Some topics covered in detail include:
• Adjusted operating profit (AOP) remains the primary IFRS-related performance metric and will be used in remuneration by all leading listed life insurers from 2025.
• There are some revisions to 2025 remuneration metrics, reflecting the further embedding of IFRS 17 or strategic changes into the business. All FTSE-listed life insurers within our sample now include at least one IFRS-related performance measure based on adjusted operating profit.
• The approaches adopted and judgements made during the transition to IFRS 17 continue to reduce comparability across UK life insurers.
• Significant IFRS losses, or non-operating losses, were recognised by some insurers at FY24.
• The presentation of IFRS 17 disclosures for each insurer has remained consistent since 2023. We continue to observe varying levels of granularity, such as product and reinsurance splits, in the analysis of changes in liabilities.
• For many insurers, IFRS 17 processes and controls remain more manual and less formalised compared to their long-term targets, and a focus remains on measured and cost-effective finance transformation initiatives.
For many insurers, the initial IFRS 17 reporting challenges have been addressed, although some tactical workarounds remain.
Finance teams are now focusing on becoming strategic business partners, aiming to drive value, enable commercial outcomes, and deliver real-time insights. This transformation is being led by insurers’ ambitions rather than regulatory deadlines.
Expectations for a post-implementation review, and how IFRS 17 could be enhanced.
The IASB has yet to confirm the date of their Post-Implementation Review (PIR) of IFRS 17. However, based on past experience, it is unlikely to occur before 2027 and, given the fundamental changes IFRS 17 brought to insurance accounting, it could conceivably be later.
There are also two other significant post implementation reviews in Europe:
1. In the UK, the UK Endorsement Board (UKEB) has stated that it will conduct a review of the impact of adopting IFRS 17 and publish its conclusions by 1 January 2028.
2. The European Commission is scheduled to review the optional EU exemption from the IFRS 17 annual cohort requirement by 31 December 2027, taking into account the IASB PIR.
Anthony Coughlan, PwC IFRS 17 UK reporting lead, commented: “The second year of IFRS 17 reporting was notably smoother for most insurers, with the focus rightly on performance rather than accounting. Looking ahead, finance teams are focusing on how they can effectively support business performance by leveraging data and technology and harnessing the experience and knowledge of their people. Any post-implementation review of IFRS 17 is still some way off and experience of other reviews suggests that significant changes to IFRS 17 are unlikely.”
PwC IFRS17 FY25 for UK Life Insurers Full report
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