Insurance acquisition cash flows
(29,397)
\u2014
\u2014
\u2014
(29,397)
Total cash flows
74,411
\u2014
(53,303)
\u2014
21,108
Insurance contract liabilities at
\u00a0 31 December
35,072
186
36,792
918
72,968
Insurance contract liabilities at
\u00a0 31 December
35,258
37,710
72,968
Reconciliation of the asset for remaining coverage and the asset for incurred claims
The following tables present reconciliations from the opening to the closing balances of the
asset for remaining coverage (ARC) and asset for incurred claims (AIC).
Group and Company
2025
ARC
AIC
Remaining
coverage
excluding
loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract assets at 1 January
2,612
8,995
208
11,815
Net income/(expense) from reinsurance contracts
\u00a0 held
Reinsurance expenses
(13,242)
\u2014
\u2014
(13,242)
Incurred claims recovery
\u2014
2,798
32
2,830
Changes that relate to past service - changes in FCF
\u00a0 relating to the AIC
\u2014
611
(66)
545
Effect of changes in the risk of reinsurers' non-
\u00a0 performance
\u2014
30
\u2014
30
Net expense from reinsurance contracts
\u00a0 held
(13,242)
3,439
(34)
(9,837)
Finance income from reinsurance contracts held
\u2014
91
3
94
Total amount recognised in\u00a0 comprehensive
\u00a0 income
(13,242)
3,530
(31)
(9,743)
Cash flows
Premiums paid net of ceding commissions and other
\u00a0 directly attributable expenses paid
13,306
\u2014
\u2014
13,306
Recoveries from reinsurance
\u2014
(4,256)
\u2014
(4,256)
Total cash flows
13,306
(4,256)
\u2014
9,050
Reinsurance contract assets at 31 December
2,676
8,269
177
11,122
Group and Company
2024
ARC
Remaining
coverage
excluding
loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract assets at 1 January
2,625
10,467
267
13,359
Net income/(expense) from reinsurance contracts
\u00a0 held
Reinsurance expenses
(12,763)
\u2014
\u2014
(12,763)
Incurred claims recovery
\u2014
3,739
56
3,795
Changes that relate to past service - changes in FCF
\u00a0 relating to the AIC
\u2014
23
(120)
(97)
Effect of changes in the risk of reinsurers' non-
\u00a0 performance
\u2014
(30)
\u2014
(30)
Net expense from reinsurance contracts held
(12,763)
3,732
(64)
(9,095)
Finance income from reinsurance contracts held
\u2014
176
5
181
Total amount recognised in\u00a0 comprehensive
income
(12,763)
3,908
(59)
(8,914)
Cash flows
Premiums paid net of ceding commissions and other
\u00a0 directly attributable expenses paid
12,750
\u2014
\u2014
12,750
Recoveries from reinsurance
\u2014
(5,380)
\u2014
(5,380)
Total cash flows
12,750
(5,380)
\u2014
7,370
Reinsurance contract assets at 31 December
2,612
8,995
208
11,815
Short-term insurance contracts \u2013 liability for incurred claims
The gross claims reported are net of expected recoveries from salvage and subrogation.\u00a0
The liability for incurred claims are largely based on claims incurred data. A Chain
Ladder approach using the Development Factor Method has been used projecting
separately each portfolio of contracts. In choosing the development factors, outliers that
would unrealistically favourably or adversely impact the estimation of the ultimate cost
are excluded. Large losses within each portfolio other than for Motor have not been
projected given the small and infrequent number of such claims over time and have
been taken at the case reserve. In the case of Motor, large losses, in the main involving
fatalities or serious bodily injury, are projected separately from attritional claims given
their severity and different development patterns.
The development tables in this note give an indication of the time it takes to settle
certain claims.\u00a0 This is attributable to certain classes of business taking several years to
develop and is also due to the length of time it takes for the respective cases to be
resolved in court.
The top half of the tables below illustrates how the Company\u2019s estimate of the ultimate
total undiscounted claims cost for each accident year has changed at successive year-
ends on a gross and net basis. The bottom half of the table reconciles the cumulative
claims to the amount appearing in the statement of financial position on a gross and net
basis. The accident-year basis is the most appropriate for the general business written
by the Company.
The Group provides separately information on the gross and net basis the claims
development for the current reporting period and nine years prior to it. The diagonals
for financial years 2021 until 2024 show the undiscounted projected ultimate claims
incurred inclusive of claims related expenses as restated upon implementation of IFRS
17. The directors have considered that this does not detract the user from adequate
information as to how the claims have evolved from the particular accident year to the
current reporting period.
Insurance contracts under the PAA \u2013 gross liability for incurred claims
Group and Company
Accident year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Estimate of the ultimate claim cost undiscounted
-at end of accident year
34,704
38,545
43,006
43,700
32,634
37,770
42,727
44,496
43,317
47,849
-one year later
35,127
39,334
44,264
47,172
32,240
37,618
41,788
44,452
42,991
-two years later
33,780
39,377
44,724
47,326
32,727
35,321
43,365
44,323
-three years later
33,211
39,741
45,831
49,511
32,333
35,384
42,730
-four years later
33,159
38,328
46,109
48,483
32,465
35,043
-five years later
33,045
38,099
46,392
48,291
32,459
-six years later
32,750
37,715
46,843
48,211
-seven years later
31,792
37,756
46,978
-eight years later
31,799
37,792
-nine years later
31,828
Current estimates of cumulative claims
31,828
37,792
46,978
48,211
32,459
35,043
42,730
44,323
42,991
47,849
410,204
Cumulative payments to date
(31,559)
(37,481)
(44,078)
(46,494)
(30,920)
(34,079)
(39,501)
(40,450)
(39,308)
(30,316)
(374,186)
accident years from 2016 to 2025
269
311
2,900
1,717
1,539
964
3,229
3,873
3,683
17,533
36,018
Claims liabilities - prior accident years
1,979
Claims liabilities - Group Life
510
Effect of discounting
(1,723)
Liability for incurred claims for the contracts originated
36,784
Insurance contracts net of reinsurance contracts assets under the PAA \u2013 net liability for incurred claims
Group and Company
Accident year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Estimate of the ultimate claim cost undiscounted
-at end of accident year
30,079
33,106
33,539
33,848
28,126
34,463
39,334
40,287
40,049
45,232
-one year later
30,320
33,951
33,645
35,714
27,881
34,094
38,818
39,942
39,457
-two years later
29,171
33,638
33,846
36,367
28,372
32,035
40,309
39,822
-three years later
28,863
33,325
32,704
37,032
28,358
32,087
39,660
-four years later
29,038
32,961
32,524
36,587
28,499
31,796
-five years later
28,994
32,732
33,182
36,591
28,488
-six years later
28,746
32,680
33,222
36,492
-seven years later
28,382
32,624
33,111
-eight years later
28,391
32,602
-nine years later
28,420
Current estimates of cumulative claims
28,420
32,602
33,111
36,492
28,488
31,796
39,660
39,822
39,457
45,232
355,080
Cumulative payments to date
(28,213)
(32,684)
(32,699)
(35,886)
(27,007)
(30,958)
(36,610)
(36,222)
(37,111)
(29,392)
(326,782)
Liability recognised in statements of financial position
207
(82)
412
606
1,481
838
3,050
3,600
2,346
15,840
28,298
Liability in respect of prior years
1,110
Liability in respect of life risk claims
430
Discounting element
(1,323)
Total reserve included in the statements of the
\u00a0 financial position
28,515
24.3\u00a0 Long-term insurance contracts - Life risk
Reconciliation of the asset or liability for remaining coverage and the liability for
incurred claims
The following tables present reconciliations from the opening to the closing balances of
the LRC (ARC) and LIC excluding any insurance acquisition cash flows assets and
other pre-recognition cash flows.
Group
2025
LRC (ARC)
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contracs assets at 1 January
(9,978)
2,898
(7,080)
Insurance contract liabilities at 1 January
6,329
71
6,400
Insurance revenue
(11,895)
\u2014
(11,895)
Insurance service expenses
Incurred claims and other directly attributable
\u00a0 expenses
12
4,466
4,478
Changes that relate to past service - changes in the FCF
\u00a0 relating to the LIC
\u2014
(4)
(4)
Insurance acquisition cash flows amortization
217
\u2014
217
Insurance service expenses
229
4,462
4,691
Insurance service result
(11,666)
4,462
(7,204)
Finance expenses from insurance contracts
\u00a0 issued
1,592
\u2014
1,592
Total amounts recognised in profit and loss
(10,074)
4,462
(5,612)
Investment components
(677)
677
\u2014
Transfer to the other items in the statement of financial
\u00a0 position (Note 25)
(6,023)
\u2014
(6,023)
Cash flows
Premium received
16,059
\u2014
16,059
Claims and other directly attributable expenses
\u2014
(6,045)
(6,045)
Insurance acquisition cash flows
(2,126)
\u2014
(2,126)
Total cash flows
13,933
(6,045)
7,888
Insurance contract assets at 31
\u00a0 December
(6,490)
2,006
(4,484)
Insurance contract liabilities at 31
\u00a0 December
\u2014
57
57
Group
2024
LRC (ARC)
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract assets at 1 January
(10,686)
1,741
(8,945)
Insurance contract liabilities\u00a0 at 1 January
6,441
47
6,488
Insurance revenue
(13,310)
\u2014
(13,310)
Insurance service expenses
Incurred claims and other directly attributable
\u00a0 expenses
\u2014
7,259
7,259
Insurance acquisition cash flows amortization
91
\u2014
91
Insurance service expenses
91
7,259
7,350
Insurance service result
(13,219)
7,259
(5,960)
Finance income from insurance contracts
\u00a0 issued
(836)
\u2014
(836)
Total amounts recognised in
\u00a0 profit or loss
(14,055)
7,259
(6,796)
Investment components
(934)
934
\u2014
Cash flows
Premium received
16,076
\u2014
16,076
Claims and other directly attributable expenses
\u2014
(7,012)
(7,012)
Insurance acquisition cash flows
(491)
\u2014
(491)
Total cash flows
15,585
(7,012)
8,573
Insurance contract assets at
\u00a0 31 December
(9,978)
2,898
(7,080)
Insurance contract liabilities at
\u00a0 31 December
6,329
71
6,400
Reconciliation of the measurement components of insurance contract balances
Group
2025
Life Risk - Insurance\u00a0 contract Issued
Present
value of
future cash
flows
Risk
adjustment
for non-
financial risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract\u00a0 assets at 1 January
(56,173)
15,542
33,551
(7,080)
Insurance contract liabilities at 1 January
6,400
\u2014
\u2014
6,400
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(4,315)
(4,315)
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
(1,626)
\u2014
(1,626)
Experience adjustment relating to insurance service
\u00a0 expenses
(1,259)
\u2014
\u2014
(1,259)
(1,259)
(1,626)
(4,315)
(7,200)
Changes that relate to future\u00a0 service
Changes in estimates that\u00a0 adjust the CSM
(5,174)
(53)
5,227
\u2014
Contracts initially recognised\u00a0 in the period
(6,447)
1,974
4,473
\u2014
(11,621)
1,921
9,700
\u2014
Changes that relate to past service
(4)
\u2014
\u2014
(4)
Insurance service result
(12,884)
295
5,385
(7,204)
Finance expenses from insurance contracts
\u00a0 issued
991
\u2014
601
1,592
Total amounts recognised in profit or loss
(11,893)
295
5,986
(5,612)
Cash flows
Premium received
16,059
\u2014
\u2014
16,059
Claims and other directly attributable expenses paid
(6,045)
\u2014
\u2014
(6,045)
Insurance acquisition cash flows
(2,126)
\u2014
\u2014
(2,126)
Total cash flows
7,888
\u2014
\u2014
7,888
Transfer to other items in the Statement of
\u00a0 Financial Position
(6,023)
\u2014
\u2014
(6,023)
Insurance contract assets at 31 December
(59,858)
15,837
39,537
(4,484)
Insurance contract\u00a0 liabilities at 31 December
57
\u2014
\u2014
57
Group
2024
Total
Present value
of future cash
flows
Risk
adjustment
for non-
financial risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract assets\u00a0 at 1 January
(56,044)
14,905
32,194
(8,945)
Insurance contract\u00a0 liabilities at 1 January
6,488
\u2014
\u2014
6,488
Changes that relate to current service
CSM recognised for the\u00a0 services provided
\u2014
\u2014
(3,664)
(3,664)
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
(1,596)
\u2014
(1,596)
Experience adjustment relating to insurance service
\u00a0 expenses
(700)
\u2014
\u2014
(700)
(700)
(1,596)
(3,664)
(5,960)
Changes that relate to future\u00a0 service
Changes in estimates that adjust the CSM
(1,810)
450
1,360
\u2014
Contracts initially recognised\u00a0 in the period
(4,940)
1,783
3,157
\u2014
(6,750)
2,233
4,517
\u2014
Insurance service result
(7,450)
637
853
(5,960)
Finance (income)/expense from insurance contracts
\u00a0 issued
(1,340)
\u2014
504
(836)
Total amounts recognised in profit or loss
(8,790)
637
1,357
(6,796)
Cash flows
Premium received
16,076
\u2014
\u2014
16,076
Claims and other directly\u00a0 attributable expenses paid
(7,012)
\u2014
\u2014
(7,012)
Insurance acquisition cash flows
(491)
\u2014
\u2014
(491)
Total cash flows
8,573
\u2014
\u2014
8,573
Insurance contract assets at 31 December
(56,173)
15,542
33,551
(7,080)
Insurance contract liabilities at 31 December
6,400
\u2014
\u2014
6,400
Impact of contracts recognised in the year
Group
2025
2024
Non-onerous
contracts originated
Non-onerous
contracts originated
\u20ac\u2019000
\u20ac\u2019000
Estimates of present value of future cash outflows
-\u00a0 Insurance acquisition cash flows
2,440
520
-\u00a0 Claims and other directly attributable expense
7,615
8,793
10,055
9,313
Estimates of the present value of future cash inflows
(16,502)
(14,253)
Risk adjustment for non-financial risk adjustment
1,974
1,783
CSM
4,473
3,157
Increase in insurance contract liabilities from
\u00a0 contracts recognised in the period
\u2014
\u2014
24.4\u00a0 Life risk - Reinsurance contracts held
Reconciliation of the remaining coverage and incurred claims
Group
2025
2024
Remaining
coverage
Incurred
Claims
Total
Remaining
coverage
Incurred
Claims
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract
\u00a0 liabilities at 1 January
21,788
(4,715)
17,073
19,171
(3,678)
15,493
Net expenses from
reinsurance
\u00a0 contracts held
Reinsurance expenses
4,022
\u2014
4,022
4,083
\u2014
4,083
Other directly
\u00a0 attributable expenses
\u2014
569
569
\u2014
519
519
Incurred claims
\u00a0 recovery
\u2014
(1,342)
(1,342)
\u2014
(1,858)
(1,858)
Net expense/(income)
from reinsurance
contracts held
4,022
(773)
3,249
4,083
(1,339)
2,744
Finance (income)/
\u00a0 expenses from\u00a0
\u00a0 reinsurance contracts
\u00a0 held
(2,063)
\u2014
(2,063)
697
\u2014
697
Total amounts
\u00a0 recognised in
\u00a0 profit or loss
1,959
(773)
1,186
4,780
(1,339)
3,441
Cash flows
Premium paid net of
\u00a0 ceding commission and
\u00a0 other directly attributable
\u00a0 expenses paid
(4,091)
(569)
(4,660)
(2,163)
(519)
(2,682)
Recoveries from
\u00a0 reinsurance
\u2014
1,626
1,626
\u2014
821
821
Total cash flows
(4,091)
1,057
(3,034)
(2,163)
302
(1,861)
Reinsurance contract
\u00a0 liabilities as at 31
\u00a0 December
19,656
(4,431)
15,225
21,788
(4,715)
17,073
Reconciliation of the measurement components of reinsurance contract balances
Group
2025
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract liabilities at 1 January
36,762
(5,665)
(14,024)
17,073
Changes that relate to current service
CSM recognised for the services received
\u2014
\u2014
1,860
1,860
Change in the risk adjustment for non- financial
\u00a0 risk for risk expired
\u2014
322
\u2014
322
Experience adjustment relating to incurred
\u00a0 claims and other directly\u00a0 attributable expenses\u00a0 \u00a0 \u00a0
\u00a0 recovery and reinsurance\u00a0 premium
1,067
\u2014
\u2014
1,067
1,067
322
1,860
3,249
Changes that relate to future service
Changes in estimates that adjust the CSM
2,339
71
(2,410)
\u2014
Contracts initially recognised in the period
1,206
(345)
(861)
\u2014
3,545
(274)
(3,271)
\u2014
Finance income from reinsurance
\u00a0 contracts held
(1,842)
\u2014
(221)
(2,063)
Total amounts recognised in profit or loss
2,770
48
(1,632)
1,186
Cash flows
Premium paid net of ceding commission and
\u00a0 other directly attributable expenses paid
(4,660)
\u2014
\u2014
(4,660)
Recoveries from insurance
1,626
\u2014
\u2014
1,626
Total cash flows
(3,034)
\u2014
\u2014
(3,034)
Reinsurance contract liabilities at 31
\u00a0 December
36,498
(5,617)
(15,656)
15,225
Group
2024
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract liabilities at
\u00a0 1 January
34,081
(5,626)
(12,962)
15,493
Changes that relate to current service
CSM recognised for the\u00a0 services received
\u2014
\u2014
1,651
1,651
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
283
\u2014
283
Experience adjustment relating to incurred
\u00a0 claims and other directly\u00a0 attributable expenses
\u00a0 recovery and reinsurance premium
810
\u2014
\u2014
810
810
283
1,651
2,744
Changes that relate to future\u00a0 service
Changes in estimates that adjust the CSM
2,276
(36)
(2,240)
\u2014
Contracts initially recognised in the period
587
(286)
(301)
\u2014
2,863
(322)
(2,541)
\u2014
Finance expenses/( income) from reinsurance
\u00a0 contracts held
869
\u2014
(172)
697
Total amounts recognised in profit or loss
4,542
(39)
(1,062)
3,441
Cash flows
Premium paid net of ceding commission and
\u00a0 other directly attributable expenses paid
(2,682)
\u2014
\u2014
(2,682)
Recoveries from insurance
821
\u2014
\u2014
821
Total cash flows
(1,861)
\u2014
\u2014
(1,861)
Reinsurance contract liabilities at 31
\u00a0 December
36,762
(5,665)
(14,024)
17,073
24.5\u00a0 Investment contracts with DPF
Reconciliation of the liability for remaining coverage and the liability for incurred
claims
Group
2025
2024
LRC
Excluding
Loss
Component
LIC
Total
LRC
Excluding
Loss
Component
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities
at 1 January
1,894,037
54,041
1,948,078
1,935,970
48,919
1,984,889
Insurance revenue
(34,090)
\u2014
(34,090)
(33,460)
\u2014
(33,460)
Insurance service expenses
Incurred claims and other
\u00a0 directly attributable
\u00a0 expenses
\u2014
18,689
18,689
\u2014
21,845
21,845
Insurance acquisition cash
\u00a0 flows amortization
7,268
\u2014
7,268
4,338
\u2014
4,338
Insurance service expenses
7,268
18,689
25,957
4,338
21,845
26,183
Insurance service result
(26,822)
18,689
(8,133)
(29,122)
21,845
(7,277)
Finance expenses from
\u00a0 insurance contracts
\u00a0 issued
80,510
\u2014
80,510
83,210
\u2014
83,210
Total amounts recognised in
\u00a0 profit or loss
53,688
18,689
72,377
54,088
21,845
75,933
Investment components
(211,796)
211,796
\u2014
(233,487)
233,487
\u2014
Cash flows
Premium received
150,150
\u2014
150,150
142,452
\u2014
142,452
Claims and other directly
\u00a0 attributable expenses
\u2014
(235,249)
(235,249)
\u2014
(250,210)
(250,210)
Insurance acquisition cash
\u00a0 flows
(6,902)
\u2014
(6,902)
(4,240)
\u2014
(4,240)
Decrease/(increase) in policy
\u00a0 loans
393
\u2014
393
(746)
\u2014
(746)
Total cash flows
143,641
(235,249)
(91,608)
137,466
(250,210)
(112,744)
Insurance contract liabilities
at 31 December\u00a0
1,879,570
49,277
1,928,847
1,894,037
54,041
1,948,078
Reconciliation of the measurement components of contract balances
Group
2025
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities at 1 January
1,866,991
3,479
77,608
1,948,078
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(8,049)
(8,049)
Change in the risk adjustment for non-financial risk for risk
\u00a0 expired
\u2014
(232)
\u2014
(232)
Experience adjustment
148
\u2014
\u2014
148
148
(232)
(8,049)
(8,133)
Changes that relate to future service
Changes in estimates that adjust the CSM
(5,201)
(804)
6,005
\u2014
Contracts initially recognised in the period
(5,647)
189
5,458
\u2014
Experience adjustments arising from premiums received
\u00a0 in the period that relate to future service
(241)
\u2014
241
\u2014
(11,089)
(615)
11,704
\u2014
Insurance service result
(10,941)
(847)
3,655
(8,133)
Finance expenses from insurance contracts issued
80,510
\u2014
\u2014
80,510
Total amounts recognised in profit or loss
69,569
(847)
3,655
72,377
Cash flows
Premium received
150,150
\u2014
\u2014
150,150
Claims and other directly attributable expenses paid
(235,249)
\u2014
\u2014
(235,249)
Insurance acquisition cash flows
(6,902)
\u2014
\u2014
(6,902)
Increase in policy loans
393
\u2014
\u2014
393
Total cash flows
(91,608)
\u2014
\u2014
(91,608)
Insurance contract liabilities at 31 December
1,844,952
2,632
81,263
1,928,847
Group
2024
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities at 1 January
1,910,347
2,815
71,727
1,984,889
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(7,128)
(7,128)
Change in the risk adjustment for non-financial risk for risk
\u00a0 expired
\u2014
(228)
\u2014
(228)
Experience adjustment relating to insurance service
\u00a0 expenses
79
\u2014
\u2014
79
79
(228)
(7,128)
(7,277)
Changes that relate to future service
Changes in estimates that adjust the CSM
(8,215)
669
7,546
\u2014
Contracts initially recognised in the period
(3,095)
223
2,872
\u2014
Experience adjustments arising from premiums received
\u00a0 in the period that relate to future service
(2,591)
\u2014
2,591
\u2014
(13,901)
892
13,009
\u2014
Insurance service result
(13,822)
664
5,881
(7,277)
Finance expenses from insurance contracts issued
83,210
\u2014
\u2014
83,210
Total amounts recognised in profit or loss
69,388
664
5,881
75,933
Cash flows
Premium received
142,452
\u2014
\u2014
142,452
Claims and other directly attributable expenses paid
(250,210)
\u2014
\u2014
(250,210)
Insurance acquisition cash flows
(4,240)
\u2014
\u2014
(4,240)
Increase in policy loans
(746)
\u2014
\u2014
(746)
Total cash flows
(112,744)
\u2014
\u2014
(112,744)
Insurance contract liabilities at 31 December
1,866,991
3,479
77,608
1,948,078
Impact of contracts recognised in the year
Group
2025
2024
Investment contracts with DPF
Non-onerous
contracts originated
Non-onerous
contracts originated
\u20ac\u2019000
\u20ac\u2019000
Estimates of present value of future cash outflows
-\u00a0\u00a0\u00a0 Insurance acquisition cash flows
6,421
4,014
-\u00a0\u00a0\u00a0 Claims and other directly attributable expense
144,181
149,277
150,602
153,291
Estimates of the present value of future cash inflows
(156,249)
(156,386)
Risk adjustment for non-financial risk adjustment
189
223
CSM
5,458
2,872
Increase in insurance contract liabilities from
contracts recognised in the period
\u2014
\u2014
34.Related party transactions
Relevant particulars of related party transactions are as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Sales of insurance contracts and other services
Transactions with a parent undertaking:
\u00a0 Commission received
5,683
5,266
\u00a0 Claims recoverable
4,491
5,705
Transactions with related undertaking:
\u00a0 Trailer fees receivable
1
1
\u00a0 Sale of insurance contracts
2,560
246
\u00a0 Dividends received and interest income
2,324
1,611
\u00a0 Rental income on investment property
261
255
Transactions with associated undertaking:
\u00a0 Sale of insurance contracts
9
31
\u00a0 Dividends received
157
170
\u00a0 Rental income on investment property
48
44
\u00a0 Reimbursement of expenses for back office support services
45
23
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Purchase of products and services
Transactions with a parent undertaking:
Reinsurance premium ceded
20,619
19,522
Staff development training & Fringe Benefits
86
2
Expat staff benefits and services
24
97
Computer maintenance, Group IT shared services
2,146
1,440
Capitalisation of software development
42
1
Other back office support services
728
720
Investment management services
34
27
Commission payable
16
96
Transactions with other related undertaking:
Acquisition costs payable
3,867
3,449
Bank charges
213
223
Investment management services
36
45
Claims paid
611
556
Transactions with associates undertaking:
Road side assistance and other back office support services
2,877
2,819
Claims paid
4
8
", "dimensions": { "concept": "ifrs-full:DisclosureOfClaimsAndBenefitsPaidExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-389": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(a)\u00a0 Market risk
Market risk comprises interest rate, equity price and foreign currency risks. These risks
arise from variability in fair values of financial instruments or related future cash flows,
as well as from variability of the FCF of insurance contracts due to variability in market
risk variables.
(i)\u00a0 Cash flow and fair value interest rate risk
Insurance and investment contracts with DPF at Group level have benefit payments that
are fixed and guaranteed at the inception of the contract (for example, sum assured), or
as annual discretionary bonuses are declared. The Group\u2019s primary financial risk on
these contracts is the risk that interest income and capital redemptions from the
financial assets backing the liabilities are insufficient to fund the guaranteed benefits
payable.
The Group does not guarantee a positive fixed rate of return to its long-term contract
policyholders at the inception of a contract. The declaration of discretionary bonuses is
guided by the bonus philosophy of the Board. Once a reversionary bonus is declared, it
is guaranteed to be paid in full at maturity or on the prior death of the life assured. Also
policyholders have the option to withdraw their current year\u2019s bonus without any
charges following the date the bonus is declared.
The bonus philosophy considers historic and current rates of return generated by the
Group\u2019s investment portfolio as well as the Group\u2019s expectations for future investment
returns. The impact of interest rate risk is mitigated by the presence of the DPF. These
guaranteed benefits increase as discretionary benefits are declared and allocated to
contract holders. The current rates of regular and final bonuses are determined by the
Board in consultation with the Approved Actuary.\u00a0 Different bonus rates are declared
on different generations of contracts depending on the type of product, cost structure,
past investment performance and premium rates.\u00a0 Different bonuses are declared to
maintain equity between different generations of contract holders and products with
different characteristics. Future bonus rates are not guaranteed and the assumptions are
set to allow for a fair and orderly run-off of the fund.
All unit-linked and investment contracts with a DPF feature can be surrendered before
maturity for a cash surrender value that is always less than the actual contract liability.
Cash surrender values are determined at the discretion of the Group, and can be varied
from time to time.
The primary factor affecting the level of cash surrender value is the investment return
earned on the assets of the Group. In addition, the cash surrender value is affected by
the expenses, tax and the cost of risk benefits (such as life cover) borne by the Group,
deductions to provide a return to shareholders, as well as profits and losses arising on
other contracts. The expenses include payment of commission, medical report expenses,
office administration costs and other expenses incurred in the setting up and
maintenance of the contract. At most, the cash surrender value will be the amount of the
actual liability reduced by the surrender charge (where applicable).
Furthermore, in respect of all with-profits (with the exception of some contracts that
have been in force more than a certain number of years), the Group reserves the right to
increase the level of the surrender charge and, if necessary, to apply a Market Value
Reduction (\u2018MVR\u2019). A MVR is a deduction which the Group may make on surrender of
a contract with DPF. For example, if the underlying investment return, after allowing
for expenses, tax, risk benefits, shareholder returns and adjustment for profits or losses
on other contracts is less than the return already provided for in the form of
reversionary bonuses, the Group may decide to apply a MVR.
The MVR serves to protect the interests of remaining investors and the Group, who
would otherwise have to subsidise the amount paid on surrendering contracts. The
Group does not apply a standard percentage deduction on all contracts but determines
the deduction to apply to each individual surrender at the time the surrender is made.
The amount depends on a number of factors including the length of time the contract
has been in force and the underlying investment return over the same time period. There
will be no MVR at maturity or on death. This means that at maturity or on death the
payment of the actual contract liability is guaranteed.
The cash surrender value may also be less than the total amount of premiums paid up to
the date of surrender.\u00a0 The Group is not required to, and does not, measure the effect of
the above embedded derivative at fair value.\u00a0
The Group matches its insurance contract liabilities with a diversified portfolio of assets
which includes equity, debt securities and property.\u00a0 The return from debt and cash-
based securities is subject to interest rate risk.\u00a0
In general, the Group is exposed to risk associated with the effects of fluctuations in the
prevailing levels of market interest rates. Assets/liabilities issued at variable rates
generally expose the Group to cash flow interest risk.\u00a0 Assets/liabilities issued at fixed
rates generally expose the Group to fair value interest rate risk. Group investment
parameters exist to limit exposure to any one particular issuer and any one particular
security. Periodic reports are prepared at portfolio, legal entity and asset class level that
are circulated to the Group\u2019s key management personnel. Note 22 incorporates maturity
information with respect to the Group's investments.
The total assets and liabilities exposed to interest rate risk are the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Assets at floating interest rates
100,729
93,884
\u2014
\u2014
Assets at fixed interest rates
1,303,915
1,290,280
26,069
18,773
1,404,644
1,384,164
26,069
18,773
Reconciled to the notes to the financial statements as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
\u20ac'000
Debt securities (Note 22)
1,012,362
1,020,445
22,069
16,273
Deposits with banks and credit institutions
\u00a0 (Note 22)
59,983
39,657
\u2014
\u2014
A component of equity securities and units
\u00a0 in unit trusts
328,142
321,387
\u2014
\u2014
Interest bearing cash and cash equivalents
4,157
2,675
4,000
2,500
1,404,644
1,384,164
26,069
18,773
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
\u20ac'000
Insurance and reinsurance contracts
Liabilities
(1,900,121)
(1,920,554)
(37,657)
(37,710)
Assets
15,437
19,783
8,446
9,203
(1,884,684)
(1,900,771)
(29,211)
(28,507)
Interest rate risk in relation to hybrid contracts, amounting to \u20ac38.2 million (2024:
\u20ac35.2 million) has been excluded as the directors consider the exposure to be
insignificant.
In managing its portfolio, the Group entered into fixed income security futures
contracts.\u00a0 Accordingly, it is exposed to movements in interest rates in the respective
markets of the underlying, which comprise short, medium and long-term sovereign
debt.\u00a0 The notional amount of futures contracts outstanding at 31 December is shown
below:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Long positions
- Federal Republic of Germany
70,690
65,488
- United States Government
11,154
17,884
81,844
83,372
Short positions
- Federal Republic of Germany
65,501
78,096
- United States Government
6,777
18,601
72,278
96,697
Up to the reporting date, the Group did not have any hedging policy with respect to
interest rate risk other than as described in note 2.9.
Sensitivity analysis \u2013 interest rate risk
An analysis of the Group\u2019s sensitivity to a 1% increase or decrease in market interest rates
at the reporting date, assuming that all other variables remain constant, is presented below.
An explanation of the method used in preparing such sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss before
tax
Equity
Increase
Decrease
Increase
Decrease
Increase
Decrease
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Insurance and reinsurance
\u00a0 contracts (net)
398
(440)
(221)
150
(143)
98
Investment contracts with
\u00a0 DPF
3,801
(12,290)
301
(1,098)
195
(714)
Other investments
\u2014
\u2014
\u2014
\u2014
(602)
623
4,199
(12,730)
80
(948)
(550)
7
31 December 2024
Insurance and\u00a0 reinsurance
\u00a0 contracts (net)
406
(449)
183
(284)
119
(185)
Investment contracts\u00a0 with
\u00a0 DPF
6,483
(19,019)
552
(1,714)
359
(1,114)
Other investments
\u2014
\u2014
\u2014
\u2014
(301)
281
6,889
(19,468)
735
(1,998)
177
(1,018)
(ii)\u00a0 \u00a0 Equity price risk
The Group\u2019s financial assets are susceptible to the risk of decreases in value due to
changes in the prices of equities. The directors manage the risk of price volatility by
entering into a diverse range of investments including equities and collective
investment schemes.\u00a0 In addition, the Group\u2019s investments are spread geographically in
a diverse number of different countries.\u00a0 The Group has active Investment Committees
that have established a set of investment guidelines that are also approved by the Board
of Directors.\u00a0 Investments over prescribed limits are directly approved by the respective
Boards.\u00a0 These guidelines provide parameters for investment management, including
contracts with external portfolio managers.\u00a0 They include, inter alia, reference to an
optimal spread of the investment portfolio, assessment of equity issuers and maximum
exposures by the Group to any one issuer and its connected parties (with the exception
of investments in Government paper). These parameters also consider solvency
restrictions imposed by the Regulator.
Management structures are in place to monitor all the Group\u2019s overall market positions
on a regular basis.\u00a0 Reports are prepared at portfolio, legal entity and asset and liability
class level that are circulated to the Group\u2019s relevant key management personnel. These
are also reviewed by the respective Investment Committees and Boards.
The total assets subject to equity price risk are the following:
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Group
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Assets subject to equity price risk
560,764
561,742
3,119
2,813
The above includes:
Component of\u00a0 investments in associated\u00a0
\u00a0 undertakings (Note 21)*
\u2014
4,805
\u2014
\u2014
A component of equity securities and units
\u00a0 in unit trusts
560,764
556,937
3,119
2,813
560,764
561,742
3,119
2,813
*Investments in associates (Note 21) amounting to \u20ac0.4 million (2024:\u20ac0.4 million) for
the Group and \u20ac0.4 million (2024: \u20ac0.4 million) for the Company have been excluded
from equity price risk since they are accounted for under the equity method.
In the case of assets held to cover unit-linked liabilities the exposure is carried by the
contract holder.\u00a0 In the case of capital guaranteed products any shortfalls guaranteed
upon maturity are mitigated by a back-to-back guarantee with international financial
service providers as further referred in 4.2 (a) (i).\u00a0
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
The Group\u2019s and Company\u2019s liabilities are substantially denominated in euro.\u00a0 The
Group\u2019s exposure to foreign currency risk arises primarily from both equity and debt
securities denominated in major foreign currencies. The Group hedges its foreign
currency denominated debt securities using foreign exchange forward contracts in order
to mitigate the risk that principal cash flows for these investments fluctuate as a result
of changes in foreign exchange rates.
The table below summarises the Group\u2019s exposure to foreign currencies other than
euro.
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-388": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(a)\u00a0 Market risk
(ii)\u00a0 \u00a0 Equity price risk
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
(c)\u00a0 Liquidity risk
The table below analyses the Group\u2019s derivative financial instruments that will be
settled on a gross basis. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances,
as the impact of discounting is not significant.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At 31 December
Foreign exchange contracts
- outflow
(358,492)
(211,300)
- inflow
360,701
204,484
At 31 December 2025 and 2024, the above derivatives were due to be settled within
three months after year end.
4.3Fair values
The following table presents the assets measured in the statement of financial position
at fair value by level of the following fair value measurement hierarchy at 31 December
2025:
\u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
\u2022 Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2); and
\u2022 Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
The Group recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
The following tables present the assets and liabilities measured at fair value at 31
December 2025.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through profit or
\u00a0 loss
- Equity securities, units in unit trusts and
\u00a0 collective investment schemes
911,971
142,863
101,319
1,156,153
- Debt securities
549,047
392,209
\u2014
941,256
Debt securities at FVOCI
9,900
12,169
\u2014
22,069
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
2,209
\u2014
2,209
Total assets
1,470,918
549,450
101,319
2,121,687
Liabilities
Investment contract liabilities
\u2014
229,748
\u2014
229,748
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
638
\u2014
638
Total liabilities
\u2014
230,386
\u2014
230,386
The following tables present the assets measured at fair value at 31 December 2024.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through
\u00a0 profit or loss
- Equity Securities, units in unit trusts and
\u00a0 \u00a0 collective investment schemes
874,858
123,120
101,480
1,099,458
- Debt Securities
567,135
388,077
\u2014
955,212
Debt securities at FVOCI
8,946
7,327
\u2014
16,273
Forward foreign exchange contracts and\u00a0
\u00a0 swaps
\u2014
4,805
\u2014
4,805
Investment in associated undertakings
\u2014
\u2014
\u2014
\u2014
Total assets
1,450,939
523,329
101,480
2,075,748
Liabilities
Investment contract liabilities
\u2014
179,685
\u2014
179,685
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
6,816
\u2014
6,816
Total liabilities
\u2014
186,501
\u2014
186,501
Derivative foreign exchange forward contracts have been classified
as Level 2.\u00a0 The fair value of these instruments is determined by reference to market
observable forward currency rates and interest rates. Domestic equities are classified as
Level 2 in view of their trading characteristics.
22.\u00a0 \u00a0 Other investments
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsHeldForTradingExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-387": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(c)\u00a0 Liquidity risk
The Group is exposed to daily calls on its available cash resources mainly from claims
and benefits arising from insurance contracts.\u00a0 Liquidity risk is the risk that cash may
not be available to pay obligations when due at a reasonable cost. The Group manages
its funds in such a manner as to ensure an adequate portion of available funds to meet
such calls. With respect to life insurance contracts this is principally managed through
limits set by the Board of MMSV on the minimum proportion of maturity funds
available to meet such calls. Furthermore, the Group invests a majority of its assets in
listed investments that can be readily disposed of.
The following table indicates the expected timing of cash flows arising from the
maturity or settlement of Group\u2019s liabilities. The expected cash flows do not consider
the impact of early surrenders on life insurance contracts.
Group expected cash flows (\u20ac millions) 2025
Payable on
demand
0-1 yr
1-2
yrs
2-3
yrs
3-4
yrs
4-5
yrs
>5 yrs
Total
Undiscounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Insurance contract assets -
\u00a0 Life insurance contracts
3.0
(10.0)
(8.0)
(7.0)
(6.0)
(5.0)
(27.0)
(60.0)
Insurance contract liabilities
\u00a0 - Life insurance contracts
50.0
186.0
142.0
163.0
182.0
176.0
910.0
1,809.0
Reinsurance contract
\u00a0 liabilities
7.0
3.0
3.0
2.0
2.0
2.0
17.0
36.0
Insurance contract liabilities
\u00a0 \u2013 liabilities for incurred
\u00a0 claims short- term
\u00a0 contracts under PAA
\u2014
19.5
6.1
3.4
2.4
1.4
3.5
36.3
Lease liabilities
\u2014
0.5
0.3
0.3
0.3
0.2
0.6
2.2
Other payables
19.9
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
19.9
\u00a0 \u00a0
Group expected cash flows (\u20ac millions) 2024
Payable on
demand
0-1 yr
1-2
yrs
2-3
yrs
3-4
yrs
4-5
yrs
>5 yrs
Total
Undiscounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Insurance contract assets -
\u00a0 Life insurance contracts
4.0
(9.0)
(8.0)
(7.0)
(6.0)
(5.0)
(25.0)
(56.0)
Insurance contract liabilities
\u00a0 - Life insurance contracts
56.0
175.0
163.0
133.0
152.0
171.0
984.0
1,834.0
Reinsurance contract
\u00a0 liabilities
6.0
3.0
2.0
2.0
2.0
2.0
20.0
37.0
Insurance contract liabilities
\u00a0 \u2013 liabilities for incurred
\u00a0 claims short-term\u00a0 contracts
\u00a0 under PAA
\u2014
18.2
6.3
3.4
2.9
2.2
3.8
36.8
Lease liabilities
\u2014
0.4
0.3
0.3
0.2
0.2
0.4
1.8
Other payables
18.2
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
18.2
Expected cash flows on unit linked liabilities, presented under investment contract
liabilities amounting to \u20ac229.7 million (2024:\u20ac179.7 million) and as part of insurance
contract liabilities \u20ac35.7 million (2024: \u20ac39.2 million), have not been included as the
directors consider that there is limited exposure to liquidity risk given that these are
principally backed by unit linked assets.
The amounts which are undiscounted and payable on demand mainly consist of long-
term contracts claims outstanding.
The table below analyses the Group\u2019s derivative financial instruments that will be
settled on a gross basis. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances,
as the impact of discounting is not significant.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At 31 December
Foreign exchange contracts
- outflow
(358,492)
(211,300)
- inflow
360,701
204,484
At 31 December 2025 and 2024, the above derivatives were due to be settled within
three months after year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-386": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.3Fair values
The following table presents the assets measured in the statement of financial position
at fair value by level of the following fair value measurement hierarchy at 31 December
2025:
\u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
\u2022 Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2); and
\u2022 Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
The Group recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
The following tables present the assets and liabilities measured at fair value at 31
December 2025.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through profit or
\u00a0 loss
- Equity securities, units in unit trusts and
\u00a0 collective investment schemes
911,971
142,863
101,319
1,156,153
- Debt securities
549,047
392,209
\u2014
941,256
Debt securities at FVOCI
9,900
12,169
\u2014
22,069
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
2,209
\u2014
2,209
Total assets
1,470,918
549,450
101,319
2,121,687
Liabilities
Investment contract liabilities
\u2014
229,748
\u2014
229,748
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
638
\u2014
638
Total liabilities
\u2014
230,386
\u2014
230,386
The following tables present the assets measured at fair value at 31 December 2024.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through
\u00a0 profit or loss
- Equity Securities, units in unit trusts and
\u00a0 \u00a0 collective investment schemes
874,858
123,120
101,480
1,099,458
- Debt Securities
567,135
388,077
\u2014
955,212
Debt securities at FVOCI
8,946
7,327
\u2014
16,273
Forward foreign exchange contracts and\u00a0
\u00a0 swaps
\u2014
4,805
\u2014
4,805
Investment in associated undertakings
\u2014
\u2014
\u2014
\u2014
Total assets
1,450,939
523,329
101,480
2,075,748
Liabilities
Investment contract liabilities
\u2014
179,685
\u2014
179,685
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
6,816
\u2014
6,816
Total liabilities
\u2014
186,501
\u2014
186,501
Fair value measurements classified as Level 1 include government debt securities, units
in unit trusts and collective investments schemes and foreign listed equities.
Corporate debt securities are classified as Level 2 in view of their trading
characteristics. The financial liabilities for unit-linked contracts were also classified as
Level 2. The fair value of these contracts is determined using the current unit values
that reflect the fair values of the financial assets (classified as Level 1) linked to the
financial liability.\u00a0 Derivative foreign exchange forward contracts have been classified
as Level 2.\u00a0 The fair value of these instruments is determined by reference to market
observable forward currency rates and interest rates. Domestic equities are classified as
Level 2 in view of their trading characteristics.
At 31 December 2025, 4.8% (2024:4.9%) of the financial assets measured at fair value
on a recurring basis were classified as Level 3.\u00a0 They constitute investment in unlisted
equities. The Group has \u20ac101.3 million (2024:\u20ac101.5 million) assets classified as Level
3, the valuation of which has been determined by reference to the latest available net
asset values of the underlying investment or the latest transaction price.
The following table presents the changes in Level 3 instruments for the year ended 31
December:
Group
2024
Equity securities
\u20ac'000
Opening balance
94,839
Additions
5,300
Disposals
(1,749)
Total gains recognised in profit or loss
3,090
Closing balance
101,480
2025
Equity securities
\u20ac'000
Opening balance
101,480
Additions
1,682
Disposals
\u2014
Total losses recognised in profit or loss
(1,843)
Closing balance
101,319
At 31 December 2025 and 2024, the carrying amount of the Group\u2019s and Company\u2019s
other financial assets and liabilities approximated their fair values with the exception of
financial liabilities emanating from investment contracts with DPF. It is impracticable
to determine the fair value of these contracts due to the lack of a reliable basis to
measure the future discretionary return that is a material feature of these contracts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-385": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.3Fair values
The following table presents the assets measured in the statement of financial position
at fair value by level of the following fair value measurement hierarchy at 31 December
2025:
\u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
\u2022 Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2); and
\u2022 Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
The Group recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
The following tables present the assets and liabilities measured at fair value at 31
December 2025.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through profit or
\u00a0 loss
- Equity securities, units in unit trusts and
\u00a0 collective investment schemes
911,971
142,863
101,319
1,156,153
- Debt securities
549,047
392,209
\u2014
941,256
Debt securities at FVOCI
9,900
12,169
\u2014
22,069
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
2,209
\u2014
2,209
Total assets
1,470,918
549,450
101,319
2,121,687
Liabilities
Investment contract liabilities
\u2014
229,748
\u2014
229,748
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
638
\u2014
638
Total liabilities
\u2014
230,386
\u2014
230,386
The following tables present the assets measured at fair value at 31 December 2024.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through
\u00a0 profit or loss
- Equity Securities, units in unit trusts and
\u00a0 \u00a0 collective investment schemes
874,858
123,120
101,480
1,099,458
- Debt Securities
567,135
388,077
\u2014
955,212
Debt securities at FVOCI
8,946
7,327
\u2014
16,273
Forward foreign exchange contracts and\u00a0
\u00a0 swaps
\u2014
4,805
\u2014
4,805
Investment in associated undertakings
\u2014
\u2014
\u2014
\u2014
Total assets
1,450,939
523,329
101,480
2,075,748
Liabilities
Investment contract liabilities
\u2014
179,685
\u2014
179,685
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
6,816
\u2014
6,816
Total liabilities
\u2014
186,501
\u2014
186,501
Fair value measurements classified as Level 1 include government debt securities, units
in unit trusts and collective investments schemes and foreign listed equities.
Corporate debt securities are classified as Level 2 in view of their trading
characteristics. The financial liabilities for unit-linked contracts were also classified as
Level 2. The fair value of these contracts is determined using the current unit values
that reflect the fair values of the financial assets (classified as Level 1) linked to the
financial liability.\u00a0 Derivative foreign exchange forward contracts have been classified
as Level 2.\u00a0 The fair value of these instruments is determined by reference to market
observable forward currency rates and interest rates. Domestic equities are classified as
Level 2 in view of their trading characteristics.
At 31 December 2025, 4.8% (2024:4.9%) of the financial assets measured at fair value
on a recurring basis were classified as Level 3.\u00a0 They constitute investment in unlisted
equities. The Group has \u20ac101.3 million (2024:\u20ac101.5 million) assets classified as Level
3, the valuation of which has been determined by reference to the latest available net
asset values of the underlying investment or the latest transaction price.
The analysis of freehold land and buildings and investment property are included
within Note 18 and\u00a0 Note 19 respectively.
The following table presents the changes in Level 3 instruments for the year ended 31
December:
Group
2024
Equity securities
\u20ac'000
Opening balance
94,839
Additions
5,300
Disposals
(1,749)
Total gains recognised in profit or loss
3,090
Closing balance
101,480
2025
Equity securities
\u20ac'000
Opening balance
101,480
Additions
1,682
Disposals
\u2014
Total losses recognised in profit or loss
(1,843)
Closing balance
101,319
At 31 December 2025 and 2024, the carrying amount of the Group\u2019s and Company\u2019s
other financial assets and liabilities approximated their fair values with the exception of
financial liabilities emanating from investment contracts with DPF. It is impracticable
to determine the fair value of these contracts due to the lack of a reliable basis to
measure the future discretionary return that is a material feature of these contracts.
18.Property, plant and equipment
Group
Freehold
Furniture
land and
Leasehold
Motor
fittings and
buildings
improvements
Vehicles
equipment
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
At 1 January 2024
Cost
14,070
4,381
\u2014
9,450
27,901
Accumulated depreciation
(357)
(2,620)
\u2014
(7,741)
(10,718)
Closing net book amount
13,713
1,761
\u2014
1,709
17,183
Year ended 31 December 2024
Opening net book amount
13,713
1,761
\u2014
1,709
17,183
Additions
72
276
\u2014
634
982
Disposals
\u2014
(1,153)
\u2014
(922)
(2,075)
Revaluation gain to profit or loss
168
\u2014
\u2014
\u2014
168
Depreciation charge
(104)
(319)
\u2014
(702)
(1,125)
Depreciation release on disposal
\u2014
1,063
\u2014
919
1,982
Closing net book amount
13,849
1,628
\u2014
1,638
17,115
At 31 December 2024
Cost
14,310
3,504
\u2014
9,162
26,976
Accumulated depreciation
(461)
(1,876)
\u2014
(7,524)
(9,861)
Net book amount
13,849
1,628
\u2014
1,638
17,115
Year ended 31 December 2025
Opening net book amount
13,849
1,628
\u2014
1,638
17,115
Additions
18
116
30
664
828
Disposals
\u2014
(35)
\u2014
(112)
(147)
Amounts transferred to
\u00a0 investment property
(998)
\u2014
\u2014
\u2014
(998)
Revaluation gain to other
\u00a0 comprehensive income
196
\u2014
\u2014
\u2014
196
Depreciation charge
(102)
(266)
(1)
(660)
(1,029)
Depreciation on amount
\u00a0 transferred to investment
\u00a0 property (Note 19)
86
\u2014
\u2014
\u2014
86
Depreciation release on disposal
\u2014
35
0
107
142
Closing net book amount
13,049
1,478
29
1,637
16,193
At 31 December 2025
Cost
13,526
3,585
30
9,714
26,855
Accumulated depreciation
(477)
(2,107)
(1)
(8,077)
(10,662)
Net book amount
13,049
1,478
29
1,637
16,193
Valuation processes
Periodically, the Group engages qualified valuers to determine the fair value of the
Group\u2019s land and buildings.\u00a0 The Company's land and buildings were revalued by PwC
Malta in 2025 with the gain debited to other comprehensive income. The fair value of
the land and buildings of the subsidiary was last determined by PwC Malta in 2024.
Whenever a valuation is carried out the finance department:
\u2022 verifies all major inputs to the valuation report prepared by the qualified valuer;
\u2022 assesses property valuation movements when compared to the prior valuation
report; and
\u2022 holds discussions with the qualified valuer.
Valuation techniques
The fair value of the Group\u2019s and the Company\u2019s land and buildings, with a total
carrying amount of \u20ac13.0 million and \u20ac1.5 million respectively (2024: \u20ac13.9 million
and \u20ac1.7 million respectively), was determined by capitalizing future net income
streams based on significant unobservable inputs.\u00a0 These inputs include:
Valuation technique
Significant unobservable
inputs
Inter-relationship between
key unobservable inputs and
fair value measurement
Discounted cash flows: The
valuation model considers
the present value of net cash
flows potentially generated
from the property, taking
into account the expected
rental growth rate, void
periods and costs not paid
for by the tenants. The
expected net cash flows are
discounted using the risk-
adjusted discount rates.
Among other factors, the
discount rate estimation
considers the quality of a
building and its location
(prime vs secondary), lease
terms, property risk
premium and inflation.
\u2013 Risk-adjusted discount
rate varying between
6.2% and 7% (2024:
6.2% and 6.6%)
\u2013 The valuation provides
for a void factor
varying between 2.5%\u00a0
and 7.0% (2024: 2.5%
and 5.5%) on rental
income.
\u2013 A benchmark lease
market rate was applied
once current lease terms
expired.
\u2013 Expected market rental
growth rate of 2.0%
(2024: 2.0%) in line
with the implied
inflation rate IRR
(Internal Rate of
Return).
The estimated fair value
would increase/(decrease) if:
\u2013 The risk-adjusted
discount rate were
lower/(higher);
\u2013 Void factor were
lower/(higher)
\u2013 The market rate were
higher/(lower);
\u2013 Expected market rental
growth were higher/
(lower).
Although the properties are currently being used by MMS as its Floriana Regional
Office and MMSV as its head office, for the purpose of the valuation, it was assumed
that the property\u2019s highest and best use would be rental to a third party, assuming same
use.\u00a0 Although the Market Approach was considered, its applicability is limited, due to
the illiquidity of the commercial property market in Malta and therefore, the limited
number of transactions available.\u00a0 Moreover, it is inherently difficult to find
transactions including office blocks that are directly comparable to the property.
19.\u00a0 \u00a0 Investment property
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
68,026
7,885
Accumulated fair value gains
37,593
5,924
Net book amount
105,619
13,809
Year ended 31 December 2024
Opening net book amount
105,619
13,809
Additions
934
100
Net fair value losses
(746)
(196)
Disposals
(1)
(1)
Net book amount
105,806
13,712
At 31 December 2024
Cost
68,959
7,984
Accumulated fair value gains
36,847
5,728
Net book amount
105,806
13,712
Group
Company
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2025
Opening net book amount
105,806
13,712
Transfer from Property plant & equipment at amortised value
1,172
302
Additions
1,367
73
Net fair value losses
(903)
(251)
Disposals
(317)
(317)
Net book amount
107,125
13,519
At 31 December 2025
Cost
71,181
8,042
Accumulated fair value gains
35,944
5,477
Net book amount
107,125
13,519
Transfers to or from property, plant & equipment and disposals are inclusive of
accumulated fair value gains at the point of transfer.
Fair value of investment property
A valuation of the Group\u2019s and Company\u2019s investment property was performed by
external qualified valuers to determine the fair value of the land and buildings as at 31
December 2025 and 2024. The fair value movements were credited to profit or loss and
are presented within \u2018investment return\u2019 (Note 8).
The Group\u2019s and the Company\u2019s investment property, comprising mainly office
buildings, have been determined to fall within level 3 of the fair valuation hierarchy.\u00a0
The different levels in the fair value hierarchy have been defined in Note 4.3.
The Group\u2019s and the Company\u2019s policy is to recognise transfers into and out of fair
value hierarchy levels as of the date of the event or change in circumstances that caused
the transfer.\u00a0 There were no transfers between levels during the year.
Valuation processes
On an annual basis, the Group and Company engage external, independent property
valuers, having appropriate recognised professional qualifications and recent
experience in the location and category of the properties being valued to determine the
fair value of the land and buildings. As at 31 December 2025 and 2024, the fair values
of the land and buildings have been determined by PwC Malta and DHI Periti.
At each financial year end the investments department:
\u2022 verifies all major inputs to the valuation report prepared by the qualified valuer;
\u2022 assesses property valuation movements when compared to the prior year valuation
report; and
\u2022 holds discussions with the qualified valuer.
The valuation techniques used for investment properties were the discounted cash flow
valuation, market approach, comparative transaction method and income capitalisation
method to provide accuracy and consistency in arriving at a fair value that reflects a
price that would be reasonably expected to be received in an orderly transaction
between market participants at the measurement date.
Valuation technique - Discounted cash flow
The following tables shows the valuation technique used in measuring the fair value of
investment property using the discounted cash flow technique, as well as the significant
unobservable inputs used. These inputs include:
Group
Valuation technique
Significant unobservable
inputs
Inter-relationship between
key unobservable inputs and
fair value measurement
Discounted cash flows:
The valuation model
considers the present value
of net cash flows generated
from the property, taking
into account the expected
rental growth rate, void
periods and costs not paid
for by the tenants. The
expected net cash flows
are discounted using the
risk-adjusted discount
rates. Among other factors,
the discount rate
estimation considers the
quality of a building and
its location (prime vs
secondary), lease terms,
property risk premium and
inflation.
\u2013 Risk-adjusted discount rate
varying between 6.3% and
8.5% (2024: 6.3% and
8.3%).
\u2013 A void factor varying
between 1.0% to 7% (2024:
1.0% and 5.5%) on rental
income.
\u2013 Lease market rate was
applied once current lease
terms expired.
\u2013 Expected market rental
growth rate of 2.0% (2024:
2.0%) in line with the
general inflation rate
\u2013 Construction costs for
undeveloped airspace and
re-developable land varying
between \u20ac676/sqm and
\u20ac1,658/sqm (2024: \u20ac673/
sqm and \u20ac1,621/sqm)
The estimated fair value would
increase/(decrease) if:
\u2013 The risk-adjusted
discount rate were
lower/ (higher);
\u2013 Void factor were lower/
(higher);
\u2013 The market rate were
higher/(lower);
\u2013 Expected market rental
growth were higher/
(lower).\u00a0
\u2013 Constructions costs were
lower/(higher).
The fair value of investment property determined by external, qualified property
valuers on the basis of the discounted cash flow method amounted to \u20ac103.0 million
(2024: \u20ac101.8 million) for the Group and \u20ac12.9 million (2024: \u20ac12.8 million) for the
Company.
A transfer was made from Investment Property in 2025 whilst no transfer were made to
or from Investment Property during 2024.
Valuation technique \u2013 Market approach
One property held by the Group situated within the Grand Harbour Local Plan has been
valued using the Market Approach.
The property is valued with reference to parameters for comparable properties in terms
of either actual prices from recent transactions or advertised prices for properties
currently available for sale. Through the Market Approach, the property is valued in its
existing state.
Market Value Technique
Valuation technique
Significant unobservable inputs
Inter-relationship between key
unobservable inputs and fair
value measurement
Market value : The valuation
model comprises:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
The estimation of an average
sales rate based on
information obtained from
either actual prices of recent
transactions or advertised
prices for properties
currently available for sale.
\u2013 Average sales rate of
\u20ac1,112/sqm (2024:
\u20ac1,105/sqm)
\u2013 Reduction in average
sales rate of 60% (2024:
70%) to allow for
potential negotiation in
rates between what is
being advertised to
what is actually
contracted.
The estimated fair value would
increase/(decrease) if:
\u2013 The average sale
rate were higher/
(lower);
\u2013 The reduction in
average sales rate
were higher/(lower);
The fair value of investment property determined by external, qualified property
valuers on the basis of market approach method amounted to \u20ac2.3 million for the Group
in 2025 (2024: \u20ac2.3 million).
Valuation technique - Comparative transactions method
The fair value of the Group\u2019s investment properties determined on the basis of the
market comparison method amounted to \u20ac1.2 million in 2025 (2024: \u20ac0.7 million). The
comparative method is based on an expected sales value per square metre based on an
average/ median of values derived from observable market transactions for comparable
properties.
Valuation technique - Income Capitalisation Method
The valuation for all other investment property with a total carrying amount of \u20ac0.6
million (2024: \u20ac0.9 million) for the Group and Company, was determined by
capitalising future net income streams based on significant unobservable inputs.\u00a0 These
inputs include:
Future rental cash inflows
based on the actual location, type and quality of the
properties and supported by the terms of any existing
lease, other contracts or external evidence such as
current market rents for similar properties;
Capitalisation rates
based on actual location, size and quality of the
properties and taking into account market data at the
valuation date.
Information about fair value measurements using significant unobservable inputs (level
3)
Group & Company
Significant unobservable\u00a0 Inputs
Fair value at 31
December 2025
Valuation
technique
Rental value
Capitalisation
rate
Description
\u20ac
\u20ac
%
Office buildings
0.63m
Capitalisation of
future net income
streams
0.05m
3.50-5.00
Group & Company
Significant unobservable\u00a0 Inputs
Description
Fair value at 31
December 2024
Valuation
technique
Rental value
Capitalisation
rate
\u20ac
\u20ac
%
Office buildings
0.94m
Capitalisation of
\u00a0 future net income
\u00a0 streams
0.04m
5.00
For each valuation for which rental value and capitalisation rate have been determined
to be the significant unobservable inputs, the higher the rental value and the lower the
capitalisation rate, the higher the fair value. Conversely, the lower the rental value and
the higher the capitalisation rate, the lower the fair value.
In the absence of future rental cash inflows, fair value is based on active market prices,
adjusted, if necessary for any difference in the nature, location or condition of the
specific asset.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-384": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
The Group is exposed to financial risks through its financial assets, financial liabilities
and insurance contract assets and liabilities and reinsurance contracts assets and
liabilities.\u00a0 In particular, the key risk is that in the long term, the proceeds from its
financial assets are not sufficient to fund the obligations arising from its insurance and
investment contracts.\u00a0 The components of financial risks for the Group are market risk
(including cash flow and fair value interest rate risk, equity price risk and currency
risk), credit risk and liquidity risk. These risks arise from open positions in interest rate,
currency and equity products, all of which are exposed to general and specific market
movements.\u00a0 The risks that the Group primarily faces due to the nature of its assets and
liabilities are interest rate risk and equity price risk.
The Group has developed its Asset/Liability management framework to further support
the manner in which these risk positions are managed.\u00a0 It actively manages its assets to
achieve a competitive rate of return within risk objectives delineated by asset liquidity
measures, duration targets and credit quality parameters.\u00a0 The respective Investment
Committees review and approve investment strategies on a periodic basis ensuring that
assets are managed efficiently and within approved risk mandates.
(a)\u00a0 Market risk
Market risk comprises interest rate, equity price and foreign currency risks. These risks
arise from variability in fair values of financial instruments or related future cash flows,
as well as from variability of the FCF of insurance contracts due to variability in market
risk variables.
(i)\u00a0 Cash flow and fair value interest rate risk
Insurance and investment contracts with DPF at Group level have benefit payments that
are fixed and guaranteed at the inception of the contract (for example, sum assured), or
as annual discretionary bonuses are declared. The Group\u2019s primary financial risk on
these contracts is the risk that interest income and capital redemptions from the
financial assets backing the liabilities are insufficient to fund the guaranteed benefits
payable.
The Group does not guarantee a positive fixed rate of return to its long-term contract
policyholders at the inception of a contract. The declaration of discretionary bonuses is
guided by the bonus philosophy of the Board. Once a reversionary bonus is declared, it
is guaranteed to be paid in full at maturity or on the prior death of the life assured. Also
policyholders have the option to withdraw their current year\u2019s bonus without any
charges following the date the bonus is declared.
The bonus philosophy considers historic and current rates of return generated by the
Group\u2019s investment portfolio as well as the Group\u2019s expectations for future investment
returns. The impact of interest rate risk is mitigated by the presence of the DPF. These
guaranteed benefits increase as discretionary benefits are declared and allocated to
contract holders. The current rates of regular and final bonuses are determined by the
Board in consultation with the Approved Actuary.\u00a0 Different bonus rates are declared
on different generations of contracts depending on the type of product, cost structure,
past investment performance and premium rates.\u00a0 Different bonuses are declared to
maintain equity between different generations of contract holders and products with
different characteristics. Future bonus rates are not guaranteed and the assumptions are
set to allow for a fair and orderly run-off of the fund.
All unit-linked and investment contracts with a DPF feature can be surrendered before
maturity for a cash surrender value that is always less than the actual contract liability.
Cash surrender values are determined at the discretion of the Group, and can be varied
from time to time.
The primary factor affecting the level of cash surrender value is the investment return
earned on the assets of the Group. In addition, the cash surrender value is affected by
the expenses, tax and the cost of risk benefits (such as life cover) borne by the Group,
deductions to provide a return to shareholders, as well as profits and losses arising on
other contracts. The expenses include payment of commission, medical report expenses,
office administration costs and other expenses incurred in the setting up and
maintenance of the contract. At most, the cash surrender value will be the amount of the
actual liability reduced by the surrender charge (where applicable).
Furthermore, in respect of all with-profits (with the exception of some contracts that
have been in force more than a certain number of years), the Group reserves the right to
increase the level of the surrender charge and, if necessary, to apply a Market Value
Reduction (\u2018MVR\u2019). A MVR is a deduction which the Group may make on surrender of
a contract with DPF. For example, if the underlying investment return, after allowing
for expenses, tax, risk benefits, shareholder returns and adjustment for profits or losses
on other contracts is less than the return already provided for in the form of
reversionary bonuses, the Group may decide to apply a MVR.
The MVR serves to protect the interests of remaining investors and the Group, who
would otherwise have to subsidise the amount paid on surrendering contracts. The
Group does not apply a standard percentage deduction on all contracts but determines
the deduction to apply to each individual surrender at the time the surrender is made.
The amount depends on a number of factors including the length of time the contract
has been in force and the underlying investment return over the same time period. There
will be no MVR at maturity or on death. This means that at maturity or on death the
payment of the actual contract liability is guaranteed.
The cash surrender value may also be less than the total amount of premiums paid up to
the date of surrender.\u00a0 The Group is not required to, and does not, measure the effect of
the above embedded derivative at fair value.\u00a0
The Group matches its insurance contract liabilities with a diversified portfolio of assets
which includes equity, debt securities and property.\u00a0 The return from debt and cash-
based securities is subject to interest rate risk.\u00a0
In general, the Group is exposed to risk associated with the effects of fluctuations in the
prevailing levels of market interest rates. Assets/liabilities issued at variable rates
generally expose the Group to cash flow interest risk.\u00a0 Assets/liabilities issued at fixed
rates generally expose the Group to fair value interest rate risk. Group investment
parameters exist to limit exposure to any one particular issuer and any one particular
security. Periodic reports are prepared at portfolio, legal entity and asset class level that
are circulated to the Group\u2019s key management personnel. Note 22 incorporates maturity
information with respect to the Group's investments.
The total assets and liabilities exposed to interest rate risk are the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Assets at floating interest rates
100,729
93,884
\u2014
\u2014
Assets at fixed interest rates
1,303,915
1,290,280
26,069
18,773
1,404,644
1,384,164
26,069
18,773
Reconciled to the notes to the financial statements as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
\u20ac'000
Debt securities (Note 22)
1,012,362
1,020,445
22,069
16,273
Deposits with banks and credit institutions
\u00a0 (Note 22)
59,983
39,657
\u2014
\u2014
A component of equity securities and units
\u00a0 in unit trusts
328,142
321,387
\u2014
\u2014
Interest bearing cash and cash equivalents
4,157
2,675
4,000
2,500
1,404,644
1,384,164
26,069
18,773
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
\u20ac'000
Insurance and reinsurance contracts
Liabilities
(1,900,121)
(1,920,554)
(37,657)
(37,710)
Assets
15,437
19,783
8,446
9,203
(1,884,684)
(1,900,771)
(29,211)
(28,507)
Interest rate risk in relation to hybrid contracts, amounting to \u20ac38.2 million (2024:
\u20ac35.2 million) has been excluded as the directors consider the exposure to be
insignificant.
In managing its portfolio, the Group entered into fixed income security futures
contracts.\u00a0 Accordingly, it is exposed to movements in interest rates in the respective
markets of the underlying, which comprise short, medium and long-term sovereign
debt.\u00a0 The notional amount of futures contracts outstanding at 31 December is shown
below:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Long positions
- Federal Republic of Germany
70,690
65,488
- United States Government
11,154
17,884
81,844
83,372
Short positions
- Federal Republic of Germany
65,501
78,096
- United States Government
6,777
18,601
72,278
96,697
Up to the reporting date, the Group did not have any hedging policy with respect to
interest rate risk other than as described in note 2.9.
Sensitivity analysis \u2013 interest rate risk
An analysis of the Group\u2019s sensitivity to a 1% increase or decrease in market interest rates
at the reporting date, assuming that all other variables remain constant, is presented below.
An explanation of the method used in preparing such sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss before
tax
Equity
Increase
Decrease
Increase
Decrease
Increase
Decrease
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Insurance and reinsurance
\u00a0 contracts (net)
398
(440)
(221)
150
(143)
98
Investment contracts with
\u00a0 DPF
3,801
(12,290)
301
(1,098)
195
(714)
Other investments
\u2014
\u2014
\u2014
\u2014
(602)
623
4,199
(12,730)
80
(948)
(550)
7
31 December 2024
Insurance and\u00a0 reinsurance
\u00a0 contracts (net)
406
(449)
183
(284)
119
(185)
Investment contracts\u00a0 with
\u00a0 DPF
6,483
(19,019)
552
(1,714)
359
(1,114)
Other investments
\u2014
\u2014
\u2014
\u2014
(301)
281
6,889
(19,468)
735
(1,998)
177
(1,018)
(ii)\u00a0 \u00a0 Equity price risk
The Group\u2019s financial assets are susceptible to the risk of decreases in value due to
changes in the prices of equities. The directors manage the risk of price volatility by
entering into a diverse range of investments including equities and collective
investment schemes.\u00a0 In addition, the Group\u2019s investments are spread geographically in
a diverse number of different countries.\u00a0 The Group has active Investment Committees
that have established a set of investment guidelines that are also approved by the Board
of Directors.\u00a0 Investments over prescribed limits are directly approved by the respective
Boards.\u00a0 These guidelines provide parameters for investment management, including
contracts with external portfolio managers.\u00a0 They include, inter alia, reference to an
optimal spread of the investment portfolio, assessment of equity issuers and maximum
exposures by the Group to any one issuer and its connected parties (with the exception
of investments in Government paper). These parameters also consider solvency
restrictions imposed by the Regulator.
Management structures are in place to monitor all the Group\u2019s overall market positions
on a regular basis.\u00a0 Reports are prepared at portfolio, legal entity and asset and liability
class level that are circulated to the Group\u2019s relevant key management personnel. These
are also reviewed by the respective Investment Committees and Boards.
The total assets subject to equity price risk are the following:
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Group
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Assets subject to equity price risk
560,764
561,742
3,119
2,813
The above includes:
Component of\u00a0 investments in associated\u00a0
\u00a0 undertakings (Note 21)*
\u2014
4,805
\u2014
\u2014
A component of equity securities and units
\u00a0 in unit trusts
560,764
556,937
3,119
2,813
560,764
561,742
3,119
2,813
*Investments in associates (Note 21) amounting to \u20ac0.4 million (2024:\u20ac0.4 million) for
the Group and \u20ac0.4 million (2024: \u20ac0.4 million) for the Company have been excluded
from equity price risk since they are accounted for under the equity method.
In the case of assets held to cover unit-linked liabilities the exposure is carried by the
contract holder.\u00a0 In the case of capital guaranteed products any shortfalls guaranteed
upon maturity are mitigated by a back-to-back guarantee with international financial
service providers as further referred in 4.2 (a) (i).\u00a0
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
The Group\u2019s and Company\u2019s liabilities are substantially denominated in euro.\u00a0 The
Group\u2019s exposure to foreign currency risk arises primarily from both equity and debt
securities denominated in major foreign currencies. The Group hedges its foreign
currency denominated debt securities using foreign exchange forward contracts in order
to mitigate the risk that principal cash flows for these investments fluctuate as a result
of changes in foreign exchange rates.
The table below summarises the Group\u2019s exposure to foreign currencies other than
euro.
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
Credit risk is the risk of decreases in value when counterparties are not capable of
fulfilling their obligations or when a change in their credit status takes place. The Group
has exposure to credit risk, which is the risk that a counterparty will be unable to pay
amounts in full when due. Key areas where the Group is exposed to credit risk are:
\u2022 Investments and cash and cash equivalents
\u2022 Reinsurance contract assets
\u2022 Amounts due from insurance intermediaries
\u2022 Counterparty risk with respect to forward foreign exchange contracts
The Group places limits on the level of credit risk undertaken from the main categories
of financial instruments. These limits also take due consideration of the solvency
restrictions imposed by the relevant regulations. The investment strategy of the Group
considers the credit standing of the counterparty and control structures are in place to
assess and monitor these risk thresholds.
The Group structures the levels of credit risk it accepts by limiting as far as possible its
exposure to a single counterparty or groups of counterparties. The Group has in place
internal control structures to assess and monitor credit exposures and risk thresholds.
The Group\u2019s cash is placed with a number of core domestic credit institutions and
investment grade international banks, thereby reducing the concentration of
counterparty credit risk to an acceptable level.
Reinsurance is used to manage insurance risk. This does not, however, discharge the
Group\u2019s liability as primary insurer. If a reinsurer fails to pay a claim for any reason,
the Group remains liable for the payment to the policyholder.\u00a0 The creditworthiness of
reinsurers is monitored on a quarterly basis by reviewing credit grades provided by
rating agencies and other publicly available financial information, thereby ensuring the
continuous financial strength of the reinsurer. At the same time that the Board approves
the overall reinsurance protection of the Group, it ensures that the reinsurers\u2019 credit
rating (either Standard & Poor\u2019s or equivalent) is within the parameters set by it.
The Group is exposed to contract holders and intermediaries for insurance revenue.\u00a0
Credit agreements are in place in all cases where credit is granted, and in the case of
certain larger risks, premium payment warranties are in place.\u00a0 This limits the liability
of the Group towards the insured or any third party if the premium remains unsettled
after the credit period granted and allows the Group to cancel the policy ab initio, if
considered necessary. Records are kept of the payment history for significant contract
holders and intermediaries with whom regular business is conducted.\u00a0 Credit is not
granted to contract holders whose payment history is not satisfactory.\u00a0 Credit risk with
respect to debtors is further limited due to the large number of customers comprising
the Group\u2019s debtor base.
The exposure to individual counterparties is also managed by other mechanisms, such
as the right to offset where counterparties are both debtors and creditors of the Group.
Management information reported to the Group includes details of provisions for
impairment on receivables and subsequent write-offs.\u00a0 The Company performs risk-
based reviews to assess the degree of compliance with the Group\u2019s procedures on credit
and take action accordingly.\u00a0 In the case of MMSV, it is not normal for credit to be
extended to insurance policyholders due to the nature of their business, unless
automatic policy loans are advanced up to the surrender value of the contract.
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
The total assets bearing credit risk are the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Debt securities
1,012,362
1,020,445
22,069
16,273
Deposits with banks and credit institutions
59,983
39,657
\u2014
\u2014
Forward foreign exchange contracts and
\u00a0 swaps
2,209
\u2014
\u2014
\u2014
A component of reinsurance contract assets
6,395
8,084
6,395
8,084
Trade and other receivables
\u00a0 (excluding prepayments)
24,858
22,039
21,877
18,788
Cash and cash equivalents
50,244
81,899
14,559
13,908
Total
1,156,051
1,172,124
64,900
57,053
The carrying amounts disclosed above represent the maximum exposure to credit risk.
The component of reinsurance contract assets exposed to credit risk is analysed in the
table below using Standard & Poor\u2019s rating (or equivalent).
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
AA
167
122
A
5,896
7,446
Below BBB or not rated
332
516
6,395
8,084
These assets other than the reinsurance contract assets are analysed in the table below
using Standard & Poor\u2019s rating (or equivalent).
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
AAA
97,564
84,353
3,642
4,085
AA
129,341
232,871
5,265
2,522
A
505,410
440,982
13,720
7,690
BBB
314,384
317,688
10,926
13,013
Below BBB or not rated
102,957
88,146
24,952
21,659
1,149,656
1,164,040
58,505
48,969
Debt securities, receivables and cash and cash equivalents that are not rated are
primarily held with highly reputable financial institutions.
The Group does not hold any collateral as security to its credit risk.
Financial assets that are past due but not impaired
The following other assets are classified as past due but not impaired:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within credit terms
9,673
10,737
Not more than three months
3,712
3,821
Within three to twelve months
2,055
1,875
Over twelve months
921
1,063
16,361
17,496
IFRS 7 defines a financial asset as being past due when the counterparty has failed to
make a payment when contractually due. It goes further to stipulate that full disclosure
must be made of all balances due from this particular counterparty, including those,
which are still within credit terms and therefore not contractually due.
The overall exposure of the Group and Company in terms of IFRS 7 is \u20ac16.4 million
(2024: \u20ac17.5 million), of which \u20ac9.7 million (2024: \u20ac10.7 million) is not contractually
due. It is the view of the directors that no impairment charge is necessary, due to the
following reasons:
1. Settlements after year-end.
2. In cases where the amount has not been settled, agreement for settlement has been
reached or is being negotiated.
Trade receivables at 31 December 2025 did not comprise any amounts (2024: nil)
whose terms had been renegotiated from the original terms and which were classified as
fully performing.
Financial assets that are impaired
Within trade receivables are the following receivables that are classified as impaired
against which a provision for impairment has been provided as per Note 26:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Over twelve months (Note 26)
869
717
A decision to impair an asset is based on the following information that comes to the
attention of the Group:
\u2022 Significant financial difficulty of the debtor.
\u2022 It becoming probable that the debtor will enter bankruptcy or other financial
reorganisation.
\u2022 A breach of contract, such as protracted default in payments
\u2022 The debtor has been referred to the in-house legal office.
(c)\u00a0 Liquidity risk
The Group is exposed to daily calls on its available cash resources mainly from claims
and benefits arising from insurance contracts.\u00a0 Liquidity risk is the risk that cash may
not be available to pay obligations when due at a reasonable cost. The Group manages
its funds in such a manner as to ensure an adequate portion of available funds to meet
such calls. With respect to life insurance contracts this is principally managed through
limits set by the Board of MMSV on the minimum proportion of maturity funds
available to meet such calls. Furthermore, the Group invests a majority of its assets in
listed investments that can be readily disposed of.
The following table indicates the expected timing of cash flows arising from the
maturity or settlement of Group\u2019s liabilities. The expected cash flows do not consider
the impact of early surrenders on life insurance contracts.
Group expected cash flows (\u20ac millions) 2025
Payable on
demand
0-1 yr
1-2
yrs
2-3
yrs
3-4
yrs
4-5
yrs
>5 yrs
Total
Undiscounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Insurance contract assets -
\u00a0 Life insurance contracts
3.0
(10.0)
(8.0)
(7.0)
(6.0)
(5.0)
(27.0)
(60.0)
Insurance contract liabilities
\u00a0 - Life insurance contracts
50.0
186.0
142.0
163.0
182.0
176.0
910.0
1,809.0
Reinsurance contract
\u00a0 liabilities
7.0
3.0
3.0
2.0
2.0
2.0
17.0
36.0
Insurance contract liabilities
\u00a0 \u2013 liabilities for incurred
\u00a0 claims short- term
\u00a0 contracts under PAA
\u2014
19.5
6.1
3.4
2.4
1.4
3.5
36.3
Lease liabilities
\u2014
0.5
0.3
0.3
0.3
0.2
0.6
2.2
Other payables
19.9
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
19.9
\u00a0 \u00a0
Group expected cash flows (\u20ac millions) 2024
Payable on
demand
0-1 yr
1-2
yrs
2-3
yrs
3-4
yrs
4-5
yrs
>5 yrs
Total
Undiscounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Discounted
Insurance contract assets -
\u00a0 Life insurance contracts
4.0
(9.0)
(8.0)
(7.0)
(6.0)
(5.0)
(25.0)
(56.0)
Insurance contract liabilities
\u00a0 - Life insurance contracts
56.0
175.0
163.0
133.0
152.0
171.0
984.0
1,834.0
Reinsurance contract
\u00a0 liabilities
6.0
3.0
2.0
2.0
2.0
2.0
20.0
37.0
Insurance contract liabilities
\u00a0 \u2013 liabilities for incurred
\u00a0 claims short-term\u00a0 contracts
\u00a0 under PAA
\u2014
18.2
6.3
3.4
2.9
2.2
3.8
36.8
Lease liabilities
\u2014
0.4
0.3
0.3
0.2
0.2
0.4
1.8
Other payables
18.2
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
18.2
Expected cash flows on unit linked liabilities, presented under investment contract
liabilities amounting to \u20ac229.7 million (2024:\u20ac179.7 million) and as part of insurance
contract liabilities \u20ac35.7 million (2024: \u20ac39.2 million), have not been included as the
directors consider that there is limited exposure to liquidity risk given that these are
principally backed by unit linked assets.
The amounts which are undiscounted and payable on demand mainly consist of long-
term contracts claims outstanding.
The table below analyses the Group\u2019s derivative financial instruments that will be
settled on a gross basis. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances,
as the impact of discounting is not significant.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At 31 December
Foreign exchange contracts
- outflow
(358,492)
(211,300)
- inflow
360,701
204,484
At 31 December 2025 and 2024, the above derivatives were due to be settled within
three months after year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-383": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(a)\u00a0 Market risk
(ii)\u00a0 \u00a0 Equity price risk
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
4.3Fair values
The following table presents the assets measured in the statement of financial position
at fair value by level of the following fair value measurement hierarchy at 31 December
2025:
\u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities
(Level 1);
\u2022 Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices) (Level 2); and
\u2022 Inputs for the asset or liability that are not based on observable market data
(that is, unobservable inputs) (Level 3).
The Group recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
The following tables present the assets and liabilities measured at fair value at 31
December 2025.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through profit or
\u00a0 loss
- Equity securities, units in unit trusts and
\u00a0 collective investment schemes
911,971
142,863
101,319
1,156,153
- Debt securities
549,047
392,209
\u2014
941,256
Debt securities at FVOCI
9,900
12,169
\u2014
22,069
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
2,209
\u2014
2,209
Total assets
1,470,918
549,450
101,319
2,121,687
Liabilities
Investment contract liabilities
\u2014
229,748
\u2014
229,748
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
638
\u2014
638
Total liabilities
\u2014
230,386
\u2014
230,386
The following tables present the assets measured at fair value at 31 December 2024.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through
\u00a0 profit or loss
- Equity Securities, units in unit trusts and
\u00a0 \u00a0 collective investment schemes
874,858
123,120
101,480
1,099,458
- Debt Securities
567,135
388,077
\u2014
955,212
Debt securities at FVOCI
8,946
7,327
\u2014
16,273
Forward foreign exchange contracts and\u00a0
\u00a0 swaps
\u2014
4,805
\u2014
4,805
Investment in associated undertakings
\u2014
\u2014
\u2014
\u2014
Total assets
1,450,939
523,329
101,480
2,075,748
Liabilities
Investment contract liabilities
\u2014
179,685
\u2014
179,685
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
6,816
\u2014
6,816
Total liabilities
\u2014
186,501
\u2014
186,501
Derivative foreign exchange forward contracts have been classified
as Level 2.\u00a0 The fair value of these instruments is determined by reference to market
observable forward currency rates and interest rates. Domestic equities are classified as
Level 2 in view of their trading characteristics.
22.\u00a0 \u00a0 Other investments
The investments are summarised by measurement category in the table below.
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
(a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
Derivative financial liabilities amounting to \u20ac0.6 million (2024 \u20ac6.8 million), included
in the table above, are classified within liabilities in the statement of financial position.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsHeldForTradingExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-382": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(a)\u00a0 Market risk
(ii)\u00a0 \u00a0 Equity price risk
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
4.3Fair values
The following tables present the assets and liabilities measured at fair value at 31
December 2025.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through profit or
\u00a0 loss
- Equity securities, units in unit trusts and
\u00a0 collective investment schemes
911,971
142,863
101,319
1,156,153
- Debt securities
549,047
392,209
\u2014
941,256
Debt securities at FVOCI
9,900
12,169
\u2014
22,069
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
2,209
\u2014
2,209
Total assets
1,470,918
549,450
101,319
2,121,687
Liabilities
Investment contract liabilities
\u2014
229,748
\u2014
229,748
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
638
\u2014
638
Total liabilities
\u2014
230,386
\u2014
230,386
The following tables present the assets measured at fair value at 31 December 2024.
Group
Level 1
Level 2
Level 3
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Assets
Financial assets at fair value through
\u00a0 profit or loss
- Equity Securities, units in unit trusts and
\u00a0 \u00a0 collective investment schemes
874,858
123,120
101,480
1,099,458
- Debt Securities
567,135
388,077
\u2014
955,212
Debt securities at FVOCI
8,946
7,327
\u2014
16,273
Forward foreign exchange contracts and\u00a0
\u00a0 swaps
\u2014
4,805
\u2014
4,805
Investment in associated undertakings
\u2014
\u2014
\u2014
\u2014
Total assets
1,450,939
523,329
101,480
2,075,748
Liabilities
Investment contract liabilities
\u2014
179,685
\u2014
179,685
Forward foreign exchange contracts and
\u00a0 swaps
\u2014
6,816
\u2014
6,816
Total liabilities
\u2014
186,501
\u2014
186,501
22.\u00a0 \u00a0 Other investments
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
Derivative financial liabilities amounting to \u20ac0.6 million (2024 \u20ac6.8 million), included
in the table above, are classified within liabilities in the statement of financial position.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-381": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(b)\u00a0 \u00a0 Credit risk
The Group does not hold any collateral as security to its credit risk.
27.Cash and cash equivalents
As at 31 December 2025 an amount of \u20ac1.7 million (2024: \u20ac6.2 million) within
deposits with banks or credit institutions, was held in a margin account as collateral
against exchange traded futures.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-380": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.2\u00a0 \u00a0 Financial risk
(a)\u00a0 Market risk
(ii)\u00a0 \u00a0 Equity price risk
The sensitivity for equity price risk illustrates how changes in the fair value of equity
securities (excluding investments in associated undertakings) will fluctuate because of
changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity traded in the market.
An analysis of the Group\u2019s sensitivity to a 10% decrease in equity prices at the
reporting date, assuming that all other variables remain constant, is presented below. An
explanation of the method used in preparing such a sensitivity analysis and the main
parameters and assumptions underlying the information provided is found in Note 4.1.
Group
CSM
Profit or loss
before tax
Equity
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
31 December 2025
Investment contracts with DPF
(1,182)
(175)
(114)
Other investments
\u2014
(312)
(268)
(1,182)
(487)
(382)
31 December 2024
Investment contracts with DPF
(3,580)
(381)
(248)
Other investments
\u2014
(281)
(241)
(3,580)
(662)
(489)
(iii) Currency risk
Group
31\u00a0 December 2025
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
294,078
181,811
112,267
CHF
18,628
\u2014
18,628
GBP
7,640
747
6,893
SEK
7,226
\u2014
7,226
DKK
5,752
\u2014
5,752
HKD
3,801
\u2014
3,801
Others
20,851
3,948
16,903
357,976
186,506
171,470
Group
31\u00a0 December 2024
Net exposure
before
hedging
Notional
amount of
currency
derivatives
Net exposure
after hedging
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Currency of exposure:
USD
307,311
178,616
128,695
CHF
15,318
\u2014
15,318
GBP
12,142
6,121
6,021
SEK
7,337
\u2014
7,337
DKK
8,318
951
7,367
HKD
1,987
\u2014
1,987
Others
20,521
(239)
20,760
372,934
185,449
187,485
\u00a0
Within the table above, \u20ac166.5 million of the unhedged exposure relates to equity
investments (2024: \u20ac185.8 million).\u00a0 Due to an increasingly globalised economy, the
Group\u2019s equity investments are diversified across various currencies. The directors
consider that the exposure to currency risk is appropriately captured in the equity price
risk sensitivity (Note 4.2(a)(ii)). Any residual currency exposure relating to non-equity
investments is not considered to be significant.
(b)\u00a0 \u00a0 Credit risk
The Group does not trade in derivative contracts, with the exception of forward
contracts and exchange traded futures. All derivative contracts are placed with quality
financial institutions within the parameters of a hedging policy approved by the Board.
(c)\u00a0 Liquidity risk
The table below analyses the Group\u2019s derivative financial instruments that will be
settled on a gross basis. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances,
as the impact of discounting is not significant.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At 31 December
Foreign exchange contracts
- outflow
(358,492)
(211,300)
- inflow
360,701
204,484
At 31 December 2025 and 2024, the above derivatives were due to be settled within
three months after year end.
22.\u00a0 \u00a0 Other investments
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesHeldForTradingExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-379": { "value": "
4.\u00a0 \u00a0 \u00a0 Management of risk
4.1Insurance risk
Key risks arising from insurance contracts issued:
Contract
Key risks
Risk mitigation
Short-term contracts
Insurance risk \u2013 frequency and
\u00a0 severity of claims
Underwriting strategy, adequate
reinsurance arrangements and
proactive claim handling
Life risk - Term
Mortality risk: death of
\u00a0 policyholder earlier than expected
Reinsurance with financially
strong reinsurer and adequate
underwriting
Investment contracts with DPF
Market risk: investment return on
\u00a0 underlying items falling below
\u00a0 guaranteed minimum rates
Management discretion to
determine amount and timing of
policyholder bonus rates
Interest rate risk: difference in
\u00a0 duration and yield of assets and
\u00a0 liabilities
Matching of asset and liability
cash flows
Unit-linked
Lapse risk: insufficient charges to
\u00a0 cover acquisition expenses
Surrender penalties and review of
charges
(a) Short-term business insurance contracts
Frequency and severity of claims
The Group manages these risks through its underwriting strategy, adequate reinsurance
arrangements and proactive claims handling.
The Group has reinsurance protection in place for all classes of business.\u00a0 The type of
reinsurance cover, and the level of retention, is based on the Group\u2019s internal risk
management assessment which takes into account the risk being covered, the sums
assured and the geographical location of the risk.\u00a0 The Board approves each reinsurance
programme on an annual basis. The reinsurance arrangements include a mix of
proportional, facultative and non-proportional covers, which limit the liability of the
Group to any one individual claim or event. Generally, the Group\u2019s policy is to place
reinsurance with listed multinational reinsurance companies whose credit rating is not
less than BBB. No rating limitation shall apply to treaty placements with MAPFRE Re
or any MAPFRE Group company designated to write any or all of the MAPFRE Group
Reinsurance treaties. At 31 December 2025, MAPFRE Re\u2019s rating stood at A. The
Board monitors the security rating of MAPFRE on a periodic basis.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Company with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a 5% upwards and
downwards change in the ultimate loss amount while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions
might be correlated.
(b) Long term business insurance contracts
Frequency and severity of claims (Mortality risk)
The Group manages these risks through its underwriting strategy and reinsurance
arrangements. The underwriting strategy is intended to ensure that the risks
underwritten are well diversified in terms of type of risk and level of insured benefits.
Medical selection is also included in the Group\u2019s underwriting procedures with
premiums varied to reflect the health condition and life expectancy of the applicants.
The Group has reinsurance protection in place to cover death claims.\u00a0 The type of
reinsurance cover and the level of retention for each risk are based on the Group\u2019s
internal risk management assessment, which takes account of the nature of the risk
covered and the sum assured. The reinsurance programme is approved by the Board of
Directors (\"the Board\") annually. The reinsurance arrangements in place include a mix
of quota share, facultative, excess of loss and catastrophe protection, which limits the
liability of the Group to any one individual life or event.\u00a0 The Group\u2019s reinsurance is
placed with listed multinational reinsurance companies whose rating is not less than A.
Sensitivity analysis to underwriting risk variables
The following tables present information on how reasonably possible changes in
assumptions made by the Group with regard to underwriting risk variables impact
product line insurance liabilities and profit or loss and equity before and after risk
mitigation by reinsurance contracts held. The analysis is based on a change in an
assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions might be correlated.
4.2\u00a0 \u00a0 Financial risk
(b)\u00a0 \u00a0 Credit risk
Reinsurance is used to manage insurance risk. This does not, however, discharge the
Group\u2019s liability as primary insurer. If a reinsurer fails to pay a claim for any reason,
the Group remains liable for the payment to the policyholder.\u00a0 The creditworthiness of
reinsurers is monitored on a quarterly basis by reviewing credit grades provided by
rating agencies and other publicly available financial information, thereby ensuring the
continuous financial strength of the reinsurer. At the same time that the Board approves
the overall reinsurance protection of the Group, it ensures that the reinsurers\u2019 credit
rating (either Standard & Poor\u2019s or equivalent) is within the parameters set by it.
6.\u00a0 \u00a0 \u00a0 Amounts determined on transition to IFRS 17
Analysis by transition approach - insurance revenue and contractual service margin
For insurance contracts issued by the Group and reinsurance contracts held, an analysis
of insurance revenue for insurance contracts issued and the CSM by transition method
is included in the following tables.
31\u00a0 December 2025
Life Risk
Investment
contracts
with\u00a0 DPF
Total
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contracts issued
Insurance revenue
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(11,832)
(5,302)
(17,134)
Contracts measured under the fair value
\u00a0 approach at transition
(64)
(28,788)
(28,852)
(11,896)
(34,090)
(45,986)
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
32,946
17,191
50,137
Contracts measured under the fair value
\u00a0 approach at transition
6,592
64,072
70,664
39,538
81,263
120,801
31\u00a0 December 2025
Life Risk
\u20ac\u2019000
Reinsurance contracts held
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(11,472)
Contracts measured under the fair value
\u00a0 approach at transition
(4,184)
(15,656)
31\u00a0 December 2024
Life Risk
Investment
contracts
with\u00a0 DPF
Total
\u20ac'000
\u20ac'000
\u20ac\u2019000
Insurance revenue
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(13,182)
(4,116)
(17,298)
Contracts measured under the fair value
\u00a0 approach at transition
(128)
(29,344)
(29,472)
(13,310)
(33,460)
(46,770)
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
27,337
12,012
39,349
Contracts measured under the fair value
\u00a0 approach at transition
6,214
65,596
71,810
33,551
77,608
111,159
31\u00a0 December 2024
Life Risk
\u20ac\u2019000
Reinsurance contracts held
CSM
New contracts and contracts measured
\u00a0 under the full retrospective approach at
\u00a0 transition
(9,957)
Contracts measured under the fair value
\u00a0 approach at transition
(4,067)
(14,024)
7.Segment information
(i)\u00a0 Insurance revenue and insurance service result
Short-term insurance contracts under PAA
Group and Company
31 December 2025
Motor
Fire and
other
property
damages
Health
Other
classes
Group
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
49,246
19,972
21,472
16,447
2,556
109,693
Insurance service expenses
(39,783)
(11,333)
(19,083)
(11,240)
(2,036)
(83,475)
Net expenses from reinsurance contracts held
(1,240)
(7,240)
(49)
(1,139)
(169)
(9,837)
Insurance service result
8,223
1,399
2,340
4,068
351
16,381
31 December 2024
Motor
Fire and
other
property
damages
Health
Other
classes
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
47,166
18,531
17,037
15,220
1,968
99,922
Insurance service expenses
(38,405)
(10,918)
(15,198)
(12,628)
(1,347)
(78,496)
Net expenses from reinsurance contracts held
(1,467)
(6,441)
(96)
(1,002)
(90)
(9,096)
Insurance service result
7,294
1,172
1,743
1,590
531
12,330
Long-term and linked long-term business
In the opinion of the directors, the subsidiary MAPFRE MSV Life p.l.c. primarily
operates in a single business segment being that of long-term and linked long-term
insurance business.
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
100% ( 2024: 100%) of consolidated insurance revenue emanate from contracts
concluded in or from Malta. All premiums emanate from external customers and there
is no business transacted between segments other than as disclosed in Note 34.
24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets
and reinsurance contract liabilities
24.1\u00a0 Composition of statement of financial position
An analysis of the amounts presented on the statement of financial position for
insurance contracts assets, insurance contract liabilities, reinsurance contract assets and
reinsurance contract liabilities, is shown in the table below:
GROUP
Life Risk
Investment
Contracts
with DPF
Total long-term
business
Short-term
Under PAA
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
As at 31 December 2025
Insurance contract assets
4,484
\u2014
4,484
\u2014
4,484
Insurance contract liabilities
57
1,928,847
1,928,904
75,737
2,004,641
Reinsurance contract assets
\u2014
\u2014
\u2014
11,122
11,122
Reinsurance contract liabilities
15,225
\u2014
15,225
\u2014
15,225
GROUP
Life Risk
Investments
Contracts
with DPF
Total long-term
business
Short-term
Under PAA
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
As at 31 December 2024
Insurance contract assets
7,080
\u2014
7,080
\u2014
7,080
Insurance contract liabilities
6,400
1,948,078
1,954,478
72,968
2,027,446
Reinsurance contract assets
\u2014
\u2014
\u2014
11,815
11,815
Reinsurance contract liabilities
17,073
\u2014
17,073
\u2014
17,073
Insurance liabilities and reinsurance assets in relation to short-term insurance contracts
are classified as current liabilities, in that, liability for incurred claims represent events
that happened and which would normally be settled within the normal operating cycle.
The timing of payment can be dependent on factors, like court cases, that could defer
such payment to beyond a year from the reporting date. Insurance and investment
contract liabilities in relation to long-term contracts are substantially non-current.
24.2\u00a0 Short-term insurance contracts under PAA
Reconciliation of the liability for remaining coverage and the liability for incurred claims
The following tables present reconciliations from the opening to the closing balances of the
liability for remaining coverage (LRC) and liability for incurred claims (LIC).
Group and Company
2025
LRC
LIC
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contract liabilities at
\u00a0 1 January
35,072
186
36,792
918
72,968
Insurance revenue
(109,693)
\u2014
\u2014
\u2014
(109,693)
Insurance service expenses
Incurred claims and other directly
\u00a0 attributable expenses
\u2014
\u2014
51,650
377
52,027
Changes that relate to past service -
\u00a0 changes in FCF relating to the LIC
\u2014
\u2014
941
(432)
509
Losses on onerous contracts and reversals of
\u00a0 those losses
\u2014
(186)
\u2014
\u2014
(186)
Insurance acquisition cash flows
\u00a0 amortisation
31,125
\u2014
\u2014
\u2014
31,125
Insurance service expenses
31,125
(186)
52,591
(55)
83,475
Insurance service result
(78,568)
(186)
52,591
(55)
(26,218)
Finance expenses from insurance contracts
\u00a0 issued
\u2014
\u2014
355
9
364
Total amount recognised in
\u00a0 comprehensive income
(78,568)
(186)
52,946
(46)
(25,854)
Cash flows
Premiums received
113,449
\u2014
\u2014
\u2014
113,449
Claims and other directly attributable\u00a0
\u00a0 expenses paid
\u2014
\u2014
(52,954)
\u2014
(52,954)
Insurance acquisition cash flows
(31,872)
\u2014
\u2014
\u2014
(31,872)
Total cash flows
81,577
\u2014
(52,954)
\u2014
28,623
Insurance contract liabilities at
\u00a0 31 December
38,081
\u2014
36,784
872
75,737
Insurance contract liabilities at
\u00a0 31 December
38,081
37,656
75,737
Group and Company
2024
LRC
LIC
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Insurance contract liabilities at
\u00a0 1 January
32,021
\u2014
39,436
1,010
72,467
Insurance revenue
(99,922)
\u2014
\u2014
\u2014
(99,922)
Insurance service expenses
Incurred claims and other directly
\u00a0 attributable expenses
\u2014
\u2014
48,602
325
48,927
Changes that relate to past\u00a0 service -
\u00a0 changes in FCF relating to the LIC
\u2014
\u2014
1,260
(438)
822
Losses on onerous contracts and reversals of
\u00a0 those losses
\u2014
186
\u2014
\u2014
186
Insurance acquisition cash flows
\u00a0 amortisation
28,562
\u2014
\u2014
\u2014
28,562
Insurance service expenses
28,562
186
49,862
(113)
78,497
Insurance service result
(71,360)
186
49,862
(113)
(21,425)
Finance expenses from insurance contracts
\u00a0 issued
\u2014
\u2014
797
21
818
Total amount recognised in
\u00a0 comprehensive income
(71,360)
186
50,659
(92)
(20,607)
Cash flows
Premiums received
103,808
\u2014
\u2014
\u2014
103,808
Claims and other directly attributable\u00a0
\u00a0 expenses paid
\u2014
\u2014
(53,303)
\u2014
(53,303)
Insurance acquisition cash flows
(29,397)
\u2014
\u2014
\u2014
(29,397)
Total cash flows
74,411
\u2014
(53,303)
\u2014
21,108
Insurance contract liabilities at
\u00a0 31 December
35,072
186
36,792
918
72,968
Insurance contract liabilities at
\u00a0 31 December
35,258
37,710
72,968
Reconciliation of the asset for remaining coverage and the asset for incurred claims
The following tables present reconciliations from the opening to the closing balances of the
asset for remaining coverage (ARC) and asset for incurred claims (AIC).
Group and Company
2025
ARC
AIC
Remaining
coverage
excluding
loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract assets at 1 January
2,612
8,995
208
11,815
Net income/(expense) from reinsurance contracts
\u00a0 held
Reinsurance expenses
(13,242)
\u2014
\u2014
(13,242)
Incurred claims recovery
\u2014
2,798
32
2,830
Changes that relate to past service - changes in FCF
\u00a0 relating to the AIC
\u2014
611
(66)
545
Effect of changes in the risk of reinsurers' non-
\u00a0 performance
\u2014
30
\u2014
30
Net expense from reinsurance contracts
\u00a0 held
(13,242)
3,439
(34)
(9,837)
Finance income from reinsurance contracts held
\u2014
91
3
94
Total amount recognised in\u00a0 comprehensive
\u00a0 income
(13,242)
3,530
(31)
(9,743)
Cash flows
Premiums paid net of ceding commissions and other
\u00a0 directly attributable expenses paid
13,306
\u2014
\u2014
13,306
Recoveries from reinsurance
\u2014
(4,256)
\u2014
(4,256)
Total cash flows
13,306
(4,256)
\u2014
9,050
Reinsurance contract assets at 31 December
2,676
8,269
177
11,122
Group and Company
2024
ARC
Remaining
coverage
excluding
loss
component
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract assets at 1 January
2,625
10,467
267
13,359
Net income/(expense) from reinsurance contracts
\u00a0 held
Reinsurance expenses
(12,763)
\u2014
\u2014
(12,763)
Incurred claims recovery
\u2014
3,739
56
3,795
Changes that relate to past service - changes in FCF
\u00a0 relating to the AIC
\u2014
23
(120)
(97)
Effect of changes in the risk of reinsurers' non-
\u00a0 performance
\u2014
(30)
\u2014
(30)
Net expense from reinsurance contracts held
(12,763)
3,732
(64)
(9,095)
Finance income from reinsurance contracts held
\u2014
176
5
181
Total amount recognised in\u00a0 comprehensive
income
(12,763)
3,908
(59)
(8,914)
Cash flows
Premiums paid net of ceding commissions and other
\u00a0 directly attributable expenses paid
12,750
\u2014
\u2014
12,750
Recoveries from reinsurance
\u2014
(5,380)
\u2014
(5,380)
Total cash flows
12,750
(5,380)
\u2014
7,370
Reinsurance contract assets at 31 December
2,612
8,995
208
11,815
Insurance contracts net of reinsurance contracts assets under the PAA \u2013 net liability for incurred claims
Group and Company
Accident year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Estimate of the ultimate claim cost undiscounted
-at end of accident year
30,079
33,106
33,539
33,848
28,126
34,463
39,334
40,287
40,049
45,232
-one year later
30,320
33,951
33,645
35,714
27,881
34,094
38,818
39,942
39,457
-two years later
29,171
33,638
33,846
36,367
28,372
32,035
40,309
39,822
-three years later
28,863
33,325
32,704
37,032
28,358
32,087
39,660
-four years later
29,038
32,961
32,524
36,587
28,499
31,796
-five years later
28,994
32,732
33,182
36,591
28,488
-six years later
28,746
32,680
33,222
36,492
-seven years later
28,382
32,624
33,111
-eight years later
28,391
32,602
-nine years later
28,420
Current estimates of cumulative claims
28,420
32,602
33,111
36,492
28,488
31,796
39,660
39,822
39,457
45,232
355,080
Cumulative payments to date
(28,213)
(32,684)
(32,699)
(35,886)
(27,007)
(30,958)
(36,610)
(36,222)
(37,111)
(29,392)
(326,782)
Liability recognised in statements of financial position
207
(82)
412
606
1,481
838
3,050
3,600
2,346
15,840
28,298
Liability in respect of prior years
1,110
Liability in respect of life risk claims
430
Discounting element
(1,323)
Total reserve included in the statements of the
\u00a0 financial position
28,515
(a)\u00a0 Assumptions
Discount rates
The bottom-up approach was adopted by the Group in determining a suitable discount
rate. Under this approach, the discount rate is determined as the risk-free yield. Given
the short-term nature of its insurance contracts liabilities and liquidity of cash flows, the
Group has selected the risk-free rates as published by EIOPA as appropriate for the
nature of its liabilities taking a zero illiquidity premium.
The yield curves used to discount the estimates of future cash flows that do not vary
based on the returns of the underlying items are as follows:
2025
2024
No. of years
No. of years
1
5
10
1
5
10
Short term insurance contracts issued
\u00a0 and reinsurance contracts held
2.1%
2.5%
2.9%
2.2%
2.1%
2.3%
Risk adjustment for non-financial risk
Non-financial risk adjustment valuation reflects the compensation that the Group needs
to manage uncertainty regarding the amount and timing of future cash outflows, which
arise from non-financial risks from fulfilling insurance contract obligations.
Underwriting risks as well as other non-financial risks like portfolio expenses and
lapses are taken into consideration when determining this.
The non-financial risk adjustment has been estimated using a confidence-interval-based
approach, using Value at Risk (VaR) metrics for the probability distribution of the
current value of future cash flows, in line with Solvency II capital requirements, and
calibrating the target percentile confidence interval to 65 percentile. The Group
estimates an adjustment for non-financial risk separately from all other estimates.
Estimates of future cash flows to fulfil insurance contracts
LIC of short-term business insurance contracts, measured under the PAA, comprise of
the estimates of future cash flows. The estimates of future cash flows is derived using a
standard actuarial claims projection technique, the Chain Ladder method, other than for
non-motor large losses. The key assumptions underlying this technique is that past
claims development experience can be used to project future claims development.
Claims reserves which exceed a certain quantum (large losses), particularly those
involving fatalities and/or serious bodily injuries, are initially reserved at the case-by-
case reserve estimate. The measurement of claim payments due by the Group involves
the assessment of future settlements and is therefore dependent on assumptions around
determining such reserves based on, among others, legal precedent and current trends in
compensation awards. Specifically for Motor large losses, the Chain Ladder Method is
subsequently used to project the ultimate cost of these claims.
24.4\u00a0 Life risk - Reinsurance contracts held
Reconciliation of the remaining coverage and incurred claims
Group
2025
2024
Remaining
coverage
Incurred
Claims
Total
Remaining
coverage
Incurred
Claims
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract
\u00a0 liabilities at 1 January
21,788
(4,715)
17,073
19,171
(3,678)
15,493
Net expenses from
reinsurance
\u00a0 contracts held
Reinsurance expenses
4,022
\u2014
4,022
4,083
\u2014
4,083
Other directly
\u00a0 attributable expenses
\u2014
569
569
\u2014
519
519
Incurred claims
\u00a0 recovery
\u2014
(1,342)
(1,342)
\u2014
(1,858)
(1,858)
Net expense/(income)
from reinsurance
contracts held
4,022
(773)
3,249
4,083
(1,339)
2,744
Finance (income)/
\u00a0 expenses from\u00a0
\u00a0 reinsurance contracts
\u00a0 held
(2,063)
\u2014
(2,063)
697
\u2014
697
Total amounts
\u00a0 recognised in
\u00a0 profit or loss
1,959
(773)
1,186
4,780
(1,339)
3,441
Cash flows
Premium paid net of
\u00a0 ceding commission and
\u00a0 other directly attributable
\u00a0 expenses paid
(4,091)
(569)
(4,660)
(2,163)
(519)
(2,682)
Recoveries from
\u00a0 reinsurance
\u2014
1,626
1,626
\u2014
821
821
Total cash flows
(4,091)
1,057
(3,034)
(2,163)
302
(1,861)
Reinsurance contract
\u00a0 liabilities as at 31
\u00a0 December
19,656
(4,431)
15,225
21,788
(4,715)
17,073
Reconciliation of the measurement components of reinsurance contract balances
Group
2025
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract liabilities at 1 January
36,762
(5,665)
(14,024)
17,073
Changes that relate to current service
CSM recognised for the services received
\u2014
\u2014
1,860
1,860
Change in the risk adjustment for non- financial
\u00a0 risk for risk expired
\u2014
322
\u2014
322
Experience adjustment relating to incurred
\u00a0 claims and other directly\u00a0 attributable expenses\u00a0 \u00a0 \u00a0
\u00a0 recovery and reinsurance\u00a0 premium
1,067
\u2014
\u2014
1,067
1,067
322
1,860
3,249
Changes that relate to future service
Changes in estimates that adjust the CSM
2,339
71
(2,410)
\u2014
Contracts initially recognised in the period
1,206
(345)
(861)
\u2014
3,545
(274)
(3,271)
\u2014
Finance income from reinsurance
\u00a0 contracts held
(1,842)
\u2014
(221)
(2,063)
Total amounts recognised in profit or loss
2,770
48
(1,632)
1,186
Cash flows
Premium paid net of ceding commission and
\u00a0 other directly attributable expenses paid
(4,660)
\u2014
\u2014
(4,660)
Recoveries from insurance
1,626
\u2014
\u2014
1,626
Total cash flows
(3,034)
\u2014
\u2014
(3,034)
Reinsurance contract liabilities at 31
\u00a0 December
36,498
(5,617)
(15,656)
15,225
Group
2024
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Reinsurance contract liabilities at
\u00a0 1 January
34,081
(5,626)
(12,962)
15,493
Changes that relate to current service
CSM recognised for the\u00a0 services received
\u2014
\u2014
1,651
1,651
Change in the risk\u00a0 adjustment for non-
\u00a0 financial risk for risk expired
\u2014
283
\u2014
283
Experience adjustment relating to incurred
\u00a0 claims and other directly\u00a0 attributable expenses
\u00a0 recovery and reinsurance premium
810
\u2014
\u2014
810
810
283
1,651
2,744
Changes that relate to future\u00a0 service
Changes in estimates that adjust the CSM
2,276
(36)
(2,240)
\u2014
Contracts initially recognised in the period
587
(286)
(301)
\u2014
2,863
(322)
(2,541)
\u2014
Finance expenses/( income) from reinsurance
\u00a0 contracts held
869
\u2014
(172)
697
Total amounts recognised in profit or loss
4,542
(39)
(1,062)
3,441
Cash flows
Premium paid net of ceding commission and
\u00a0 other directly attributable expenses paid
(2,682)
\u2014
\u2014
(2,682)
Recoveries from insurance
821
\u2014
\u2014
821
Total cash flows
(1,861)
\u2014
\u2014
(1,861)
Reinsurance contract liabilities at 31
\u00a0 December
36,762
(5,665)
(14,024)
17,073
Impact of contracts recognised in the year
Group
2025
2024
Contracts originated not
in a net gain
Contracts originated in
a net gain
\u20ac\u2019000
\u20ac\u2019000
Estimates of the present value of future cash inflows
(3,669)
(3,632)
Estimates of the present value of future cash outflows
4,875
4,219
Risk adjustment for non-financial risk
(345)
(286)
CSM
(861)
(301)
Increase in reinsurance contract assets from
\u00a0 contracts recognised in the period
\u2014
\u2014
34.Related party transactions
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Purchase of products and services
Transactions with a parent undertaking:
Reinsurance premium ceded
20,619
19,522
Staff development training & Fringe Benefits
86
2
Expat staff benefits and services
24
97
Computer maintenance, Group IT shared services
2,146
1,440
Capitalisation of software development
42
1
Other back office support services
728
720
Investment management services
34
27
Commission payable
16
96
Transactions with other related undertaking:
Acquisition costs payable
3,867
3,449
Bank charges
213
223
Investment management services
36
45
Claims paid
611
556
Transactions with associates undertaking:
Road side assistance and other back office support services
2,877
2,819
Claims paid
4
8
Year-end balances arising from the above transactions:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Financial assets at amortised cost
-Related undertaking
180
144
180
144
-Parent undertaking
178
159
178
159
Financial liabilities at amortised cost
-Parent undertaking
1,492
693
1,194
495
-Related undertaking
265
353
\u2014
\u2014
Amounts owed to
-Associated undertaking
188
236
188
236
-Subsidiary undertaking
\u2014
\u2014
\u2014
1,014
Amounts owed by
-Associated undertaking
(26)
226
\u2014
226
-Subsidiary undertaking
\u2014
\u2014
717
447
-Parent undertaking
\u2014
\u2014
\u2014
\u2014
Accruals - Parent undertaking
818
325
300
216
Reinsurance contract assets
-Parent undertaking
16,579
16,858
16,012
16,057
Assets for incurred claims
-Related undertaking
275
188
275
188
-Subsidiary undertaking
\u2014
\u2014
5
5
-Associated undertaking
\u2014
3
\u2014
3
Investment in related undertakings
20,626
17,064
1,171
969
Cash and cash equivalents with related
\u00a0 undertakings
32,853
55,879
7,283
8,795
", "dimensions": { "concept": "ifrs-full:DisclosureOfReinsuranceExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-395": { "value": "
5.Capital management
The Group\u2019s policy is to maintain a strong capital base to support its business growth
plans and comply with all regulatory requirements on an ongoing basis whilst assessing
the impact of shareholder returns on its capital employed and safeguarding the Group's
and individual companies ability to continue as a going concern.\u00a0 The Group defines
capital as shareholders\u2019 equity.
The Group\u2019s objectives when managing capital are to:
\u2022 comply with the obligations to hold Eligible Own Funds to cover the Solvency
Capital Requirement and Minimum Capital Requirement in terms of the Insurance
Business Act, 1998, (Chapter 403, Laws of Malta) and the applicable Insurance
Rules issued under the Insurance Business Act (\u2018Insurance Rules\u2019) by the Malta
Financial Services Authority (\u2018MFSA\u2019);
\u2022 provide for the capital requirements of the companies within the Group;
\u2022 safeguard the Group\u2019s and individual component companies\u2019 ability to continue as a
going concern and provide returns for shareholders and benefits for other
stakeholders; and
\u2022 to provide an adequate return to shareholders by pricing insurance contracts
commensurate with the level of risk.
The individual insurance Group companies are required to hold regulatory capital for
their non-life and life assurance business in compliance with the Insurance Rules issued
by the MFSA. The minimum capital requirements must be maintained at all times
throughout the period. The individual Group companies monitor the level of their own
funds on a regular basis.\u00a0 Any transactions that may potentially affect the individual
company\u2019s own funds and solvency position are immediately reported to their
respective directors and shareholders for resolution.
The Company\u2019s Minimum Capital Requirement Absolute Floor stands at \u20ac8,000,000 as
per paragraph 5.6.4 of Chapter 5 (\u2018Valuation of assets and liabilities, technical
provisions, own funds, Solvency Capital Requirement, Minimum Capital Requirement
and investment rules\u2019) of Part B of the Insurance Rules.
Based on management calculations to date, the Company is sufficiently capitalised and
was compliant at all times with the regulatory capital requirements as stipulated by the
MFSA which are in line with the Solvency II requirements. All other companies within
the Group were also compliant with the respective minimum regulatory requirements
throughout the financial period as per management calculations to date.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-399": { "value": "
7.Segment information
Management has determined the operating segments based on the reports reviewed by
the Executive Management team that are used to make strategic decisions.\u00a0
The segment results for the years ended 31 December 2025 and 2024 are indicated
below.
(i)\u00a0 Insurance revenue and insurance service result
Short-term insurance contracts under PAA
Group and Company
31 December 2025
Motor
Fire and
other
property
damages
Health
Other
classes
Group
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
49,246
19,972
21,472
16,447
2,556
109,693
Insurance service expenses
(39,783)
(11,333)
(19,083)
(11,240)
(2,036)
(83,475)
Net expenses from reinsurance contracts held
(1,240)
(7,240)
(49)
(1,139)
(169)
(9,837)
Insurance service result
8,223
1,399
2,340
4,068
351
16,381
31 December 2024
Motor
Fire and
other
property
damages
Health
Other
classes
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
47,166
18,531
17,037
15,220
1,968
99,922
Insurance service expenses
(38,405)
(10,918)
(15,198)
(12,628)
(1,347)
(78,496)
Net expenses from reinsurance contracts held
(1,467)
(6,441)
(96)
(1,002)
(90)
(9,096)
Insurance service result
7,294
1,172
1,743
1,590
531
12,330
Long-term and linked long-term business
In the opinion of the directors, the subsidiary MAPFRE MSV Life p.l.c. primarily
operates in a single business segment being that of long-term and linked long-term
insurance business.
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
100% ( 2024: 100%) of consolidated insurance revenue emanate from contracts
concluded in or from Malta. All premiums emanate from external customers and there
is no business transacted between segments other than as disclosed in Note 34.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-397": { "value": "
7.Segment information
Management has determined the operating segments based on the reports reviewed by
the Executive Management team that are used to make strategic decisions.\u00a0
The segment results for the years ended 31 December 2025 and 2024 are indicated
below.
(i)\u00a0 Insurance revenue and insurance service result
Short-term insurance contracts under PAA
Group and Company
31 December 2025
Motor
Fire and
other
property
damages
Health
Other
classes
Group
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
49,246
19,972
21,472
16,447
2,556
109,693
Insurance service expenses
(39,783)
(11,333)
(19,083)
(11,240)
(2,036)
(83,475)
Net expenses from reinsurance contracts held
(1,240)
(7,240)
(49)
(1,139)
(169)
(9,837)
Insurance service result
8,223
1,399
2,340
4,068
351
16,381
31 December 2024
Motor
Fire and
other
property
damages
Health
Other
classes
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
47,166
18,531
17,037
15,220
1,968
99,922
Insurance service expenses
(38,405)
(10,918)
(15,198)
(12,628)
(1,347)
(78,496)
Net expenses from reinsurance contracts held
(1,467)
(6,441)
(96)
(1,002)
(90)
(9,096)
Insurance service result
7,294
1,172
1,743
1,590
531
12,330
Long-term and linked long-term business
In the opinion of the directors, the subsidiary MAPFRE MSV Life p.l.c. primarily
operates in a single business segment being that of long-term and linked long-term
insurance business.
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
100% ( 2024: 100%) of consolidated insurance revenue emanate from contracts
concluded in or from Malta. All premiums emanate from external customers and there
is no business transacted between segments other than as disclosed in Note 34.
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
11.\u00a0 \u00a0 Employee compensation
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Salaries
16,708
15,587
9,285
8,677
Social security costs
808
790
481
457
Contributions to Employee Voluntary
\u00a0 Occupational Pension Scheme
225
202
124
104
17,741
16,579
9,890
9,238
The average number of persons employed during the year was:
Group
Company
2025
2024
2025
2024
No.
No.
No.
No.
Key management personnel
26
26
13
14
Managerial
41
41
26
25
Technical
229
229
140
141
Administrative
16
18
9
11
312
314
188
191
12.\u00a0 \u00a0 Income tax expense
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Current tax expense
8,231
6,967
5,162
3,286
Deferred tax expense (Note 23)
873
(157)
135
126
Income tax expense
9,104
6,810
5,297
3,412
12.\u00a0 \u00a0 Income tax expense - continued
The tax on the Group\u2019s and Company\u2019s profit before tax differs from the theoretical
amount that would arise using the basic tax rate as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Profit before tax
29,618
24,804
16,872
10,531
Tax at 35%
10,366
8,681
5,905
3,686
Adjusted for tax effect of :
Net exempt income and disallowed
\u00a0 expenses
(113)
(826)
(254)
(111)
Property withholding tax at 8% or10%
(791)
(815)
(6)
59
Other
(358)
(230)
(348)
(222)
Income tax expense
9,104
6,810
5,297
3,412
13.\u00a0 \u00a0 Directors\u2019 emoluments
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Directors' fees
247
250
197
187
Group Directors\u2019 fees include fees payable to the Company\u2019s directors both from the
Company and from other Group Companies where applicable.
16.Intangible assets
Group
Computer
Software
Deferred
Acquisition
cost (i)
Total (ii)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost or valuation
58,330
4,425
62,755
Accumulated amortisation and impairment
(28,410)
(3,613)
(32,023)
Net book amount
29,920
812
30,732
Year ended 31 December 2024
Opening net book amount
29,920
812
30,732
Additions
7,448
1,311
8,759
Disposals
(2,906)
\u2014
(2,906)
Amortisation charge
(4,960)
(120)
(5,080)
Amortisation released upon derecognition
2,906
\u2014
2,906
Closing net book amount
32,408
2,003
34,411
At 31 December 2024
Cost or valuation
62,872
5,736
68,608
Accumulated amortisation and impairment
(30,464)
(3,733)
(34,197)
Net book amount
32,408
2,003
34,411
Year ended 31 December 2025
Opening net book amount
32,408
2,003
34,411
Additions
5,916
1,931
7,847
Disposal/Derecognition
(4,960)
\u2014
(4,960)
Amortisation charge
(5,255)
(235)
(5,490)
Amortisation released on derecognition
4,960
\u2014
4,960
Closing net book amount
33,069
3,699
36,768
At 31 December 2025
Cost or valuation
63,828
7,667
71,495
Accumulated amortisation and impairment
(30,759)
(3,968)
(34,727)
Net book amount
33,069
3,699
36,768
(i)\u00a0 This intangible asset relates to investment contracts without DPF only.
Computer software mainly represents amounts capitalised relating to the development
of the Group and Company\u2019s IT system by related companies forming part of the
MAPFRE S.A. Group.
18.Property, plant and equipment
Group
Freehold
Furniture
land and
Leasehold
Motor
fittings and
buildings
improvements
Vehicles
equipment
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
At 1 January 2024
Cost
14,070
4,381
\u2014
9,450
27,901
Accumulated depreciation
(357)
(2,620)
\u2014
(7,741)
(10,718)
Closing net book amount
13,713
1,761
\u2014
1,709
17,183
Year ended 31 December 2024
Opening net book amount
13,713
1,761
\u2014
1,709
17,183
Additions
72
276
\u2014
634
982
Disposals
\u2014
(1,153)
\u2014
(922)
(2,075)
Revaluation gain to profit or loss
168
\u2014
\u2014
\u2014
168
Depreciation charge
(104)
(319)
\u2014
(702)
(1,125)
Depreciation release on disposal
\u2014
1,063
\u2014
919
1,982
Closing net book amount
13,849
1,628
\u2014
1,638
17,115
At 31 December 2024
Cost
14,310
3,504
\u2014
9,162
26,976
Accumulated depreciation
(461)
(1,876)
\u2014
(7,524)
(9,861)
Net book amount
13,849
1,628
\u2014
1,638
17,115
Year ended 31 December 2025
Opening net book amount
13,849
1,628
\u2014
1,638
17,115
Additions
18
116
30
664
828
Disposals
\u2014
(35)
\u2014
(112)
(147)
Amounts transferred to
\u00a0 investment property
(998)
\u2014
\u2014
\u2014
(998)
Revaluation gain to other
\u00a0 comprehensive income
196
\u2014
\u2014
\u2014
196
Depreciation charge
(102)
(266)
(1)
(660)
(1,029)
Depreciation on amount
\u00a0 transferred to investment
\u00a0 property (Note 19)
86
\u2014
\u2014
\u2014
86
Depreciation release on disposal
\u2014
35
0
107
142
Closing net book amount
13,049
1,478
29
1,637
16,193
At 31 December 2025
Cost
13,526
3,585
30
9,714
26,855
Accumulated depreciation
(477)
(2,107)
(1)
(8,077)
(10,662)
Net book amount
13,049
1,478
29
1,637
16,193
Depreciation charge has been included in administrative expenses.
34.Related party transactions
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Purchase of products and services
Transactions with a parent undertaking:
Reinsurance premium ceded
20,619
19,522
Staff development training & Fringe Benefits
86
2
Expat staff benefits and services
24
97
Computer maintenance, Group IT shared services
2,146
1,440
Capitalisation of software development
42
1
Other back office support services
728
720
Investment management services
34
27
Commission payable
16
96
Transactions with other related undertaking:
Acquisition costs payable
3,867
3,449
Bank charges
213
223
Investment management services
36
45
Claims paid
611
556
Transactions with associates undertaking:
Road side assistance and other back office support services
2,877
2,819
Claims paid
4
8
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-398": { "value": "
7.Segment information
(i)\u00a0 Insurance revenue and insurance service result
Long-term and linked long-term business
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
34.Related party transactions
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Sales of insurance contracts and other services
Transactions with a parent undertaking:
\u00a0 Commission received
5,683
5,266
\u00a0 Claims recoverable
4,491
5,705
Transactions with related undertaking:
\u00a0 Trailer fees receivable
1
1
\u00a0 Sale of insurance contracts
2,560
246
\u00a0 Dividends received and interest income
2,324
1,611
\u00a0 Rental income on investment property
261
255
Transactions with associated undertaking:
\u00a0 Sale of insurance contracts
9
31
\u00a0 Dividends received
157
170
\u00a0 Rental income on investment property
48
44
\u00a0 Reimbursement of expenses for back office support services
45
23
", "dimensions": { "concept": "ifrs-full:DisclosureOfInsurancePremiumRevenueExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-396": { "value": "
7.Segment information
(i)\u00a0 Insurance revenue and insurance service result
Short-term insurance contracts under PAA
Group and Company
31 December 2025
Motor
Fire and
other
property
damages
Health
Other
classes
Group
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
49,246
19,972
21,472
16,447
2,556
109,693
Insurance service expenses
(39,783)
(11,333)
(19,083)
(11,240)
(2,036)
(83,475)
Net expenses from reinsurance contracts held
(1,240)
(7,240)
(49)
(1,139)
(169)
(9,837)
Insurance service result
8,223
1,399
2,340
4,068
351
16,381
31 December 2024
Motor
Fire and
other
property
damages
Health
Other
classes
Life
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
47,166
18,531
17,037
15,220
1,968
99,922
Insurance service expenses
(38,405)
(10,918)
(15,198)
(12,628)
(1,347)
(78,496)
Net expenses from reinsurance contracts held
(1,467)
(6,441)
(96)
(1,002)
(90)
(9,096)
Insurance service result
7,294
1,172
1,743
1,590
531
12,330
Long-term and linked long-term business
In the opinion of the directors, the subsidiary MAPFRE MSV Life p.l.c. primarily
operates in a single business segment being that of long-term and linked long-term
insurance business.
An analysis of insurance revenue, insurance service expenses and net expenses from
reinsurance contracts held by contract type for 2025 and 2024 is included in the
following tables.
2025
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Contracts not measured under PAA
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
6,058
18,523
24,581
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,626
232
1,858
-\u00a0\u00a0 CSM recognised for the services provided
4,315
8,049
12,364
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(321)
18
(303)
Insurance acquisition cash flows recovery
217
7,268
7,485
11,895
34,090
45,985
Insurance service expenses
Incurred claims and other directly attributable expenses
(4,478)
(18,689)
(23,167)
Changes that relate to past service \u2013 changes in the FCF relating
\u00a0 to the LIC
4
\u2014
4
Insurance acquisition cash flows amortization
(217)
(7,268)
(7,485)
(4,691)
(25,957)
(30,648)
Net income (expenses) from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(1,755)
\u2014
(1,755)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk
\u00a0 \u00a0 \u00a0 expired
(322)
\u2014
(322)
-\u00a0\u00a0 CSM recognised for the services provided
(1,860)
\u2014
(1,860)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(85)
\u2014
(85)
Reinsurance expenses
(4,022)
\u2014
(4,022)
Other incurred directly attributable expenses
(569)
\u2014
(569)
Incurred claims recovery
1,342
\u2014
1,342
(3,249)
\u2014
(3,249)
Total insurance service result
3,955
8,133
12,088
2024
Life Risk
Investment
contracts
with DPF
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance revenue
Amounts relating to change in the LRC
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
7,789
21,733
29,522
-\u00a0\u00a0 Changes in risk adjustment for non-financial risk for the risk expired
1,596
228
1,824
-\u00a0\u00a0 CSM recognised for the services provided
3,664
7,128
10,792
-\u00a0\u00a0 Experience adjustments\u00a0 \u2013 arising from premiums received in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
170
33
203
Insurance acquisition cash flows recovery
91
4,338
4,429
13,310
33,460
46,770
Insurance service expenses
Incurred claims and other directly attributable expenses
(7,259)
(21,845)
(29,104)
Insurance acquisition cash flows amortization
(91)
(4,338)
(4,429)
(7,350)
(26,183)
(33,533)
Net expenses from reinsurance contracts held
Amounts relating to the changes in the remaining coverage
-\u00a0\u00a0 Expected incurred claims and other directly attributable expenses
\u00a0 \u00a0 \u00a0 recovery
(2,006)
\u2014
(2,006)
-\u00a0\u00a0 Change in the risk adjustment for non-financial risk for the risk expired
(283)
\u2014
(283)
-\u00a0\u00a0 CSM recognised for the services provided
(1,651)
\u2014
(1,651)
-\u00a0\u00a0 Experience adjustments \u2013 arising from ceded premiums paid in the
\u00a0 \u00a0 \u00a0 period other than those that relate to future service
(143)
\u2014
(143)
Reinsurance expenses
(4,083)
\u2014
(4,083)
Other incurred directly attributable expenses
(519)
\u2014
(519)
Incurred claims recovery
1,858
\u2014
1,858
(2,744)
\u2014
(2,744)
Total insurance service result
3,216
7,277
10,493
100% ( 2024: 100%) of consolidated insurance revenue emanate from contracts
concluded in or from Malta. All premiums emanate from external customers and there
is no business transacted between segments other than as disclosed in Note 34.
34.Related party transactions
Relevant particulars of related party transactions are as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Sales of insurance contracts and other services
Transactions with a parent undertaking:
\u00a0 Commission received
5,683
5,266
\u00a0 Claims recoverable
4,491
5,705
Transactions with related undertaking:
\u00a0 Trailer fees receivable
1
1
\u00a0 Sale of insurance contracts
2,560
246
\u00a0 Dividends received and interest income
2,324
1,611
\u00a0 Rental income on investment property
261
255
Transactions with associated undertaking:
\u00a0 Sale of insurance contracts
9
31
\u00a0 Dividends received
157
170
\u00a0 Rental income on investment property
48
44
\u00a0 Reimbursement of expenses for back office support services
45
23
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-408": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
21.\u00a0 \u00a0 Investment in associated undertakings
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
14,480
294
Accumulated share of associated undertaking's equity
109
109
Accumulated fair value movements
9,334
\u2014
Net book amount
23,923
403
2024
Opening net book amount
23,923
403
Disposals
(17,900)
\u2014
Share of associated undertaking's movement in equity
(4)
(4)
Fair value movement
(793)
\u2014
Closing net book amount
5,226
399
At 31 December 2024
Cost
4,480
294
Accumulated share of associated undertaking's equity
105
105
Accumulated fair value movements
641
\u2014
Net book amount
5,226
399
Year ended 31 December 2025
Opening net book amount
5,226
399
Share of associated undertaking's movement in equity
(11)
\u2014
Disposal
(4,806)
\u2014
Fair value movement
(21)
(11)
Closing net book amount
388
388
At 31 December 2025
Cost
294
294
Accumulated share of associated undertaking's equity
94
105
Accumulated fair value movements
\u2014
(11)
Net book amount
388
388
The Group\u2019s aggregated assets and liabilities and the share of the results of its
associated undertaking, which is unlisted is as follows:
2025
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
958
66
2,936
294
49%
2024
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
1,507
520
3,208
309
49%
In addition to the associated undertakings above, MAPFRE MSV Life p.l.c. also held
the following investments in associated undertakings:
Associated
undertakings
Registered
office
Class of
shares held
Percentage of shares held
MSV
Group
2025
2024
2025
2024
Plaza Centres
\u00a0 p.l.c.
The Plaza
Commercial
Centre
Bisazza Street
Sliema
Ordinary
\u00a0 shares
0.00%
31.42%
0.00%
31.42%
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-407": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-406": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-405": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
19.\u00a0 \u00a0 Investment property
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
68,026
7,885
Accumulated fair value gains
37,593
5,924
Net book amount
105,619
13,809
Year ended 31 December 2024
Opening net book amount
105,619
13,809
Additions
934
100
Net fair value losses
(746)
(196)
Disposals
(1)
(1)
Net book amount
105,806
13,712
At 31 December 2024
Cost
68,959
7,984
Accumulated fair value gains
36,847
5,728
Net book amount
105,806
13,712
Group
Company
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2025
Opening net book amount
105,806
13,712
Transfer from Property plant & equipment at amortised value
1,172
302
Additions
1,367
73
Net fair value losses
(903)
(251)
Disposals
(317)
(317)
Net book amount
107,125
13,519
At 31 December 2025
Cost
71,181
8,042
Accumulated fair value gains
35,944
5,477
Net book amount
107,125
13,519
Transfers to or from property, plant & equipment and disposals are inclusive of
accumulated fair value gains at the point of transfer.
Fair value of investment property
A valuation of the Group\u2019s and Company\u2019s investment property was performed by
external qualified valuers to determine the fair value of the land and buildings as at 31
December 2025 and 2024. The fair value movements were credited to profit or loss and
are presented within \u2018investment return\u2019 (Note 8).
Valuation technique - Discounted cash flow
A transfer was made from Investment Property in 2025 whilst no transfer were made to
or from Investment Property during 2024.
32.Commitments
Capital commitments
Commitments for capital expenditure not provided for in these financial statements are
as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Authorised and not contracted for
-\u00a0 property, plant and equipment
758
1,222
279
638
-\u00a0 intangible assets
500
2,657
280
714
-\u00a0 investment property
1,782
320
226
170
3,040
4,199
785
1,522
Authorised and contracted for
-\u00a0 property, plant and equipment
626
359
507
269
-\u00a0 intangible assets
3,497
2,864
2,096
2,053
-\u00a0 investment property
1,778
2,256
\u2014
\u2014
-\u00a0 other investments
30,252
31,935
\u2014
\u2014
36,153
37,414
2,603
2,322
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-404": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
24.\u00a0 Insurance contract assets, insurance contract liabilities, reinsurance contract assets
and reinsurance contract liabilities
24.5\u00a0 Investment contracts with DPF
Reconciliation of the liability for remaining coverage and the liability for incurred
claims
Group
2025
2024
LRC
Excluding
Loss
Component
LIC
Total
LRC
Excluding
Loss
Component
LIC
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities
at 1 January
1,894,037
54,041
1,948,078
1,935,970
48,919
1,984,889
Insurance revenue
(34,090)
\u2014
(34,090)
(33,460)
\u2014
(33,460)
Insurance service expenses
Incurred claims and other
\u00a0 directly attributable
\u00a0 expenses
\u2014
18,689
18,689
\u2014
21,845
21,845
Insurance acquisition cash
\u00a0 flows amortization
7,268
\u2014
7,268
4,338
\u2014
4,338
Insurance service expenses
7,268
18,689
25,957
4,338
21,845
26,183
Insurance service result
(26,822)
18,689
(8,133)
(29,122)
21,845
(7,277)
Finance expenses from
\u00a0 insurance contracts
\u00a0 issued
80,510
\u2014
80,510
83,210
\u2014
83,210
Total amounts recognised in
\u00a0 profit or loss
53,688
18,689
72,377
54,088
21,845
75,933
Investment components
(211,796)
211,796
\u2014
(233,487)
233,487
\u2014
Cash flows
Premium received
150,150
\u2014
150,150
142,452
\u2014
142,452
Claims and other directly
\u00a0 attributable expenses
\u2014
(235,249)
(235,249)
\u2014
(250,210)
(250,210)
Insurance acquisition cash
\u00a0 flows
(6,902)
\u2014
(6,902)
(4,240)
\u2014
(4,240)
Decrease/(increase) in policy
\u00a0 loans
393
\u2014
393
(746)
\u2014
(746)
Total cash flows
143,641
(235,249)
(91,608)
137,466
(250,210)
(112,744)
Insurance contract liabilities
at 31 December\u00a0
1,879,570
49,277
1,928,847
1,894,037
54,041
1,948,078
Reconciliation of the measurement components of contract balances
Group
2025
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities at 1 January
1,866,991
3,479
77,608
1,948,078
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(8,049)
(8,049)
Change in the risk adjustment for non-financial risk for risk
\u00a0 expired
\u2014
(232)
\u2014
(232)
Experience adjustment
148
\u2014
\u2014
148
148
(232)
(8,049)
(8,133)
Changes that relate to future service
Changes in estimates that adjust the CSM
(5,201)
(804)
6,005
\u2014
Contracts initially recognised in the period
(5,647)
189
5,458
\u2014
Experience adjustments arising from premiums received
\u00a0 in the period that relate to future service
(241)
\u2014
241
\u2014
(11,089)
(615)
11,704
\u2014
Insurance service result
(10,941)
(847)
3,655
(8,133)
Finance expenses from insurance contracts issued
80,510
\u2014
\u2014
80,510
Total amounts recognised in profit or loss
69,569
(847)
3,655
72,377
Cash flows
Premium received
150,150
\u2014
\u2014
150,150
Claims and other directly attributable expenses paid
(235,249)
\u2014
\u2014
(235,249)
Insurance acquisition cash flows
(6,902)
\u2014
\u2014
(6,902)
Increase in policy loans
393
\u2014
\u2014
393
Total cash flows
(91,608)
\u2014
\u2014
(91,608)
Insurance contract liabilities at 31 December
1,844,952
2,632
81,263
1,928,847
Group
2024
Present
value of
future cash
flows
Risk
adjustment
for non-
financial
risk
CSM\u00a0
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Insurance contract liabilities at 1 January
1,910,347
2,815
71,727
1,984,889
Changes that relate to current service
CSM recognised for the services provided
\u2014
\u2014
(7,128)
(7,128)
Change in the risk adjustment for non-financial risk for risk
\u00a0 expired
\u2014
(228)
\u2014
(228)
Experience adjustment relating to insurance service
\u00a0 expenses
79
\u2014
\u2014
79
79
(228)
(7,128)
(7,277)
Changes that relate to future service
Changes in estimates that adjust the CSM
(8,215)
669
7,546
\u2014
Contracts initially recognised in the period
(3,095)
223
2,872
\u2014
Experience adjustments arising from premiums received
\u00a0 in the period that relate to future service
(2,591)
\u2014
2,591
\u2014
(13,901)
892
13,009
\u2014
Insurance service result
(13,822)
664
5,881
(7,277)
Finance expenses from insurance contracts issued
83,210
\u2014
\u2014
83,210
Total amounts recognised in profit or loss
69,388
664
5,881
75,933
Cash flows
Premium received
142,452
\u2014
\u2014
142,452
Claims and other directly attributable expenses paid
(250,210)
\u2014
\u2014
(250,210)
Insurance acquisition cash flows
(4,240)
\u2014
\u2014
(4,240)
Increase in policy loans
(746)
\u2014
\u2014
(746)
Total cash flows
(112,744)
\u2014
\u2014
(112,744)
Insurance contract liabilities at 31 December
1,866,991
3,479
77,608
1,948,078
Impact of contracts recognised in the year
Group
2025
2024
Investment contracts with DPF
Non-onerous
contracts originated
Non-onerous
contracts originated
\u20ac\u2019000
\u20ac\u2019000
Estimates of present value of future cash outflows
-\u00a0\u00a0\u00a0 Insurance acquisition cash flows
6,421
4,014
-\u00a0\u00a0\u00a0 Claims and other directly attributable expense
144,181
149,277
150,602
153,291
Estimates of the present value of future cash inflows
(156,249)
(156,386)
Risk adjustment for non-financial risk adjustment
189
223
CSM
5,458
2,872
Increase in insurance contract liabilities from
contracts recognised in the period
\u2014
\u2014
25.Investment contract liabilities
The table shows a reconciliation of the opening to closing balance for the investment
contract liabilities.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Opening balance \u2013 1 January
179,685
123,253
Contributions received
43,350
47,684
Benefits paid
(5,684)
(4,308)
Investment return from underlying assets
7,052
13,131
Transfer from the other items in the Statement of Financial Position
\u00a0 (Note 24)
6,023
\u2014
Asset management fees charged
(678)
(75)
Closing balance \u2013 31 December
229,748
179,685
In the above reconciliation, the investment return from the underlying assets represents
changes in the fair value of the investment contract liabilities due to changes in market
conditions. Asset management fees charged in the profit or loss also includes trailer
fees.
The above liabilities are substantially non-current in nature.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentContractsLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-403": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-402": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-401": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-400": { "value": "
8.Investment return
An analysis of net investment return and net financial result by product line is presented below:
Group
Company
31\u00a0 December 2025
Life
Risk
Investment
contracts
with DPF
Invest-
ment
contracts
without
DPF
Short-
Term
contracts
measured
under the
PAA
Other
Total
Short-
Term
contracts
measured
under the
PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated undertaking, net
\u00a0 of tax
\u2014
\u2014
\u2014
\u2014
91
91
\u2014
Dividend income from group companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
3,415
Interest revenue from financial assets not measured
\u00a0 at FVTPL
\u2014
859
\u2014
526
3,227
4,612
526
Interest expenses from financial assets not measured
\u00a0 at FVTPL
\u2014
\u2014
\u2014
(26)
\u2014
(26)
(26)
Loss on derecognition of subsidiary undertaking
\u2014
\u2014
\u2014
(28)
\u2014
(28)
(28)
Net gains on FVTPL instruments
204
80,152
7,052
565
976
88,949
565
Net losses on FVOCI instruments
\u2014
\u2014
\u2014
(60)
\u2014
(60)
(60)
Other investment income
\u2014
461
\u2014
1
\u2014
462
1
Net losses from fair value\u00a0 adjustments to
\u00a0 investment properties\u00a0\u00a0
\u2014
(652)
\u2014
(251)
\u2014
(903)
(251)
Investment income from investment properties
\u2014
6,026
\u2014
787
\u2014
6,813
787
Expenses arising from investment properties
\u2014
(420)
\u2014
(21)
\u2014
(441)
(21)
Other investment expenses
\u2014
(5,907)
\u2014
(41)
(20)
(5,968)
(41)
Net credit impairment (losses)/gains\u00a0\u00a0
\u2014
(9)
\u2014
5
66
62
5
Interest on lease liabilities
\u2014
\u2014
\u2014
(111)
\u2014
(111)
(111)
Net investment income
204
80,510
7,052
1,346
4,340
93,452
4,761
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying assets
\u00a0 of\u00a0 contracts measured under VFA
\u2014
(80,510)
\u2014
\u2014
\u2014
(80,510)
\u2014
Interest accreted
809
\u2014
\u2014
\u2014
\u2014
809
\u2014
Effect of changes in interest rates and other financial
\u00a0 assumptions
(2,267)
\u2014
\u2014
(364)
\u2014
(2,631)
(364)
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
(134)
\u2014
\u2014
\u2014
\u2014
(134)
\u2014
Finance expense from insurance contracts issued
(1,592)
(80,510)
\u2014
(364)
\u2014
(82,466)
(364)
Finance income/(expenses) from reinsurance\u00a0
\u00a0 contracts held
Interest accreted
(498)
\u2014
\u2014
\u2014
\u2014
(498)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
2,506
\u2014
\u2014
94
\u2014
2,600
94
Effect of changes in FCF at current rates\u00a0 when CSM
\u00a0 is unlocked at locked-in rates
55
\u2014
\u2014
\u2014
\u2014
55
\u2014
Finance income from reinsurance
\u00a0 contracts held
2,063
\u2014
\u2014
94
\u2014
2,157
94
Net change in investment contract liabilities
\u2014
\u2014
(7,052)
\u2014
\u2014
(7,052)
\u2014
Net investment return and net financial result
675
\u2014
\u2014
1,076
4,340
6,091
4,491
Group
Company
31 December 2024
Life
Risk
Investment
contracts
with DPF
Investment
contracts
without
DPF
Short-Term
contracts
measured
under the PAA
Other
Total
Short-Term
contracts
measured
under the PAA
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Net investment income/(expenses)
Share of profit of other associated
\u00a0 undertaking, net of tax
\u2014
\u2014
\u2014
\u2014
105
105
\u2014
Dividend income from group
\u00a0 companies
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
1,323
Interest revenue from financial assets
\u00a0 not measured at FVTPL
\u2014
1,153
\u2014
355
3,932
5,440
355
Interest expenses from financial
\u00a0 assets not measured at FVTPL
\u2014
\u2014
\u2014
(27)
\u2014
(27)
(27)
Net gains on FVTPL instruments
625
83,210
13,131
445
1,179
98,590
445
Other investment income
\u2014
322
\u2014
2
\u2014
324
2
Net (losses)/gains from fair value
\u00a0 adjustments to investment
\u00a0 properties\u00a0and revaluation of
property for own use
\u2014
(533)
\u2014
(196)
150
(579)
(196)
Investment income from investment
\u00a0 properties
\u2014
5,980
\u2014
821
\u2014
6,801
821
Expenses arising from investment
\u00a0 properties
\u2014
(437)
\u2014
(15)
\u2014
(452)
(15)
Other investment expenses
\u2014
(6,493)
\u2014
(31)
(20)
(6,544)
(31)
Net credit impairment gains
\u2014
8
\u2014
1
\u2014
9
1
Interest on lease liabilities
\u2014
\u2014
\u2014
(77)
\u2014
(77)
(77)
Net investment income
625
83,210
13,131
1,278
5,346
103,590
2,601
Finance income/(expenses) from
\u00a0 insurance contracts issued
Changes in value of underlying
\u00a0 assets of contracts measured under
\u00a0 VFA
\u2014
(83,210)
\u2014
\u2014
\u2014
(83,210)
\u2014
Interest accreted
1,577
\u2014
\u2014
\u2014
\u2014
1,577
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
(765)
\u2014
\u2014
(818)
\u2014
(1,583)
(818)
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
24
\u2014
\u2014
\u2014
\u2014
24
\u2014
Finance expense from
\u00a0 insurance contracts issued
836
(83,210)
\u2014
(818)
\u2014
(83,192)
(818)
Finance income/(expenses) from
\u00a0 reinsurance contracts held
Interest accreted
(818)
\u2014
\u2014
\u2014
\u2014
(818)
\u2014
Effect of changes in interest rates and
\u00a0 other financial assumptions
73
\u2014
\u2014
182
\u2014
255
182
Effect of changes in FCF at current
\u00a0 rates\u00a0 when CSM is unlocked at
\u00a0 locked-in rates
48
\u2014
\u2014
\u2014
\u2014
48
\u2014
Finance (expenses)/income from
\u00a0 reinsurance contracts held
(697)
\u2014
\u2014
182
\u2014
(515)
182
Net change in investment contract
\u00a0 liabilities
\u2014
\u2014
(13,131)
\u2014
\u2014
(13,131)
\u2014
Net investment return and net
financial result
764
\u2014
\u2014
642
5,346
6,752
1,965
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-411": { "value": "
9.\u00a0 \u00a0 \u00a0 Other income
Group
2025
2024
\u20ac'000
\u20ac'000
Investment management fees
1,625
786
Management fees
4
125
Other income
78
371
1,707
1,282
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-410": { "value": "
9.\u00a0 \u00a0 \u00a0 Other income
Group
2025
2024
\u20ac'000
\u20ac'000
Investment management fees
1,625
786
Management fees
4
125
Other income
78
371
1,707
1,282
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-409": { "value": "
9.\u00a0 \u00a0 \u00a0 Other income
Group
2025
2024
\u20ac'000
\u20ac'000
Investment management fees
1,625
786
Management fees
4
125
Other income
78
371
1,707
1,282
", "dimensions": { "concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-412": { "value": "
10.Profit before tax
The profit before tax is stated after charging:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Employee compensation (Note 11)
17,741
16,579
9,890
9,238
Depreciation/amortisation:
- intangible assets (Note 16)
5,490
5,080
2,048
2,226
- property, plant and equipment (Note 18)
1,029
1,125
636
626
Impairment of receivables
35
10
35
10
Increase in provision for impairment on
\u00a0 receivables (Note 26)
152
182
152
182
The financial statements include fees, exclusive of VAT, charged by the Company's
auditors for services rendered during the financial years ended 31 December 2025 and
2024, relating to entities that are included in the consolidation amounting to:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Annual statutory audit
768
911
333
336
Solvency II audit
118
118
51
51
Paid during the year:
for financial year 2025
375
\u2014
167
\u2014
for financial year 2024
480
413
196
168
for financial year 2023
\u2014
1,497
\u2014
674
11.\u00a0 \u00a0 Employee compensation
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Salaries
16,708
15,587
9,285
8,677
Social security costs
808
790
481
457
Contributions to Employee Voluntary
\u00a0 Occupational Pension Scheme
225
202
124
104
17,741
16,579
9,890
9,238
The average number of persons employed during the year was:
Group
Company
2025
2024
2025
2024
No.
No.
No.
No.
Key management personnel
26
26
13
14
Managerial
41
41
26
25
Technical
229
229
140
141
Administrative
16
18
9
11
312
314
188
191
13.\u00a0 \u00a0 Directors\u2019 emoluments
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Directors' fees
247
250
197
187
Group Directors\u2019 fees include fees payable to the Company\u2019s directors both from the
Company and from other Group Companies where applicable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-415": { "value": "
10.Profit before tax
The profit before tax is stated after charging:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Employee compensation (Note 11)
17,741
16,579
9,890
9,238
Depreciation/amortisation:
- intangible assets (Note 16)
5,490
5,080
2,048
2,226
- property, plant and equipment (Note 18)
1,029
1,125
636
626
Impairment of receivables
35
10
35
10
Increase in provision for impairment on
\u00a0 receivables (Note 26)
152
182
152
182
11.\u00a0 \u00a0 Employee compensation
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Salaries
16,708
15,587
9,285
8,677
Social security costs
808
790
481
457
Contributions to Employee Voluntary
\u00a0 Occupational Pension Scheme
225
202
124
104
17,741
16,579
9,890
9,238
13.\u00a0 \u00a0 Directors\u2019 emoluments
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Directors' fees
247
250
197
187
Group Directors\u2019 fees include fees payable to the Company\u2019s directors both from the
Company and from other Group Companies where applicable.
34.Related party transactions
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Purchase of products and services
Transactions with a parent undertaking:
Reinsurance premium ceded
20,619
19,522
Staff development training & Fringe Benefits
86
2
Expat staff benefits and services
24
97
Computer maintenance, Group IT shared services
2,146
1,440
Capitalisation of software development
42
1
Other back office support services
728
720
Investment management services
34
27
Commission payable
16
96
Transactions with other related undertaking:
Acquisition costs payable
3,867
3,449
Bank charges
213
223
Investment management services
36
45
Claims paid
611
556
Transactions with associates undertaking:
Road side assistance and other back office support services
2,877
2,819
Claims paid
4
8
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-414": { "value": "
10.Profit before tax
The profit before tax is stated after charging:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Employee compensation (Note 11)
17,741
16,579
9,890
9,238
Depreciation/amortisation:
- intangible assets (Note 16)
5,490
5,080
2,048
2,226
- property, plant and equipment (Note 18)
1,029
1,125
636
626
Impairment of receivables
35
10
35
10
Increase in provision for impairment on
\u00a0 receivables (Note 26)
152
182
152
182
16.Intangible assets
Group
Computer
Software
Deferred
Acquisition
cost (i)
Total (ii)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost or valuation
58,330
4,425
62,755
Accumulated amortisation and impairment
(28,410)
(3,613)
(32,023)
Net book amount
29,920
812
30,732
Year ended 31 December 2024
Opening net book amount
29,920
812
30,732
Additions
7,448
1,311
8,759
Disposals
(2,906)
\u2014
(2,906)
Amortisation charge
(4,960)
(120)
(5,080)
Amortisation released upon derecognition
2,906
\u2014
2,906
Closing net book amount
32,408
2,003
34,411
At 31 December 2024
Cost or valuation
62,872
5,736
68,608
Accumulated amortisation and impairment
(30,464)
(3,733)
(34,197)
Net book amount
32,408
2,003
34,411
Year ended 31 December 2025
Opening net book amount
32,408
2,003
34,411
Additions
5,916
1,931
7,847
Disposal/Derecognition
(4,960)
\u2014
(4,960)
Amortisation charge
(5,255)
(235)
(5,490)
Amortisation released on derecognition
4,960
\u2014
4,960
Closing net book amount
33,069
3,699
36,768
At 31 December 2025
Cost or valuation
63,828
7,667
71,495
Accumulated amortisation and impairment
(30,759)
(3,968)
(34,727)
Net book amount
33,069
3,699
36,768
(i)\u00a0 This intangible asset relates to investment contracts without DPF only.
18.Property, plant and equipment
Group
Freehold
Furniture
land and
Leasehold
Motor
fittings and
buildings
improvements
Vehicles
equipment
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
At 1 January 2024
Cost
14,070
4,381
\u2014
9,450
27,901
Accumulated depreciation
(357)
(2,620)
\u2014
(7,741)
(10,718)
Closing net book amount
13,713
1,761
\u2014
1,709
17,183
Year ended 31 December 2024
Opening net book amount
13,713
1,761
\u2014
1,709
17,183
Additions
72
276
\u2014
634
982
Disposals
\u2014
(1,153)
\u2014
(922)
(2,075)
Revaluation gain to profit or loss
168
\u2014
\u2014
\u2014
168
Depreciation charge
(104)
(319)
\u2014
(702)
(1,125)
Depreciation release on disposal
\u2014
1,063
\u2014
919
1,982
Closing net book amount
13,849
1,628
\u2014
1,638
17,115
At 31 December 2024
Cost
14,310
3,504
\u2014
9,162
26,976
Accumulated depreciation
(461)
(1,876)
\u2014
(7,524)
(9,861)
Net book amount
13,849
1,628
\u2014
1,638
17,115
Year ended 31 December 2025
Opening net book amount
13,849
1,628
\u2014
1,638
17,115
Additions
18
116
30
664
828
Disposals
\u2014
(35)
\u2014
(112)
(147)
Amounts transferred to
\u00a0 investment property
(998)
\u2014
\u2014
\u2014
(998)
Revaluation gain to other
\u00a0 comprehensive income
196
\u2014
\u2014
\u2014
196
Depreciation charge
(102)
(266)
(1)
(660)
(1,029)
Depreciation on amount
\u00a0 transferred to investment
\u00a0 property (Note 19)
86
\u2014
\u2014
\u2014
86
Depreciation release on disposal
\u2014
35
0
107
142
Closing net book amount
13,049
1,478
29
1,637
16,193
At 31 December 2025
Cost
13,526
3,585
30
9,714
26,855
Accumulated depreciation
(477)
(2,107)
(1)
(8,077)
(10,662)
Net book amount
13,049
1,478
29
1,637
16,193
Depreciation charge has been included in administrative expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-413": { "value": "
10.Profit before tax
The financial statements include fees, exclusive of VAT, charged by the Company's
auditors for services rendered during the financial years ended 31 December 2025 and
2024, relating to entities that are included in the consolidation amounting to:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Annual statutory audit
768
911
333
336
Solvency II audit
118
118
51
51
Paid during the year:
for financial year 2025
375
\u2014
167
\u2014
for financial year 2024
480
413
196
168
for financial year 2023
\u2014
1,497
\u2014
674
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-417": { "value": "
11.\u00a0 \u00a0 Employee compensation
The average number of persons employed during the year was:
Group
Company
2025
2024
2025
2024
No.
No.
No.
No.
Key management personnel
26
26
13
14
Managerial
41
41
26
25
Technical
229
229
140
141
Administrative
16
18
9
11
312
314
188
191
13.\u00a0 \u00a0 Directors\u2019 emoluments
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Directors' fees
247
250
197
187
Group Directors\u2019 fees include fees payable to the Company\u2019s directors both from the
Company and from other Group Companies where applicable.
34.Related party transactions
Key management personnel during 2025 and 2024 comprised the President & Chief
Executive Officer, Chief Executive Officers, General Manager, Chief Financial Officer,
Chief Officers and Chief Underwriters. Total remuneration paid by the Group to key
management personnel amounted to \u20ac3.9 million (Company: \u20ac1.8 million).\u00a0
Corresponding figures for 2024 were \u20ac3.9 million paid by the Group and \u20ac2.0 million
paid by the Company.", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-416": { "value": "
11.\u00a0 \u00a0 Employee compensation
The average number of persons employed during the year was:
Group
Company
2025
2024
2025
2024
No.
No.
No.
No.
Key management personnel
26
26
13
14
Managerial
41
41
26
25
Technical
229
229
140
141
Administrative
16
18
9
11
312
314
188
191
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-419": { "value": "
12.\u00a0 \u00a0 Income tax expense
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Current tax expense
8,231
6,967
5,162
3,286
Deferred tax expense (Note 23)
873
(157)
135
126
Income tax expense
9,104
6,810
5,297
3,412
12.\u00a0 \u00a0 Income tax expense - continued
The tax on the Group\u2019s and Company\u2019s profit before tax differs from the theoretical
amount that would arise using the basic tax rate as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Profit before tax
29,618
24,804
16,872
10,531
Tax at 35%
10,366
8,681
5,905
3,686
Adjusted for tax effect of :
Net exempt income and disallowed
\u00a0 expenses
(113)
(826)
(254)
(111)
Property withholding tax at 8% or10%
(791)
(815)
(6)
59
Other
(358)
(230)
(348)
(222)
Income tax expense
9,104
6,810
5,297
3,412
23.\u00a0 Deferred income tax
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Balance at 1 January
11,808
11,961
1,317
1,187
Movements during the year:
Profit or loss account (Note 12)
873
(157)
135
126
Other comprehensive income
27
4
27
4
Balance at 31 December - net
12,708
11,808
1,479
1,317
Deferred income taxes are calculated on all temporary differences using a principal tax
rate of 35% (2024: 35%) with the exception of investment property and freehold and
other property, for which deferred income taxes may be calculated using a principal tax
rate of 8% or 10% of the carrying amount (2024: 8% or 10%), if appropriate.\u00a0 The
analysis of deferred tax (assets)/liabilities is as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Temporary differences on property, plant
\u00a0 and equipment
7,077
6,358
1,520
1,240
Temporary differences attributable to
\u00a0 investment property, unrealised capital
\u00a0 losses and fair value adjustments on
\u00a0 financial assets
10,550
10,523
1,155
1,191
Temporary differences attributable to
\u00a0 unabsorbed tax losses and allowances\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
\u00a0 carried forward
(4,624)
(4,840)
(933)
(933)
Temporary differences attributable to other
\u00a0 provisions
(295)
(233)
(263)
(181)
Balance at 31 December - net
12,708
11,808
1,479
1,317
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to set off a current tax asset against a current tax liability.\u00a0 The following amounts
determined after appropriate offsetting are shown in the statement of financial position:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Deferred tax asset
(2,398)
(2,532)
(1,223)
(1,248)
Deferred tax liability
15,106
14,340
2,702
2,565
12,708
11,808
1,479
1,317
The deferred income tax assets and liabilities are, principally, recoverable after more
than 12 months.
Deferred income tax assets are recognised for tax loss carry-forwards to the extent that
the realisation of the related tax benefit through future taxable profits is probable.\u00a0
The Group and Company have unutilised capital gains of \u20ac14.5 million (2024: \u20ac18.7
million), which give rise to a deferred tax asset of \u20ac5.1 million (2024: \u20ac6.5 million) that
has not been recognised in these financial statements. The Group also has unutilised
trading losses of \u20ac0.5 million (2024: \u20ac0.7 million) giving rise to a deferred tax asset of
\u20ac0.2 million (2024: \u20ac0.2 million) which has not been recognised in these financial
statements.
The Group\u2019s and Company\u2019s deferred tax asset and liability were established on the
basis of tax rates that were substantively enacted as at the financial year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-418": { "value": "
12.\u00a0 \u00a0 Income tax expense
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Current tax expense
8,231
6,967
5,162
3,286
Deferred tax expense (Note 23)
873
(157)
135
126
Income tax expense
9,104
6,810
5,297
3,412
12.\u00a0 \u00a0 Income tax expense - continued
The tax on the Group\u2019s and Company\u2019s profit before tax differs from the theoretical
amount that would arise using the basic tax rate as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Profit before tax
29,618
24,804
16,872
10,531
Tax at 35%
10,366
8,681
5,905
3,686
Adjusted for tax effect of :
Net exempt income and disallowed
\u00a0 expenses
(113)
(826)
(254)
(111)
Property withholding tax at 8% or10%
(791)
(815)
(6)
59
Other
(358)
(230)
(348)
(222)
Income tax expense
9,104
6,810
5,297
3,412
23.\u00a0 Deferred income tax
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Balance at 1 January
11,808
11,961
1,317
1,187
Movements during the year:
Profit or loss account (Note 12)
873
(157)
135
126
Other comprehensive income
27
4
27
4
Balance at 31 December - net
12,708
11,808
1,479
1,317
Deferred income taxes are calculated on all temporary differences using a principal tax
rate of 35% (2024: 35%) with the exception of investment property and freehold and
other property, for which deferred income taxes may be calculated using a principal tax
rate of 8% or 10% of the carrying amount (2024: 8% or 10%), if appropriate.\u00a0 The
analysis of deferred tax (assets)/liabilities is as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Temporary differences on property, plant
\u00a0 and equipment
7,077
6,358
1,520
1,240
Temporary differences attributable to
\u00a0 investment property, unrealised capital
\u00a0 losses and fair value adjustments on
\u00a0 financial assets
10,550
10,523
1,155
1,191
Temporary differences attributable to
\u00a0 unabsorbed tax losses and allowances\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
\u00a0 carried forward
(4,624)
(4,840)
(933)
(933)
Temporary differences attributable to other
\u00a0 provisions
(295)
(233)
(263)
(181)
Balance at 31 December - net
12,708
11,808
1,479
1,317
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to set off a current tax asset against a current tax liability.\u00a0 The following amounts
determined after appropriate offsetting are shown in the statement of financial position:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Deferred tax asset
(2,398)
(2,532)
(1,223)
(1,248)
Deferred tax liability
15,106
14,340
2,702
2,565
12,708
11,808
1,479
1,317
The deferred income tax assets and liabilities are, principally, recoverable after more
than 12 months.
Deferred income tax assets are recognised for tax loss carry-forwards to the extent that
the realisation of the related tax benefit through future taxable profits is probable.\u00a0
The Group and Company have unutilised capital gains of \u20ac14.5 million (2024: \u20ac18.7
million), which give rise to a deferred tax asset of \u20ac5.1 million (2024: \u20ac6.5 million) that
has not been recognised in these financial statements. The Group also has unutilised
trading losses of \u20ac0.5 million (2024: \u20ac0.7 million) giving rise to a deferred tax asset of
\u20ac0.2 million (2024: \u20ac0.2 million) which has not been recognised in these financial
statements.
The Group\u2019s and Company\u2019s deferred tax asset and liability were established on the
basis of tax rates that were substantively enacted as at the financial year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-420": { "value": "
13.\u00a0 \u00a0 Directors\u2019 emoluments
Group
Company
2025
2024
2025
2024
\u20ac'000
\u20ac'000
\u20ac'000
\u20ac'000
Directors' fees
247
250
197
187
Group Directors\u2019 fees include fees payable to the Company\u2019s directors both from the
Company and from other Group Companies where applicable.
20.Investment in subsidiary undertakings
The subsidiary undertakings at 31 December are shown below:
Subsidiary undertakings
Registered office
Class of shares held
Percentage of shares held
2025
2024
Euro Globe Holdings
\u00a0 Limited (Struck off
\u00a0 effective 06.03.2025)
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
\u2014%
100%
Euromed Risk Solutions
\u00a0 Limited (Company in
\u00a0 liquidation)
4th Floor
Development
House
St. Anne Str
Floriana FRN9010
Malta
Ordinary shares
100%
100%
Bee Insurance Management
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
100%
100%
MAPFRE MSV Life plc
The Mall
Triq il-Mall
Floriana FRN1470
Malta
Ordinary shares
50%
50%
Church Wharf Properties
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
75%
75%
26.\u00a0 Trade and other receivables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Receivables from intermediaries
21,548
18,313
21,548
18,313
Other prepayments and receivables:
- prepayments and other receivables
5,829
5,269
1,495
905
- accrued interest and rent
907
1,161
468
342
- receivables from group undertakings
\u2014
\u2014
715
624
- receivables from associated
\u00a0 \u00a0 undertaking
15
226
15
226
- other debtors
5
205
\u2014
\u2014
Provision for impairment of receivables
(869)
(717)
(869)
(717)
27,435
24,457
23,372
19,693
Current portion
27,435
24,457
23,372
19,693
Balances due from subsidiary undertakings, associated undertaking and other
receivables are unsecured and non-interest bearing.
Movements in the provision for impairment of receivables are as follows:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Balance as at 1 January
717
535
Increase in provision for impairment
152
182
Balance as at 31 December
869
717
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
34.Related party transactions
In the normal course of business, the Group enters into various transactions with related
parties.\u00a0 Related parties are defined as those that have an ability to control or exercise
significant influence over the other party in making financial and operational decisions.\u00a0
These include directors, key management personnel and shareholders, and their close
family members, who hold a substantial amount of the votes able to cast at general
meetings. Parent undertaking refers to MAPFRE S.A. and/or companies owned by
MAPFRE S.A.. Bank of Valletta p.l.c. is a related undertaking in light of its
shareholding in the Company and in MAPFRE MSV Life p.l.c.. Subsidiary
undertakings and associated undertakings refer to the companies listed in Notes 20 and
21 respectively.
Relevant particulars of related party transactions are as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Sales of insurance contracts and other services
Transactions with a parent undertaking:
\u00a0 Commission received
5,683
5,266
\u00a0 Claims recoverable
4,491
5,705
Transactions with related undertaking:
\u00a0 Trailer fees receivable
1
1
\u00a0 Sale of insurance contracts
2,560
246
\u00a0 Dividends received and interest income
2,324
1,611
\u00a0 Rental income on investment property
261
255
Transactions with associated undertaking:
\u00a0 Sale of insurance contracts
9
31
\u00a0 Dividends received
157
170
\u00a0 Rental income on investment property
48
44
\u00a0 Reimbursement of expenses for back office support services
45
23
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Purchase of products and services
Transactions with a parent undertaking:
Reinsurance premium ceded
20,619
19,522
Staff development training & Fringe Benefits
86
2
Expat staff benefits and services
24
97
Computer maintenance, Group IT shared services
2,146
1,440
Capitalisation of software development
42
1
Other back office support services
728
720
Investment management services
34
27
Commission payable
16
96
Transactions with other related undertaking:
Acquisition costs payable
3,867
3,449
Bank charges
213
223
Investment management services
36
45
Claims paid
611
556
Transactions with associates undertaking:
Road side assistance and other back office support services
2,877
2,819
Claims paid
4
8
Key management personnel during 2025 and 2024 comprised the President & Chief
Executive Officer, Chief Executive Officers, General Manager, Chief Financial Officer,
Chief Officers and Chief Underwriters. Total remuneration paid by the Group to key
management personnel amounted to \u20ac3.9 million (Company: \u20ac1.8 million).\u00a0
Corresponding figures for 2024 were \u20ac3.9 million paid by the Group and \u20ac2.0 million
paid by the Company.
Year-end balances arising from the above transactions:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Financial assets at amortised cost
-Related undertaking
180
144
180
144
-Parent undertaking
178
159
178
159
Financial liabilities at amortised cost
-Parent undertaking
1,492
693
1,194
495
-Related undertaking
265
353
\u2014
\u2014
Amounts owed to
-Associated undertaking
188
236
188
236
-Subsidiary undertaking
\u2014
\u2014
\u2014
1,014
Amounts owed by
-Associated undertaking
(26)
226
\u2014
226
-Subsidiary undertaking
\u2014
\u2014
717
447
-Parent undertaking
\u2014
\u2014
\u2014
\u2014
Accruals - Parent undertaking
818
325
300
216
Reinsurance contract assets
-Parent undertaking
16,579
16,858
16,012
16,057
Assets for incurred claims
-Related undertaking
275
188
275
188
-Subsidiary undertaking
\u2014
\u2014
5
5
-Associated undertaking
\u2014
3
\u2014
3
Investment in related undertakings
20,626
17,064
1,171
969
Cash and cash equivalents with related
\u00a0 undertakings
32,853
55,879
7,283
8,795
All balances above have arisen in the course of the Group\u2019s and Company\u2019s normal
operations. Balances due from/to these undertakings are unsecured and non-interest
bearing.
35.\u00a0 \u00a0 Statutory information
\u00a0 \u00a0 \u00a0 \u00a0 MAPFRE Middlesea p.l.c. is a public limited company and is incorporated in Malta.\u00a0
The Group is 55.83% owned by MAPFRE Internacional S.A. (the \u201cimmediate parent\u201d),
a company registered in Spain, the registered office of which is situated at Carretera de
Pozuelo 52, Majadahonda 28222, Madrid, Spain.
The Group\u2019s ultimate parent is Fundaci\u00f3n MAPFRE, the registered office of which is
situated at Paseo de Recoletos 23, 28004, Madrid, Spain.
The Group\u2019s results are consolidated at MAPFRE S.A. level of which Fundaci\u00f3n
MAPFRE is the parent and MAPFRE Internacional S.A. is the subsidiary. MAPFRE
S.A. is a company the registered office of which is situated at Carretera de Pozuelo 52,
Majadahonda 28222, Madrid, Spain.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-421": { "value": "
14.Earnings per share
Earnings per share are based on the net profit for the year divided by the weighted
average number of ordinary shares in issue during the year.
Group
2025
2024
\u20ac'000
\u20ac'000
Profit attributable to owners of the Company
14,935
12,519
Number of ordinary shares in issue (Note 28)
92,000
92,000
Basic and diluted earnings per share attributable to owners of the
\u00a0 Company (\u20ac)
0.162
0.136
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-423": { "value": "
15.Dividends
A final gross dividend in respect of year ended 31 December 2025 of \u20ac0.091128
( 2024: \u20ac0.080268) per share amounting to a total dividend of \u20ac8,383,779 (2024 :
\u20ac7,384,615) is to be proposed by the directors at the forthcoming annual general
meeting. This is equivalent to a net dividend of \u20ac0.065217 (2024: \u20ac0.052174) per
share amounting to a total net dividend of \u20ac6,000,000 (2024: \u20ac4,800,000).
20.Investment in subsidiary undertakings
The amount of dividends that can be distributed in cash by MAPFRE MSV Life p.l.c. is
restricted by the solvency requirements imposed by the MFSA Regulations.
34.Related party transactions
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Sales of insurance contracts and other services
Transactions with a parent undertaking:
\u00a0 Commission received
5,683
5,266
\u00a0 Claims recoverable
4,491
5,705
Transactions with related undertaking:
\u00a0 Trailer fees receivable
1
1
\u00a0 Sale of insurance contracts
2,560
246
\u00a0 Dividends received and interest income
2,324
1,611
\u00a0 Rental income on investment property
261
255
Transactions with associated undertaking:
\u00a0 Sale of insurance contracts
9
31
\u00a0 Dividends received
157
170
\u00a0 Rental income on investment property
48
44
\u00a0 Reimbursement of expenses for back office support services
45
23
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-422": { "value": "
15.Dividends
A final gross dividend in respect of year ended 31 December 2025 of \u20ac0.091128
( 2024: \u20ac0.080268) per share amounting to a total dividend of \u20ac8,383,779 (2024 :
\u20ac7,384,615) is to be proposed by the directors at the forthcoming annual general
meeting. This is equivalent to a net dividend of \u20ac0.065217 (2024: \u20ac0.052174) per
share amounting to a total net dividend of \u20ac6,000,000 (2024: \u20ac4,800,000).", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-424": { "value": "0.091128", "decimals": 6, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-425": { "value": "8383779.0", "decimals": 0, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwners", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-428": { "value": "
16.Intangible assets
Group
Computer
Software
Deferred
Acquisition
cost (i)
Total (ii)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost or valuation
58,330
4,425
62,755
Accumulated amortisation and impairment
(28,410)
(3,613)
(32,023)
Net book amount
29,920
812
30,732
Year ended 31 December 2024
Opening net book amount
29,920
812
30,732
Additions
7,448
1,311
8,759
Disposals
(2,906)
\u2014
(2,906)
Amortisation charge
(4,960)
(120)
(5,080)
Amortisation released upon derecognition
2,906
\u2014
2,906
Closing net book amount
32,408
2,003
34,411
At 31 December 2024
Cost or valuation
62,872
5,736
68,608
Accumulated amortisation and impairment
(30,464)
(3,733)
(34,197)
Net book amount
32,408
2,003
34,411
Year ended 31 December 2025
Opening net book amount
32,408
2,003
34,411
Additions
5,916
1,931
7,847
Disposal/Derecognition
(4,960)
\u2014
(4,960)
Amortisation charge
(5,255)
(235)
(5,490)
Amortisation released on derecognition
4,960
\u2014
4,960
Closing net book amount
33,069
3,699
36,768
At 31 December 2025
Cost or valuation
63,828
7,667
71,495
Accumulated amortisation and impairment
(30,759)
(3,968)
(34,727)
Net book amount
33,069
3,699
36,768
(i)\u00a0 This intangible asset relates to investment contracts without DPF only.
Computer software mainly represents amounts capitalised relating to the development
of the Group and Company\u2019s IT system by related companies forming part of the
MAPFRE S.A. Group.
32.Commitments
Capital commitments
Commitments for capital expenditure not provided for in these financial statements are
as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Authorised and not contracted for
-\u00a0 property, plant and equipment
758
1,222
279
638
-\u00a0 intangible assets
500
2,657
280
714
-\u00a0 investment property
1,782
320
226
170
3,040
4,199
785
1,522
Authorised and contracted for
-\u00a0 property, plant and equipment
626
359
507
269
-\u00a0 intangible assets
3,497
2,864
2,096
2,053
-\u00a0 investment property
1,778
2,256
\u2014
\u2014
-\u00a0 other investments
30,252
31,935
\u2014
\u2014
36,153
37,414
2,603
2,322
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-427": { "value": "
16.Intangible assets
Group
Computer
Software
Deferred
Acquisition
cost (i)
Total (ii)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost or valuation
58,330
4,425
62,755
Accumulated amortisation and impairment
(28,410)
(3,613)
(32,023)
Net book amount
29,920
812
30,732
Year ended 31 December 2024
Opening net book amount
29,920
812
30,732
Additions
7,448
1,311
8,759
Disposals
(2,906)
\u2014
(2,906)
Amortisation charge
(4,960)
(120)
(5,080)
Amortisation released upon derecognition
2,906
\u2014
2,906
Closing net book amount
32,408
2,003
34,411
At 31 December 2024
Cost or valuation
62,872
5,736
68,608
Accumulated amortisation and impairment
(30,464)
(3,733)
(34,197)
Net book amount
32,408
2,003
34,411
Year ended 31 December 2025
Opening net book amount
32,408
2,003
34,411
Additions
5,916
1,931
7,847
Disposal/Derecognition
(4,960)
\u2014
(4,960)
Amortisation charge
(5,255)
(235)
(5,490)
Amortisation released on derecognition
4,960
\u2014
4,960
Closing net book amount
33,069
3,699
36,768
At 31 December 2025
Cost or valuation
63,828
7,667
71,495
Accumulated amortisation and impairment
(30,759)
(3,968)
(34,727)
Net book amount
33,069
3,699
36,768
(i)\u00a0 This intangible asset relates to investment contracts without DPF only.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredAcquisitionCostsArisingFromInsuranceContractsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-426": { "value": "
16.Intangible assets
Group
Computer
Software
Deferred
Acquisition
cost (i)
Total (ii)
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost or valuation
58,330
4,425
62,755
Accumulated amortisation and impairment
(28,410)
(3,613)
(32,023)
Net book amount
29,920
812
30,732
Year ended 31 December 2024
Opening net book amount
29,920
812
30,732
Additions
7,448
1,311
8,759
Disposals
(2,906)
\u2014
(2,906)
Amortisation charge
(4,960)
(120)
(5,080)
Amortisation released upon derecognition
2,906
\u2014
2,906
Closing net book amount
32,408
2,003
34,411
At 31 December 2024
Cost or valuation
62,872
5,736
68,608
Accumulated amortisation and impairment
(30,464)
(3,733)
(34,197)
Net book amount
32,408
2,003
34,411
Year ended 31 December 2025
Opening net book amount
32,408
2,003
34,411
Additions
5,916
1,931
7,847
Disposal/Derecognition
(4,960)
\u2014
(4,960)
Amortisation charge
(5,255)
(235)
(5,490)
Amortisation released on derecognition
4,960
\u2014
4,960
Closing net book amount
33,069
3,699
36,768
At 31 December 2025
Cost or valuation
63,828
7,667
71,495
Accumulated amortisation and impairment
(30,759)
(3,968)
(34,727)
Net book amount
33,069
3,699
36,768
(i)\u00a0 This intangible asset relates to investment contracts without DPF only.
Computer software mainly represents amounts capitalised relating to the development
of the Group and Company\u2019s IT system by related companies forming part of the
MAPFRE S.A. Group.
32.Commitments
Capital commitments
Commitments for capital expenditure not provided for in these financial statements are
as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Authorised and not contracted for
-\u00a0 property, plant and equipment
758
1,222
279
638
-\u00a0 intangible assets
500
2,657
280
714
-\u00a0 investment property
1,782
320
226
170
3,040
4,199
785
1,522
Authorised and contracted for
-\u00a0 property, plant and equipment
626
359
507
269
-\u00a0 intangible assets
3,497
2,864
2,096
2,053
-\u00a0 investment property
1,778
2,256
\u2014
\u2014
-\u00a0 other investments
30,252
31,935
\u2014
\u2014
36,153
37,414
2,603
2,322
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-429": { "value": "
17. Leases
Leases as the lessor
The Group and the Company lease out certain property. Note 19 sets out information
about investment property. The Group has classified these leases as operating leases
because they do not transfer substantially all the risks and rewards incidental to the
ownership of the assets.
The following table sets out a maturity analysis of lease payments receivable, showing
the undiscounted lease payments to be received after the reporting date.
Operating leases
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Less than one year
5,799
5,655
770
666
One to two years
4,115
3,068
285
545
Two to three years
3,170
2,027
122
138
Three to four years
2,082
1,393
122
4
Four to five years
1,625
900
99
\u2014
More than five years
5,533
2,457
\u2014
\u2014
Total
22,324
15,500
1,398
1,353
32.Commitments
Operating lease commitments \u2013 where a Group company is a lessor
The Group and the Company lease out certain premises under operating leases. The
future minimum lease payments receivable under non-cancellable operating leases are
disclosed in Note 17.
Rental income from operating leases recognised in profit or loss during the year is
disclosed in Note 8.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-430": { "value": "
18.Property, plant and equipment
Group
Freehold
Furniture
land and
Leasehold
Motor
fittings and
buildings
improvements
Vehicles
equipment
Total
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac'000
At 1 January 2024
Cost
14,070
4,381
\u2014
9,450
27,901
Accumulated depreciation
(357)
(2,620)
\u2014
(7,741)
(10,718)
Closing net book amount
13,713
1,761
\u2014
1,709
17,183
Year ended 31 December 2024
Opening net book amount
13,713
1,761
\u2014
1,709
17,183
Additions
72
276
\u2014
634
982
Disposals
\u2014
(1,153)
\u2014
(922)
(2,075)
Revaluation gain to profit or loss
168
\u2014
\u2014
\u2014
168
Depreciation charge
(104)
(319)
\u2014
(702)
(1,125)
Depreciation release on disposal
\u2014
1,063
\u2014
919
1,982
Closing net book amount
13,849
1,628
\u2014
1,638
17,115
At 31 December 2024
Cost
14,310
3,504
\u2014
9,162
26,976
Accumulated depreciation
(461)
(1,876)
\u2014
(7,524)
(9,861)
Net book amount
13,849
1,628
\u2014
1,638
17,115
Year ended 31 December 2025
Opening net book amount
13,849
1,628
\u2014
1,638
17,115
Additions
18
116
30
664
828
Disposals
\u2014
(35)
\u2014
(112)
(147)
Amounts transferred to
\u00a0 investment property
(998)
\u2014
\u2014
\u2014
(998)
Revaluation gain to other
\u00a0 comprehensive income
196
\u2014
\u2014
\u2014
196
Depreciation charge
(102)
(266)
(1)
(660)
(1,029)
Depreciation on amount
\u00a0 transferred to investment
\u00a0 property (Note 19)
86
\u2014
\u2014
\u2014
86
Depreciation release on disposal
\u2014
35
0
107
142
Closing net book amount
13,049
1,478
29
1,637
16,193
At 31 December 2025
Cost
13,526
3,585
30
9,714
26,855
Accumulated depreciation
(477)
(2,107)
(1)
(8,077)
(10,662)
Net book amount
13,049
1,478
29
1,637
16,193
Freehold land and buildings transferred from investment property are transferred at the
fair value at the point of transfer and are subsequently depreciated. Transfers to
investment property are made at the depreciated value at the point of transfer. If the fair
value of the freehold land and buildings is significantly different as compared to its
carrying amount then a revaluation adjustment is recorded.
Depreciation charge has been included in administrative expenses.
The Group\u2019s and Company\u2019s Land and buildings are shown at fair value (level 3).
A valuation of land and buildings was carried out by external qualified valuers in 2025.
The fair value movements were debited to profit or loss. The carrying amount of land
and buildings that would have been included in the financial statements had these assets
been carried at cost less accumulated depreciation for the Group is \u20ac13.70 million
(2024: \u20ac13.70 million) and for the Company \u20ac0.8 million (2024: \u20ac0.8 million).
32.Commitments
Capital commitments
Commitments for capital expenditure not provided for in these financial statements are
as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Authorised and not contracted for
-\u00a0 property, plant and equipment
758
1,222
279
638
-\u00a0 intangible assets
500
2,657
280
714
-\u00a0 investment property
1,782
320
226
170
3,040
4,199
785
1,522
Authorised and contracted for
-\u00a0 property, plant and equipment
626
359
507
269
-\u00a0 intangible assets
3,497
2,864
2,096
2,053
-\u00a0 investment property
1,778
2,256
\u2014
\u2014
-\u00a0 other investments
30,252
31,935
\u2014
\u2014
36,153
37,414
2,603
2,322
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-431": { "value": "
19.\u00a0 \u00a0 Investment property
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
68,026
7,885
Accumulated fair value gains
37,593
5,924
Net book amount
105,619
13,809
Year ended 31 December 2024
Opening net book amount
105,619
13,809
Additions
934
100
Net fair value losses
(746)
(196)
Disposals
(1)
(1)
Net book amount
105,806
13,712
At 31 December 2024
Cost
68,959
7,984
Accumulated fair value gains
36,847
5,728
Net book amount
105,806
13,712
Group
Company
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2025
Opening net book amount
105,806
13,712
Transfer from Property plant & equipment at amortised value
1,172
302
Additions
1,367
73
Net fair value losses
(903)
(251)
Disposals
(317)
(317)
Net book amount
107,125
13,519
At 31 December 2025
Cost
71,181
8,042
Accumulated fair value gains
35,944
5,477
Net book amount
107,125
13,519
Transfers to or from property, plant & equipment and disposals are inclusive of
accumulated fair value gains at the point of transfer.
Fair value of investment property
A valuation of the Group\u2019s and Company\u2019s investment property was performed by
external qualified valuers to determine the fair value of the land and buildings as at 31
December 2025 and 2024. The fair value movements were credited to profit or loss and
are presented within \u2018investment return\u2019 (Note 8).
The Group\u2019s and the Company\u2019s investment property, comprising mainly office
buildings, have been determined to fall within level 3 of the fair valuation hierarchy.\u00a0
The different levels in the fair value hierarchy have been defined in Note 4.3.
The Group\u2019s and the Company\u2019s policy is to recognise transfers into and out of fair
value hierarchy levels as of the date of the event or change in circumstances that caused
the transfer.\u00a0 There were no transfers between levels during the year.
Valuation processes
On an annual basis, the Group and Company engage external, independent property
valuers, having appropriate recognised professional qualifications and recent
experience in the location and category of the properties being valued to determine the
fair value of the land and buildings. As at 31 December 2025 and 2024, the fair values
of the land and buildings have been determined by PwC Malta and DHI Periti.
At each financial year end the investments department:
\u2022 verifies all major inputs to the valuation report prepared by the qualified valuer;
\u2022 assesses property valuation movements when compared to the prior year valuation
report; and
\u2022 holds discussions with the qualified valuer.
The valuation techniques used for investment properties were the discounted cash flow
valuation, market approach, comparative transaction method and income capitalisation
method to provide accuracy and consistency in arriving at a fair value that reflects a
price that would be reasonably expected to be received in an orderly transaction
between market participants at the measurement date.
Valuation technique - Discounted cash flow
The following tables shows the valuation technique used in measuring the fair value of
investment property using the discounted cash flow technique, as well as the significant
unobservable inputs used. These inputs include:
Group
Valuation technique
Significant unobservable
inputs
Inter-relationship between
key unobservable inputs and
fair value measurement
Discounted cash flows:
The valuation model
considers the present value
of net cash flows generated
from the property, taking
into account the expected
rental growth rate, void
periods and costs not paid
for by the tenants. The
expected net cash flows
are discounted using the
risk-adjusted discount
rates. Among other factors,
the discount rate
estimation considers the
quality of a building and
its location (prime vs
secondary), lease terms,
property risk premium and
inflation.
\u2013 Risk-adjusted discount rate
varying between 6.3% and
8.5% (2024: 6.3% and
8.3%).
\u2013 A void factor varying
between 1.0% to 7% (2024:
1.0% and 5.5%) on rental
income.
\u2013 Lease market rate was
applied once current lease
terms expired.
\u2013 Expected market rental
growth rate of 2.0% (2024:
2.0%) in line with the
general inflation rate
\u2013 Construction costs for
undeveloped airspace and
re-developable land varying
between \u20ac676/sqm and
\u20ac1,658/sqm (2024: \u20ac673/
sqm and \u20ac1,621/sqm)
The estimated fair value would
increase/(decrease) if:
\u2013 The risk-adjusted
discount rate were
lower/ (higher);
\u2013 Void factor were lower/
(higher);
\u2013 The market rate were
higher/(lower);
\u2013 Expected market rental
growth were higher/
(lower).\u00a0
\u2013 Constructions costs were
lower/(higher).
The fair value of investment property determined by external, qualified property
valuers on the basis of the discounted cash flow method amounted to \u20ac103.0 million
(2024: \u20ac101.8 million) for the Group and \u20ac12.9 million (2024: \u20ac12.8 million) for the
Company.
A transfer was made from Investment Property in 2025 whilst no transfer were made to
or from Investment Property during 2024.
Valuation technique \u2013 Market approach
One property held by the Group situated within the Grand Harbour Local Plan has been
valued using the Market Approach.
The property is valued with reference to parameters for comparable properties in terms
of either actual prices from recent transactions or advertised prices for properties
currently available for sale. Through the Market Approach, the property is valued in its
existing state.
Market Value Technique
Valuation technique
Significant unobservable inputs
Inter-relationship between key
unobservable inputs and fair
value measurement
Market value : The valuation
model comprises:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
The estimation of an average
sales rate based on
information obtained from
either actual prices of recent
transactions or advertised
prices for properties
currently available for sale.
\u2013 Average sales rate of
\u20ac1,112/sqm (2024:
\u20ac1,105/sqm)
\u2013 Reduction in average
sales rate of 60% (2024:
70%) to allow for
potential negotiation in
rates between what is
being advertised to
what is actually
contracted.
The estimated fair value would
increase/(decrease) if:
\u2013 The average sale
rate were higher/
(lower);
\u2013 The reduction in
average sales rate
were higher/(lower);
The fair value of investment property determined by external, qualified property
valuers on the basis of market approach method amounted to \u20ac2.3 million for the Group
in 2025 (2024: \u20ac2.3 million).
Valuation technique - Comparative transactions method
The fair value of the Group\u2019s investment properties determined on the basis of the
market comparison method amounted to \u20ac1.2 million in 2025 (2024: \u20ac0.7 million). The
comparative method is based on an expected sales value per square metre based on an
average/ median of values derived from observable market transactions for comparable
properties.
Valuation technique - Income Capitalisation Method
The valuation for all other investment property with a total carrying amount of \u20ac0.6
million (2024: \u20ac0.9 million) for the Group and Company, was determined by
capitalising future net income streams based on significant unobservable inputs.\u00a0 These
inputs include:
Future rental cash inflows
based on the actual location, type and quality of the
properties and supported by the terms of any existing
lease, other contracts or external evidence such as
current market rents for similar properties;
Capitalisation rates
based on actual location, size and quality of the
properties and taking into account market data at the
valuation date.
Information about fair value measurements using significant unobservable inputs (level
3)
Group & Company
Significant unobservable\u00a0 Inputs
Fair value at 31
December 2025
Valuation
technique
Rental value
Capitalisation
rate
Description
\u20ac
\u20ac
%
Office buildings
0.63m
Capitalisation of
future net income
streams
0.05m
3.50-5.00
Group & Company
Significant unobservable\u00a0 Inputs
Description
Fair value at 31
December 2024
Valuation
technique
Rental value
Capitalisation
rate
\u20ac
\u20ac
%
Office buildings
0.94m
Capitalisation of
\u00a0 future net income
\u00a0 streams
0.04m
5.00
For each valuation for which rental value and capitalisation rate have been determined
to be the significant unobservable inputs, the higher the rental value and the lower the
capitalisation rate, the higher the fair value. Conversely, the lower the rental value and
the higher the capitalisation rate, the lower the fair value.
In the absence of future rental cash inflows, fair value is based on active market prices,
adjusted, if necessary for any difference in the nature, location or condition of the
specific asset.
Sensitivity analysis
Sensitivity analysis was carried out to assess the impact of changing the risk-adjusted
discount rate (0.5 percentage point increase/decrease), or the market rental rate growth
(5.0 percentage point increase/decrease) in the case of the discounted cash flow, and
market approach (5.0 percentage point increase/decrease), and the capitalisation rate for
the income capitalisation method. The tables below show the changes in the valuation
arising from such changes:
Group
2025
2025
2024
2024
-0.5%
+0.5%
-0.5%
+0.5%
\u20ac million
\u20ac million
\u20ac million
\u20ac million
Discount rates
7.9
(8.2)
8.4
(8.7)
2025
2025
2024
2024
-5%
+5%
-5%
+5%
\u20ac million
\u20ac million
\u20ac million
\u20ac million
Market rates
(5.3)
5.4
(5.7)
5.5
The impact on profit or loss would be a maximum increase of \u20ac7.9 million (2024: \u20ac8.4
million) or a maximum decrease of \u20ac8.2 million (2024: \u20ac8.7 million) for the Group and
a maximum increase of \u20ac1.0 million (2024: \u20ac1.0 million) or a maximum decrease of
\u20ac0.9 million (2024: \u20ac1.0 million) for the Company
22.\u00a0 \u00a0 Other investments
The investments are summarised by measurement category in the table below.
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
At 31 December 2025, the Group had \u20ac30.3 million financial commitments in respect
of uncalled capital (2024:\u00a0 \u20ac31.9 million).
Equity securities and collective investment schemes are considered to be substantially
non-current assets in nature.
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
Derivative financial liabilities amounting to \u20ac0.6 million (2024 \u20ac6.8 million), included
in the table above, are classified within liabilities in the statement of financial position.
The maturity of fixed income debt securities is summarised below:
Group
2025
2024
\u20ac'000
\u20ac'000
Within one year
42,032
19,239
Between 1 and 2 years
48,869
66,756
Between 2 and 5 years
310,217
246,539
Over 5 years
540,138
622,678
Closing net book amount
941,256
955,212
(b)Fair value through OCI
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Listed debt securities
22,069
16,273
The movement for the year is summarised as follows:
Listed debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December
Opening net book amount
16,273
13,804
Additions
14,058
6,120
Disposals
(8,324)
(3,909)
Net fair value gains
62
258
Closing net book amount
22,069
16,273
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within one year
3,394
6,347
Between 1 and 2 years
596
4,272
Between 2 and 5 years
16,415
4,312
Over 5 years
1,664
1,342
22,069
16,273
22.\u00a0 \u00a0 Other investments - continued
The movement for the year are summarised as follows:
Rating of fixed income debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
AAA
3,612
4,047
AA
5,251
2,517
A
9,441
5,032
BBB
3,765
4,677
BB or lower
\u2014
\u2014
22,069
16,273
\u00a0 (c)Amortised cost
Analysed by type of investment as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Deposits with banks or credit institutions
59,983
39,657
Debt securities
49,037
48,960
109,020
88,617
Analysed by type of investment as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
The movements for the year are summarised as follows:
Opening net book amount
88,617
150,781
Interest income earned
3,940
4,892
Interest income collected
(4,317)
(5,854)
Additions
60,000
54,311
Redemptions and disposals
(39,276)
(115,521)
ECL
56
8
Closing net book amount
109,020
88,617
Maturity of investments at amortised cost:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within 3 months
\u2014
\u2014
Within 1 year\u00a0 but exceeding 3 months
\u2014
\u2014
Between 1 and 5 years
100,852
80,442
Over 5 years
8,168
8,175
109,020
88,617
The above investments earn interest as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At fixed rates
109,020
88,617
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-434": { "value": "
20.Investment in subsidiary undertakings
The subsidiary undertakings at 31 December are shown below:
Subsidiary undertakings
Registered office
Class of shares held
Percentage of shares held
2025
2024
Euro Globe Holdings
\u00a0 Limited (Struck off
\u00a0 effective 06.03.2025)
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
\u2014%
100%
Euromed Risk Solutions
\u00a0 Limited (Company in
\u00a0 liquidation)
4th Floor
Development
House
St. Anne Str
Floriana FRN9010
Malta
Ordinary shares
100%
100%
Bee Insurance Management
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
100%
100%
MAPFRE MSV Life plc
The Mall
Triq il-Mall
Floriana FRN1470
Malta
Ordinary shares
50%
50%
Church Wharf Properties
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
75%
75%
21.\u00a0 \u00a0 Investment in associated undertakings
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
14,480
294
Accumulated share of associated undertaking's equity
109
109
Accumulated fair value movements
9,334
\u2014
Net book amount
23,923
403
2024
Opening net book amount
23,923
403
Disposals
(17,900)
\u2014
Share of associated undertaking's movement in equity
(4)
(4)
Fair value movement
(793)
\u2014
Closing net book amount
5,226
399
At 31 December 2024
Cost
4,480
294
Accumulated share of associated undertaking's equity
105
105
Accumulated fair value movements
641
\u2014
Net book amount
5,226
399
Year ended 31 December 2025
Opening net book amount
5,226
399
Share of associated undertaking's movement in equity
(11)
\u2014
Disposal
(4,806)
\u2014
Fair value movement
(21)
(11)
Closing net book amount
388
388
At 31 December 2025
Cost
294
294
Accumulated share of associated undertaking's equity
94
105
Accumulated fair value movements
\u2014
(11)
Net book amount
388
388
The Group\u2019s aggregated assets and liabilities and the share of the results of its
associated undertaking, which is unlisted is as follows:
2025
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
958
66
2,936
294
49%
2024
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
1,507
520
3,208
309
49%
In addition to the associated undertakings above, MAPFRE MSV Life p.l.c. also held
the following investments in associated undertakings:
Associated
undertakings
Registered
office
Class of
shares held
Percentage of shares held
MSV
Group
2025
2024
2025
2024
Plaza Centres
\u00a0 p.l.c.
The Plaza
Commercial
Centre
Bisazza Street
Sliema
Ordinary
\u00a0 shares
0.00%
31.42%
0.00%
31.42%
", "dimensions": { "concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-433": { "value": "
20.Investment in subsidiary undertakings
The subsidiary undertakings at 31 December are shown below:
Subsidiary undertakings
Registered office
Class of shares held
Percentage of shares held
2025
2024
Euro Globe Holdings
\u00a0 Limited (Struck off
\u00a0 effective 06.03.2025)
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
\u2014%
100%
Euromed Risk Solutions
\u00a0 Limited (Company in
\u00a0 liquidation)
4th Floor
Development
House
St. Anne Str
Floriana FRN9010
Malta
Ordinary shares
100%
100%
Bee Insurance Management
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
100%
100%
MAPFRE MSV Life plc
The Mall
Triq il-Mall
Floriana FRN1470
Malta
Ordinary shares
50%
50%
Church Wharf Properties
\u00a0 Limited
Middle Sea House
Floriana FRN1442
Malta
Ordinary shares
75%
75%
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-432": { "value": "
20.Investment in subsidiary undertakings
The Group\u2019s aggregated assets and liabilities and the results of its subsidiary
undertakings that have non-controlling interest, before elimination entries, are as
follows:
2025
% Held by
non-
controlling
interests
Assets
Liabilities
Revenues
Profit
before tax
Net cash
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
MAPFRE MSV Life p.l.c.
50%
2,383,956
2,201,467
209,892
15,669
(32,569)
Church Wharf\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
Properties Limited
25%
2,300
406
\u2014
(38)
\u2014
2024
% Held by
non-
controlling
interests
Assets
Liabilities
Revenues
Profit
before tax
Net cash
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
MAPFRE MSV Life p.l.c.
50%
2,357,236
2,182,904
205,847
14,983
31,053
Church Wharf\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
Properties Limited
25%
2,301
368
\u2014
(43)
\u2014
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-435": { "value": "
21.\u00a0 \u00a0 Investment in associated undertakings
Group
Company
\u20ac\u2019000
\u20ac\u2019000
At 1 January 2024
Cost
14,480
294
Accumulated share of associated undertaking's equity
109
109
Accumulated fair value movements
9,334
\u2014
Net book amount
23,923
403
2024
Opening net book amount
23,923
403
Disposals
(17,900)
\u2014
Share of associated undertaking's movement in equity
(4)
(4)
Fair value movement
(793)
\u2014
Closing net book amount
5,226
399
At 31 December 2024
Cost
4,480
294
Accumulated share of associated undertaking's equity
105
105
Accumulated fair value movements
641
\u2014
Net book amount
5,226
399
Year ended 31 December 2025
Opening net book amount
5,226
399
Share of associated undertaking's movement in equity
(11)
\u2014
Disposal
(4,806)
\u2014
Fair value movement
(21)
(11)
Closing net book amount
388
388
At 31 December 2025
Cost
294
294
Accumulated share of associated undertaking's equity
94
105
Accumulated fair value movements
\u2014
(11)
Net book amount
388
388
The Group\u2019s aggregated assets and liabilities and the share of the results of its
associated undertaking, which is unlisted is as follows:
2025
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
958
66
2,936
294
49%
2024
Registered office
Assets
Liabilities
Revenues
Profit
% of
interest
held
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Middlesea
\u00a0 Assist
\u00a0 Limited
4th Floor,
Development House,
St. Anne Street,
Floriana FRN 9010
Malta
1,507
520
3,208
309
49%
In addition to the associated undertakings above, MAPFRE MSV Life p.l.c. also held
the following investments in associated undertakings:
Associated
undertakings
Registered
office
Class of
shares held
Percentage of shares held
MSV
Group
2025
2024
2025
2024
Plaza Centres
\u00a0 p.l.c.
The Plaza
Commercial
Centre
Bisazza Street
Sliema
Ordinary
\u00a0 shares
0.00%
31.42%
0.00%
31.42%
Plaza Centres p.l.c. is listed on the Malta Stock Exchange and its share price as at 31
December 2025 was \u20ac0.90 (31 December 2024: \u20ac0.60 ).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-437": { "value": "
22.\u00a0 \u00a0 Other investments
The investments are summarised by measurement category in the table below.
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Fair value through profit or loss
2,099,618
2,054,670
3,119
2,813
Fair value through OCI
22,069
16,273
22,069
16,273
Amortised Cost
109,020
88,617
\u2014
\u2014
2,230,707
2,159,560
25,188
19,086
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
Analysed by type of investment as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Equity securities, and units in unit trusts
888,906
878,325
3,119
2,813
Debt securities
941,256
955,212
\u2014
\u2014
Assets held to cover linked liabilities
\u00a0 - collective investment schemes
267,247
221,133
\u2014
\u2014
Forward foreign exchange contracts
2,209
\u2014
\u2014
\u2014
Total investments at fair value
\u00a0 through profit or loss
2,099,618
2,054,670
3,119
2,813
The maturity of fixed income debt securities is summarised below:
Group
2025
2024
\u20ac'000
\u20ac'000
Within one year
42,032
19,239
Between 1 and 2 years
48,869
66,756
Between 2 and 5 years
310,217
246,539
Over 5 years
540,138
622,678
Closing net book amount
941,256
955,212
(b)Fair value through OCI
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Listed debt securities
22,069
16,273
The movement for the year is summarised as follows:
Listed debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December
Opening net book amount
16,273
13,804
Additions
14,058
6,120
Disposals
(8,324)
(3,909)
Net fair value gains
62
258
Closing net book amount
22,069
16,273
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within one year
3,394
6,347
Between 1 and 2 years
596
4,272
Between 2 and 5 years
16,415
4,312
Over 5 years
1,664
1,342
22,069
16,273
22.\u00a0 \u00a0 Other investments - continued
The movement for the year are summarised as follows:
Rating of fixed income debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
AAA
3,612
4,047
AA
5,251
2,517
A
9,441
5,032
BBB
3,765
4,677
BB or lower
\u2014
\u2014
22,069
16,273
\u00a0 (c)Amortised cost
Analysed by type of investment as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Deposits with banks or credit institutions
59,983
39,657
Debt securities
49,037
48,960
109,020
88,617
Analysed by type of investment as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
The movements for the year are summarised as follows:
Opening net book amount
88,617
150,781
Interest income earned
3,940
4,892
Interest income collected
(4,317)
(5,854)
Additions
60,000
54,311
Redemptions and disposals
(39,276)
(115,521)
ECL
56
8
Closing net book amount
109,020
88,617
Maturity of investments at amortised cost:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Within 3 months
\u2014
\u2014
Within 1 year\u00a0 but exceeding 3 months
\u2014
\u2014
Between 1 and 5 years
100,852
80,442
Over 5 years
8,168
8,175
109,020
88,617
The above investments earn interest as follows:
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
At fixed rates
109,020
88,617
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-436": { "value": "
22.\u00a0 \u00a0 Other investments
\u00a0 (a)\u00a0 \u00a0 Investments at fair value through profit or loss
The movements for the year are summarised as follows:
Group
Company
Fair value
through
profit & loss
Fair value
through
profit & loss
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December 2024
Opening net book amount
1,971,728
2,486
Additions
1,384,408
61
Disposals
(1,355,184)
\u2014
Net fair value gains (excluding net realised gains)
45,299
266
Movement in accrued interest receivable
1,603
\u2014
Closing net book amount
2,047,854
2,813
Year ended 31 December 2025
Opening net book amount
2,047,854
2,813
Additions
861,616
56
Disposals
(841,850)
\u2014
Net fair value gains (excluding net realised
\u00a0 gains)
31,389
250
Movement in accrued interest receivable
(29)
\u2014
Closing net book amount
2,098,980
3,119
(b)Fair value through OCI
The movement for the year is summarised as follows:
Listed debt securities
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Year ended 31 December
Opening net book amount
16,273
13,804
Additions
14,058
6,120
Disposals
(8,324)
(3,909)
Net fair value gains
62
258
Closing net book amount
22,069
16,273
29.\u00a0 Other reserves
Group
Freehold
land and
buildings
FVOCI
investments
Total
\u20ac'000
\u20ac'000
\u20ac'000
Balance at 1 January 2024
856
(219)
637
Fair value movements - gross
\u2014
170
170
Fair value movements - tax
\u2014
(7)
(7)
Balance at 31 December 2024
856
(56)
800
Balance at 1 January 2025
856
(56)
800
Fair value movements - gross
\u2014
10
10
Fair value movements - tax
\u2014
(4)
(4)
FVOCI investment reclassified to profit or loss - gross
\u2014
59
59
FVOCI investment reclassified to profit or loss - tax
\u2014
(8)
(8)
Revaluation gain on Property land and buildings - gross
457
\u2014
457
Revaluation gain on Property land and buildings - tax
(13)
\u2014
(13)
Balance at 31 December 2025
1,300
1
1,301
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-438": { "value": "
25.Investment contract liabilities
The table shows a reconciliation of the opening to closing balance for the investment
contract liabilities.
Group
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Opening balance \u2013 1 January
179,685
123,253
Contributions received
43,350
47,684
Benefits paid
(5,684)
(4,308)
Investment return from underlying assets
7,052
13,131
Transfer from the other items in the Statement of Financial Position
\u00a0 (Note 24)
6,023
\u2014
Asset management fees charged
(678)
(75)
Closing balance \u2013 31 December
229,748
179,685
In the above reconciliation, the investment return from the underlying assets represents
changes in the fair value of the investment contract liabilities due to changes in market
conditions. Asset management fees charged in the profit or loss also includes trailer
fees.
The above liabilities are substantially non-current in nature.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-440": { "value": "
26.\u00a0 Trade and other receivables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Receivables from intermediaries
21,548
18,313
21,548
18,313
Other prepayments and receivables:
- prepayments and other receivables
5,829
5,269
1,495
905
- accrued interest and rent
907
1,161
468
342
- receivables from group undertakings
\u2014
\u2014
715
624
- receivables from associated
\u00a0 \u00a0 undertaking
15
226
15
226
- other debtors
5
205
\u2014
\u2014
Provision for impairment of receivables
(869)
(717)
(869)
(717)
27,435
24,457
23,372
19,693
Current portion
27,435
24,457
23,372
19,693
Balances due from subsidiary undertakings, associated undertaking and other
receivables are unsecured and non-interest bearing.
Movements in the provision for impairment of receivables are as follows:
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Balance as at 1 January
717
535
Increase in provision for impairment
152
182
Balance as at 31 December
869
717
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-439": { "value": "
26.\u00a0 Trade and other receivables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Receivables from intermediaries
21,548
18,313
21,548
18,313
Other prepayments and receivables:
- prepayments and other receivables
5,829
5,269
1,495
905
- accrued interest and rent
907
1,161
468
342
- receivables from group undertakings
\u2014
\u2014
715
624
- receivables from associated
\u00a0 \u00a0 undertaking
15
226
15
226
- other debtors
5
205
\u2014
\u2014
Provision for impairment of receivables
(869)
(717)
(869)
(717)
27,435
24,457
23,372
19,693
Current portion
27,435
24,457
23,372
19,693
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-443": { "value": "
27.Cash and cash equivalents
For the purpose of the statement of cash flows, the year-end cash and cash equivalents
comprise the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Cash at bank and in hand
46,244
79,399
10,559
11,408
T-Bills
4,000
2,500
4,000
2,500
50,244
81,899
14,559
13,908
As at 31 December 2025 an amount of \u20ac1.7 million (2024: \u20ac6.2 million) within
deposits with banks or credit institutions, was held in a margin account as collateral
against exchange traded futures.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-442": { "value": "
27.Cash and cash equivalents
For the purpose of the statement of cash flows, the year-end cash and cash equivalents
comprise the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Cash at bank and in hand
46,244
79,399
10,559
11,408
T-Bills
4,000
2,500
4,000
2,500
50,244
81,899
14,559
13,908
As at 31 December 2025 an amount of \u20ac1.7 million (2024: \u20ac6.2 million) within
deposits with banks or credit institutions, was held in a margin account as collateral
against exchange traded futures.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-441": { "value": "
27.Cash and cash equivalents
For the purpose of the statement of cash flows, the year-end cash and cash equivalents
comprise the following:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Cash at bank and in hand
46,244
79,399
10,559
11,408
T-Bills
4,000
2,500
4,000
2,500
50,244
81,899
14,559
13,908
As at 31 December 2025 an amount of \u20ac1.7 million (2024: \u20ac6.2 million) within
deposits with banks or credit institutions, was held in a margin account as collateral
against exchange traded futures.
31.Cash generated from operations
Reconciliation of profit before tax to cash (used in)/ generated from operations:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Profit before tax
29,618
24,804
16,872
10,531
Adjustments for:
Depreciation (Note 18)
1,029
1,125
636
626
Increase in provision for impairment of
\u00a0 receivables (Note 26)
152
182
152
182
Settlement of provision for liabilities and
\u00a0 charges
(70)
(69)
(70)
(69)
Amortisation (Note 16)
5,490
5,080
2,048
2,226
Depreciation of right-of-use assets
413
411
395
370
Lease payments against lease liabilities
(488)
(463)
(463)
(434)
Investment return adjustments
(84,945)
(106,057)
(4,063)
(1,826)
Loss on sale of property, plant and
\u00a0 equipment
4
92
\u2014
93
Property revaluation
\u2014
(168)
\u2014
\u2014
Movements in:
\u00a0 Trade and other receivables
(2,618)
1,151
(3,710)
1,385
\u00a0 Insurance and reinsurance contracts
(21,363)
(31,407)
3,463
2,046
\u00a0 Investment contract liabilities
50,063
56,432
\u2014
\u2014
\u00a0 Other payables
1,994
1,098
(642)
(181)
Cash (used in)/generated from operations
(20,721)
(47,789)
14,618
14,949
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-445": { "value": "
28.Share capital
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Authorised
150 million ordinary shares of \u20ac0.21 each
31,500
31,500
Issued and fully paid
92 million ordinary shares of \u20ac0.21 each
19,320
19,320
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-444": { "value": "
28.Share capital
Group and Company
2025
2024
\u20ac\u2019000
\u20ac\u2019000
Authorised
150 million ordinary shares of \u20ac0.21 each
31,500
31,500
Issued and fully paid
92 million ordinary shares of \u20ac0.21 each
19,320
19,320
29.\u00a0 Other reserves
Group
Freehold
land and
buildings
FVOCI
investments
Total
\u20ac'000
\u20ac'000
\u20ac'000
Balance at 1 January 2024
856
(219)
637
Fair value movements - gross
\u2014
170
170
Fair value movements - tax
\u2014
(7)
(7)
Balance at 31 December 2024
856
(56)
800
Balance at 1 January 2025
856
(56)
800
Fair value movements - gross
\u2014
10
10
Fair value movements - tax
\u2014
(4)
(4)
FVOCI investment reclassified to profit or loss - gross
\u2014
59
59
FVOCI investment reclassified to profit or loss - tax
\u2014
(8)
(8)
Revaluation gain on Property land and buildings - gross
457
\u2014
457
Revaluation gain on Property land and buildings - tax
(13)
\u2014
(13)
Balance at 31 December 2025
1,300
1
1,301
The above reserves are not distributable reserves .", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-446": { "value": "
29.\u00a0 Other reserves
Group
Freehold
land and
buildings
FVOCI
investments
Total
\u20ac'000
\u20ac'000
\u20ac'000
Balance at 1 January 2024
856
(219)
637
Fair value movements - gross
\u2014
170
170
Fair value movements - tax
\u2014
(7)
(7)
Balance at 31 December 2024
856
(56)
800
Balance at 1 January 2025
856
(56)
800
Fair value movements - gross
\u2014
10
10
Fair value movements - tax
\u2014
(4)
(4)
FVOCI investment reclassified to profit or loss - gross
\u2014
59
59
FVOCI investment reclassified to profit or loss - tax
\u2014
(8)
(8)
Revaluation gain on Property land and buildings - gross
457
\u2014
457
Revaluation gain on Property land and buildings - tax
(13)
\u2014
(13)
Balance at 31 December 2025
1,300
1
1,301
The above reserves are not distributable reserves .", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-453": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-452": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-451": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-450": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
", "dimensions": { "concept": "ifrs-full:DisclosureOfSubordinatedLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-449": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-448": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
Deferred income for the Group includes front-end fees received from holders of
investment contracts without DPF as a prepayment for asset management and related
services and rental income received in advance. These amounts are non-refundable and
are released to income as the services are rendered.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-447": { "value": "
30.Other payables
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Creditors arising out of insurance operations
173
211
173
211
Amount owed to associated undertakings
203
236
203
236
Amount owed to group undertakings
\u2014
\u2014
\u2014
1,177
Social security and other tax payables
5,135
4,364
1,937
1,761
Accruals and other payables
12,786
12,020
6,031
5,609
Deferred income
1,601
1,352
157
140
Other creditors
2,371
1,716
\u2014
\u2014
22,269
19,899
8,501
9,134
Current
22,014
19,644
8,501
9,134
Non-current
255
255
\u2014
\u2014
22,269
19,899
8,501
9,134
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-455": { "value": "
32.Commitments
Capital commitments
Commitments for capital expenditure not provided for in these financial statements are
as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Authorised and not contracted for
-\u00a0 property, plant and equipment
758
1,222
279
638
-\u00a0 intangible assets
500
2,657
280
714
-\u00a0 investment property
1,782
320
226
170
3,040
4,199
785
1,522
Authorised and contracted for
-\u00a0 property, plant and equipment
626
359
507
269
-\u00a0 intangible assets
3,497
2,864
2,096
2,053
-\u00a0 investment property
1,778
2,256
\u2014
\u2014
-\u00a0 other investments
30,252
31,935
\u2014
\u2014
36,153
37,414
2,603
2,322
Operating lease commitments \u2013 where a Group company is a lessor
The Group and the Company lease out certain premises under operating leases. The
future minimum lease payments receivable under non-cancellable operating leases are
disclosed in Note 17.
Rental income from operating leases recognised in profit or loss during the year is
disclosed in Note 8.
33.Contingencies
The Group and Company have given guarantees to third parties amounting to \u20ac0.1
million (2024: \u20ac0.1) not arising under contracts of insurance.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-454": { "value": "
32.Commitments
Capital commitments
Commitments for capital expenditure not provided for in these financial statements are
as follows:
Group
Company
2025
2024
2025
2024
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
\u20ac\u2019000
Authorised and not contracted for
-\u00a0 property, plant and equipment
758
1,222
279
638
-\u00a0 intangible assets
500
2,657
280
714
-\u00a0 investment property
1,782
320
226
170
3,040
4,199
785
1,522
Authorised and contracted for
-\u00a0 property, plant and equipment
626
359
507
269
-\u00a0 intangible assets
3,497
2,864
2,096
2,053
-\u00a0 investment property
1,778
2,256
\u2014
\u2014
-\u00a0 other investments
30,252
31,935
\u2014
\u2014
36,153
37,414
2,603
2,322
Operating lease commitments \u2013 where a Group company is a lessor
The Group and the Company lease out certain premises under operating leases. The
future minimum lease payments receivable under non-cancellable operating leases are
disclosed in Note 17.
Rental income from operating leases recognised in profit or loss during the year is
disclosed in Note 8.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-457": { "value": "
33.Contingencies
The Group and Company have given guarantees to third parties amounting to \u20ac0.1
million (2024: \u20ac0.1) not arising under contracts of insurance.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-456": { "value": "
33.Contingencies
The Group and Company have given guarantees to third parties amounting to \u20ac0.1
million (2024: \u20ac0.1) not arising under contracts of insurance.", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-458": { "value": "MAPFRE Middlesea p.l.c", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-459": { "value": "public limited company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-460": { "value": "Malta", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-461": { "value": "Malta", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-462": { "value": "MAPFRE Internacional S.A.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f-463": { "value": "Fundaci\u00f3n MAPFRE", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:213800KY94NQYH4IZU83", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } } } }