Registration number: 00024869
Ecclesiastical Insurance Office public limited company
2025 Annual Report and Accounts
Ecclesiastical Insurance Office public limited company
Table of Contents
Page Contents
1 Directors and Company Information
2 Strategic Report
25 Governance
62 Independent Auditors’ Report
69 Consolidated Statement of Profit or Loss
60 Consolidated and Parent Statements of Comprehensive Income
71 Consolidated and Parent Statements of Financial Position
72 Consolidated and Parent Statements of Changes in Equity
73 Consolidated and Parent Statements of Cash Flows
74 Notes to the Financial Statements
159 Annual General Meeting notice
Ecclesiastical Insurance Office public limited company
Directors and Company Information
Directors and officers of Ecclesiastical Insurance Office public limited company during the year and up to the date of signing the
financial statements were:
Directors *F.X. Boisseau MSc Chair (appointed Chair 1 January 2026)
M. C. J. Hews BSc (Hons), FIA Group Chief Executive
M. E. H. Bennett BSc (Hons), FIA Group Chief Financial Officer
S. J. Whyte MC Inst. M, ACII Deputy Group Chief Executive
*J. Coyle B Acc, CA, FCIBS
*Sir S. M. J. Lamport GCVO, DL
*The Venerable K. B. Best BA
*M.A. Murphy (appointed 3 December 2025)
*J.E. Dale (appointed 3 February 2026)
*A.C. Winther BA (resigned 26 June 2025)
*R. D. C. Henderson FCA (resigned 31 December 2025)
*M. E. Darby-Walker BA (resigned 31 December 2025)
Company Secretary R. J. Hall FCG
Independent Auditors PricewaterhouseCoopers LLP
2 Glass Wharf
Temple Quay
Bristol
BS2 0FR
United Kingdom
Registered and Head Office Benefact House
Company Registration Number 00024869
Registrar Computershare Investor Services plc
The Pavilions
Bristol
BS13 8AE
*Non-Executive Director
1
Ecclesiastical Insurance Office public limited company
Strategic Report
T
he directors present their strategic report for the year ended 31 December 2025 for the Ecclesiastical Insurance Office public
limited company (‘Ecclesiastical Insurance Office plc’ or ‘EIO’ or ‘the Company’), together with its subsidiaries the Ecclesiastical
Group, also the Group or EIO Group. EIO’s immediate parent company is Benefact Group plc.
Group Chief Executive’s review
O
verview
2025 was another outstanding year for the Ecclesiastical Group. Our teams delivered a strong performance and demonstrated what
a values-driven business can achieve when commercial focus and purpose-driven impact work hand in hand.
We have now surpassed £275m given to good causes since 2014 - another remarkable milestone for the EIO Group and one that
reflects the collective commitment of colleagues, customers, brokers and partners who choose to work with an organisation that uses
profit as a force for good.
What defines us is not only the results we deliver, but the lives we help change along the way. That is the heart of Benefact Group,
and it is the foundation on which we continue to build.
1
Our General Insurance business delivered an underwriting profit
of £62.2m, up 30.5% on the previous year. While the year benefited
from unusually benign weather and no major losses, our long-term outlook recognises the inherent volatility as the insurer of many
iconic and irreplaceable buildings. Over recent years we have experienced several devastating fires, flood events and storms, and
these remain a powerful reminder of the responsibility and potential for large losses given the significant nature of many of the
buildings we insure.
Gross Written Premiums rose by 2.1%, driven by growth in the UK and Ireland, supported by continued strong retention and acquisitions
of customers across both our traditional segments and newer segments such as Leisure and an expanded Care appetite. With changed
market conditions we continue to be selective and disciplined in our growth.
At Benefact Group, our purpose continues to be the foundation of our success. As a charity owned, commercially disciplined business,
we grow so we can give. Over the past year that purpose has guided our decisions, strengthened our resilience and deepened the
impact we create for the communities we serve.
Our Chair
This year offered an important moment to say a heartfelt thank you to David Henderson, whose leadership as Chair has played a
central role in our success. We are delighted that David will continue to champion our purpose as Chair of Benefact Trust.
We are equally pleased to welcome François-Xavier Boisseau as the new Chair of Benefact Group and EIO. With deep experience, a
strong understanding of our organisation and unwavering commitment to our purpose, François-Xavier is well placed to guide the EIO
Group into its next chapter.
D
elivering for our customers
Across our Group we continued to deliver high-quality outcomes for our customers and to be recognised for the expertise, trust and
care our teams demonstrate every day.
In the UK, our General Insurance claims team earned the Outstanding Service Quality Marque from Gracechurch for the fifth year
running - a powerful endorsement of the empathy, expertise and consistency our customers experience when they need us most.
Ecclesiastical UK retained its position at the top of the Fairer Finance rankings for the 22nd time and secured Which? Best Buy
recognition for both buildings and contents insurance for the third consecutive year.
Internationally, Ecclesiastical Canada was honoured for Excellence in Philanthropy & Community Service for the fifth year running by
Imagine Canada.
These achievements matter, not because they are independent trophies or awards, but because they reflect who we are: a Group built
on empathy, integrity and genuine care, a culture where people put customers first, every single day.
Building a movement for good
Strong financial performance enabled us to give over £28m to good causes this year, including £24m to our charitable owner, Benefact
Trust Limited. In doing so, we have now surpassed giving over £275m to good causes. This is an extraordinary achievement and the
impact it has is real.
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Ecclesiastical Insurance Office public limited company
Strategic Report
Thi
s year alone, our giving helped regenerate communities, protect heritage buildings, support families facing financial pressure,
strengthen mental health services, assist those experiencing homelessness, and fund youth programmes that give hope and
opportunity. Through our donations to Benefact Trust’s, the Trust has made a number of humanitarian grants, supporting refugees
fleeing conflict, contributing to medical relief efforts in Gaza, aiding communities recovering from climate related disasters and so much
more.
Behind every grant there is a story - -- a life made safer, brighter, and more hopeful. Lives touched because our customers, clients,
brokers, partners, reinsurers and colleagues choose to do business with us.
Our Planet, Our Part
We recognise our role in the natural world and our duty to protect it. Our response to climate change is action-led, rooted in our values
and has gone well beyond talk. We have embedded environmental, social and governance considerations across our investment
decisions and supported customers and communities to become more climate resilient.
Whilst there is always more to do, after high-quality charitable offsets, we have achieved net-negative direct emissions for two years
in a row. We do not underwrite or invest in businesses involved in fossil fuel extraction, heavy industry or commercial aviation, and we
do not invest in organisations that conflict with our values.
With focus, innovation and determination, we will strive to keep driving down our emissions and supporting our customers on the
journey to net zero.
Des
tination employer
As a charity owned organisation with a purpose unlike any other in our industry, we attract people who want their work to create a
positive impact. Our colleagues come together around a shared ambition: to grow a commercially successful, values-driven business
so that we can give even more to good causes.
That purpose shapes a culture where people feel respected, supported and inspired to do their best work. We provide life changing
careers that change lives, and I’m proud that this commitment is reflected in our employee engagement results, achieving Best
Companies ‘‘Outstanding’’ and ‘‘World Class’’ accreditations, alongside further national, international and diversity awards.
Our parent company, Benefact Group has recently been named one of the Top 4 ‘‘Best Big Companies to Work For’’ in the UK, a
testament to the strength of our culture and leadership. These results reflect who we are, and the extraordinary people who make this
organisation such a special place to work.
Looking ahead
We enter 2026 with momentum, clarity and confidence. Inspired by the impact of our giving, we remain focused on sustainable growth,
operational excellence and enhancing the products and services that set us apart. 2026 will be pivotal as we launch a new strategic
chapter and set our stretch goals for the future. Our ambition is bold: to build a stronger Group so we can create even greater impact
for the good causes and communities we exist to support.
Join our movement
Surpassing £275m in charitable giving is a proud milestone for us, yet it marks just the starting point for how far we plan to go. We
thank all our existing supporters and invite others to join us - -- as a customer, colleague, partner or investor. Every time an individual or
business chooses our Group, they help us grow our impact and improve the world in which we live.
Together, we will continue to build a business where profit is used as a force for good and where long-term value is measured by the
difference we make.
Mark Hews
Group Chief Executive
19 March 2026
1
The EIO Group uses Alternative Performance Measures (APMs) to help explain performance. More information on APMs is included
in note 36
.
3
Ecclesiastical Insurance Office public limited company
Strategic Report
R
isk Management Report
Introduction
Strong governance is fundamental to what we do and drives the ongoing embedding of our Risk Management Framework. This
provides the tools, guidance, policies, standards and defined responsibilities that enable us to achieve our business strategy and
objectives, whilst ensuring that individual and aggregated risks to our objectives are identified and managed on a consistent basis.
The Risk Management Framework is integrated into the culture of EIO and is owned by the Board. EIO has its own Risk Management
Framework that operates within the Framework set by the Benefact Group. Responsibility for facilitation of the implementation and
oversight is delegated via the Group Chief Executive to the Group Risk Function, led by the Group Chief Risk and Compliance Officer.
The Risk Management Framework and tools used to identify and manage risks have been reviewed through 2025.
The Risk Management process demands accountability and is embedded in performance measurement and reward, thus promoting
clear ownership for risk and operational efficiency at all levels. On an annual basis, the EIO Risk Committee (EIO RC) on behalf of the
Board, carries out a formal review of the Group’s key strategic risks with input from the Group Management Board (GMB). The EIO RC
allocates responsibility for assessment and monitoring each of the risks to individual members of the GMB or other Senior Managers.
Formal periodic monitoring of the key strategic risks is undertaken which includes progress of Risk Management actions.
The Company’s Risk Management Framework is part of a wider Internal Control Framework. Systems of internal control are designed
to manage rather than eliminate the risk of failure to achieve business objectives, and provide reasonable, but not absolute assurance
as to the prevention and detection of financial misstatements, errors, fraud or violation of law or regulations.
Key to the successful operation of the internal control framework is the deployment of a strong Three Lines of Defence Model
whereby:
• 1st Line (Business Management) is responsible for strategy execution, performance and identification and management of
risks and application of appropriate controls.
• 2nd Line (Reporting, Oversight and Guidance) is responsible for assisting the Board in formulating risk appetite, establishing
minimum standards, developing appropriate risk management tools, providing oversight and challenge of risk profiles and
risk management activities within each of the business units and providing risk reporting to Executive Management and the
Board.
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Ecclesiastical Insurance Office public limited company
Strategic Report
• 3
rd Line (Assurance) provides independent and objective assurance of the effectiveness of the Group’s systems of internal
control. This activity principally comprises the Internal Audit function, which is subject to oversight and challenge by the
Benefact Group Audit & Risk Committee.
The Company’s Risk Appetite clearly defines the levels of each type of risk that the firm is willing or able to take in pursuit of its strategic
objectives. The risk appetites set by the Board pay due regard to the Benefact Group’s Risk Appetite Statements which were refined
and refreshed during 2025 to ensure these were appropriate for the Group as a whole. The Company’s statements were approved by
the Board on a staged basis throughout the year and are subject to ongoing assessment to ensure their continued appropriateness.
The Own Risk and Solvency Assessment (ORSA) process is carried out at least once a year and is a key part of the business
management and governance structure. This integrates the risk management, business planning and capital management activities
and ensures that risk, capital and solvency considerations are built into the development and monitoring of the Group’s business
strategy and plans and all key decision-making.
Risk environment
The Risk environment is monitored on an ongoing basis, and key areas of concern are escalated to the EIO Risk Committee.
Whilst there are a range of relatively consistent drivers of the risk environment for a Group of businesses operating within the
regulated financial services sector, there are four factors that are considered as being most notable in terms of their emergence and
are material to the assessment of the risk profile of the Group when looking forward into the plan-period:
Market Softening: Softening of the insurance markets throughout 2025, which is expected to deepen during 2026. Whilst we have
also seen softening in reinsurance rates, overall, it is expected that the market conditions will create downside risk as competition
increases and rates reduce.
Geopolitical Events: Volatility arising from geopolitical events and conditions is another theme from 2025 that is expected to continue
into 2026 and beyond. Significant tensions across the Globe, with the potential for flashpoints to emerge at any point, can affect the
economic and market conditions within which EIO operates as well as heightening potential operational vulnerabilities that exist, for
example, the impacts of disruption to Global supply chains.
New Technologies: Rapid development and adoption of new technologies such as AI will call for a re-evaluation of the risk profile in
terms of facilitating the activities of malevolent actors, for example in the cyber and financial crime space, in addition to causing shifts
in the competitive landscape, for example with firms adopting lower cost operations coupled with more agile business capabilities.
Climate Change: Climate Change continues to be a driver of risk across different categories. There are risks that will emerge directly
from the physical effects of climate change on our business such as changes in weather patterns and the transition to a lower-carbon
economy with firms looking to achieve Net-Zero targets. There are also indirect implications of Climate Change. Changes in the political
landscape can have material impacts on the development of risks associated with climate change, with the effects of “anti-green”
sentiment arising from different regimes around the Globe impacting on the growth of EIO’s investment portfolio given the strong
ethical positioning of our investment strategy. At the same time, other Governments and Regulators continue to drive corporate
behaviour through legislation and regulation to support the Global efforts to promote sustainable practices and prepare for climate
change impacts.
Principal risks and uncertainties
EIO i
s an insurance company headquartered in the UK and with operations in Australia, Canada and Ireland. It is also the holding
company for the DB Pension Scheme Corporate Trustee (EIO Trustees Limited) and a Life Insurance Company (Ecclesiastical Life
Limited). EIO forms the major part of the Insurance Division within the Benefact Group, which additionally has divisions relating to Asset
Management, and Broking & Advisory.
This section sets out both the principal risks, i.e. those that are assessed as having the highest inherent rating in the context of EIO in
its capacity as described above. It is recognised that, given the importance of the Insurance Company to the overall strategic execution
and performance of the Benefact Group, those risks and uncertainties are also likely to be a feature of the Benefact Group’s overall
risk profile.
T
here is an ongoing risk assessment process which uses the Benefact Group Risk Taxonomy to establish a view on the current principal
risks to EIO, which are organised and aligned to the Level 1 Risk Categories below:
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Ecclesiastical Insurance Office public limited company
Strategic Report
Strategic risk
Risks that threaten EIO’s ability to execute its strategies and achieve its business objectives.
Risk detail
Key mitigants
Change from last year
Strategy risk
• EIO Group Strategy is refreshed on a
The EIO Group has successfully concluded its
The risk that key strategic goals
three-to-five-year cycle. To continue to
‘Next Chapter’ strategic cycle and is planning
are not realised or that
drive the EIO Group forward this is
the launch of its revised five-year strategy in
acquisitions or divestiture
reviewed annually to ensure continued
Summer 2026.
decisions create inefficiencies,
alignment to key strategic goals.
unintended consequences or
• Integrated EIO Group and strategic
financial strain
business unit (SBU) strategy reviewed
annually to align to strategic goals
• Ongoing monitoring of external
environment and industry bodies
• Ongoing internal monitoring and
reporting of key strategic goals, including
change projects, operational stability and
financial position
• Rolling three-year business plan cycle
undertaken for all businesses annually
Brand and reputation risk
• Processes in place to respond to
Maintaining a positive reputation is critical to
There is a risk of reputational
emerging incidents or threats that could
EIO’s vision of being the most trusted and
damage or damage to the
damage the brand
ethical specialist insurance company and the
Ecclesiastical Insurance, Ansvar
• Media policy in place, reviewed and
risk remains unchanged from last year.
or Benefact Group brand owing to
embedded
activities at the holding company
• There is a dedicated marketing and PR
level or from within one or more
function responsible for the
of the divisions
implementation of the marketing and
communication strategy which is aligned
to business strategies
• Ongoing monitoring of media platforms
to ensure appropriate responses to
published materials
Climate change
• Catastrophe risk is appropriately
Awareness of the challenges that are faced
The risks arising through climate
managed through reinsurance models
globally as a result of climate change are
change. The key impacts for the
• Specific considerations of flood risk and
well reported. There have been no material
Company are physical risks
other weather-related risk factors in
changes to this risk since last year. A
(event-driven or longer-term
insurance risk selection
programme of work continues to fully
shifts), the transition risks of
• Delivery of ESG expectations on EIO’s
analyse the impact and to develop
moving towards a lower-carbon
Investment Strategy and Policy to support
appropriate risk management responses
economy and liability risks
management of transition risks
associated with the potential for
litigation arising from an
inadequate response.
D
etailed disclosures on EIO’s
progress towards its ambitious
sustainability objectives are
contained in the Responsible
Business Section of this report
and the Benefact Group plc
Strategic Report.
Insurance risk
The Insurance risks that arise from the fluctuation in the frequency, severity and / or value and amounts of insured events differ
to the expectations set at the time of underwriting.
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Ecclesiastical Insurance Office public limited company
Strategic Report
Risk detail
Key mitigants
Change from last year
Underwriting risk
• The underwriting licensing process has
There have not been material changes to this
The risk of failure to price
been reviewed, refreshed and
risk during the year
insurance products adequately
communicated. All underwriters have
and failure to establish
documented authority levels which must
appropriate underwriting
be adhered to. Local checking procedures
disciplines. The premium charged
ensure compliance with authority limits.
must be appropriate for the
• A documented underwriting strategy and
nature of the cover provided and
risk appetite is in place which is monitored
the risk presented.
by Strategic Business Units (SBUs)
Disciplined underwriting is vital to
• Underwriting standards and guidance
ensure that only business within
are in place, regularly reviewed and
the Company’s risk appetite and
communicated.
desired niches is written
• There are ongoing targeted underwriting
training programmes in place
• Underwriting Audits are carried out
across General Insurance Businesses
Latent claims
• Full review of Physical and Sexual Abuse
Oversight of physical and sexual abuse
The risk of financial loss arising
(PSA) claims utilising the stochastic
claims continues across all territories. Over
from the deterioration of reserves
reserving model for all territories is in
2025, the reserves were strengthened
held for causes of claim that
place
reflecting year end view of experience,
typically have long latent periods
• The Board receives a report from the
including the emergence of claims farming in
prior to reporting
Actuarial Function Holder’s review of
Canada – this has increased the assessed
Technical Provisions
exposure to risk.
• Robust management of claims including
investigation and justification is delivered
• Reserving Team training and awareness
of the risk is delivered to ensure that the
appropriate reserves are made
Catastrophe risk
• Modelling and exposure monitoring is
There have been no material changes to this
The risk of large-scale extreme
undertaken to understand the cat risk
risk during the year
events giving rise to significant
profile and inform the purchase of
insured losses. Through our
appropriate reinsurance
general insurance business, we
• Local risk appetite limits have been
are exposed to significant natural
established to manage concentrations of
catastrophes in the territories in
risks, and these are monitored by SBUs
which we do business
• There is a comprehensive reinsurance
programme in place to protect against
extreme events. All placements are
reviewed and approved by the Group
Reinsurance Board
• Processes in place to provide oversight
and sign off of reinsurance modelling and
exposure management across the
company
• The Risk Appetite specifies the
reinsurance purchase levels and retention
levels for such events
Reinsurance risk
• We take a long-term view of reinsurance
The level of this risk has remained broadly
The risk of failing to access and
relationships to deliver sustainable
similar since last year. We continue to take a
manage reinsurance capacity at a
capacity
long-term approach to our reinsurance
reasonable price. Reinsurance is a
• A well-diversified panel of reinsurers is
relationships
central component of our
maintained for each element of the
business model, enabling us to
programme
insure a portfolio of large risks in
• A General Insurance Reinsurance
proportion to our capital base
Executive Meeting approves all strategic
reinsurance decisions
7
Ecclesiastical Insurance Office public limited company
Strategic Report
Financial risks
The risks that threaten the financial stability of EIO, potentially harming the wider financial system and customer.
Risk detail
Key mitigants
Change from last year
Economic, Investment and
• An investment strategy is annually
Whilst 2025 was a relatively benign year in
Market risk
reviewed and approved which includes
terms of economic and market volatility, EIO
There is a risk of financial loss due
consideration of liabilities and capital
remains alert to the potential for economic
to changes in economic
requirements and is in line with the PRA’s
volatility arising from geopolitical tensions
conditions. This includes a fall in
Prudent Person Principle
that could be a feature of the global situation
the value of investments held, as
• There are appropriate governance
in the short to medium term
well as the impact of movements
structures in place to monitor KPIs and MI
in interest rates. There are further
• Risk quantification is assessed through
risk impacts emanating from EIO
the Internal Model and scenarios are
from the impact of movements in
conducted as part of the annual ORSA
exchange rates and discount rates
process
on insurance and pension
• Use of third-party expertise to actively
liabilities
manage investments
• Risk metrics are tracked to provide early
warning indicators of changes in the
market environment
Capital adequacy and allocation
• Governance arrangements are in place
There have been no material changes to this
risk
to oversee the use and calibration of the
risk since last year and remains a high risk to
There is a risk that EIO is unable to
Internal Model
the Company
maintain adequate capital levels
• The business plan process incorporates
or that capital is allocated
assessing return on capital metrics for
inefficiently resulting in lost
divisions and business units in comparison
opportunities
to required hurdle rates
• The Second Line of Defence delivers an
Internal Model Validation Programme
• Local regulatory capital requirement
assessments are completed to comply
with local regulation across the EIO Group
• MI and KPI reports are regularly
reviewed and acted upon
• Solvency risk appetites are set by the
EIO Group
• Within EIO there is an approved internal
model compliant with UK regulatory
solvency requirements
Conduct risk
The Risk where actions and behaviours may result in poor outcomes for customers, colleagues and / or stakeholders
Conduct risk
• All colleagues adhere to the EIO Group
The Company remains committed to placing
The risk of unfair behaviour or
Code of Conduct and complete training to
customers at the centre of its practices and
practices (including by third
outline expectations. These include
decision making, demonstrated by its wide-
parties) that adversely affect the
standards of ethics and behaviour as well
ranging industry awards and customer
Company’s customers, harm
as relevant regulatory rules.
satisfaction scores. The level of this risk is
colleagues, distort market
• Customer charters have been
unchanged from the prior year.
integrity, or damage the
implemented in all SBUs and customer
Company’s reputation. The
outcomes are included in measures of
Company maintains a diverse and
performance
inclusive company culture where
• Conduct Risk MI is delivered to relevant
high standards of personal
governing bodies for review and action
conduct are expected, and
colleagues feel confident they will
be listened to if they raise any
concerns.
Operational risk
The risk of loss arising from inadequate or failed internal processes, people and systems, or from external events.
Legal and regulatory risk
• Policy and Governance frameworks in
The markets within which we operate remain
place across the EIO Group to ensure a
unchanged, however, there continues to be a
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Ecclesiastical Insurance Office public limited company
Strategic Report
The risk that operating across
consistent approach to regulatory and
significant volume of regulatory change, and
several different regulatory
legal requirements
therefore the level of risk remains high.
territories and legal landscapes is
• Monitoring of regulatory developments
not managed effectively, leading
and feeding into the Company's Emerging
to inefficiencies, errors, non-
Risks process and relevant local actions to
compliance with impacting
address future exposures
regulation or laws
• There is an established methodology for
implementing regulatory change
• Regular MI and KPI reporting to
Committees and Boards
• There is an approved and embedded
three lines of defence model across the
EIO Group
Cyber risk
• C
omprehensive information security
E
IO has made significant investment in the
The risk that unauthorised access,
policies and standards are in place,
capability to prevent, detect, and respond to
loss of confidentiality,
regularly reviewed and communicated.
cyber attacks. At the same time the volume
compromise of integrity, or
• Layered security measures are deployed
and sophistication of cyber-attacks have
disruption to the availability of
to deliver defence in depth for all
increased across all industries, in part as a
information, technology assets, or
networks
consequence of technological advances and
digital services results in financial
• Active monitoring and automated
increasing geopolitical tensions. Overall the
loss, regulatory non-compliance,
response processes are in place to quickly
risk is assessed as high.
operational disruption, or adverse
identify and mitigate cyber security
impacts to customer trust and the
attacks
Company’s reputation.
• All staff receive regular and targeted
cyber security awareness training and
testing
• Independent security reviews and
assessments are performed on a regular
basis
Data governance (inc.
• A Group Technology, Data and AI
E
nhancements continue to be made to the
management and protection)
Strategic Forum meets regularly and is
governance, management, use and control of
The risk that the confidentiality,
responsible for shaping and overseeing
data, to meet the evolving requirements, and
integrity and/or availability of data
the Group Data Strategy. The Forum
remains a key focus.
is compromised, or data is
ensures that a robust data governance
misused. The Company holds
framework is in place and operating
significant amounts of customer
effectively.
and financial data and there could
• The Group Data Policy is implemented
be significant implications if this is
into EIO Group. The policy is routinely
compromised or is found to be
reviewed, updated and communicated to
inaccurate.
ensure they are up to date, meet
regulatory requirements and industry
best practice.
• Data is managed by Data Owners and
Stewards, and supported by Data teams
for technical support, assurance and
oversight
Outsourcing and Third Party
• Outsourcing and Procurement
The risk remains unchanged, with action
risk
Frameworks implemented into EIO
underway to enhance oversight of the high
Poor customer service or
• Appropriate and proportionate Initial and
risk suppliers.
disruption to the business may be
ongoing due diligence and monitoring,
caused by supplier failure
including cyber security and business
(including data or regulatory
continuity
breach) or inadequate contractual
arrangements, due diligence and
ongoing supplier management.
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Strategic Report
Ou
r business model and strategy
EIO is part of the Benefact Group, a family of specialist financial services businesses united by a singular purpose: to donate all available
profits to charity and good causes to transform lives and communities. EIO’s ambition is to do right by its customers, business partners,
and colleagues, alongside its commitment to philanthropy sets apart EIO from other businesses in the financial services sector.
B
enefact Group’s purpose is to contribute to the greater good of society, This is achieved by managing a successful, ethically run
portfolio of businesses including EIO. Benefact Group donates all available profits generated by its businesses to support good causes.
These are delivered by considerable donations, including Movement For Good in the United Kingdom and Ireland, and through
donations made by EIO to its ultimate charitable owner, Benefact Trust Limited.
T
he Benefact Group’s overarching strategy brings alignment and strategic focus across all its businesses, including investment in
systems and people to target further growth and drive increased charitable donations. Whether in specialist insurance, asset
management, broking, or advisory, each business within the Benefact Group is a specialist in its own field, built on genuine insight and
ethics. Together, the Benefact family offers products and services designed to protect in the present, anticipate possibilities, and invest
in a healthier financial future.
E
IO is committed to continue doing the right thing for its customers, business partners, and colleagues, and to delivering growing
donations to its ultimate charitable owner, enabling Benefact Trust Limited to make independent grants and continue its work in
transforming lives.
R
esponsible business
The Ecclesiastical Group is part of the wider Benefact Group. A Responsible Business Report containing a summary of social and
environmental impact is in the Benefact Group Annual Report and Accounts which is published on benefactgroup.com. It covers social
impact including approach to diversity, equality and inclusion, colleague wellbeing and charitable giving. It also summarises climate
impact and is supported by a separate report featuring disclosures in line with the Taskforce on Climate-related Financial Disclosures
(TCFD), which is published on the Company’s website. A separate report enables the Benefact Group to explain climate-related
disclosures in much more detail for the benefit of an increasing range of interested stakeholders.
T
he following table provides details of the carbon associated with the direct operation of businesses that are part of the wider Benefact
Group, in line with the Streamlined Energy and Carbon Reporting (SECR) requirements. This table does not include the emissions
relating to the investment portfolio or any underwriting activity. The Group offsets its Scope 1 and 2 emissions through highly assured
charitable projects to achieve ‘net negative’ for its direct impact.
Emissions source
2025
2024
UK Non-
Total Scope 1 & 2
UK Non-
Total Scope 1 & 2
UK
tCO₂/
UK
tCO₂/
employee
employee
Scope 1: fuel, fluorinated gas losses and
67 31 108 116 15 131
fuel combustion in offices and company
fleet
Scope 2: electricity and cooling in
505 190 696
591 149 740
1
premises
(location based)
Scope 2: electricity and cooling in
181 189 370
109 146 97
2
premises (market based)
3
Scope 3:
business travel
, waste, water
624 177 801 538 269 807
use
Total CO2e (location based
872 397 1269 0.51 763
430
1,193
0.51*
electricity)*
tCO2e is tonnes of CO2 and equivalent gases.
1 The average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data)
2 Emissions based on how an organization buys its energy
3 Air, rail, bus, taxi, ferry, car rental and vehicles owned and driven by an employee, driven for business purposes (grey fleet)
* Scopes 1, 2 (market based) and scope 3
In 2025, total energy use is 3,933,852 kWh of which 2,981,284 is UK and 952,568 kWh is non-UK based. In 2024, total energy use
was 4,570,001 kWh of which 3,841,221 kWh was UK and 728,780 kWh was non-UK based. Scope 3 emissions reported as part of SECR
mostly comprise business travel, with emissions on par with 2024.
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Methodology
The table provides details of the carbon associated with the direct operation of businesses that are part of the Benefact Group. All
other Kyoto gases are included (methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride) with the final
figures reported in tonnes of carbon dioxide equivalent gases (tCO2e). The emissions reporting year runs from 1 September 2024 to 31
August 2025. These emissions are measured and reported according to GHG protocols, SECR regulations and are in line with the ISO
14064-1:2018 Specification with guidance at the organisational level for quantification and reporting of greenhouse gas emissions and
removals standard. Calculated emissions followed the ISO 14064-1 principles of relevance, completeness, consistency, accuracy and
transparency. The Group has reported on all emissions sources required under the Companies (Directors' Report) and Limited Liability
Partnerships (Energy and Carbon Report) Regulations 2018. DEFRA's emissions factors are used to produce this calculation. Figures
have been rounded for ease.
T
he reporting comprises:
• Scope 1: emissions from office gas and oil use, company cars, refrigerant (f-gas) leaks in office air conditioning units
• Scope 2: emissions from purchased and self generated electricity; purchased heat and steam from district heating systems,
all used in offices
• Scope 3: emissions from business travel, office waste and water use in offices.
O
verall, the Group's 2025 emissions are slightly up on 2024. The tCO2e per employee remains the same because there are around
150 more employees in 2025 compared to the previous reporting period. This footprint is based on 81% data coverage, with 19%
extrapolated. As always, efforts are ongoing to increase the percentage of primary data. Scope 1 emissions continue to reduce due to
a combination of recent office relocations (to higher performing premises), an increasingly hybrid and electric company fleet and no f-
gas leaks. Backup generator testing at the Group's HQ is now included: a correction on previous years where it had been unintentionally
omitted.
Scope 2 location electricity use is the net electricity use for the Group and is based on the carbon intensity of the local grid. Location
based electricity is down on 2024, meaning overall, the Group has used less electricity. This is due to efficiencies implemented at the
Group's HQ along with lower energy demand in other new offices. Scope 2 market rate electricity reflects the type of electricity
purchased by the Group. Compared to 2024, market based electricity is up, meaning a greater proportion of the Group's electricity was
not from renewable sources this reporting period. The Group avoided 325 tonnes of CO2e by procuring renewable electricity.
C
olleagues
Colleagues across the Benefact Group are united by our purpose to give to good causes. Each business within the Benefact Group is
specialist and expert in its field, with an engaged global team of colleagues driving growth and success.
Health and wellbeing
Employee health and wellbeing continued to be a key focus for the Group in 2025. Learning resources and communications covered
topics such as menopause, bereavement and neuroinclusion. Mental Health Awareness Week was spotlighted across the group, with
organised walks and events across our offices. The ‘Smart Health’ portal continues to bring physical, mental and financial wellbeing
support together in one easily accessible place, including a 24/7 mental health helpline for all employees and their families. A Women’s
Financial Planning event supported female colleagues with relevant financial information and signposting.
E
ngagement
Independent assessment of engagement levels was benchmarked through the b-heard survey provided by Best Companies. The
survey is a well-established way to listen and celebrate, with over 2,000 responses. The Benefact Group overall continues to sustain
a two-star ‘outstanding’ rating, with the UK businesses achieving a 3-star ‘World Class’ accreditation and ranked as one of the UK’s
Top 5 best large companies to work for.
G
roup-wide communication ‘The Link’ continued to keep colleagues connected across all three continents the business operates in. A
new easy-to-use hub for employment related questions launched, to give colleagues an enhanced experience when looking for
information on pay, wellbeing, development, rewards and more.
D
iversity, equity and inclusion
The Group continued its strong commitment to diversity, equity and inclusion. ‘Belonging at Benefact’ launched this year, the Group’s
strategy for fostering an inclusive, values-driven culture. Over 300 people leaders have participated in inclusive leadership training
and colleague led networking groups, such as the Neurodiversity, LGBTQ+ and Women’s network, continued to grow.
T
he ‘WeAllBelong’ campaign amplified authentic colleague voices, sharing personal stories that celebrate diversity and inclusion. Real
testimonials were promoted internally and across social media. A number of events brought people together, including a Women in
Leadership panel discussion which welcomed over 80 external attendees, a Male Allyship workshop and Pride month celebrations in
June.
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R
ecruitment processes have been enhanced to support inclusivity, consistency and candidate comfort. Walk-through interview videos
and ‘meet the hiring manager’ features launched to support candidates, especially those who are neurodivergent, and job adverts were
revamped to be more inclusive. The careers site now features an accessibility tool to help users better customise the website to suit
their needs.
T
he strategy is already showing positive results, with record-high b-heard scores for colleagues feeling ‘they can be themselves at
work’. The Group’s investment business EdenTree won the highly commended award for Investment Group of the Year for Diversity
and Inclusion at the Women in Investment Awards 2025 and Ecclesiastical Ireland was proudly awarded the Investors in Diversity
Silver Accreditation this year.
N
on-financial and Sustainability Information statement
The Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006 are addressed below.
Non-financial and Environmental, Social and Governance (ESG) information is integrated across the Strategic Report, in particular in
the Responsible Business Report.
Non-financial information
Disclosure
Section
Pages
Business model
EIO’s business model and
Strategic report - Our Business
9
information on how it does business
model and strategy
differently
Key performance indicators (KPIs)
EIO’s KPIs set out how it is doing
Strategic Report – Key
24
against its strategic goal
performance
indicators
Principal risks
EIO’s key risks and their
Strategic report – Principal risks
5
management
and uncertainties
Environmental, Social matters,
Statements of EIO’s policy and
Strategic Report - Primarily within
10
colleagues, human rights,
practice in these areas
the responsible business section
financial crime and corruption
and below.
E
IO’s key policies / statements of intent
EIO has a range of policies and guidance in place to support the key outcomes for its stakeholders. These also ensure consistent
governance on climate and environmental matters, its employees, social matters, human rights and anti-bribery and corruption.
Climate and environmental matters
The Ecclesiastical Group is part of the Benefact Group and as a diverse financial services business, the Benefact Group is exposed to
climate risk primarily through investments and insurance. It also has a responsibility to reduce its operational impact and can achieve
positive impact through its charitable giving. The majority of the Benefact Group’s climate and environmental matters are relevant to
the Ecclesiastical Group.
A separate TCFD report is published on the Group’s website at ecclesiastical.com, but the following provides a summary of key
considerations.
Governance
The Benefact Group Board has overarching responsibility for overseeing the response to climate change. EIO as part of the Benefact
Group has adopted the Benefact Group plc's Governance Framework. Accordingly, the EIO Risk Committee has sight of climate related
risk matters on behalf of the EIO Board. Across the business various committees, management functions and a core climate strategy
function lead, develop and deliver the Group’s response.
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Str
ategy
The Benefact Group has a robust strategy review and evaluation process. In particular scenario analysis is used as a key tool for
assessing and understanding climate risk.
Testing risks through scenarios
Insurance
Investment
• Focusing on worst case scenario: the assessment of
• Property investments continue to be asse
ssed for climate impact
insurance underwriting risk has focused on the worst-
using a Real Estate Environmental Benchmark (REEB) benchmark,
case scenario of the Bank of England’s three Climate
Energy Performance Certificate (EPC) schedule priority, physical
Biennial Exploratory Scenario (CBES) scenarios (the No
and climate risk assessments and scope 1, 2 and 3 data completion,
Additional Action scenario) because this enables
it also included emissions reduction targets and a decarbonisation
identification of the most extreme outcomes, therefore the
plan.
greatest risks to the business, particularly over the
• Footprinting: tools used by EdenTree, which is part of the asset
medium to long-term. The scenarios have been used
management division of the Benefact Group, enable the Benefact
primarily in a qualitative nature to identify the types of
Group to view its investments from various perspectives. These
perils that are most likely to affect the current insured
include the portfolio emission pathway vs climate scenario budgets
portfolio. Benefact Group have also looked at other, less
(and whether it is overshooting) and the associated temperature
harmful scenarios to understand a range of feasible
increase.
outcomes and so the difference in expected impact that
Based on current targets, equity investments are expected to be
would result from positive climate mitigation actions.
aligned with the Sustainable Development Scenario by 2050,
• Considering socioeconomic impacts: besides considering
representing a potential temperature increase of 1.5°C by 2050
the direct impact of weather events, the economic and
compared to 2.9°C for the benchmark.
social impact on key customers were also considered, in
• This figure is tracked annually to ensure continued alignment. This
this case also using the scenarios whereby Paris-aligned
temperature alignment score is based on the ISS-ESG methodology
targets are met, to identify some of the issues they likely
and shows the estimated temperature increase which the portfolio
face in the various circumstances. This analysis is being
is associated with by 2050.
used to inform customer propositions and how the
Benefact Group might work with and support customers
• The current proportion of holdings that have adopted a Science
to manage and mitigate climate risk.
Based Target (SBT) are also tracked. Increasing this is a key part of
The process has been used to assess the Benefact
our engagement work to support the decarbonisation of our
Group’s insurance footprint in various geographies, for
portfolio.
example assessing wildfires in Canada, temperature rises
in Australia and windstorm and flood in the UK. For
example, in the UK a tool for flood and storm mapping,
Mapview, is used to manage individual and accumulated
local exposures.
T
he Benefact Group is a member of voluntary climate action initiative ClimateWise which drives best practice and provides independent
assessment.
Risk management
- The Enterprise Risk Management process provides the tools, guidance, policies, standards and defined responsibilities to
enable the Benefact Group to achieve its strategy and objectives whilst ensuring that risks to objectives are identified and
managed.
- The Benefact Group’s risk management process is a structured and iterative method for identifying, assessing, responding
and monitoring risk on an ongoing basis.
- Risk management is integrated into the way the Benefact Group works with each business unit and significant business
areas using this process, producing risk registers and feeding into reporting shared with the Group Risk function and
ultimately the Benefact Group Audit and Risk Committee.
The principal climate risks faced by the Benefact Group are:
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R
isk Nature of risk Time horizon Actions being taken to understand and mitigate impact
on business, strategy and planning
Physical Direct damage to
There are acute,
• Benefact Group have partnered with a third-party expert
assets both owned
event-driven risks
to quantify exposures on its insured portfolio across
and insured and
which can occur
territories where it operates using models based on a range
indirect impacts
over all time
of scenarios. This will be used to inform capital, pricing and
from supply chain
horizons, and
underwriting strategy.
disruption.
chronic risks, which
• Mapping technology has also been used in the UK to
are typically
identify concentration of risks in the most flood-prone
The main physical
longer-term.
areas.
risk exposures
• Benefact Group continue to work with its reinsurance
stem from its
partners to ensure that its risk mitigation remains
property
appropriate for its current risk exposures and to learn from
underwriting
their expertise.
portfolio and from
• The Benefact Group is a member of the Partnership for
its investment
Carbon Accounting Financials (PCAF) and has completed an
assets.
initial assessment of the carbon impact of its underwriting
portfolios in the UK, Ireland, Australia and Canada. This will
inform strategy for engagement and decarbonisation.
• As part of its investment process, EdenTree assesses a
company’s exposure to climate risk (including physical risk).
Where this is deemed to be material or poorly managed, a
company will not be included in the portfolio.
Transition Relates to financial
Short to medium
• Funds are invested with a responsible and sustainable
risks resulting from
term
policy which excludes fossil fuel exploration and
transitioning to a
production, thermal coal extraction and eschews
low carbon
investment in high carbon emitters (automotive, aviation
economy. They
and heavy industry).
arise from policy,
• Across EdenTree’s Funds, we also invest in companies
technology and
providing solutions that will enable the low-carbon
market disruption.
transition alongside providing a compelling investment case
Additional
• The Benefact Group’s asset manager EdenTree has
implications include
established a Climate Stewardship Plan which engages
the subsequent
investee companies and targets improvement.
changes to
• Climate change is also a permanent pillar of EdenTree’s
consumer
engagement strategy, and they have supported various
expectations,
initiatives over the years. They have contributed for seven
demand and
consecutive years to the CDP’s non-disclosure campaign.
behaviour.
They supported the Paris Pledge for Action in 2015 and are
a signatory to the TCFD Framework. EdenTree also
The main exposure
maintain memberships including the UK Sustainable
to transition risks is
Investment and Finance Association, UN Principles for
on the value of its
Responsible Investment and the Institutional Investors
investment assets
Group on Climate Change.
through the impact
• The Benefact Group also footprints its property portfolio
of changes to a low
annually, to understand both physical and transition risks,
carbon economy on
inform investment strategies and understand energy
investee
performance.
companies.
Liability Stems from the
Short term • Each territory assesses exposure to the potential for
potential for
receiving future liability claims relating to climate related
litigation if entities
litigation arising from customers’ activities. Each territory
and boards do not
will also continue to track the potential for insured
adequately
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Strategic Report
consider or
customers to be exposed to liability risks and the evolving
respond to the
legal environment.
impacts of climate
change.
A
full overview of actions taken to understand and mitigate impact on business, strategy and planning is included in the full TCFD
report. Actions include mapping technology to identify concentration of insurance risks and a responsible and sustainable investment
policy.
Metrics and targets
- The Benefact Group has committed to Net Zero targets over the short and long-term. Net Zero progress and ClimateWise
performance are integrated into the long-term incentive plan for senior leaders.
- A wide range of metrics and targets are used across the Benefact Group’s climate programme (fully outlined in the TCFD
report). They include fund alignment with a 1.5-degree pathway, underwriting footprint calculated to the Partnership on
Carbon Accounting Financials methodology, amount of giving to climate charities and carbon intensity per employee.
- The Benefact Group does not have a suite of key performance indicators specifically in relation to measuring climate change,
but this is monitored through investment performance.
Taskforce on Climate-related Financial Disclosures (TCFD) compliance summary
Climate reporting is included in the Strategic report (in particular in the Responsible Business section) and a separate TCFD report
published on ecclesiastical.com. The following table is produced to highlight the TCFD pillars, recommended disclosures and where
this information can be found across the Strategic report and separate TCFD report.
TCFD pillars
TCFD recommended disclosures
Section of the
Section of the TCFD
Strategic report, that
Disclosure report with
disclosures are
further details, in
included in, in
compliance with the Listing
compliance with the
Rules
Companies Act
TCFD report reference –
available at
benefactgroup.com
Governance
-
Describe the Board’s oversight of
-
Non-financial and
-
Governance structure
Disclose the
climate-related risks and
sustainability
overview (page 4).
organisation’s
opportunities
information
- Examples of climate topics
governance around
- Describe management’s role in
statement (page 12).
discussed/decisions made
climate-related issues
assessing and managing climate-
- Section 172
at various governance
and opportunities
related risks and opportunities
statement (page 17)
forums including Board
Committees and
management groups (page
5).
Strategy
- Describe the climate-related risks
- Climate strategy
- Strategy overview (page 6).
Disclose the actual and
and opportunities the organisation
overview in the
- How climate is embedded
potential impacts of
has identified over the short,
Group Chief
in how the Group operates
climate-related risks and
medium, and long-term
Executive’s Review
(page 6).
opportunities on the
- Describe the impact of climate-
(page 3).
- Climate risk and
organisation’s business,
related risks and opportunities on
- Non-financial and
opportunity consideration
strategy and financial
the organisation’s businesses,
sustainability
(page 7).
planning where such
strategy, and financial planning.
information
- Physical, transition and
information is material.
- Describe the resilience of the
statement (page 12).
liability risks outlined, time
organisation’s strategy, taking into
- Principal risks (page
horizons considered and
consideration different climate-
5).
actions being taken to
related scenarios, including a 2
understand and mitigate
degree or lower scenario.
impact outlined (page 8).
- Using scenario analysis to
understand and test
climate risk (page 9).
Risk management
- Describe the organisation’s
- Non-financial and
- Risk management
Disclose how the
processes for identifying and
sustainability
framework and process
organisation identifies,
assessing climate-related risks.
information
overview (page 10).
statement (page [12).
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assesses and manages
-
Describe the organisations
-
Overview of how the risk
climate-related risks
processes for managing climate-
management process and
related risks.
risk management tools are
- Describe how processes for
used to capture, assess and
identifying, assessing, and
respond to risk, but also to
managing climate-related risks are
monitor and report (page
integrated into the organisation’s
10).
overall risk management.
Metrics and Targets
-
Disclose the metrics used by the
-
Climate strategy
-
Overview of Net Zero
Disclose the metrics and
organisation to assess climate-
overview in the Chief
targets set over the short-
targets used to assess
related risks and opportunities in
Executive’s Review
and long-term (page 11).
and manage relevant
line with its strategy and risk
(page 3).
- Overview of approach to
climate-related risks and
management process.
- Non-financial and
key metrics against each
opportunities where such
- Disclose Scope 1, Scope 2, and, if
sustainability
pillar of climate strategy
information is material.
appropriate, Scope 3 greenhouse
information
(page 12).
gas emissions (GHG), and the
statement (page 12).
related risks.
- Direct footprint
- Describe the targets used by the
reporting in line with
organisation to manage climate-
SECR requirements
related risks and opportunities and
(page 10).
performance against targets.
C
olleagues
• The Benefact Group’s Code of Conduct policy is centred on ‘Doing the right thing’ and sets the standards of conduct and
behaviour expected from employees.
• The Board aims to ensure it is comprised of persons who are fit and proper to direct the business. The Board’s diversity policy
sets out the approach to diversity in the leadership population.
• Other information on our commitments to supporting diversity and development is included in the Responsible Business
section on page 10. Also included within the Corporate Governance report on page 33 is information about the composition
and diversity of the Board.
Social matters
• The Benefact Group was founded with a charitable purpose and this remains what motivates us today. Benefact Group
believe business has a social responsibility and should give more to support charities and communities. The Group does not
make political donations.
• The Group’s tax strategy supports its group strategy and the ethical way it does business. The Group are committed to
managing all aspects of tax transparently and in accordance with current legislation. The Group works to achieve the spirit
of legislation and not just the letter of the law in each tax jurisdiction. The Groups tax strategy is available on
ecclesiastical.com.
Human rights, anti-bribery and anti-corruption
• The Benefact Group Board is committed to operating with honesty and integrity in all of our business activities and promoting
an anti-bribery and corruption culture across the Benefact Group.
• The Benefact Group has established and upholds good practices regarding human rights, anti-corruption and anti-bribery
through a range of measures including robust risk management, employee Code of Conduct and employee training on topics
such as data protection and vulnerable customers.
• The Benefact Group complies with relevant legislation concerning supply chain – the Modern Slavery Act 2015 and the
Payment Practices and Performance regulations – to drive good practice and transparency.
• The Responsible Business section contains more information including our commitment to putting customers and partners
at the heart of everything we do, focusing on good governance, service and support.
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Se
ction 172 Statement
Ke
y stakeholders
This section explains how the Board engages with stakeholders and how their views inform the Board’s deliberations. The Board
recognises that our stakeholders have diverse interests and perspectives, all of which must be understood and taken into account as
part of effective decision-making.
As a global financial services group committed to transforming lives and communities, we strive to act responsibly and in line with our
purpose and values. The Board acknowledges that stakeholder interests may not always align. When areas of tension arise, directors
assess the impacts, risks and benefits for each stakeholder group, considering the long-term implications and the Company’s strategic
priorities. This approach enables the Board to reach decisions that balance these interests responsibly, support sustainable
performance and uphold its commitments to customers, colleagues, communities and other stakeholders.
The Board also remains mindful of the broader social context in which the Ecclesiastical group of companies operates and the
expectations placed on the Company by society, regulators and the markets in which it operates.
Further detail on how the Board engaged with stakeholders during 2025 is provided in the sections that follow. The Section 172(1)
Statement sets out how directors discharged their statutory duties over the year, while the Board Activities section within the Corporate
Governance Report offers additional insight into key decisions taken during the year and how stakeholder views were considered as
part of the Board’s decision-making.
Stakeholder Engagement
Below is an overview of the business’s approach to stakeholder engagement.
Key stakeholders
The Business engages with them by:
Customers
The business engaged with customers through a comprehensive program of research, feedback and direct
interaction. This included ongoing surveys, listening exercises and targeted follow‑up to deepen insight,
alongside close monitoring of complaints and satisfaction to drive improvements and reduce foreseeable
harm. Engagement also took place through direct meetings, industry events and wider sector insight
activities, with findings reviewed by Customer and Conduct Councils to inform enhancements to products,
processes and customer communications. The business continues to refine its communications through
root‑cause analysis and external testing to support customer understanding. Particular focus was given to
vulnerable customers through consistent training and standards, and the business’s review of Important
Business Services ensured it remained operationally resilient and able to keep customers informed during
severe‑but‑plausible scenarios.
Colleagues
C
olleague engagement was supported through regular Best Companies surveys, with insights shared
across teams and used to shape local action plans. As the designated Non‑Executive Director for colleague
engagement, Sir Stephen Lamport and the Group Chief People Officer, held direct discussions with
colleagues, including Emerging Talent groups, providing feedback to the Board.
E
ngagement was further strengthened through multi‑channel communications such as intranet updates,
newsletters, briefings and conferences. Colleagues also participated in DEI events and networks, union and
representative forums, and were supported through whistleblowing training.
Group Management Board members hosted virtual meetings across the business to encourage open
questions and feedback, while the Group continued to offer a broad range of development, mentoring and
volunteering opportunities.
Brokers
The business continued to strengthen broker relationships through regular engagement supported by
segmentation and joint account planning, enabling discussions on products, emerging trends and service
performance. Broker insight remained central to the business approach, with feedback gathered through
listening exercises, surveys and independent benchmarking. The business also reviewed products to ensure
fair value and appropriate distribution, and shared specialist knowledge across its core sectors through site
visits, tours and CPD‑accredited content to support brokers in serving customers effectively.
Shareholder and
The Company maintained open and transparent communication with its ultimate Shareholder, Benefact
investors
Trust Limited, providing regular updates on strategy, performance, leadership, risk, culture and expected
grant funding to ensure the direction of the business remained aligned with the Trust’s strategic priorities.
Communication with the Company’s preference shareholders is facilitated through its Registrar,
Computershare. The Company Secretariat maintained regular contact with Computershare throughout the
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Key stakeholders The Business engages with them by:
year to ensure that timely, accurate and up‑to‑date information was provided to preference shareholders,
supporting clear and effective communication with this stakeholder group.
Suppliers The business engaged with suppliers through senior management oversight, operating in line with the
Group’s Procurement and Outsourcing Policies to ensure risks were identified, monitored and appropriately
managed.
S
upplier relationships were actively managed through responsible procurement practices, regular
performance reviews and ongoing monitoring of service‑level standards.
T
hese activities were carried out under the Group’s Supplier Relationship Management Framework and
applied proportionately based on the nature and risk profile of each supplier arrangement.
Regulators During the year, engagement with the Company’s regulators was led by the Group Chief Risk Officer and
the Group Head of Compliance, who maintained regular and constructive dialogue with supervisory
authorities on a broad range of matters affecting the Company. In addition, several Directors met with
regulators during the year, providing opportunities for direct discussion of strategic priorities, regulatory
expectations and developments in the Group’s risk and compliance activities.
Communities and
As part of the Benefact Group, EIO has adopted the Group’s climate change strategy and recognises its
Climate
responsibility in supporting the Group’s wider ambition to achieve its climate and sustainability goals. During
the year, the Group Impact team continued to lead and coordinate social‑impact and environmental
initiatives across the organisation, advancing programmes of charitable giving that support communities and
contribute to reducing the Group’s overall environmental footprint.
T
he Group Impact team also played a central role in shaping and delivering activities aligned with the
Benefact Group’s broader sustainability and climate commitments, ensuring a coherent, responsible and
consistently applied approach across EIO and the Group as a whole.
Below is an overview of the board’s approach to stakeholder engagement.
Key stakeholders
The Board engages with them by:
Customers
The Board does not have direct engagement with our customers. It therefore primarily engaged with
customers through its oversight of the Customer Promises and regular monitoring of performance against
them. It received quarterly Consumer Duty updates, providing visibility of customer‑outcome trends,
emerging risks and actions taken to deliver good outcomes and prevent foreseeable harm. The Board also
reviewed the business strategy to ensure continued alignment with Consumer Duty requirements and
approved the firm’s Important Business Services (IBS), associated Intolerable Harm thresholds (ITOLs) and
the Operational Resilience Assessment, helping ensure key services remain robust and that customers are
protected during severe‑but‑plausible disruptions. For more information on this, please refer to the Key
Board Activities Summary in the Corporate Governance Report.
Colleagues
T
he Board engaged with colleagues through regular site visits to regional offices and operational teams,
enabling Directors to hear colleague views directly and deepen their understanding of day‑to‑day activity.
Their insight was further supported by updates on colleague‑engagement survey results, presentations
from subject‑matter experts, and detailed reports from Sir Stephen Lamport, the designated Non‑Executive
Director for colleague engagement, alongside David Smith, the Group Chief People Officer. Directors also
met leaders from across the business at Leadership Conferences, while the EIO Audit Committee maintained
oversight of speaking‑up arrangements through regular whistleblowing updates and its annual review of
the whistleblowing framework.
Brokers While the Board does not routinely engage directly with brokers, Directors received regular updates on
strategic progress and product reviews, ensuring they remained well‑informed about broker activity, market
dynamics and developments across its distribution network.
As part of the boards director appointment process, all new directors completed a comprehensive induction
programme, including an overview of the Company’s products and services, enabling them to develop a
clear understanding of its broker distribution channels. Further details on the appointment process can be
found in the Nominations Committee Report.
Shareholder and
The Board engaged with its shareholder, Benefact Trust Limited, through established information
‑
sharing
investors
protocols that provide regular updates on performance, operations and financial position.
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Key stakeholders The Board engages with them by:
Engagement was further supported by the presence of at least one Common Director, who attends every
Board meeting and relays key insights from Benefact Trust Limited’s Board discussions. The Board and
Committee Chairs, together with the Group Chief Executive Officer, also participate in ongoing dialogue with
the Trust regarding expectations for the Group, business strategy and grant funding.
These structured channels ensure the Trust’s views are consistently communicated to the Board, while
enabling Common Directors to support the Trust’s understanding of the Company’s strategic and
operational priorities. A conflict‑of‑interest policy is in place to ensure that interactions remain transparent
and well‑governed.
Suppliers
EIO works closely with a wide range of suppliers who are essential to maintaining the high standard of
service it provides to its customers, and the Board recognise the importance of sustaining strong and
effective supplier relationships.
W
hile Directors do not typically engage directly with suppliers, day‑to‑day relationship management is
delegated to senior management under the Supplier Relationship Management Framework.
T
he Board, through regular reporting from the EIO Risk Committee, remained informed about key
third‑party relationships, including material outsourcing arrangements, actual or potential supplier risks,
and the governance processes in place across the supply chain. These structured updates provided a clear
and consistent channel for Board‑level oversight of supplier‑related matters.
Regulators The Board received regular updates on regulatory strategy and on the views of both the PRA and FCA,
including key themes from supervisory communications issued to firms.
T
he Board continued to address the feedback provided during the Periodic Summary Meeting and
maintained oversight of progress against the key areas identified.
In addition, the EIO Risk Committee received routine reports on regulatory matters such as Operational
Resilience, Material Outsourcing and Operational Incident Reporting. The Board further engaged with the
Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) in relation to the appointment
of François Boisseau as incoming Chair, taking account of the feedback received through this process.
Communities and
The Board received updates on the Group’s climate strategy and progress against its commitment to
Climate
achieve Net Zero by 2040, ensuring continued oversight of climate‑related priorities. Board‑level
engagement was further supported by the role of Sir Stephen Lamport, the designated Non‑Executive
Director for climate matters, who led discussions and helped strengthen organisational awareness of
climate‑related responsibilities.
I
n addition, Directors undertook visits to several charities supported by the Group, providing firsthand insight
into the impact of the Group’s community and sustainability initiatives and informing Board understanding of
community needs.
B
elow is an overview of outcomes of engagement.
Key stakeholders
Methods of engagement and outcomes
Customers During the year, performance against the Customer Promises demonstrated that the business continued to
deliver good outcomes in line with Consumer Duty expectations. Insights from product and communication
testing led to tangible improvements, including refinements to product features and clearer, more
accessible customer communications. The effectiveness of this customer‑focused approach was reflected in
strong external feedback, with a 4.7‑star Trustpilot rating, multiple industry accolades, such as the 2025
Which? Best Buy and the Fairer Finance Gold Ribbon and confirmation from the Board that the firm
remained operationally resilient following its review of IBS , ITOLs and resilience controls.
Colleagues
The Board was pleased to see strong levels of colleague engagement during the year, reflected in an 86%
participation rate in the b‑Heard survey and a 3‑Star UK accreditation, indicating high advocacy and a positive
colleague experience. This was reinforced externally, with the Company ranking 4th in the Top 5 Best Big
Companies to Work For. Sustained interest in joining the Group resulted in over 206,000 visits to our careers
site, leading to 24,400 applications, 347 new hires and 18 Early Careers entrants.
T
he Board was also encouraged to note the introduction of neonatal and miscarriage leave, recognising the
meaningful support it provides to colleagues and the positive contribution it makes to strengthening its
supportive and inclusive culture. Additional wellbeing engagement included partnering with the DSM
19
Ecclesiastical Insurance Office public limited company
Strategic Report
Key stakeholders Methods of engagement and outcomes
Foundation to deliver a workshop for parents and guardians on teenage drug and alcohol issues, further
enhancing the support available to our workforce.
Brokers The Board’s oversight of product governance resulted in clearer product fit, more robust fair‑value
assessments and more precise target‑market definitions, ensuring its products remained well aligned with
customer needs and broker expectations. The Board was both pleased and proud of its teams to see this work
recognised externally, with the business achieving first place in the Gracechurch Brokers Claims Survey,
securing the Service Quality Marque (2026), and winning the BIA Risk and Resilience Award 2025.
Shareholder and
The Board’s structured engagement with its ultimate shareholder, Benefact Trust Limited, ensured
investors
continued alignment between the Company’s strategic direction and the Trust’s charitable mission. Regular
information‑sharing protocols and active dialogue with the Trust, supported by the attendance and insights
of Common Directors, strengthened transparency and mutual understanding of performance, operations
and financial priorities. This helped sustain a constructive and well‑governed relationship and ensured
clarity around expectations for grant funding and long‑term value creation.
In parallel, engagement with preference shareholders was supported through the timely release of financial
information via its Registrar, Computershare, ensuring investors received clear, accurate and accessible
updates on the Company’s performance. Together, these channels reinforced shareholder confidence and
supported a well‑informed investor base across both its charitable owner and wider shareholder groups.
Suppliers The Board’s oversight of supplier‑related activity helped strengthen the resilience and reliability of its
supply chain during the year.
R
egular reporting on material outsourcing arrangements and supplier risk enabled management to address
emerging issues promptly, enhance controls and ensure that key third‑party partners continued to meet the
standards expected under the Supplier Relationship Management Framework.
A
s a result, the Company maintained strong operational continuity, reduced exposure to supplier‑related
risks and ensured critical services remained consistently delivered to customers.
Regulators The Board’s ongoing engagement with regulators supported timely and effective responses to PRA and FCA
correspondence and helped ensure that regulatory expectations continued to be reflected in the Company’s
control environment. This oversight enabled the business to advance its Operational Resilience and Model
Validation work, strengthening the robustness of key services and models. The Board and its Committees
also guided the Company’s implementation of regulatory change arising from evolving supervisory
requirements. In addition, the submission of the annual Operational Resilience self‑assessment provided
regulators with assurance over the maturity of the Company’s resilience framework and the progress being
made against its resilience objectives.
Communities and
The Board’s oversight of climate and community matters supported continued progress toward the
Climate
Benefact Group’s (of which EIO is part) commitment to achieve Net Zero by 2040, with updates during the
year demonstrating increasing maturity in the Benefact Group’s climate strategy and wider sustainability
approach. This oversight was strengthened by the leadership of Sir Stephen Lamport, the designated
Non‑Executive Director for climate matters, whose input helped deepen the Board’s understanding of
climate‑related risks, opportunities and organisational responsibilities.
D
irector visits to charities supported by EIO provided valuable firsthand insight into the positive impact of
the Company’s community programmes and reaffirmed the effectiveness of its social‑impact initiatives.
These engagements strengthened the Board’s confidence in the alignment between the Company’s
charitable giving, community partnerships and its wider purpose‑driven agenda.
I
n parallel, targeted engagement with key community groups including charity founders, fundraisers and
partner organisations enabled EIO to continue building strong relationships, deepen its understanding of
community needs and enhance the reach and effectiveness of its social and climate‑related initiatives.
More information on the Company’s approach to Climate Change, and Taskforce on Climate-related
Financial Disclosures (TCFD) please refer to the Responsible Business section of the Strategic Report.
20
Ecclesiastical Insurance Office public limited company
Strategic Report
S
ection 172 Statement for Year End 31 December 2025
This section of the Annual Report explains how the directors have fulfilled their duties under Section 172(1) of the Companies Act 2006,
which requires directors to promote the success of the Company for the benefit of its shareholders as a whole, while having regard to
a range of wider stakeholder interests. These statutory considerations include the long‑term consequences of decisions, the interests
of employees, relationships with customers and suppliers, the impact of the Company’s activities on the community and the
environment, the maintenance of high standards of business conduct, and the need to act fairly between members.
The directors recognise that the long‑term success of the Company, and its continued ability to support people, charities and good
causes, relies on placing the interests of stakeholders at the heart of Board deliberations. The Board considers it essential that the
Company maintains its reputation for high standards of business conduct and oversees the culture, values and behaviours that
underpin this commitment. The Board monitors compliance with policies, regulatory obligations and governance expectations to
ensure that its responsibilities to stakeholders are consistently upheld. Further details can be found in the Corporate Governance
Report.
To support effective decision‑making, the Board requires that stakeholder considerations are clearly articulated in all proposals
submitted for approval. This ensures that directors have appropriate visibility of the potential impacts, risks and opportunities
associated with each decision, enabling them to exercise their duties under Section 172 in a balanced, responsible and well‑informed
manner.
This section sets out where key disclosures in respect of each section of the section 172 can be found within the Report and Accounts:
Where to Find Supporting Disclosures in
Section 172 Factor
This Report
• Our Business Model and Strategy
A. The likely consequences of any decision in the long term
• Responsible Business
Report
• Key Board Activities
• Responsible Business Report
• Stakeholder Engagement
B. The interests of the Company’s employees
• Key Board Activities
• Remuneration Report
• Our Business Model and Strategy
C. The need to foster the Company’s business relationships with suppliers,
• Stakeholder Engagement
customers and others
• Responsible Business
Report
• Responsible Business
Report
D. The impact of the Company’s operations on communities and the
• Stakeholder Engagement
environment
• Our Business Model and Strategy
• Corporate Governance Report
E. The desirability of maintaining a reputation for high standards of business
• Risk Management
conduct
• Responsible Business Report
• Key Board Activities
• Corporate Governance Report
• Key Board Activities
F. The need to act fairly between members of the Company
• Shareholder Information
• Directors’ Report
This Section 172 statement should be read alongside the wider governance‑related disclosures contained in the Corporate Governance
Report, the Committee Reports, and the Strategic Report. Together, these sections provide a comprehensive overview of how the Board
oversees strategy, risk, culture, sustainability and stakeholder engagement in accordance with the UK Corporate Governance Code
2024 and the expectations of the Financial Reporting Council.
21
Ecclesiastical Insurance Office public limited company
Strategic Report
G
roup Chief Financial Officer’s review
I
t gives me great pleasure to be able to present another outstanding set of results for the year. The Company is reporting a profit
before tax of £84.6m (2024: £82.5m), outperforming expectations and achieving another year of profitable growth. The result
represents one of the strongest results in our 138 year history and, importantly, has enabled us to continue to give more to good
causes, having now donated over £275m in charitable giving, since 2014.
O
verall, the profit was driven by a strong net investment result of £91.0m (2024: £71.9m) and excellent trading performance with an
1
insurance service result of £104.7m (2024: £83.5m). Gross written premium
increased by 2.1% to £653.7m (2024: £640.3m) following
continued and disciplined growth, despite increasingly challenging market conditions. During the year, as part of a strategic
reassessment of programme plans for internally generated software assets, a £14.6m impairment was recognised.
E
IO Group’s strong credit ratings with both Moody’s (A2 with stable outlook) and AM Best (A with stable outlook) were reaffirmed
during the year, and our Solvency II regulatory capital position remains highly resilient, well above both regulatory requirements and
risk appetite.
G
eneral Insurance
Overall, our underwriting businesses contributed to an exceptional result in the year. Collectively, our businesses have continued to
deliver robust and profitable growth in insurance revenue during challenging market conditions, building on our strong position in core
segments and recent product launches. The increase in gross written premium of 2.1% to £653.8m (2024: £640.6m) reflected
significant new business wins and robust retention levels.
Un
derwriting experience benefited from particularly favourable claims experience, resulting in an insurance service result of £90.9m
1
(2024: £72.7m) and an exceptional Combined Operating Ratio
(COR) of 83.7% (2024: 86.9%). The result reflected benign weather
claims and limited large loss experience across most territories, alongside relatively stable prior year claims development. The
devastating impact of Storm Eowyn in Ireland and legacy claims strengthening in Canada did, however, highlight the potential for
higher cost of claims and the inherent volatility in our insurance exposures.
Our overall profit includes a net insurance financial loss of £19.0m (2024: £6.9m net loss) which is driven by the impact of discount
rate movements in the year, albeit this would be offset by returns in our well-matched investment portfolio, included in the net
investment result.
United Kingdom and Ireland
1
In the United Kingdom and Ireland, reported underwriting profits
were £49.5m (2024: £53.6m), resulting in a COR of 81.0% (2024:
77.4%). The result benefitted from another benign year for weather claims, large losses and higher associated reinsurance profit
commission. Whilst Storm Eowyn had a devastating impact on many of our customers within the Ireland branch, the rest of the UK
business remained largely unaffected due to a late change in the storm path. The business was similarly fortunate to avoid material
losses from other named storms in the year.
D
espite increasingly soft market conditions throughout the financial year, the portfolio continued its growth journey and gross written
premium increased by 5.6% to £461.2m (2024: £436.9m). The portfolio continued to be disciplined in its approach and adaptive to
market conditions, prioritising its commitment to insuring significant value locations and to managing the associated risk.
Australia
2
In Australia, the business reported an underwriting loss of £2.9m (2024: £3.4m loss)
, resulting in a COR of 109.3% (2024: 107.4%).
Overall, the gross claims experience was favourable for the year, led by positive current year Liability experience, including more
stable PSA prior year development. However, the net result was impacted by the cost of intra-group reinsurance arrangements and
increased investment in the business.
Consistent with other territories, the business experienced challenging market conditions and gross written premium fell slightly by
2
1.5% to £93.9m (2024: £95.3m)
. This was largely driven by lower than expected new business and rate on renewals, partially offset
by improved retention rates.
22
Ecclesiastical Insurance Office public limited company
Strategic Report
Canada
2
Canada reported an underwriting profit of £11.9m
(2024: £13.8m profit) leading to a COR of 83% (2024: 81.4%). The result reflected
lower current-year loss activity and disciplined expense management, partially offset by strengthening of prior year latent claims
following adverse experience in the prior year. Within the current loss year, favourable claims experience was led by especially benign
weather claims in the period.
Levels of income remained broadly consistent with the prior year, reporting a small reduction in gross written premium to £101.0m
2
(2024: £101.6m)
. Strong new business wins, led by growth in our core segments, were offset by lower retention and rate on renewals
due to softening market conditions.
I
nvestments
The Company reported a particularly strong net investment result for the year of £91.0m (2024: £71.9m profit), as the majority of its
asset classes performed well in more positive market conditions.
T
he investment result was supported by stable investment income levels of £46.0m (2024 £50.1m) and especially strong fair value
gains of £44.7m (2024: £21.4m gains). Fair value gains benefitted from favourable returns on bonds, OEIC listed equities and property,
as well as outstanding performance in our strategic unlisted equity investment portfolio.
W
e remain committed to our long-term investment philosophy, with a well-diversified and appropriately matched portfolio. Our
investment approach is a key part of our climate strategy, and you can find out more in the Responsible Business report.
Long-term business
Ecclesiastical Life Limited, our life business, reported an improved profit before tax of £3.1m for the year (2024: £1.4m profit), driven by
growth and investment gains in the period. Assets and liabilities in relation to the life insurance business remain well matched.
Outlook
We expect increasingly soft and competitive insurance market conditions to remain a key feature of 2026. During this period, we are
committed to modest and profitable growth, maintaining our underwriting discipline and continuing to ensure we can provide market
leading services to its customers. With a fast-developing Technology and AI landscape, we are prepared to innovate and invest in the
business to strive for operational excellence and to continue to provide our services to customers as efficiently and effectively as
possible.
E
xternal economic and market conditions may continue to change during 2026. Recent geopolitical events have contributed to changes
in financial markets and the wider economic environment. These developments may influence inflation, interest rates and general
business activity in the UK and the territories we operate in, although the extent of any impact is not yet clear. Our investment strategy
and highly resilient capital position ensures we can take a long-term view and remain in a position of strength as we look to prioritise
supporting our customers during increasingly uncertain and challenging times.
Balance sheet and capital position
In the year, total shareholders’ equity reduced by £9.0m to £618.0m, as reported profits were offset by charitable donations and paying
a dividend of £50m to Benefact Group to support the effective use of capital across the wider Benefact Group. The Company’s capital
position remains extremely robust, with Solvency II capital ratio cover for EIO remaining at 252% (2024: 252%).
During the year charitable donations of £24.0m were paid to the Company’s ultimate shareholder, Benefact Trust Limited, as well as
£4.1m to other causes. The Company has now given over £275m in charitable donations since 2014, continuing the Benefact Group’s
ambition to give more to good causes.
Mark Bennett
Group Chief Financial Officer
1
The EIO Group uses Alternative Performance Measures (APMs) to help explain performance, More information on APMs is included in Note 36
2
Values here have been calculated using a constant exchange rate to ensure the effects of exchange rates have been removed. The prior year end rate
has been used in the calculation here.
23
Ecclesiastical Insurance Office public limited company
Strategic Report
K
ey performance indicators
T
he Group considers its key performance indicators to be profit or loss before tax, regulatory capital, gross written premiums, and
combined operating ratio. In addition to information included within this Strategic Report, details about the Group’s regulatory capital,
gross written premiums, and combined operating ratio can be found in notes 4 and 36 to the financial statements.
Str
ategic Report
T
his Strategic Report has been approved and authorised for issue by the Board of Directors and signed on its behalf by
Mark Hews
Group Chief Executive
19 March 2026
24
Ecclesiastical Insurance Office public limited company
Governance
B
oard of Directors
The directors of the company who were in office during the year and up to the date of signing the Annual Report and Accounts were:
François-Xavier Boisseau
Chair
Appointed: 20 March 2019
Tenure: 7 years
François-Xavier Boisseau became Chair of Ecclesiastical Insurance Office public limited company and Benefact Group plc on 1
January 2026.
He was appointed to the Board in March 2019. He is the Chair of IQUW Syndicate Managing Agency Ltd.
François-Xavier has more than 30 years’ experience working in the insurance industry, 25 years in the UK. He was CEO of Insurance
Ageas (UK) until December 2018. Prior to that he was CEO of Groupama and CEO of GUK Broking Services as well as being Non-
Executive Chairman of Lark, Bollington and Carole Nash.
Mark Hews
Group Chief Executive
Appointed: 2 June 2009
Tenure: 16 years 9 months
Mark Hews was appointed Group Chief Executive in May 2013 and was previously Group Chief Financial Officer. He was appointed to
the Board in June 2009 and appointed to the Board of MAPFRE RE in December 2013. He also became a Trustee of The Windsor
Leadership Trust in November 2017.
He was formerly a Director of HSBC Life and Chief Executive of M&S Life. Prior to this he was Finance Director at Norwich Union
Healthcare. He started his financial career at Deloitte (formerly Bacon and Woodrow) as a consultant and actuary.
Mark Bennett
Group Chief Financial Officer
Appointed: 1 January 2025
Tenure: 1 year 2 months
Mark Bennett was appointed Group Chief Financial Officer in January 2025, having progressed his career within the organisation since
2007. After working at an actuarial consultancy firm in London, Mark began his career at Benefact Group in 2007.
M
ark qualified as an Actuary in 2009 and, after working in various actuarial teams, was appointed Group Chief Actuary in 2018. Since
then, Mark has overseen the Group’s Actuarial, Reinsurance, Risk and Investment functions. Mark became Acting CFO in July 2024,
additionally leading the Finance and Premises functions, before taking on the role permanently in January 2025.
S. Jacinta Whyte
Deputy Group Chief Executive
Appointed: 16 July 2013
Tenure: 12 years 8 months
Jacinta Whyte was appointed Deputy Group Chief Executive and joined the Board in July 2013 with responsibility for the Group’s
General Insurance business globally. She was also appointed to the Ansvar Australia Board during 2013.
Jacinta joined Ecclesiastical in 2003 as the General Manager and Chief Agent of the Group’s Canadian business, a role that she
continues to hold. Having commenced her career as an underwriter for RSA in Dublin in 1974, she moved with them to Canada in 1988,
holding a number of senior executive positions in both Ireland and Canada.
25
Ecclesiastical Insurance Office public limited company
Governance
James Coyle
Senior Independent Director, Audit Committee Chair
Appointed: 21 May 2024
Tenure: 1 year 9 months
James was appointed to the Board in May 2024. James is Senior Independent Director and Chair of the Audit and Risk Committee at
Pollen Street Capital. He is also a Non-Executive Director and Risk Committee Chair of HSBC Bank (Singapore) Limited and Chair of
HSBC Global Services Limited, and Deputy Chair of Deloitte LLP’s Oversight Board.
Previously, James chaired boards and audit committees at HSBC UK Bank plc, HSBC Trust Company, Marks & Spencer Unit Trust
Management, Worldfirst UK, and Scottish Water, among others.
He retired in 2015 as Group Financial Controller/Deputy Finance Director at Lloyds Banking Group after 25 years in financial
services, following senior finance roles at Bank of Scotland and BP.
Michael Murphy
I
ndependent Non-Executive Director, Risk Committee Chair
A
ppointed 3 December 2025
T
enure: 3 months
Michael is an experienced Board Director and Chair with more than 30 years in Insurance & Financial Services, having held Executive
and Non-Executive Director roles on regulated Boards at international organisations including Great-West/Canada Life, Aviva, Willis
Towers Watson, Bank of Ireland and Flood Re. He previously held Global, EMEA and Irish leadership roles as CEO, CFO and Chief
Actuary in these organisations, successfully designing new strategies and delivering significant transformation, restructuring,
cultural change and strong, sustainable growth across different businesses, countries and cultures.
He
is currently an independent Non-Executive Director, Chair and Board Committee Chair with several regulated Insurance,
Reinsurance, Wealth and Retirement businesses in the UK. He is also an Executive Coach and Mentor to the Founders/CEOs of
several international FinTech's and Insurtech's.
Sir Stephen Lamport
I
ndependent Non-Executive Director, Joint Remuneration Committee Chair
A
ppointed: 23 March 2020
T
enure:6 years
S
ir Stephen joined the Board in March 2020. In addition, he was appointed as a Non-Executive Director and Trustee of the Company's
ultimate beneficial owner, Benefact Trust Limited.
He is Vice-President of the Community Foundation for Surrey, Chairman of Painshill Park Trust, and Trustee of the Yvonne Arnaud
Theatre. A Deputy High Bailiff of Westminster Abbey, he served as Receiver General from 2008 to 2018 and was previously Group
Director at RBS. Earlier, he was Private Secretary and Treasurer to The Prince of Wales and a member of HM Diplomatic Service with
postings in New York, Tehran, and Rome. Sir Stephen is also a Deputy Lieutenant of Surrey.
26
Ecclesiastical Insurance Office public limited company
Governance
T
he Venerable Karen Best
Independent Non-Executive Director
Appointed: 19 August 2024
Tenure: 1 year 7 months
The Venerable Karen Best was appointed to the Board in August 2024, having been a member of the Benefact Trust Board prior to
this.
The Venerable Karen Best has served as Archdeacon of Manchester since 2017. Ordained in 1994, she began her ministry in the
Diocese of London as a Prison Chaplain and later Associate Vicar, before serving in Rochester, Chelmsford, and Bolton. Karen is
passionate about supporting others on their spiritual journey through preaching, teaching, and walking alongside them. She values
her relationship with Christ above all and describes herself as a ‘work in progress.’ A pioneer by accident and design, she embraces
opportunities to model leadership as a GMH woman and Christian Mystic.
Jane Dale
Independent Non-Executive Director
Appointed 3 February 2026
Tenure: 1 month
Jane is a Chartered Accountant who spent the majority of her executive career in financial services, including 18 years at Legal &
General where she had a variety of finance and business roles, including as Managing Director of the GI business. Her last executive
role was with Ageas UK where she was Finance Director of the life assurance business.
Jane started her non-executive career in 2009 when she joined British Gas Services as Chair of the Audit & Risk Committee, where
she stayed for 9 years. Since 2016 she has held a variety of non-executive roles including Chesnara, Covea Insurance and Brown &
Brown Europe, where she has undertaken a variety of committee chair roles including audit and
risk.
Angus Winther retired from the Board at the AGM on 26 June 2025. Additionally, David Henderson and Maria Darby-W
alker resigned
from the Board on 31 December 2025
27
Ecclesiastical Insurance Office public limited company
Governance
Directors’ Report
The directors present their report and the audited consolidated Annual Report and Accounts for the year ending 31 December 2025.
Information incorporated by reference
In accordance with Section 415 of the Companies Act 2006 (the Act), the directors present their report for the year ended 31 December
2025. Other sections of the Annual Report and Accounts have been deemed to be incorporated into the Directors’ Report by reference and
the table below outlines where required disclosures can be found. In accordance with section 414C(11), some disclosures have been included
in the Strategic report.
Information
Reported in
Page(s)
Business model
Our business and strategy section of Strategic Report
Page 9/10
Corporate Governance Statement Corporate Governance Report Page 33
Financial instruments Note 4
Page 96
Derivative financial instruments and hedging
Page 76
accounting policy
Important events since 31 December 2025 Directors’ Report Page 31
Future developments
Directors’ Report
Page 28
Research and development
Directors’ Report
Page 29
Employee engagement and involvement Stakeholder engagement and section 172 Statement
Page 17
Corporate Governance Report
Page 33
Responsible Business section of Strategic Report
Page 10
Stakeholder engagement Stakeholder engagement and section 172 Statement Page 17
Greenhouse gas emissions and energy consumption
Responsible Business section of Strategic Report
Page 10
Going Concern and Viability Statement
Directors’ Report
Page 30
Diversity and inclusion Stakeholder engagement and section 172 Statement
Page 17
Corporate Governance Report
Page 33
Nominations Committee Report
Page 44
The Section 172 Statement
Stakeholder engagement and section 172 Statement
Page 17
Payment Practices Responsible Business section of Strategic Report Page 10
Principal risks and uncertainties Strategic Report
Page 2
Note 3
Page 92
C
ompany status and branches
EIO is incorporated and domiciled in England and Wales (registration number 00024869). The registered office of the Company is
Benefact House, 2000 Pioneer Avenue, Gloucester Business Park, Brockworth, Gloucester, GL3 4AW, United Kingdom. The Company
has branches in Canada and Ireland.
Principal activities
The Company operates principally as a provider of general insurance. Details of the subsidiary undertakings of the Company are shown
in note 34 to the financial statements.
Fu
ture Developments
Looking ahead, the Company expects to continue progressing initiatives that support the EIO Group’s strategic priorities and long‑term
objectives. More information on forthcoming developments, planned activities and areas of focus can be found in the Strategic Report
and the Corporate Governance Report
O
wnership and share capital
At the date of this report, the entire issued Ordinary share capital of the Company was owned by Benefact Group plc. In addition, 3.37%
of the issued 8.625% non-cumulative irredeemable preference shares of £1 each (‘Preference shares’) are owned by Benefact Group
plc. In turn, the entire issued ordinary share capital of Benefact Group plc was owned by Benefact Trust Limited, the ultimate parent of
the EIO Group.
Directors and their interests
The directors of the Company who served during the year and up to the date of this report were Mark Hews, Karen Best, Mark Bennett,
François-Xavier Boisseau, James Coyle, Michael Murphy, Sir Stephen Lamport, and Jacinta Whyte. David Henderson, Maria Darby-
Walker and Angus Winther stepped down from the Board during the year. Biographies of those directors who are currently serving
on the Board are set out in the Directors’ Information Page.
28
Ecclesiastical Insurance Office public limited company
Governance
As
set out in the Notice of Meeting, all current directors who have served since the last AGM will be proposed for re-election. All
directors seeking re-election were subject to a formal and rigorous performance evaluation, further details of which can be found in
the Group Nominations Committee Report. Details of directors’ service contracts are set out in the Directors’ Remuneration Report of
Benefact Group plc. Also, Michael Murphy and Jane Dale will be proposed for election following recommendation of the Group
Nominations Committee. In addition, and following the announcement on 18 February 2026, Gail Tucker will join the Board with effect
from 1 May 2026. Therefore, she will also be proposed for election at the upcoming AGM.
N
either the directors nor their connected persons held any beneficial interest in any ordinary shares of the Company during the year
ended 31 December 2025 and to the date of this report.
T
he interests of the directors and their connected persons in the preference shares in the capital of the Company as at 31 December
2025 and to the date of this report are shown below:
Director
Nature of interest
Number of Non-Cumulative
Irredeemable Preference Shares held
Mark Hews
Connected person
75,342
T
he Board has a documented process in place in respect of conflicts.
N
o contract of significance existed during or at the end of the financial year in which a director was or is materially interested.
Indemnities and insurance
In accordance with the Company’s Articles and the qualifying third-party indemnity provisions (as defined by Section 234 of the
Companies Act 2006), the Company indemnifies each of its directors and directors of any associated company against certain liabilities
that may be incurred because of their positions. These provisions were in force during the course of the financial year ended 31
December 2025 and at date of signing for the benefit of the directors of the company and that of any associated company. In addition,
the Company maintains directors’ and officers’ liability insurance. Neither our indemnity nor the insurance provides cover in the event
that a director is proven to have acted dishonestly or fraudulently.
D
irector and senior management diversity
In accordance with Listing Rule 6.6.6R(10), the required disclosure relating to Director and Senior Management Diversity is set out in
the Nominations Committee Report within this Annual Report, which is incorporated into this Directors Report by reference.
Employees
The Benefact Group is dedicated to nurturing a culture and work environment where all colleagues can reach their potential. The
Diversity, Equity and Inclusion Standard and Guidance sets its commitment to creating and sustaining an open and inclusive workplace
where everyone belongs, and the Benefact Group places the care and wellbeing of all its colleagues at the heart of its employment
policies. Throughout the colleague lifecycle, from recruitment onwards, the Benefact Group considers adjustments to its processes
and practices to remove barriers for colleagues with disabilities.
T
he Benefact Group engages with third-party and occupational health specialists to provide expert advice and ensure it offers the best
support possible. The adjusted work approach creates an environment where colleagues with additional needs can fully participate in
all opportunities provided by the Benefact Group, including continued employment, training, job moves, and promotions. The Benefact
Group offers various support options to help colleagues maintain a healthy work-life balance, including flexible working practices, a
virtual GP service, an employee assistance program, flu vaccinations, eye tests, and a wide range of flexible benefits such as dental
care and critical illness insurance and inclusive colleague networks.
I
nformation on employee engagement and well-being is provided in the responsible business section.
R
esearch and Development
In the ordinary course of business, the Company develops new products and services across each of its business units, ensuring they
meet evolving customer needs and reflect emerging market, regulatory and technological developments. This ongoing product and
service development supports its commitment to innovation and continuous improvement.
Di
vidends
Dividends paid on the preference shares were £9,181,000 (2024: £9,181,000). The Directors do not recommend a final dividend on the
Ordinary shares (2024: £nil).
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Ecclesiastical Insurance Office public limited company
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A
n interim dividend of £50m on the Ordinary Shares of 4p each was paid to Benefact Group plc during the year.
G
oing concern
The financial performance and principal risks and uncertainties section of the Strategic Report starting on page 2 provide a review of
the EIO Group’s business activities and disclose the EIO Group’s principal risks and uncertainties, including exposures to insurance,
financial, operational and strategic risk.
T
he EIO Group has considerable financial resources: financial investments of £1,094.7m, 76% of which are liquid (2024: financial
investments of £982.0m, 78% liquid) and cash and cash equivalents of £93.2m (2024: £105.8m) to withstand economic pressures.
Liquid financial investments consist of listed equities and open-ended investment companies, government bonds and listed debt.
T
he EIO Group has a strong risk management framework and solvency position, is well placed to withstand significant market
disruption and has proved resilient to stress testing. The EIO Group has considered its capital position, liquidity and expected
performance. The EIO Group and its businesses have sufficient levels of cash and other liquid resources and has expectations it can
meet its cash commitments over its planning horizon. The EIO Group and its businesses expect to continue to meet regulatory
requirements.
D
espite economic pressures and challenges, given The EIO Group’s operations, robust capital strength, liquidity and in conjunction
with forecast projections and stress testing, the directors have a reasonable expectation that The EIO Group has adequate resources
and is well placed to manage its risks successfully and continue in operational existence for at least 12 months from the date of this
report. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Accounts.
Lo
nger-term viability statement
The directors have assessed the prospects of the Group in accordance with Provision 31 of the 2018 UK Corporate Governance Code.
Although the prospects and business plans of the Group are considered over a longer period, the assessment by the directors covers
three years. In making its assessment the directors considered:
The Group’s current position and prospects, risk appetite, and the potential impact of the principal risks and how these are
managed;
The Group’s long-term business plans and strategy, and the costs associated with its delivery;
The Group’s current capital, liquidity and solvency position and projections;
The political, economic and regulatory environment, including uncertainties on the geopolitical outlook.
W
hile the directors have no reason to believe the Group will not be viable over a longer period, a three-year outlook period has been
selected. In determining this assessment period, consideration has been given to the nature of the Group and its businesses, its stage
of development, strategy and business model. Given the rate of change in the markets in which the Group operates, three years
provides an appropriate balance between the period of outlook and degree of clarity over specific, foreseeable risk events that could
impact on the viability of the Group. The directors will continue to monitor and consider the suitability of this period.
The Group uses varying stress scenarios with reference to the principal risks, which are documented on pages 5 to 9. Scenarios are
designed to be severe, but plausible, and assess the impact of certain events on the Group’s profitability and capital strength. Reverse
stress testing is also used to assess what could make the Group’s business model unviable. The outcome of testing was discussed by
the Board during the year and consideration was given to the current environment on the Group’s viability.
Among the considerations and scenarios were further investment market volatility, claims experience and business deterioration.
T
he solvency position of the Group has been projected as part of the Own Risk and Solvency Assessment (ORSA), which is a private,
internal, forward-looking assessment of own risk, required as part of the Solvency II regime. The forward looking emphasis of the
ORSA ensures that business strategy and plans are formulated with full recognition of the risk profile and future capital needs.
A
nalysis confirms that the Group has sufficient capital resources to cover its capital requirements and is operationally resilient.
T
he directors have also considered the Group’s ability to service its preference shares, subordinated liabilities and the expectations of
its ultimate charitable owner, Benefact Trust Limited. The Group has fixed annual dividend payments in respect of its non-cumulative
irredeemable preference shares and payments in respect of its subordinated liabilities. The Group makes regular grants to its ultimate
charitable owner, Benefact Trust Limited. There is a regular cycle of discussion with Benefact Trust Limited to determine the
appropriate level of grants, in which the Group’s capital position and future business needs are taken into account.
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Ecclesiastical Insurance Office public limited company
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C
onfirmation of viability
Based on the Group’s strong capital position, the strong risk management framework in place and the Group’s resilience to the variety
of adverse circumstances as demonstrated in the results of the stress testing and potential mitigating actions, the directors confirm
that they have a reasonable expectation that the Group will continue in operation and be able to meet its liabilities over the three year
period of the viability assessment.
P
olitical donations
No political donations were made in the year (2024: £nil). The EIO Group policy is that no political donations may be made or
expenditure incurred.
I
mportant events since 31 December 2025
As mentioned above, subsequent to the year-end 31 December 2025, the Company announced on 18 February 2026 that Gail Tucker
is expected to be appointed as a Non-Executive Director and a member of the EIO Audit and Risk Committees. The appointment will
take effect on 1 May 2026 and will enhance the Board’s expertise and contribute towards improved gender diversity at Board level.
E
xternal auditor
During the year, the EIO Audit Committee reviewed the effectiveness of the External Auditor.
I
n accordance with Section 489 of the Companies Act 2006, a resolution proposing that PricewaterhouseCoopers LLP be re-
appointed as External Auditor will be presented to the forthcoming AGM for consideration.
Disclosure of information to the auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information that the
auditor is unaware, that could be needed by the auditor in order to prepare their report.
H
aving made enquiries of fellow directors and the Group’s auditor, each director has taken all the steps that they ought to have taken
as a director, in order to make themselves aware of any relevant audit information, and to establish that the auditor is aware of that
information.
T
his confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.
A
nnual General Meeting
A copy of the Notice for the 2025 AGM is available on page 159.
Directors' responsibilities statement
The directors are responsible for preparing the 2025 Annual Report and the financial statements in accordance with applicable law
and regulations.
C
ompany law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared
the financial statements in accordance with UK-Adopted International Accounting Standards (UKIAS). Under company law, directors
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the
Company and of the profit or loss of the Company for that period. In preparing the financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable UKIAS have been followed, subject to any material departures disclosed and explained in the financial
statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue
in business.
T
he directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
T
he directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006.
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Directors’ confirmations
The directors consider that the 2025 Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides
the information necessary for shareholders to assess the EIO Group’s and Company’s position and performance, business model and
strategy. Each of the directors, whose names and functions are listed on pages 25, 26 and 27 confirm that, to the best of their
knowledge:
the EIO Group and Company financial statements, which have been prepared in accordance with UKIAS accounting standards,
give a true and fair view of the assets, liabilities and financial position of the EIO Group and Company, and of the profit of the EIO
Group; and
the Strategic Report includes a fair review of the development and performance of the business and the position of the EIO Group
and Company, together with a description of the principal risks and uncertainties that it faces.
A
pproved and authorised for issue by the Board of Directors and signed on its behalf by
Fr
ançois-Xavier Boisseau Mark Hews
Chair Group Chief Executive
19 March 2026 19 March 2026
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Ecclesiastical Insurance Office public limited company
Governance
Cor
porate Governance
I
ntroduction from the Chair
Dear Stakeholder
I am honoured to present the Corporate Governance Report, my first as Chair, following David Henderson’s resignation at the end of
2025 to take up his position as Chair of Benefact Trust. On behalf of the Board, I would like to express our sincere appreciation for
David’s leadership and contribution to the sound governance of the Company during his tenure.
This report sets out our approach to governance and provides a detailed account of how the Board and its Committees operated during
2025. Further information on our governance framework and practices is included throughout this section.
E
cclesiastical is proudly part of the Benefact Group, a financial services group ultimately owned by Benefact Trust Limited, a registered
charity. Benefact Group plc comprises three distinct divisions, each overseen by a divisional holding company. Ecclesiastical serves as
the holding company for the insurance division. Additional details on the Benefact Group plc structure can be found in the Benefact
Group plc Report and Accounts.
Areas of Board and Committee focus
The year under review was one of transition and renewal. The Board’s principal focus during 2025 was to ensure a smooth and
effective succession process for the Chair position, led by the Group Nominations Committee, and to continue strengthening the Board’s
composition in line with the UK Corporate Governance Code 2024 and the expectations of its shareholders. Further information on
these activities is provided in the Nominations Committee Report. The Board looked to continue demonstrating its resilience and
commitment to its stakeholders as detailed below. More information on the Board’s activities and key decisions can be found within
this report.
O
ur approach to governance
As a Board, we remain committed to maintaining the highest standards of corporate governance and believe that the Company’s affairs
should be conducted in accordance with recognised best practice. Although the Company does not have equity shares admitted to the
London Stock Exchange’s commercial companies category under the revised UK Listing Regime, it has voluntarily adopted the
Principles and, where possible, the Provisions of the UK Corporate Governance Code 2024 (the ‘Code’), issued by the Financial
Reporting Council. The Code is available on the FRC’s website at frc.org.uk.
D
uring the year, the Board and its Committees oversaw the application of the revised 2024 Code. The changes to provision 29, relating
to the effectiveness of the risk management and internal control framework will apply to the year beginning 1 January 2026.
I
am pleased to confirm that, for the year ended 31 December 2025, the Company has applied the Principles of the Code and complied
with its Provisions in all material respects, subject to the limited exceptions set out in this report. Where we have not complied fully,
we have provided clear and transparent explanations in accordance with the “comply or explain” approach required under the Listing
Rules and the Code.
Provision
Current Status / Explanation
4:
When 20 per cent or more of votes have been cast
Given Benefact Group plc owns the entire issued Ordinary share capital
against the board recommendation for a resolution, the
of the Company, there is no need to comply with the provisions relating
Company should explain, when announcing voting results,
to outcomes from shareholder votes
what actions it intends to take to consult shareholders in
order to understand the reasons behind the result.
10.
The board should identify in the annual report each
The Board has considered the circumstances and relationships of all
Non-Executive director it considers to be independent.
Non-Executive Directors and is satisfied that a majority of the Non-
Circumstances which are likely to impair, or could appear
Executive Directors remained independent in character and judgement.
to impair, a non-executive director’s independence include,
Sir Stephen Lamport is also a Non-Executive Director of the Company’s
but are not limited to, whether a director:
ultimate parent, Benefact Trust Ltd, a registered charity, and this
− holds cross-directorships or has significant links with
common directorship is regarded as good practice with a charity that
other directors through involvement in other
owns trading subsidiaries.
companies or bodies;
Where any of these or other relevant circumstances apply,
and the board nonetheless considers that the non-
executive director is independent, a clear explanation
should be provided.
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Ecclesiastical Insurance Office public limited company
Governance
36:
Remuneration schemes should promote long-term
Given the Company does not have listed equity shares it is unable to
shareholdings by executive directors that support
comply with the shareholding requirements for Executive Directors.
alignment with long-term shareholder interests.
AGM and re-election of directors
This year’s AGM will be taking place on
25 June 2026. A copy of the Notice for the AGM is available on page 159.
In accordance with the Code and as set out in the Notice of Meeting, all directors who have served since the last AGM will be proposed
for re‑election, with the exception of Angus Winther, who retired from the Board with effect from 26 June 2025, and Maria
Darby‑Walker and David Henderson, who both resigned with effect from 31 December 2025. I can confirm that all directors seeking
re‑election have been subject to a formal and rigorous performance evaluation.
In addition, Michael Murphy and Jane Dale, who were appointed during the year, will each seek election at the AGM. Furthermore, as
indicated in the Directors’ Report, Gail Tucker will be appointed to the Board with effect from 1 May 2026 and will therefore also
stand for election at the upcoming AGM.
François-Xavier Boisseau
Chair
19 March 2026
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Ecclesiastical Insurance Office public limited company
Governance
Board leadership and Company Purpose
Th
e Role of the Board
The Board is accountable to the Company’s shareholders for the long-term success of the Group and for safeguarding its purpose,
values, strategy, culture, and governance framework. We place great importance on maintaining a well-informed and decisive Board,
with meetings scheduled regularly throughout the year to ensure timely and effective decision-making.
I
n addition to setting up the Group’s strategic direction, the Board establishes annual objectives and oversees their delivery through
the approval and ongoing review of the business plan and strategic initiatives. This structured approach ensures alignment between
short-term priorities and long-term goals.
Purpose, values and strategy
T
he Company’s purpose is to contribute to the greater good of society by improving the lives of our customers, beneficiaries, and the
wider community. We achieve this through the stewardship of a diverse portfolio of businesses that operate to the highest ethical
standards and are committed to delivering long-term sustainable value.
O
ur approach is underpinned by a clear expectation that all businesses within the EIO Group set a high bar placing customers at the
heart of decision-making, acting responsibly, and serving as an example of best practice across the industry. We seek to embed an
ethical dimension in all aspects of our operations, ensuring that integrity and accountability remain central to our governance
framework.
A
s a company with a distinctive purpose, we recognise that success is defined not only by what we do, but by how we do it. Our values
shape the way we work, underpinning our vision, ambition, and strategy. They provide the common thread that unites our family of
businesses and guide our actions in delivering positive outcomes for all stakeholders.
I
n accordance with the Code, the Board ensures that the Company’s purpose, values, and strategy are aligned with its culture. This is
achieved through regular reporting and discussion on culture-related metrics, employee engagement surveys, and stakeholder input.
The Board (via its committees) also reviews the outcomes of internal audits and risk assessments to confirm that behaviours across
the Group reflect our stated values. Where areas for improvement are identified, the Board oversees the implementation of targeted
actions to strengthen cultural alignment and reinforce ethical standards.
C
ulture
T
he Board is responsible for setting the right values and culture across the Group and for ensuring the fair treatment of customers.
Our culture is deeply connected to the Group’s purpose – to give all available profits to charity and good causes. We measure our
success by how much we can give to good causes, and during the year colleagues recorded over 630 volunteering days, dedicating
thousands of hours to charities and causes close to their hearts.
I
n 2024, we launched a simplified and refreshed set of values which now guide and shape the culture across the wider Benefact Group,
as outlined below:
C
ollaborating
We’re a family of diverse businesses united by our culture of inclusion and our commitment to the
value, energy and fun of working together.
Ambitious Our growth is empowered by our ability to be confident, bold and agile. We actively listen, learn
and innovate whilst maintaining a consistent focus on delivering the highest standards for our
customers and clients.
Responsible We stake our reputation on integrity, ethical principles and commitment to building a responsible
and sustainable legacy.
Expert We nurture our colleagues with opportunities for growth, trusting each other’s specialist expertise,
knowledge and experience to deliver the best outcomes for our customers, clients and
beneficiaries.
Supporting
Our purpose is at the heart of everything we do, bringing us together to build a movement for good.
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Ecclesiastical Insurance Office public limited company
Governance
E
very colleague, including our Directors, plays a vital role in shaping and sustaining our culture through how we interact with one
another, our business partners, clients, customers and wider communities. Our values are embedded across the entire colleague
lifecycle - from recruitment and performance management to our behaviour model, emerging talent and leadership development
programmes and internal communications.
N
ew colleagues are introduced to our values through the Global Group Induction programme, which explains how these values
influence our business. All colleagues also complete annual Code of Conduct training to reinforce the importance of our values and
culture.
Individual performance evaluations consider both delivery of objectives and the demonstration of values-based behaviours, which in
turn inform reward outcomes. Local recognition schemes further encourage colleagues to demonstrate positive cultural behaviours
and support peer-to-peer recognition.
W
e further promote an inclusive culture through training such as Inclusive Leadership and through colleague led networks including
Male Allyship, Neurodiversity, LGBTQ+ and Women’s networks, which provide safe and supportive spaces for colleagues.
T
he Board has assessed and monitored how the Group’s desired culture is embedded across the organisation and reports on its
oversight activities and outcomes in line with the 2024 UK Corporate Governance Code.
We oversee the wider Benefact Group culture through employee engagement surveys, with results reviewed by the Board to assess
and monitor how the desired culture has been embedded. The Board receives regular updates on Diversity, Equity and Inclusion plans
and progress and through the Risk Committee, it also receives regular reporting on culture from a range of business areas, including
cultural status indicators, taking corrective action where necessary. Board members undertake site visits and meet colleagues to hear
first-hand their experiences of working within the Group.
A
key outcome during the year was the Group being awarded the UK’s No.4 Best Big Company to Work For by Best Companies in
2025, retaining the 3* World Class recognition in the UK and Ireland. Wellbeing provision for colleagues was also strengthened with
the introduction of neonatal miscarriage leave.
Key areas of focus for our Board during the year
O
ur Board and Committee meetings were held both in person and remotely throughout the year, supporting agile and effective
decision‑making. The outgoing Chair and the Senior Independent Director also held regular calls with the Non‑Executive Directors to
ensure open communication. Members of the General Management Board (GMB), together with other senior colleagues, attended
Board and Committee meetings to encourage open dialogue, provide insight into business performance, review progress, and help
inform priorities for EIO and its subsidiaries.
T
he Board operates to a structured annual programme of activities agreed by the Chair in collaboration with the Company Secretary
and, where appropriate, with input from the Group Chief Executive Officer. This programme covers strategy and performance, strategic
reviews, financial results, governance matters, legal and regulatory issues, colleagues, culture and values, and risk management. This
approach ensures that the Board’s discussions and decisions are well‑informed, appropriately sequenced, and aligned with the needs
of the business, while also taking account of the interests of our stakeholders. Further information on stakeholder engagement during
the year can be found in our Section 172 Statement and Stakeholder Engagement Disclosures.
A key area of focus for the Board during the year was overseeing the Chair succession process, which concluded with the appointment
of François Boisseau as successor to David Henderson. Further detail on this process is included in the Nomination Committee Report.
T
he following table summarises selected Board decisions and areas of focus during the year, together with the stakeholder groups
considered in each case. While not exhaustive, these examples reflect the breadth and depth of matters reviewed by the Board. The
Board undertook these activities as part of its ongoing oversight of performance, risk and organisational development, ensuring that
each matter considered supported the Company’s strategic direction and long‑term value creation.
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Ecclesiastical Insurance Office public limited company
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A
s outlined in our Stakeholder Engagement disclosure, the stakeholder groups considered for these purposes comprise:
1
customers; 2 colleagues; 3 communities; 4 shareholders and investors; 5 suppliers (including brokers); 6 regulators and
governments; and 7 the environment
Consumer Duty Annual Update.
b-heard Survey Results:
During the year, the Board
The Board reviewed and approved the annual
reviewed the outcomes of the 2024 b
‑heard
Consumer Duty Assessment during the year. In
colleague engagement survey, reported in Q1 2025.
carrying out this review, the Board considered
The Board welcomed the strong participation rate of
evidence of the outcomes being delivered for
85%, viewing this as a positive indicator of colleague
customers and the effectiveness of the Company’s
engagement and trust in the process.
arrangements in ensuring that customers receive
products and services that meet their needs and offer
The Board was pleased to note that the Group
fair value.
achieved an ‘Outstanding’ rating, with the UK
business attaining a Three‑
Star World Class
The assessment demonstrated that the Company
accreditation. The Board considered these results to
continues to deliver good outcomes for its customers
be a strong reflection of the Group’s culture,
in line with the requirements of Consumer Duty. The
leadership behaviours and ongoing focus on
Board concluded that the Company’s approach
colleague experience. The insights from the survey
remains appropriate and effective, and it will continue
were discussed in the context of sustaining a healthy
to monitor performance and customer outcomes to
culture and supporting continued improvements in
ensure that standards are maintained and
engagement, performance and organisational
strengthened where necessary.
outcomes.
Stakeholders Considered: 1,2,5,6
S
takeholders Considered: 2,4,6,7,3
Health and Safety update
The Board received and
Global ERP Platform:
As part of its oversight of the
noted its annual Health and Safety update. As a
Company’s Invest strategic priority, the Board
result, the Board gained assurance on the
received regular updates on the selection and
effectiveness of the H&
S Management system,
implementation of a new global ERP platform for
compliance with legal regulatory requirements and
Group Finance. The Board monitored progress,
any trends in incidents and near misses.
sought assurance on programme deliver
y, and
reviewed expected benefits, noting that the platform
S
takeholders Considered: 2,6,1,3,5,4,7
is designed to drive material efficiencies, strengthen
financial processes, and enhance consistency across
the Group. These updates provided the Board with
Modern Slavery Act Statement 2025-26:
As part of
assurance that the investment remained aligned to
its oversight of culture and responsible business
the Company’s long‑term operational and strategic
practices under the Energise strategic initiative, the
objectives.
Board received an update on the Modern Slavery Act
and the findings of the 2024 House of Lords Select
Stakeholders Considered: 2,4,5,6,
Committee review of the Modern Slavery Act 2015.
The Board considered the outcomes of a Group
‑wide
gap analysis, noting that no material changes were
Corporate Governance Code training:
During the
required to ensure alignment with the Government’s
year, the Board undertook training on the
updated guidance for 2025.
forthcoming changes to the 2024 Corporate
Governance Code. The session enhanced the Board’s
The Board reviewed the strengthened Group Modern
understanding of the updated governance
Slavery Statement and took assurance that its
expectations and their implications for Board
principles are embedded across the organisation,
effectiveness, reporting, and oversight practices.
particularly within Procurement, where enhanced
controls and supplier oversight are in place. The
This training strengthened the Board’s ability to
Board also noted the positive cultural outcome of
provide informed stewardship, ensured that directors
sustained colleague engagement, with all staff
remained up to date with evolving regulatory
receiving regular training on modern slavery risks
standards, and supported the Company’s
and ethical conduct.
commitment to high‑
quality governance and
transparent reporting.
T
hese updates provided the Board with confidence
that the Group continues to uphold high standards of
S
takeholders Considered: 6,4,7,1,2,5
integrity, supports a culture of ethical behaviour, and
37
Ecclesiastical Insurance Office public limited company
Governance
maintains compliance with evolving regulatory
Dividend Recommendations:
During the year, the
expectations.
Board approved dividend payments to its parent
company, supporting the wider Group’s ability to
S
takeholders Considered: 5,1,2,6,3,4,7
deliver its charitable and community
‑fo
cused
objectives under the Giving strategy. In making this
DEI Training:
During the year, the Board participated
decision, the Board considered the Company’s
in dedicated training on Diversity, Equity and
financial position, capital requirements and long‑term
Inclusion (DEI). This formed part of the Company’s
sustainability, ensuring that the distribution was
ongoing commitment to fostering an inclusive culture
consistent with prudent financial management and
that supports the long
‑
term success of the
aligned with the Company’s strategic priorities.
organisation and reflects the values embedded within
the Group’s strategic framework.
These actions reinforced the Company’s purpose‑led
culture and enabled the Group to continue its
The training provided the Board with enhanced
distinctive approach to charitable giving. They
insight into evolving regulatory, workforce and
contributed to tangible societal outcomes and
societal expectations relating to DEI, and reinforced
directly supported the objectives of the Giving
the importance of inclusive leadership behaviours in
strategy.
shaping culture and decision
‑mak
ing. The session
also supported the Board’s understanding of how DEI
Stakeholders Considered: 4,1,2,6,7
considerations influence organisational resilience,
talent attraction and retention, and stakeholder trust.
Climate change update:
In line with the Company’s
adoption of Benefact Group plc’s climate change
B
y strengthening the Board’s capability and
strategy, the Board received an update from the
awareness in this area, the training underpinned the
Group Impact Director on key developments in
Company’s commitment to maintaining a positive,
climate‑related regulation and reporting, as well as
ethical and inclusive culture, one where we all
the broader media and political landscape. The Board
belong. For more information see the Responsible
also reviewed progress on the Group’s climate
Business Section of the Strategy Report.
commitments, including its work in relation to
recognised external frameworks.
S
takeholders Considered: 2,4,6,1,3,7
Reflecting the Company’s ambition to play our part in
Group Vision and Aspirations:
The Board considered
protecting our planet, the Board considered how the
and approved the Group’s Corporate Strategic Plan
evolving climate strategy supports the Group’s wider
for 2026–2028. In reviewing the Plan, the Board
societal and environmental objectives. A dedicated
focused on its alignment with the Group’s strategic
Board training session on climate change and
priorities, including the continued delivery of growth,
s
ustainability was scheduled for early 2026 to
efficiency and investment. The Plan also supports the
further strengthen Board capability and ensure
Group’s transition to its next strategic chapter,
effective oversight of climate matters.
scheduled for launch in mid-2026.
Further information on the Company’s climate
Management reported to the Board on the
change strategy is provided in the Responsible
governance, testing and assurance work undertaken
Business Section of the Strategic Report.
in the development of the Plan, including stress and
sensitivity analysis. The Board noted that the Plan
S
takeholders Considered: 7,6,3,4,1,5,2
reflects the Group’s commitment to sustainable,
profitable growth, incorporates efficiencies arising
General Insurance Growth:
As part of its oversight of
from operational improvement initiatives, and
the Company’s growth strategy, the Board received
provides for planned distributions consistent with the
regular updates on business performance and
Group’s broader responsibilities.
market activity. The Board noted continued strong
growth, with the business successfully attracting and
Having considered these factors, the Board
retaining high
‑
profile clients despite intensifying
concluded that the Plan appropriately supports the
competition across key geographies.
Group’s long-
term strategic objectives while
maintaining a robust solvency position over the
The Board also reviewed customer and broker
planning period. The Corporate Strategic Plan for
experience indicators, noting excellent levels of
2026–2028 was accordingly approved.
satisfaction, supported by leading NPS scores and
external recognition for service quality. The business
S
takeholders Considered: 4,6,1,2,5,7,3
further advanced its growth agenda through the
launch of a range of new specialist products and the
Improved Technological Capabilities:
The Board
enhancement of its customer proposition, including
received updates on the Group’s enhanced
technological capabilities and considered the related
38
Ecclesiastical Insurance Office public limited company
Governance
tailored value‑
added initiatives such as
benefits and risks. Through this oversight, the Board
masterclasses, training and podcasts.
helped ensure that the programme continued to
strengthen operational resilience, improve data
T
hese outcomes provided the Board with assurance
quality and reduce key technology‑
related risks
that execution of the growth strategy remained on
across the Group.
track and continued to strengthen the Company’s
competitive position.
Stakeholders Considered: 1,4,6,2,5
Stakeholders Considered: 1,4,5,6,2,7
AI and Data Strategy:
At its October Away Day, the
Board undertook a deep
‑dive
review of the Group’s
technology, data and AI strategy, recognising its
critical role in strengthening analytical capability,
supporting more informed decision
‑
making and
enhancing operational effici
ency. The Board’s
scrutiny and guidance during this session enabled
the further development of key AI initiatives and
improvements to data governance, helping to ensure
the Group is well
‑posi
tioned to adopt emerging
technologies responsibly and securely.
S
takeholders Considered: 5,1,2,4,3,
I
n addition to the matters outlined above, a key area of focus for the Board and its Committees during the year was the Company’s
preparedness for Operational Resilience. Throughout the year, the Board and its Committees (particularly the Risk Committee) engaged
both directly and indirectly with a range of stakeholders to ensure a comprehensive understanding of the potential impact of
Operational Resilience on customers, colleagues, regulators and other key stakeholders, as well as their respective interests and
views.
T
his engagement included discussions with colleagues, interactions with key regulators, and insights obtained through reporting from
executive management, to whom the day‑to‑day running of the business is delegated. These activities supported the Directors in
meeting their responsibilities under Section 172 of the Companies Act 2006.
Fu
rther information on how the Board oversaw the Company’s Operational Resilience readiness is set out below.
O
perational Resilience Readiness and Self-Assessment
During the year, the Board determined to prioritise further investment in the Company’s operational resilience capabilities in order to
meet its regulatory obligations under PRA SS1/21 and FCA PS21/3, and to support the long‑term sustainability of the business. In
discharging its duties under section 172 of the Companies Act 2006, the Board considered the importance of maintaining reliable,
secure and resilient operations for the benefit of customers, employees, regulators and other key stakeholders.
Through the Risk Committee, the Board oversaw progress against the Company’s operational resilience plan. This included approving
the Operational Resilience Policy and associated standards, and reviewing and agreeing the Company’s Important Business Services,
impact tolerances and testing approach. All work was completed ahead of the 31 March 2025 regulatory deadline.
I
n March 2025, the Board reviewed and approved the annual operational resilience self‑assessment and concluded that, subject to
two identified risks relating to reliance on third‑party providers Microsoft and BT, the Company remained operationally resilient. The
Board noted that these risks had been disclosed to the Regulators and was satisfied with the robustness of the resilience testing
undertaken. The self‑assessment and proposed changes to impact tolerances were approved and submitted to the Regulators.
T
his decision directly supports the Company’s strategic theme of Invest through continued enhancement of critical operational
capabilities and infrastructure. These actions strengthen the Company’s long‑term resilience, underpin stakeholder confidence and
support the successful delivery of its strategic ambitions.
39
Ecclesiastical Insurance Office public limited company
Governance
Whistleblowing
T
he Company has adopted Benefact Group plc’s Whistleblowing policy, and the Committee continues to oversee whistleblowing
procedures for the Company. For more information on this, please refer to the Audit Committee Report.
C
onflicts of interest
I
n accordance with the Companies Act 2006 and the Company’s Articles of Association, the Group Company Secretary maintains a
formal Register of Directors’ Conflicts to monitor and manage any actual or potential conflicts of interest. All Directors receive training
on their statutory duties under the Companies Act 2006 and are regularly reminded of their obligations to act in the best interests of
the Company.
D
irectors are required to declare any actual or potential conflicts of interest at the earliest opportunity, typically at the first Board
meeting following identification. Such declarations are recorded in the conflicts register and reviewed by the Board in line with the
provisions of the Companies Act 2006 and the Company’s Articles of Association. To ensure ongoing compliance, Directors review and
confirm the accuracy of their recorded interests on a biannual basis.
T
he Board also oversees procedures for managing conflicts arising in trading relationships, including those involving brokers and the
general insurance business. These procedures are designed to ensure that customer interests remain paramount and that all dealings
are conducted with integrity, transparency, and a commitment to delivering the best possible outcomes for customers.
D
ivision of responsibilities
T
he Board maintains a clear division of responsibilities between executive and non-executive roles to ensure effective oversight,
accountability, and independence. These responsibilities are formally documented, reviewed regularly by the Board, and
communicated through the Company’s governance framework.
T
he roles of the Chair and Group Chief Executive are undertaken by separate individuals, as illustrated in the governance structure
chart below, in accordance with best practice under the Code. The Chair is responsible for leadership of the Board and ensuring its
effectiveness, while the Group Chief Executive is accountable for the operational management and delivery of the Group’s strategy.
T
o strengthen governance and stakeholder engagement, the Board has designated Non-Executive Directors as champions for key
areas, including workforce engagement and climate change.
Throughout the year, the former Chair, David Henderson, held meetings with Non-Executive Directors without Executive Directors
present, providing an opportunity for open discussion and independent challenge. Separately, the Group Chief Executive, Mark Hews,
met regularly with the Group Management Board to oversee day-to-day operations. Matters of significance arising outside the
scheduled Board meetings were promptly communicated to Directors to ensure timely oversight and decision-making.
An overview of the Board composition and its governance structure as at 19 March 2026 is set out below:
Governance Structure
D
ocuments available at ecclesiastical.com
•
Articles of Association
• Matters Reserved to the Board
• Committee Terms of Reference
The Board
As a subsidiary of Benefact Group plc, the Board have adopted Benefact Group’s Governance Framework, which facilitates
transparency, accountability and effective decision making within a framework of prudent and effective controls.
T
he Board’s role is to provide entrepreneurial leadership of the Group within the approved framework of prudent and effective
controls which enables the risks which the Group faces to be assessed and managed. The Board sets the Group's high level strategic
aims, ensures that the necessary financial and human resources are in place for it to meet its objectives and reviews management
performance. The Board sets the Company’s values and standards and ensures that its obligations to its customers, its shareholders
and other stakeholders are understood and met.
40
Ecclesiastical Insurance Office public limited company
Governance
Chair, François-Xavier Boisseau
Senior Independent Director, James Coyle
Non-executive Directors, Karen Best,
The Chair is responsible for the active
The Senior Independent Director supports
James Coyle, Jane Dale, Sir Stephen
leadership of the Board, ensuring its
and acts as a sounding board for the Chair
Lamport and Michael Murphy,
effectiveness in all aspects of its role.
and is responsible for overseeing the
Non-
Executive Directors have a
The Chair is pivotal in creating the
governance practices of the Company and
responsibility to uphold high standards
conditions for overall board and
leading the directors in their appraisal of the
of integrity and probity including acting
individual director effectiveness,
Chair. Along with the Chair, the Senior
as both internal and external
setting clear expectations concerning
Independent Director is the primary contact
ambassadors of the Company. As part of
the style and tone of board
for the shareholder and they meet regularly
their role as members of a unitary board,
discussions, ensuring the Board has
with the shareholder to share and
Non-
Executive Directors should
effective decision-
making processes
understand views.
c
onstructively challenge and help
and applies sufficient challenge to
develop proposals on strategy.
major proposals.
Committees
T
he Board has established four principal Committees, each operating under formally approved Terms of Reference, to which it
delegates specific responsibilities. These Committees play a vital role in supporting the Board’s oversight and governance, and they
collaborate closely where matters overlap. For example, the Audit Committee and Risk Committee work together on issues relating
to internal controls and risk management.
Fol
lowing each meeting, the respective Committee Chair provides a comprehensive update to the Board, ensuring transparency
and enabling informed decision-making across all areas of governance.
An outline of the Committees' roles and responsibilities is set out below. For more detail on the work of each committee please refer
to the individual committee report within these Report and Accounts.
Audit Committee
Risk Committee
Group Nominations
Group Remuneration
Committee
Committee
O
versees financial,
O
versees the Risk Management
climate, non-financial and
Framework including risk appetite
T
his is a joint committee with
T
he Group Remuneration
regulatory reporting
and tolerance; the risk and
Benefact Group plc. The
Committee is a joint
processes; internal
compliance functions; and reviews
Group Nominations
committee with Benefact
controls; whistleblowing
prudential risk (including
Committee ensures that there
Group plc. It determines
arrangements; tax
overseeing the capital model),
is an appropriate balance of
the Group’s Remuneration
strategy and policies;
conduct risk and climate change
skills, knowledge and
Policy and ensures there is
internal audit function;
risk.
experience on the Board, its
alignment between
and manages the
committees and within the
performance and reward.
relationship with the
Group’s subsidiary
external Auditor.
companies.
Group Chief Executive, Mark Hews
The Board delegates the execution of the Company’s strategy and day-to-day management of the business to the Chief Executive,
assisted by members of the Group Management Board (GMB).
Deputy Group Chief Executive, Jacinta
Group Chief Financial Officer, Mark Bennett
Group Company Secretary, Rachael Hall
Whyte
The Group Chief Financial Officer is
The Company Secretary is responsible
The Deputy Group Chief Executive is
accountable to the Group Chief Executive for
for compliance with board procedures,
accountable to the Group Chief
the financial management of the Group and
advising the Board on all governance
Executive for leading the general
for ensuring that it complies with its
matters, supporting the Chair and
insurance businesses.
statutory and regulatory reporting
helping the Board and its Committees to
requirements.
function efficiently. All Directors have
access to the advice of the Company
Secretary.
41
Ecclesiastical Insurance Office public limited company
Governance
B
oard attendance at meetings in 2025
I
n 2025, the Board held six scheduled meetings, two additional meetings, and one away day held jointly with the Benefact Group plc
board. In addition, the Board participated in regular training sessions. Below is a record of the Directors’ attendance for Board meetings
during 2025. Details of committee attendance can be found in the individual committee reports.
W
here a Director was unable to attend a particular meeting, meeting papers were issued to them in advance and they had the
opportunity to provide comments to the Chair of the Board or to the relevant Committee Chair.
Date Venue Scheduled / Ad
D Henderson M Bennett K Best F Boisseau J
hoc
Coyle
04.02.25 Glos Scheduled
20.03.25
London
Scheduled
21.05.25 London Ad hoc
A
11.06.25 Teams Ad hoc
26.06.25
Glos
Scheduled
23.09.25
London
Scheduled
08.10.25 London Away Day
– joint with BG
26.11.25 London Scheduled
8/8 8/8 8/8 7/8 8/8
Date
Venue
Scheduled / Ad
M Darby-
M Hews
S Lamport
A Winther
J Whyte
hoc
Walker
04.02.25 Glos Scheduled
20.03.25 London Scheduled
21.05.25
London
Ad hoc
11.06.25 Teams Ad hoc
26.06.25 Glos Scheduled
23.09.25
London
Scheduled
-
08.10.25 London Away Day
A
-
– joint with BG
26.11.25 London Scheduled A
-
6/8 8/8 8/8 5/5 8/8
• A
Winther retired from the Board on 26 June 2025. He attended all applicable meetings during the year.
• M
Murphy appointed to the Board from 3 December 2025
• J Dale appointed to the Board on 3 February 2026.
Board Composition up to the date of this report
T
he table below details Board and Board Committee Composition Changes in 2025 and prior to publication of this report.
Board
Audit Committee
Risk Committee
Joint Nominations
Joint Remuneration
Committee
Committee
Mark Bennett
Angus Winther
Michael Murphy
David Henderson
David Henderson
Appointed 1 January 25
Stepped down 26 June
Appointed 3 December
Stepped down 31
Stepped down 31
25
25
December 25
December 25
A
ngus Winther
Retired 26 June 25
F
rançois Boisseau
M
aria Darby-Walker
A
ngus Winther
F
rançois Boisseau
Stepped down 31
Stepped down 31
Stepped down 26
Appointed 23
Michael Murphy
December 25
December 25
June 25
September 25.
Appointed 3 December
25
J
ane Dale
F
rançois Boisseau
F
rançois Boisseau
42
Ecclesiastical Insurance Office public limited company
Governance
Maria Darby-Walker
Appointed 3 February
Stepped down 31
Appointed 23
Resigned 31 December
26
December 25
September 25
25
M
ichael Murphy
J
ane Dale
David Henderson
Appointed 3 December
Appointed 3 February
Resigned 31 December
25
26
25
F
rançois Boisseau
Appointed as Chair and
stepped down as Senior
Independent Director 1
January 26
Ja
mes Coyle
Appointed as Senior
Independent Director 1
January 26
J
ane Dale
Appointed 3 February 26
Internal controls
T
he Board is ultimately responsible for the systems of risk management and internal control maintained by the Group and reviews
their appropriateness and effectiveness annually. The Board views the management of risk as a key accountability and is the
responsibility of all management and believes that, for the period in question, the Group has maintained an adequate and effective
system of risk management and internal control that complies with the Code. Further details are set out in the Risk Management
Report.
The Group embeds risk management into its strategic and business planning activities whereby major risks that could affect the
business in the short and long term are identified by the relevant management together with the assessment of the effectiveness of
the processes and controls in place to manage and mitigate these risks.
As part of the Benefact Group, EIO has adopted the Benefact Group’s internal control framework. In doing so, the Board acknowledges
its responsibility in setting the tone for the Company and creating a high degree of control consciousness in all employees.
A Code of Conduct and a Code of Ethics are embedded into the culture of our business and is accessible to all colleagues via the
intranet.
Assurance on the adequacy and effectiveness of internal control systems is obtained through management reviews, risk and control
self-assessment, second-line reviews conducted by Group Risk and Compliance and EIO’s internal audit programme.
Systems of internal control are designed to manage rather than eliminate the risk of failure to achieve business objectives, and can
provide reasonable, but not absolute assurance as to the prevention and detection of financial misstatements, errors, fraud or violation
of law or regulations. Further information on internal controls is set out in the EIO Audit Committee Report.
EIO, along with the Group, is well advanced in its work to implement Provision 29 of the Code.
B
y order of the Board
Rachael Hall,
Group Company Secretary
19 March 2026
43
Ecclesiastical Insurance Office public limited company
Governance
No
minations Committee Report
Committee member
Member since
Meetings attended
Chris Moulder (Chair)
Chris Moulder
November 2019
3/3
François Boisseau September 2025 1/1
James Coyle
June 2025
1/1
1
David Henderson
January 2018
3/3
2
Angus Winther
May 2021
1/2
1
Stepped down 31 December 2025
2
Stepped down 26 June 2025
Dear Stakeholder
I am pleased to present the Group Nominations Committee’s Report for the year-ending 31 December 2025. This is a joint Committee
of EIO and Benefact Group plc. I am a Non-Executive Director and Senior Independent Director of Benefact Group plc and Chair the
Group Nominations Committee on behalf of both Boards.
Chris Moulder, Group Nominations Committee’s Chair
12 March 2026
C
ommittee composition and activity during 2025
The Group Nominations Committee is chaired by the Senior Independent Director of the Benefact Group plc. Given its Group remit, the
membership of the Committee comprises a majority of independent Non-Executive Directors from either the Boards of EIO or Benefact
Group plc. Angus Winther stepped down from the Committee in June 2025. James Coyle and François Boisseau were appointed to the
Committee in June and September respectively.
The Committee’s focus in 2025 has been on the succession of the Chair for EIO and Benefact Group plc and dealing with any
subsequent changes to the composition of the Board. The Committee ensures that the Board, Board Committees and Executive Team
continue to have the right composition of skills, experience, knowledge and diversity of thought, as well as robust succession planning
to support the delivery of the Group’s strategy.
In 2025, the Board approved the appointment of François Boisseau as Chair to succeed David Henderson. In addition, Michael Murphy
was appointed to the Board as a Non-Executive Director to succeed Neil Maidment who resigned down from the Board at the end of
2024. Angus Winther retired from the Board at the AGM in June and Maria Darby-Walker stepped down from the Board in December.
The Committee also oversaw changes to the composition of the Board Committees, the Executive Team and changes to subsidiary
Boards. As reported last year, Mark Bennett was appointed as Group Chief Financial Officer with effect from 1 January 2025 to succeed
Denise Cockrem who retired during 2024.
B
oard Composition and changes during the year
The Committee keeps under review the Board’s composition and its Non-Executive Director recruitment priorities. Succession planning
is a fundamental part of the Committee’s remit.
The Corporate Governance Report includes more information on the changes to the Board and Board Committees during the year and
prior to publication of this report.
A
ppointment of New Chair
Du
ring the year, the Senior Independent Director led the process for appointing a new Chair (to serve as Chair to EIO and Benefact
Group plc). The desired qualities for the Chair along with the protocol for appointment were distributed to all the existing Non-Executive
Directors of EIO and Benefact Group plc and expressions of interest were received by three Directors who were all considered credible
candidates.
An
Appointments Panel was established which comprised the Group Nominations Committee Chair, two non-conflicted Directors on
the Board and a representative from the ultimate Shareholder. Odgers, a recruitment agency, was engaged to evaluate each of the
candidates with a series of questionnaires and an interview. Feedback from Odgers was considered by the Panel. Each candidate was
interviewed by the Appointments Panel and separately by the Group Chief Executive Officer. The views of those Directors not involved
with the process were sought. The Panel met to evaluate all the feedback and a preferred candidate was selected. The Board
subsequently approved that François-Xavier Boisseau be elected as the next Chair with effect from 1st January 2026 to succeed David
Henderson. François joined the Board in 2019 and has extensive experience in insurance which has been developed during his
executive and non-executive career extending to over 35 years in the financial services industry. He is well placed to lead the Board
as its Chair.
44
Ecclesiastical Insurance Office public limited company
Governance
T
hroughout the process, the Regulator was engaged at every stage including the desire that the new Chair serve for five years which
would take the preferred candidate over his natural term by two years. The PRA considered the appointment including the desired
tenure and, following an interview, regulatory approval was given.
David Henderson stepped down from the Board on 31 December 2025 having served as a Director for nine years and Chair for six
years. The Committee and the Board are very grateful for the significant contribution he has made to the Group.
A
ppointment of New Non-Executive Directors
An Appointments Panel comprising Chris Moulder, David Henderson, and Rachael Hall was formed for the recruitment of at least two
new Non-Executive Directors with extensive senior experience in insurance and actuarial to succeed Neil Maidment and François-
Xavier Boisseau (on assuming the Chair role). A Position Specification for the roles based on objective criteria and having regard to the
outcome of the Board skills analysis was developed.
Fol
lowing a tender process, Odgers (who had no connection to the Group other than supporting Executive assignments) was engaged
to support the recruitment process.
H
aving due regard to the Board’s diversity and inclusion ambitions, the skills and competences outlined in the specification, and the
Company’s ethics, culture and values, Odgers drew up a list of potential candidates. This long-list was reduced to a short-list by the
Appointments Panel and interviews were held. The Board appointed Michael Murphy on 3 December 2025. As part of the search, two
additional candidates were identified from other sources and Jane Dale was appointed on 3 February 2026 and Gail Tucker will be
appointed on 1 May 2026.
S
enior Independent Director and Chair of the Risk Committee
Having been appointed to the Chair, François-Xavier Boisseau stepped down from his existing roles as Senior Independent Director
and Chair of the EIO Risk Committee at the end of the year.
With effect from 3 February 2026, and having received approval from the Regulator on 3 February 2026, Michael Murphy was
appointed as Chair of the EIO Risk Committee succeeding François-Xavier Boisseau.
With effect from 1 January 2026, and having received approval from the Regulator, James Coyle was appointed as Senior Independent
Director succeeding François-Xavier Boisseau.
Size of the Board
The Committee considers that the size of the Board contributes to its effectiveness and longer-term success. The optimal size of the
Board is considered to be 10-11. As at the date of this report, the size of the Board is nine (10 with effect from 1 May 2026) which is
considered the right size to operate in an efficient and collaborative manner and to ensure an appropriate mix of skills and diversity to
support succession planning and to accommodate the additional roles and responsibilities of some of the Directors on Board
Committees.
Diversity
The Company recognises the benefits of an inclusive and diverse Board and is committed to improving diversity on the Board. It believes
that diversity both strengthens the Board and business performance. The Board will take opportunities, as and when appropriate, to
further improve diversity in its broadest sense (including ethnicity, skills, regional and industry experience, background, age, gender
and other distinctions) as part of its recruitment practice. However, the Board believes the approach to diversity and inclusion should
not be a ‘tick box exercise’ but an opportunity to continue to build a cohesive and robust leadership. Ultimately, all appointments should
be made on merit with directors able to bring a range of thoughts and opinions to avoid ‘Groupthink’.
G
ender and ethnic diversity reporting
Disclosures in the form prescribed by the UK Listing Rules of the FCA r
elating to gender and executive management are set out in the
table below.
T
his section details disclosures in the form prescribed by the UK Listing Rules requirements relating to gender and ethnic diversity of
the Board and executive management.
45
Ecclesiastical Insurance Office public limited company
Governance
EIO plc
Number of
Percentage
Number of
Number in
Percentage of
board
of the board
senior
executive
executive
members
positions on
management
management
the board
(CEO, CFO,
SID and
Chair
Men
6 (7) 66.7% (70%) 4 (4) 7 (7) 87.5% (87.5%)
Women 3 (3) 33.3% (30%) 0 (0) 1 (1) 12.5% (13%)
Other categories
-
-
-
-
-
Not specified / Prefer not to say
-
-
-
-
-
Data relating to the gender and ethnic diversity of the Board was collected by way of a questionnaire as part of the annual year end
attestation process. This questionnaire asked Board members to disclose their gender identity and ethnic background, on a voluntary
self-reporting basis, by selecting options aligned with those in the left-hand columns of the tables (including the option not to specify
an answer). Group employees (including executive management) are asked to confirm their gender and ethnicity at the application
stage of their recruitment. Gender and diversity data of executive management was sourced from this existing data, which is held within
Group HR’s secure system.
EIO plc Number of
Percentage
Number of
Number in
Percentage
board
of the board
senior
executive
of executive
members
positions on
management
management
the board
(CEO, CFO,
SID and
Chair
White British or other White
8 (9) 88.9% (90%) 4(4) 8 (7) 100% (100%)
(including minority-white groups)
Mixed/Multiple Ethnic Groups - - - - -
Asian/Asian British
-
-
-
- -
Black/African/Caribbean/Black
1 (1) 11.1% (10%) - - -
British
Other ethnic group, including Arab
-
-
-
- -
Not specified/ prefer not to say - - - - -
Data relating to the gender and ethnic diversity of the Board was collected by way of a questionnaire as part of the annual year-end
attestation process. This questionnaire asked all individual Board members to disclose their gender identity and ethnic background, on
a voluntary self-reporting basis, by selecting options aligned with those in the left-hand columns of the tables above (including the
option not to specify an answer).
Group employees (including executive management) are asked to confirm their gender and ethnicity at the application stage of their
recruitment. Gender and diversity data of executive management was sourced from this existing data, which is held within Group HR’s
secure system.
B
oard Diversity Policy
On recommendation of the Committee, the Board adopted a revised version of the Board Diversity Policy on 26 November 2025.
T
he Board’s Diversity Policy includes objectives which align with the diversity and inclusion targets set out in the Listing Rules. The
Board’s Diversity Objectives are set out in the table below.
46
Ecclesiastical Insurance Office public limited company
Governance
T
he Committee was conscious that improvements were required in relation to the diversity of the Board and its Committees particularly
in terms of female representation which it has actively addressed during the year. In line with the expectations of the FCA, the
Committee will continue to make this a consideration when recruiting new directors in the future.
The Board is disappointed that it has been unable to achieve two of the objectives as at 31 December 2025 and will continue to focus
on them during 2026.
Board Diversity Objective
Implementation and progress
At least 40% of the Board are women. This objective has not been met during the year. The Board have concentrated
on building a diverse pipeline and two female directors have been recruited
and, as previously stated, will take up their posts in 2026. This will remain an
area of focus.
At least one of the senior positions on the Board
The Board are conscious that one of the senior positions on the Board should
(defined as Chair, Chief Executive, Senior
be female and have concentrated on recruiting new female directors to build
Independent Director and Chief Financial Officer)
the pipeline for senior positions on the Board. The Board plans to fulfil this
is held by a woman.
requirement by the end of 2026.
At least one director is from a minority ethnic
One member of the Board is from an ethnic minority background.
background.
N
umerical information, together with detail relating to the approach taken to collate this diversity data in accordance with UKLR 6.6.6
R(9) is set out in the Board Diversity Schedule.
G
ender and ethnic diversity within the Executive Team and its direct reports and the wider workforce
For further information on gender and ethnic diversity within the Executive Team, its direct reports, and the wider workforce, please
refer to the Strategic Report
Non-Executive Directors’ Length of Service
The Committee monitors the tenure of all Directors, as reflected in the Board diversity table, and each Director’s individual tenure is
disclosed within their biography.
N
on-Executive Director’s Independence
In line with the requirements of the Code, a majority of our Board comprises independent Non-Executive Directors.
I
ndependence is reviewed as part of each director’s annual effectiveness review, considered by the Committee and agreed by the
Board annually. The Committee has considered the circumstances and relationships of all Non-Executive Directors and, following
rigorous review, the Committee confirmed to the Board that a majority of the Non-Executive Directors remained independent in
character and judgement. No individual participated in the discussions relating to their own independence. One Non-Executive Director
(and two Executive Directors) remain directors of the Company’s immediate parent, Benefact Group plc and are not deemed to be
independent.
D
uring the year, François-Xavier Boisseau was also a director on the Board of Benefact Trust Limited and the Company (‘a common
director’); he stepped down from the Board of Benefact Trust Limited on 31 December 2025. Sir Stephen Lamport, who was previously
a common director with the Trust, was reappointed to the Board of Benefact Trust Limited with effect from 1 January 2026. The
common directorship model is regarded as good practice with a charity that owns a trading subsidiary and these common directors
enable the Trust to gain a thorough understanding of its subsidiary company’s performance and the strategic issues it faces, and for
the subsidiary to understand the expectations of its parent company. With these factors in mind, the Committee and the Board consider
it appropriate that a common director is regarded as an independent Non-Executive Director. A joint Company and Benefact Trust
Limited Nominations Committee Meeting is held annually, amongst other things to consider the appointment of common directors.
Time Commitment
Prior to their appointment to the Board, all proposed new Directors are asked to disclose their other significant commitments, which
are reviewed by the Committee and the Board when considering their appointment to ensure they can discharge their responsibilities.
Expected time commitments are agreed with each Non-Executive Director on an individual basis and include time to attend and prepare
for Board and Board Committee meetings and to undertake training. During the induction period, a new Non-Executive Director will be
expected to devote additional time to gain an understanding of the business.
47
Ecclesiastical Insurance Office public limited company
Governance
T
he Committee evaluates the time Non-Executive Directors spend on the Company’s business annually and is satisfied that, in 2025,
the Non-Executive Directors continued to be effective and fulfilled their time commitment as stated in their letters of appointment.
E
xternal directorships are considered to be valuable in terms of broadening the experience and knowledge of Executive and Non-
Executive Directors. Prior to approving any significant new external commitment for a Director, the Board will consider the nature of
the role, the existence of any actual, potential or perceived conflict of interest, and ensure the commitment required is not excessive.
The Conflicts Register maintained by the Group Company Secretary is used to monitor external interests. Any monetary payments
received by Executive Directors from outside directorships are paid over to and retained by the Company.
Director training and development
The Committee and the Group Company Secretary support the Chair in developing and monitoring effective induction, training and
development for the Board.
A
ll Directors undertake a formal, comprehensive and tailored induction upon joining the Board designed to provide them with an
understanding of the operation of the Group, its purpose, values and strategy and key business areas and functions. This includes
sessions with key SMEs across the Company. When a Director is joining a Board Committee, their induction schedule will also include
an induction to the operation of that Committee.
I
n addition, the annual training schedule of the Board is developed in consultation with the Committee, the Executives and key SMEs
around the Company before being approved by the Board. It is dynamic and can change to reflect the needs of the Board. Any Director
may request further training to support their individual or collective needs. Throughout the year, the Directors continued to deepen
their understanding of the business through Board deep dives as well as receiving training on IFRS17 (reflections and market insight),
the revised UK Corporate Governance Code and Diversity, Equality and Inclusion.
The Group Company Secretary maintains annual Continuing Professional Development (CPD) records for all directors.
Succession Planning and Talent Development
The Committee oversees succession planning to ensure that the Company strikes the right balance of skills, experience, diversity of
thought and effectiveness on the Board, its Committees and the Executive Team. Succession planning takes into account the
Company’s strategic ambitions, opportunities and challenges faced as well as considering both current and anticipated future business
needs.
I
n terms of Board and Committee Succession, the Committee regularly reviews the composition of the Board to ensure that its members
have the right balance of skills and experience to support the delivery of the Company’s Strategy. Each role is considered in terms of
an emergency, short-term and long-term successor. This is supported by a robust skills analysis which is conducted for all directors
annually. The Committee uses the results of the succession planning and skills analysis exercise to refresh the Board’s Non-Executive
Director recruitment priorities and to lead the search process for any new Board appointments.
D
uring 2025, the Committee focused on finding a successor for David Henderson as Chair and subsequently for François-Xavier
Boisseau as Senior Independent Director and Chair of the Risk Committee. The successors for the Chair and the Senior Independent
Director had been identified by the succession planning process. The successor for the Chair of the Risk Committee was an external
recruit. In 2026, the Committee will focus on strengthening the accounting and audit skills on the Board as well as continuing to focus
on diversity.
T
he composition of the Executive Team must comprise the right balance of skills, experience and diversity of thought to drive the
delivery of the strategy agreed by the Board. Consequently, the Committee regularly reviews the succession plans and approves any
changes to the Executive Team, their immediate direct reports and the Board composition of Subsidiary Boards. The Committee also
reviews the development of talent across the broader Group ensuring a diverse pipeline of talent is in place.
B
oard Effectiveness and Performance
In accordance with the UK Corporate Governance Code 2024, the Committee ensures that a formal and rigorous annual evaluation of
the performance of the Board, its Committees and each Director is undertaken. The Company operates a structured evaluation cycle
that includes internally facilitated reviews in most years, complemented by an externally facilitated review at least every three years
to ensure robust scrutiny and continuous improvement in Board effectiveness.
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T
he 2025 Board and Committee effectiveness reviews were internally facilitated and took place in January 2026, assessing
performance over the 2025 financial year. The evaluation process was overseen by the Chair, with support from the Company
Secretariat, who administered questionnaires and collated responses.
The evaluation of the Chair was led by the Senior Independent Director in line with the requirements of the Code. All Directors took
part in individual effectiveness reviews in January 2026, and the Committee concluded that each Director continued to perform
effectively and contribute positively to the Group’s long-term sustainable success. In accordance with the Code, all Directors continuing
in office intend to offer themselves for election or re-election at the 2026 AGM.
The evaluation confirmed that the Board and its Committees continued to operate effectively and that they maintained a constructive
culture of challenge, open discussion and accountability. The Board discussed the outcome of the evaluation including the significant
strengths underpinning the effectiveness of the Board and agreed some key areas of focus for 2026.
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R
isk Committee Report
Michael Murphy
EIO Risk Committee member
Member since
Meetings attended
1
(Chair)
François-Xavier Boisseau
September 2024 7/7
James Coyle
September 2024 7/7
2
Maria Darby-Walker
September 2024 5/7
3
Sir Stephen Lamport
September 2024 6/7
4
Michael Murphy
December 2025 0/0
5
Jane Dale
February 2026
0/0
1
François-Xavier Boisseau stepped down from the Committee as a member and Chair on 31 December 2025.
2
Maria Darby-Walker was unable to attend two meetings this year. She stepped down from the Committee on 31 December 2025.
3
Sir Stephen Lamport did not attend the Committee’s meeting in July due to other professional commitments.
4
Michael Murphy was appointed as a member of the Committee on 3 December 2025 and took up the role of acting Chair on 1 January 2026, subject to
regulatory approval, which was received on 3 February 2026
5
Jane Dale was appointed as a member of the Committee on 3 February 2026.
D
ear Stakeholder
I am pleased to present this report as Chair of the Risk Committee.
The Committee was established by the Board in September 2024 primarily to provide oversight and advice to the Board on current
and future risk exposures, by reference to strategic developments, including determining risk appetite, tolerances and culture.
François-X
avier Boisseau stepped down as a member and Chair of the Committee on 31 December 2025 when he took up the role of
Chair of the Board. I take this opportunity to thank François for his leadership of the Committee since its inception. I joined the Committee
on 3 December 2025 and have succeeded François as Chair. Maria Darby-Walker also stepped down from the Committee on 31
December 2025 and we thank Maria for her contribution. We also welcomed Jane Dale as a member of the Committee on 3 February
2026.
This r
eport describes the work undertaken by the Committee during 2025 to monitor the risk management framework; the Internal Model;
solvency; capital management; operational resilience and other material risks, paying close attention to impacts from the internal and
external environments.
The Board has voluntarily chosen to include this report in addition to the disclosures in the Risk Management Report and Principal Risks
sections. The latter sets out the principal risks and uncertainties. The Committee has reviewed these in detail and is comfortable that
the business has addressed them appropriately taking account of the ongoing operating model and strategic priorities.
Michael Murphy
Chair of the Risk Committee
19 March 2026
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Areas of focus during 2025
In 2025, the Committee continued to oversee risk and compliance monitoring and oversaw the management of key risks, taking account
of direct and indirect impacts from the external environment which included geo-political risks, cyber risk, climate change and adverse
weather events, and regulatory change. In relation to the latter, areas of focus for the Committee during the year included overseeing
the Company’s response to regulation relating to operational resilience; third party risk management; and solvent exit analysis.
During the year, the Committee received reports on risk and compliance monitoring and assurance; underwriting and insurance risk;
market and investment risk; material outsourcing and third-party risk; operational resilience and business continuity; data
management; AI and cyber risk; and the Consumer Duty.
Individual reports were also received from the Actuarial Function (on reinsurance, underwriting and pricing); the Money Laundering
Reporting Officer; and the Data Protection Officer.
Throughout the year, the Committee monitored the ongoing use, development, governance and calibration of the Internal Model;
oversaw independent validation; and recommended Model changes and management actions to the Board. The Committee also
reviewed the Operational Resilience Self-Assessment, and the Own Risk and Solvency Assessment, recommending both to the Board
for approval.
Additionally, the Committee oversaw the development and implementation of the risk management framework and recommended
a
ppropriate risk appetite changes to the Board. The Committee also considered the design and operating effectiveness of the system
of internal control and risk management including financial, operational, reporting and compliance controls.
Meetings of the Risk Committee were attended by the Group Chair, Deputy Group Chief Executive, Group Chief Risk and Compliance
Officer, Group Chief Financial Officer, Group Underwriting Director, and Group Chief Internal Auditor.
The Group Chief Risk and Compliance Officer reports to the Committee on a regular basis and has direct access to the Committee Chair
and the Non-Executive Directors. The Committee ensures that it meets with the Group Chief Risk and Compliance Officer at least
annually without other management present.
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Audit Committee Report
EIO Audit Committee member
Member since
Meetings attended
James Coyle (Chair)
James Coyle (Chair) September 2024 6/6
1
François-Xavier Boisseau
September 2024
5/6
2
Angus Winther
September 2024
4/4
3
Michael Murphy
December 2025 0/0
4
Jane Dale
February 2026 0/0
1
François-Xavier Boisseau stepped down as a member of the Committee on 31 December 2025 on his appointment
as Chair of the Board. He was unable to attend one meeting this year due to a professional commitment.
2
Angus Winther was a member of the Audit Committee until 26 June 2025, when he retired from the Board.
3
Michael Murphy was appointed a member of the EIO Audit Committee on 3 December 2025. No meetings for the
year have been held since his appointment.
4
Jane Dale was appointed as a member of the Committee on 3 February 2026.
Dear Stakeholder
I am pleased to introduce my report on the work undertaken by the Committee during the 2025 financial year.
During the year, the Committee saw several changes to its membership. Angus Winther stepped down on 26 June 2025 and François-
Xavier Boisseau stepped down on 31 December 2025 following his appointment as Chair of the Board. We were pleased to welcome
Michael Murphy in December 2025 and Jane Dale in February 2026. I would like to thank all Committee members for their continued
contribution and support throughout the year.
The Committee was established by the Board to monitor the integrity of the Group’s financial and regulatory reporting, its internal
financial control processes, and its internal and external audit arrangements. A core part of our role is to provide challenge and
oversight to ensure that the Group’s reporting is accurate, transparent and based on appropriate judgements.
Strengthening the Group’s financial control environment remained a significant focus in 2025. Work included supporting preparations
for the Group’s approach to Provision 29 of the Corporate Governance Code and the effectiveness of material controls, which will be
reported on within the 2026 Annual Report and Accounts. The Committee also continued to monitor emerging developments and
external risks to ensure that controls and reporting processes remain responsive and robust.
As outlined in the Corporate Governance Report, the Group has adopted Benefact Group plc’s Governance Framework. Within that
framework, the Committee plays a vital role in providing independent scrutiny across financial reporting and internal control activities.
We ensure the interests of shareholders are protected by overseeing the accuracy, integrity and clarity of financial reporting, and by
reviewing the effectiveness of the Group’s control environment and risk management strategies.
The Committee remains satisfied that the Group maintained a strong risk management and internal control culture throughout 2025,
underpinned by sound governance practices.
J
ames Coyle
Chair of the Audit Committee
19 March 2026
M
embers of the Committee
Committee members are Non-Executive Directors and bring a wide range of financial, risk, control and commercial expertise, with a particular
depth of experience in the insurance sector that are necessary to fulfil the Committee’s duties and enable the Committee to challenge and
scrutinise management’s work. The Board considers that the Committee has recent and relevant financial experience and accounting
competence and that the Committee as a whole is appropriately competent in the sectors in which the Group operates.
Committee meetings
In addition to the members of the Committee, regular attendees of meetings included the Chair of the Board, Group Chief Executive Officer,
Deputy Group Chief Executive, Group Chief Financial Officer, Group Chief Internal Auditor, Group Chief Risk and Compliance Officer and the
external auditors. Other subject matter experts are invited to attend certain meetings in order to provide insight into key matters and
developments.
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In 2025, the Group’s external auditors, PricewaterhouseCoopers LLP (PwC), attended all six of the Committee’s meetings. During the year,
the Committee met privately with the external auditors without management present.
T
he Committee’s key responsibilities and activities include:
•
scrutinising the financial statements and reviewing accounting policies and significant judgements and estimates;
•
reviewing the content of financial reporting and advising the Board whether, taken as a whole, they are fair, balanced and
understandable;
•
reviewing the going concern basis of preparation of the financial statements and statements on viability for recommending to the Board;
•
reviewing climate and non-financial metrics reporting;
•
reviewing whistleblowing arrangements;
•
overseeing external and internal audit arrangements; and
•
reviewing the effectiveness of systems of internal control and the management of financial risks.
A
summary of the main activities of the Committees during the year is set out below:
Auditor appointment and tenure, independence and non-audit services
The Committee continues to oversee the relationship with and performance of the external auditor including, the external audit process, the
audit fee, appointment, reappointment and removal of the external auditor, assessing their independence and effectiveness on an ongoing
basis.
PwC has acted as the Group’s external statutory auditor following appointment at the Company’s Annual General Meeting in June 2020.
The Group’s policy for auditor rotation follows regulatory requirements and PwC will be required to be rotated after no more than 20 years,
and an audit tender held after no more than 10 years. Gary Shaw of PwC was appointed as the Group’s senior statutory auditor for the
financial year 2025. His term in this role may not exceed five years. Before his appointment, the senior statutory auditor for the financial year
2024 was Alexis Gish of PwC. Prior to this, Sue Morling of PwC served as the senior statutory auditor for four years.
The Company confirms that it complied with the provisions of the Competition and Markets Authority’s Order for the financial year under
review. Both the Board and the external auditor have safeguards in place to protect the independence and objectivity of the external auditor.
The Committee oversees the development, implementation and monitoring of the Group’s policy on the provision of non-audit services by
the external auditor. The purpose of the policy is to safeguard the independence and objectivity of the external auditor and to ensure
compliance with applicable legislation and with the Ethical Standard issued by the Financial Reporting Council (FRC).
The Committee oversees the external audit plan to ensure it is comprehensive, risk-based and cost-effective. The plan describes the
proposed scope of the work and the approach to be taken, and the proposed materiality levels to be used which are described on page 62.
In order to focus the audit work on the right areas, the auditors identify particular risk issues based on various factors, including their
knowledge of the business and operating environment and discussions with management.
For the year ended 31 December 2025, the Group was charged £1,265,900 (ex VAT) by PwC for audit services. Non-audit fees for audit-
related assurance services required by legislation and/or regulation amounted to £206,600, making total fees from PwC of £1,472,500.
There were no other non-audit services provided by PwC during the financial year.
External audit effectiveness
The Committee assesses the effectiveness of the external auditor annually against several criteria including, but not limited to,
accessibility and knowledgeability of audit team members, the efficiency of the audit process including the effectiveness of the audit
plan, and the quality of improvements recommended.
Th
e Committee reviewed a report based on input from senior management, business unit leaders and those most involved in the external
audit process, regarding the PwC 2024 statutory audit and audit-related assurance services. The Committee recognised the strengths
of the external auditor and that duties were performed independently and effectively.
Appropriateness of the Group’s external financial reporting
The primary role of the Committee in relation to financial reporting is to review, challenge and agree the appropriateness of the half-
year and annual financial statements and annual regulatory reporting under Solvency II, concentrating on, amongst other matters:
•
t
he quality and acceptability of accounting policies and practices;
•
the clarity of the disclosures and compliance with financial and regulatory reporting standards, and relevant financial and
governance reporting requirements;
•
material areas in which significant judgements have been made or there has been discussion with the external auditor;
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•
whether the Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and provide the information
necessary for shareholders to assess the Group’s position and performance, business model and strategy; and
•
any correspondence from regulators in relation to financial reporting.
I
n respect of these annual financial statements the Committee paid particular attention to the significant judgements set out below,
including a review of the corporate governance disclosures, monitoring of the external audit process and statements about going
concern and viability. The Committee concluded that it remained appropriate to prepare the financial statements on a going concern
basis and recommended the viability statement to the Board for approval.
T
he Committee reviewed and challenged the annual regulatory submissions of Ecclesiastical Insurance Office plc and Ecclesiastical
Life Limited under Solvency II focussing on the reporting requirements of the publicly filed Solvency and Financial Capital Report
(SFCR) and Quantitative Reporting Templates (QRTs).
T
he significant areas of focus considered by the Committee in relation to 2025, and how these were addressed, are outlined below.
These were discussed and agreed with management during the course of the year, and also discussed with the auditors.
Area of focus Committee response
General insurance reserves
The Committee considered a detailed report provided by the Group Actuarial Director on the
adequacy of general insurance reserves at the half year.
The estimation of the ultimate
liability arising from claims under
A
t
the full year the Committee received a report and discussed and challenged management
general business insurance
across a wide range of assumptions and key judgements.
contracts is a critical accounting
estimate. There is uncertainty as
This was a major area of audit focus and the auditor also provided detailed reporting on these
to the total number of claims on
matters to the Committee.
each class of business, the
Other key areas of focus during 2025 were latent claim reserves, the impact of the softening
amounts that such claims will be
market, weather events impacting Group companies and subsidence in the UK.
settled for and the timings of any
payments.
T
he
Committee concluded at year end that the reserving process and outcomes were robust,
applied consistently, were well managed and that the overall reserves set were reasonable
as disclosed in note 27 of the financial statements.
The Committee was also satisfied that management had carried out a thorough review of the
drivers of uncertainty and had arrived at an appropriate recommendation for the level of
booked reserves including the risk adjustment.
The Committee considered management’s recommendations for life insurance reserves
Life insurance reserves
which included their basis and the methodology. The main areas of judgement reviewed by
The calculation of life insurance
the Committee were the estimated future cash flows and the discount rate applied to future
reserves requires management to
cash flows.
make significant judgements
about bond yields, discount rates,
T
he Committee reviewed the work done by the Chief Life Actuary to assess whether the
credit risk, mortality rates and
methodology remained appropriate, with a particular focus on mortality rates, surrender
current expectations of future
rates and future attributable expenses.
expense levels.
Fol
lowing its review, and after consideration of the auditor’s report, the Committee was
satisfied that the assumptions proposed were appropriate and overall the judgements made
in respect of the reserves were reasonable. The assumptions are disclosed in note 26 of the
financial statements.
During 2025, reports were received from management on the proposed approach to the
Pension scheme accounting
valuation of the pension scheme. As the pension scheme is sensitive to changes in key
The liabilities of the scheme are
assumptions, management completed an assessment as to the appropriateness of the
material in comparison to the
assumptions used, taking advice from independent actuarial experts and including, where
Group’s net asset and the
appropriate, benchmark data, and reported its findings to the Committee. Improvements in the
valuation requires many actuarial
pension actuary’s models increased the accuracy, and also dynamically captured changes in
assumptions, including
the scheme’s liability profile.
judgements in relation to long-
Following the review, management concluded the future improvements in mortality table will
term interest rates, inflation,
be updated to the CMI 2024 table. In the CMI 2024 table, the default half-life parameter of 1
longevity and investment returns.
year will be applied, meaning the pandemic-related mortality effect is assumed to reduce by
Judgement is applied in
half each year. The best estimate multipliers for the post-retirement mortality tables were
determining the extent to which a
revised following input from the Scheme Actuary.
surplus in the Group’s defined
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benefit scheme can be recognised
Following consideration, the Committee concluded that the assumptions and disclosures
as an asset.
proposed were appropriate.
The impact of updating assumptions to reflect those in force at the balance sheet date on the
valuation at 31 December 2025 is explained in note 18 to the financial statements.
The Committee reviewed management’s impairment assessment in accordance with IAS 36
Valuation of intangible assets
Impairment of Assets, including the identification of impairment indicators and the
The valuation and impairment
value‑in‑use calculations supporting recoverable amounts.
assessment of intangible assets,
The Committee scrutinised the key assumptions underpinning these calculations—future
particularly internally developed
cash flow projections, expected cost savings and operational benefits, useful economic lives,
software, is a key area of focus
discount rates, and growth assumptions—assessing whether they were consistent with
due to the scale of the Group’s
approved business plans and current market conditions.
technology investment and the
materiality of these balances.
The Committee sought evidence supporting management’s forward‑
looking estimates,
including the project plans, costs, and the effect of technological developments on expected
Technological change and
asset use. Following this detailed review and challenge, the Committee agreed that an
evolving business requirements
impairment was required for certain intangible assets. It was satisfied that the remaining
increase the risk that certain
carrying values were supportable, that useful economic lives had been considered where
assets may not deliver their
necessary, and that the impairment recognised reflected an appropriate application of IAS 36
expected future economic
Impairment of Assets.
benefits or that useful economic
lives may need to be reassessed.
The Committee reviewed management’s fair value assessment of the Group’s unlisted equity
Valuation of unlisted equity
investment, including the valuation model prepared in accordance with IFRS 13 Fair Value
This is an area of focus given the
Measurement. It focused on key areas of judgement such as the selection of comparable
materiality and the subjectivity in
companies, calibration of valuation multiples, and the illiquidity discount.
deriving fair value.
A
key area of attention was management’s first‑time use of a model adjustment. Management
The judgements and estimates
used to determine the value of the
explained that the adjustment was introduced to reflect specific characteristics and objective
Group’s interest in unlisted equity
evidence of fair value not fully captured in the base model. The Committee examined the
follow industry recognised fair
evidence supporting these qualitative factors and assessed whether they were consistent
value model techniques and the
with market participant assumptions.
principles of IFRS 13 Fair Value
Measurement. Judgements and
The Committee challenged the rationale and transparency of the model including this overlay
estimates include the selection of
adjustment and
reviewed the supporting analysis. It evaluated whether the approach
the most appropriate valuation
remained aligned with IFRS
13 requirements to maximise observable inputs while
approach, the set of comparable
appropriately incorporating relevant unobservable inputs.
companies, choice of valuation
multiples and the setting of an
F
ollowing this review, the Committee concluded that the valuation approach, including the
illiquidity discount.
model adjustment, was appropriate and that the resulting fair value was appropriate.
Fair, balanced and understandable
The Committee considered whether in its opinion, the 2025 Annual Report and Accounts were fair, balanced and understandable and
provided the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. The
Committee provided feedback on drafts of the Annual Report and Accounts, highlighting any areas where further clarity was required in
the final version.
W
hen forming its opinion, the Committee reflected on information it had received and discussions throughout the year as well as its
knowledge of the business and its performance.
The Committee was satisfied that the disclosures in the Annual Report and Accounts, taken as a whole, are fair, balanced and
understandable and represented the results and business performance for the year ended 31 December 2025.
O
versight of systems of internal control including the internal audit function
Assessment of internal controls
The approach to internal control and risk management is set out in the Corporate Governance Report section of this Annual Report
and Accounts.
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In reviewing the effectiveness of the system of internal control and risk management during 2025, the Committee has:
•
reviewed the findings arising from both external and internal audit reports issued during the year;
•
monitored management’s responsiveness to the findings and recommendations of the Group Chief Internal Auditor;
•
met with the Group Chief Internal Auditor without management being present to discuss any issues arising from internal audits
carried out; and
•
considered a report prepared by the Group Chief Internal Auditor giving his assessment of the strength of the Group’s internal
controls based on internal audit activity during the year.
I
nternal control over financial reporting
Internal control over financial reporting is designed to provide reasonable, though not absolute, assurance regarding the reliability of
financial reporting and the preparation of financial statements in accordance with UK-adopted international accounting standards.
Controls within the Group’s financial reporting processes are intended to ensure that:
•
r
oles, responsibilities and delegated authorities are clearly defined;
•
appropriate segregation of duties exists across key financial transactions;
•
commitments and expenditure are authorised at the appropriate levels;
•
accounting records are maintained that accurately and fairly reflect transactions;
•
any unauthorised acquisition, use or disposal of assets that could materially impact the financial statements is prevented or
detected on a timely basis;
•
transactions are recorded to permit the preparation of financial statements; and
•
the financial statements comply with UK-adopted international accounting standards.
I
nternal controls have inherent limitations, and therefore can only provide reasonable assurance against material misstatement. Based
on reports from management and work performed by internal and external auditors, the Committee did not identify any material
weaknesses in internal control over financial reporting during the year. The Committee was satisfied that the financial systems
operated effectively throughout the period and noted no issues that would indicate they will not continue to operate effectively in the
forthcoming year.
Group Internal Audit (GIA)
GIA provides independent, objective assurance to the Board that the governance processes, management of risk and systems of
internal control are adequate and effective to mitigate the most significant risks to the Group. GIA operates co-sourcing arrangements
in the UK, Ireland and Canada where specialist resource is required to supplement existing resources. In addition, GIA oversees and
monitors the outsourced internal audit arrangements in Australia.
T
he Committee oversees the annual internal audit plan to ensure that it is aligned to the Group’s key risks. It also assesses the internal
audit plan and reviews the findings of internal audit with management.
T
he Committee is satisfied that GIA has appropriate resources. The Group Chief Internal Auditor is accountable to the Chair of the
Committee and reports administratively to the Group Chief Executive. The Group Chief Internal Auditor has access to the Chair of the
Committee and the Chair of the Board. The function has an extensive stakeholder management programme in place.
G
IA’s annual programme of work is risk based and designed to cover areas of higher risk or specific focus. The plan is approved
annually in advance by the Committee and is regularly reviewed throughout the year to ensure that it continues to reflect areas of
higher priority. Where necessary, changes to the agreed plan are identified as a consequence of the Group’s changing risk profile.
Throughout the year, GIA submitted quarterly reports to the Committee summarising findings from audit activity undertaken and the
responses and action plans agreed with management. The Committee monitored progress of the most significant management action
plans to ensure that these were completed in a timely manner and to a satisfactory standard.
W
histleblowing
Whistleblowing arrangements are administered by Group HR, with oversight provided by the Committee. The Committee receives
quarterly updates on cases raised through the whistleblowing channels and considers any significant matters escalated during the
year. A structured annual whistleblowing programme is in place, incorporating training, communication, and monitoring activities.
Mandatory online training for all colleagues and managers covers whistleblowing principles and the Group’s Code of Conduct. This is
reinforced through individual attestations and regular internal communications, helping to maintain awareness and support an open,
transparent and ‘speak-up’ culture across the Group. Whistleblowing policies, procedures and guidance materials are reviewed and
updated each year to ensure they remain clear, accessible and effective in encouraging individuals to raise concerns safely and with
confidence.
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Leg
al and regulatory developments
The Committee received and reviewed reports on the impact of legal and regulatory developments relevant to the Group.
The year ahead
The Committee will continue to focus on strong financial governance in the context of increasing regulatory expectations and investor
scrutiny. With the enhanced internal controls requirements under the UK Corporate Governance Code, including the forthcoming
Provision 29 declaration, the Committee will review relevant developments and ensure that the entity’s control environment remains
well designed and effective.
A
s new accounting and sustainability reporting standards emerge, the Committee will oversee management’s preparations to ensure
the Group’s reporting remains compliant, transparent and supported by high quality data. Technology continues to be central to the
Group’s strategy, and the Committee will monitor the implementation of new platforms that enhance efficiency, strengthen controls
and support accurate reporting. Growing digital dependence means that cybersecurity, data governance and responsible use of
artificial intelligence will remain prominent and recurring themes on the Committee’s agenda, reflecting their priority across audit
committees globally.
A
gainst a backdrop of continued economic and geopolitical uncertainty, the Committee will work closely with management to ensure
risk management processes remain forward looking, responsive to change and aligned with the Group’s objectives. Through ongoing
oversight of governance, internal controls and financial stewardship, the Committee aims to support the continued resilience, integrity
and transparency of the Group’s reporting in the year ahead.
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R
emuneration Committee Report
Remuneration Review
Group Remuneration Committee Chair’s statement
As Chair of the Group Remuneration Committee, I am pleased to introduce the Remuneration Committee Report for 2025 and to
highlight some of the key aspects of the Committee’s work during the year. The Committee’s principal aim remains to ensure that all
colleagues are rewarded fairly according to their contribution to the success of the Group and the quality of their individual
performance, keeping carefully in mind the relationship between reward, recruitment and retention.
T
his review sets out an overview of remuneration at EIO which is aligned with that at Benefact Group. The full Group Directors’
Remuneration Report is available in the Benefact Group plc Annual Report.
R
emuneration Principles
To ensure these continue to drive the Group’s strategy and to achieve long-term success, while maintaining the Group’s high standards
as an ethically and socially responsible business by the delivery of the expected level of grant to the Group’s shareholder and owner
Benefact Trust Limited, remuneration continues to be underpinned by the following principles: fair reward; simplification of the Group’s
incentive arrangements; compliance with evolving regulatory and corporate governance requirements; linking pay and performance;
alignment of incentive designs with the Group’s strategy and shareholder expectations; and consideration of the reputational impact
of any changes.
2025 performance and incentive outcomes
The financial results for EIO are set out in the Group Chief Financial Officer’s report. The Committee note with thanks the efforts of all
our colleagues across the Group in continuing to deliver what matters most to the business: supporting our customers by providing
excellent customer service, maximising our grant to our charitable shareholder, Benefact Trust Limited, and delivering on the Group’s
next chapter in our ambitious strategy for the future.
T
he annual bonus and long-term incentive plan outcomes in the year reflected the wider Group performance. The Committee
considered that the annual bonus outcomes were a fair reflection of the overall performance achieved by both the Group and the
individuals. Having considered all the relevant factors, the Committee determined that a discretionary adjustment to the Strategic
Target outcome be applied based on a material addition to the original strategic targets set at the outset of the year, which impacted a
number of key initiatives. No discretion was applied to the long-term incentive plan. Further details of performance against the targets
set for 2025 are disclosed in the Benefact Group plc 2025 Directors’ Remuneration Report.
I
n line with the Committee’s established practice, the Committee, supported by the Group Chief Risk and Compliance Officer, considered
risk management outcomes across the Group as part of its deliberations, including how these had impacted individual performance
assessments where relevant. Following this review, the Committee did not consider further risk adjustment of the awards was
necessary.
T
he Committee is of the view that the remuneration policy operated as intended during the year and that the overarching remuneration
framework continues to be appropriate taking into account both internal and external factors, therefore no changes are proposed to
the Policy for 2026.
D
irector changes in the year
As set out in the Directors’ Remuneration Report last year, in 2024 we reshaped the Boards of Benefact Group and Ecclesiastical
Insurance Office plc to increase the independence of Ecclesiastical Insurance Office plc. Following this, the Deputy Chief Executive is
no longer a Board Director of Benefact Group plc but remains a Board Director of Ecclesiastical Insurance Office plc. Whilst no longer
a director of Benefact Group plc, her remuneration details have continued to be disclosed for transparency in the full report.
A
s disclosed last year, Mark Bennett was appointed to the Boards of EIO and Benefact Group plc and as Group Chief Financial Officer
on 1 January 2025. All of his remuneration arrangements are in line with our Directors’ Remuneration Policy and were disclosed in full
last year. Details of his pay in the year and for the year ahead are included in the full report.
58
Ecclesiastical Insurance Office public limited company
Governance
Implementation of Policy for 2026
Ba
se salary
The level of salary increases for UK Ecclesiastical employees is a key consideration in setting the level of any salary increase for
Executive Directors. The Committee determined, after careful consideration, that the base salary for the Group Chief Executive would
be increased by 6% (effective 1 April 2026) due to exceptional circumstances relating to his responsibilities in London. The base
salaries of the Deputy Chief Executive and Group Chief Financial Officer would be increased by 3.5% (effective 1 April 2026), which is
in line with the wider employee population.
Incentives
There are no proposed changes to the incentive opportunities. The Committee has reviewed the performance measures and weightings
and is satisfied that they continue to be aligned to the Group’s strategy. Some minor changes are proposed, further details of
which are provided in the full report.
Chair and NED fees
The Committee considered the Chair’s fees as part of the regular review of Chair and Non-Executive Director (NED) fees. The Chair
took no part in the discussions on his fees, nor the NEDs in discussion of theirs.
Gender pay gap
The gender pay report for 2025 showed our median gender pay gap slightly decreased to 18.2% (2024: 19.5%) for EIO. The wider Group
median pay gap has also slightly decreased to 23.4% (2024: 25.8%) due to year-on-year changes in the composition of the population
across the Group. The Group remains committed to promoting inclusion and diversity throughout our business and to ensuring that
all employees have a fair and equal pay opportunity appropriate to their role.
Conclusion
I value the continued support and counsel of our charitable owner and ultimate shareholder, Benefact Trust Limited, and reaffirm
our responsibility to drive sustained, improved and responsible performance over the long-term through our remuneration strategy,
policy and principles.
Sir Stephen Lamport
Chair of the Group Remuneration Committee
19 March 2026
Committee member
Member since
Meetings attended
Sir Stephen Lamport (Chair)
June 2020 4/4
David Henderson
September 2016
4/4
Rita Bajaj
September 2024
4/4
Group Remuneration Committee
Purpose and membership
The Committee is responsible for recommending to the Board the Remuneration Policy for Executive Directors and for determining
the remuneration packages for Executive Directors, members of the Group Management Board (GMB), Material Risk Takers (MRTs)
and heads of strategic business units. None of the individuals within these populations are involved in discussions relating to their own
remuneration.
The Committee also has overarching responsibility for the Group-wide Remuneration Policy. In fulfilling its responsibilities, the
Committee seeks to ensure that the Policy is fair, transparent, and avoids unnecessary complexity. It considers, among other factors,
the extent to which pay arrangements support the Benefact Group’s culture, values, and strategic objectives.
All members are independent NEDs and have the necessary experience and expertise to meet the Committee’s responsibilities. As a
joint committee of EIO and Benefact Group plc, membership comprises directors from both Boards ensuring alignment of the Group’s
Risks and Remuneration Policies and consideration of Risk management and outcomes in setting reward.
59
Ecclesiastical Insurance Office public limited company
Governance
Ad
visers to the Committee
During the year, the Committee received external independent advice from Deloitte in relation to the Committee’s activities. As a
founding member of the Remuneration Consultants Group, Deloitte voluntarily adheres to its Code of Conduct.
Fees for professional advice to the Committee paid to Deloitte were £61,600 (2024: £79,925). The Committee is satisfied that the advice
it received during 2025 from Deloitte was impartial.
T
he Committee also had access to benchmarking reports from Willis Towers Watson and McLagan, which provided additional data to
support the determination of pay and conditions throughout the Benefact Group.
I
n the course of its deliberations, the Committee also considered the views of the Group Chief Executive, Group Chief Financial Officer,
Group Chief People Officer, Group Chief Risk and Compliance Officer and Group Reward Director. Additionally, the Committee also
received updates from the CEO, Benefact Broking and Advisory, and Head of Distribution. The Company Secretariat advised on legal
and governance-related matters. Such input, however, did not relate to their own remuneration.
N
o other external advisers provided services to the Committee during the year.
R
emuneration Policy summary
The full Benefact Group Directors’ Remuneration Policy can be found in the 2024 Directors’ Remuneration Report, which sets out the
full details of the remuneration policy and how it will be implemented, as well as a full description of the principles which underpin the
Group’s reward structure.
The remuneration structure for the Executive Directors comprises of:
- Fixed annual elements including salary, pension contribution that is aligned with the wider employer population, and
benefits. These are set in order to recognise the responsibility and experience of the Executive Directors and to ensure
current market competitiveness.
- Variable incentive elements including an annual bonus, with one-third of the total bonus deferred over three years, and a
long-term incentive plan. These are set in order to incentivise and reward the Executive Directors for making the Group
successful on a sustainable basis. Both the annual bonus and long-term incentive plan are subject to a balanced scorecard
of financial and non-financial measures aligned to our strategy.
Annual Report on Remuneration
This section of the Remuneration Review sets out how the above Remuneration Policy was implemented in 2025 and the resulting
payments the highest paid director received. The financial information contained in this review has been audited where indicated.
H
ighest paid Director
The table below shows a single total figure of remuneration received in respect of qualifying services for the 2025 financial year for
the highest paid director, together with comparative figures for 2024. The remuneration disclosures for the other Board Directors are
set out in full in the Benefact Group plc 2025 Directors’ Remuneration Report. The disclosure in this review is not specific to time
allocated within EIO as remuneration relates to Group-wide accountability.
F
ixed remuneration
Variable remuneration
Total
£000
£000
remuneration
£000
1
Salary Benefits
Pension
Total Annual
Long Term
Total Total
2
3
benefit
bonus
Incentive Plan
4
(LTIP)
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
668
576
36
31
68
60
772
667
813
884
741
423
1,554
1,307
2,326
1,974
1
Benefits include car allowance and private medical insurance which are valued at the taxable value. Provision of benefits during 2025 was in line with
the Directors’ Remuneration Policy. From 2024, the highest paid director’s benefits now include taxable benefits
.
60
Ecclesiastical Insurance Office public limited company
Governance
2
The highest paid director received a cash allowance in lieu of pension of 12% of salary (net of national insurance contributions) in lieu of pension, in line
with Company policy. Cash allowances can be paid to UK-based Executive Directors where pension contributions would be in excess of the HMRC annual
and/or lifetime allowance.
3
In line with the deferral policy, for annual bonus earned, one-third of the total bonus is deferred over a period of three years. The value of 2025 annual
bonus that is deferred is set out in the Benefact Group plc 2025 Directors’ Remuneration Report.
4
LTIP represents the amount payable in respect of the three-year LTIP performance period 2023-2025 for 2025 and 2022-2024 for 2024, as disclosed
in the 2024 Directors’ Remuneration Report. The Group operates a cash LTIP scheme, therefore no part of the award was attributable to share price
appreciation. The director holds unvested LTIP awards in accordance with the rules of the LTIP plan.
A
nnual bonus outcomes for 2025
The annual bonus outturns were determined taking into account both Group and individual performance and is set out in full in the
Benefact Group plc 2025 Directors’ Remuneration Report.
LTIP outcomes in 2025 (audited)
The LTIP amount included in the single total figure of remuneration is the cash award resulting from the Group LTIP grant for the
period 2023-2025. Vesting was dependent on performance over the three financial years ending on 31 December 2025 and is set out
in full in the Benefact Group plc 2025 Directors’ Remuneration Report.
Wider stakeholder engagement
The Committee is committed to considering the views of key stakeholders when making remuneration decisions. This approach ensures
that our policies and practices remain fair, transparent, and aligned with the long-term interests of the Group and its stakeholders.
T
he Group consults with its recognised Union, Unite, regarding remuneration for employees within relevant UK businesses.
Additionally, employees can provide feedback via the Group’s employee engagement survey and to their managers or HR. The Group
Chief People Officer attends the Committee meetings and advises the Committee on HR strategy, including the effectiveness of the
Group’s remuneration policies and how they are viewed by employees.
61
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
Report on the audit of the financial statements
Opinion
In our opinion, Ecclesiastical Insurance Office public limited company’s group financial statements and company financial statements
(the “financial statements”):
•
give a true and fair view of the state of the group’s and of the Company’s affairs as at 31
December
2025 and of the group’s
profit and the group’s and company’s cash flows for the year then ended;
•
have been properly prepared in accordance with UK-adopted international accounting standards as applied in accordance
with the provisions of the Companies Act 2006; and
•
have been prepared in accordance with the requirements of the Companies Act 2006.
W
e have audited the financial statements, included within the 2025 Annual Report and Accounts (the “Annual Report”), which comprise:
•
the Consolidated Statement of Profit or Loss as at 31
December
2025;
•
the Consolidated and Parent Statements of Comprehensive Income as at 31
December
2025;
•
the Consolidated and Parent Statements of Changes in Equity as at 31
December
2025;
•
the Consolidated and Parent Statements of Financial Position as at 31
December
2025;
•
the Consolidated and Parent Statements of Cash Flows for the year then ended; and
•
the notes to the financial statements, comprising material accounting policy information and other explanatory information.
O
ur opinion is consistent with our reporting to the Ecclesiastical Insurance Office plc Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section
of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in note 12, we have provided no non-audit services to the Company or its controlled undertakings in the
period under audit.
O
ur audit approach
Overview
Audit scope
•
We have scoped the audit based on the significant components and material account balances within the group, which is
described below.
K
ey audit matters
•
Assumptions used in calculating Physical and Sexual Abuse "PSA" reserves (group and parent)
•
Valuation of unlisted equity investment (group and parent)
Ma
teriality
•
Overall group materiality: £11,500,000 (2024: £11,500,000) based on 1.9% of net assets.
•
Overall company materiality: £10,925,000 (2024: £10,925,000) based on 1.9% of net assets.
•
Performance materiality: £8,625,000 (2024: £8,625,000) (group) and £8,194,000 (2024: £8,194,000) (company).
T
he scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
62
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures
thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
This is not a c
omplete list of all risks identified by our audit.
Valuation of
unlisted equity investment is a new key audit matter this year. Otherwise, the key audit matters below are consistent with
last year.
Key audit matter
How our audit addressed the key audit matter
Assumptions used in calculating Physical and Sexual Abuse
We engaged our actuarial specialists and with their
"PSA" reserves (group and parent)
involvement, we have performed the following procedures
in
relation to the fulfilment cash flows:
As disclosed in the Audit Committee Report and notes 2, 3 and
• Inspected the Reserving Committee control which
26. The valuation of the general insurance liability for incurred
reviews, challenges and approves the assumptions
claims is a complex process involving inherent uncertainty and
used within the calculation of the fulfilment
is a significant area of management judgement within the
cash flows;
financial statements of the group and parent company. The
• Challenged the key assumptions used by management
uncertainty around claims frequency, claims severity, discount
including evaluation of historical claims frequency,
rate, future inflation and risk adjustment require management
claims severity, future inflation, as well as the
judgement and estimation in calculating the general insurance
specific allowance included within the risk
liability for incurred claims. We consider the area of the most
adjustment;
significant judgement to be specific to assumptions used in
• Evaluated reasonable alternative assumptions by
calculating the fulfilment cash flows for PSA exposures,
performing independent sensitivity analysis and
specifically in relation to the probability weighted best
assessing the impact on the value of fulfilment cash
estimate of the liability for incurred claims. Specifically, the
flows calculated;
assumptions requiring significant judgement and estimation
• We have assessed the appropriateness of the
are claims frequency, claims severity, future inflation and the
resulting general insurance liability for incurred
specific allowance included within the risk adjustment.
claims based on the assumptions selected.
Based on the work performed and evidence obtained,
we consider the assumptions used in the calculation of
the PSA fulfilment cash flows and the specific allowance
within the risk adjustment to be appropriate.
We engaged our specialised valuations team and with their
Valuation of unlisted equity investment (group and parent)
involvement performed the following:
As disclosed in the Audit Committee Report and notes 2, 3 and
•assessed the methodology used by management
4, Ecclesiastical Insurance Office plc (EIO) has a holding in an
in the valuation of the investment.
unlisted equity investment valued at £98.8m as at 31
•assessed the appropriateness of the comparators used
December 2025. Valuing this investment requires judgement
to derive the price to tangible book ratio assumption.
in the methodology applied as well as the significant
•Assessed the appropriateness of the illiquidity discount
assumptions used within the valuation. The most significant
applied.
assumptions that feed into the valuation of the unlisted equity
•assessed the appropriateness of the out-of-model
investment are the price to tangible book value ratio and the
adjustment.
illiquidity discount, as well as any out-of-model adjustments to
Based on the work performed and evidence obtained, we consider
the valuation.
the assumptions used in the valuation of unlisted equity
investments to be appropriate.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the group and the Company, the accounting processes and controls, and the industry
in which they operate.
63
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
Th
e group operates a general insurance business in the United Kingdom, Republic of Ireland, Canada and Australia and a life insurance
business. The group also includes certain non-insurance entities within the United Kingdom and Australia which are smaller and do
not form part of our in-scope components. We considered the United Kingdom, Australia and Canada general insurance businesses,
as each of these include PSA liabilities, to be significant components, as well as the consolidation adjustments. We performed a full
scope audit of the United Kingdom general insurance business as well as the consolidation adjustments, and an audit of specific large
balances for Australia and Canada. The general insurance business is the Republic of Ireland, Ansvar UK as well as the life insurance
business, although not considered significant components, were also noted to include specific large balances that have been brought
into the scope of our audit. We considered the remaining untested amounts across the group to ensure sufficient coverage has been
obtained.
The impact of climate risk on our audit
As part of our audit, we made enquiries of management to understand the process management adopted to assess the extent of the
potential impact of climate risk on the Group’s and Parent company financial statements. In addition to enquiries with management, we
also understood the governance processes in place to assess climate risk. We have performed our own risk assessment of the climate
risk faced by the Company, the commitments made by the Group, how these may affect the financial statements and the audit
procedures that we perform. We have assessed the risks of material misstatement to the financial statements as a result of climate
change and concluded that for the year end 31 December 2025, climate change does not impact our audit risk assessment. We did
however assess the consistency of disclosures included within the Annual Report and 'Other Information' including the Strategic
Report.
Ma
teriality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both
individually and in aggregate on the financial statements as a whole.
Bas
ed on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Financial statements - group
Financial statements - company
Overall
£11,500,000 (2024: £11,500,000). £10,925,000 (2024: £10,925,000).
materiality
How we
1.9% of net assets 1.9% of net assets
determined
it
Rationale
The engagement team concluded that a net assets benchmark is the
In line with overall group materiality, the
for
most appropriate when setting an overall materiality on the 2025
engagement team concluded that a net
benchmark
audit engagement. In our view, we consider net assets to be the
assets benchmark is the most appropriate
appropriate benchmark as it best aligns with the underlying interest
applied
when setting an overall materiality. This is
of the stakeholders. The quantum of materiality was determined by
capped at 95% of overall group
considering the various benchmarks available to us as auditors, our
materiality to allow for potential
experience of auditing other insurance groups and the business
aggregation risk.
performance during 2025.
For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality. The
range of materiality allocated across components was between £2.0 million and £10.9 million. Certain components were audited to a
local statutory audit materiality that was also less than our overall group materiality.
We
use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our
audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining
sample sizes. Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £8,625,000 (2024: £8,625,000)
for the group financial statements and £8,194,000 (2024: £8,194,000) for the company financial statements.
64
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
I
n determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and
aggregation risk and the effectiveness of controls - and concluded that an amount in the middle of our normal range was appropriate.
W
e agreed with the Ecclesiastical Insurance Office plc Audit Committee that we would report to them misstatements identified during
our audit above £575,000 (group audit) (2024: £575,000) and £546,000 (company audit) (2024: £546,000) as well as misstatements
below those amounts that, in our view, warranted reporting for qualitative reasons.
Con
clusions relating to going concern
Our evaluation of the directors’ assessment of the group's and the Company’s ability to continue to adopt the going concern basis of
accounting included:
•
O
btained and reviewed management’s going concern assessment which included the board approved forecasts along with
stressed and downside scenarios;
•
Considered the forward looking assumptions and assessed the reasonableness of these based on recent historic
performance;
•
Considered information obtained during the course of the audit and publicly available market information to identify any
evidence that would contradict management’s assessment; and
•
Considered our own independent alternative downside scenarios and whether these could impact the going concern
assessment.
B
ased on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group's and the Company’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
H
owever, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's and the
company's ability to continue as a going concern.
I
n relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this
report.
R
eporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report
thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any
form of assurance thereon.
I
n connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are
required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material
misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
W
ith respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK Companies
Act 2006 have been included.
B
ased on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and
matters as described below.
65
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
S
trategic report and Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors'
Report for the year ended 31
December
2025 is consistent with the financial statements and has been prepared in accordance with
applicable legal requirements.
I
n light of the knowledge and understanding of the group and company and their environment obtained in the course of the audit, we
did not identify any material misstatements in the Strategic report and Directors' Report.
Corporate governance statement
ISAs (UK) require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the corporate
governance statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code, which the
Listing Rules of the Financial Conduct Authority specify for review by the auditor. Our additional responsibilities with respect to the
corporate governance statement as other information are described in the Reporting on other information section of this report.
B
ased on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance
statement, included within the Corporate Governance Report is materially consistent with the financial statements and our knowledge
obtained during the audit, and we have nothing material to add or draw attention to in relation to:
•
The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
•
The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging
risks and an explanation of how these are being managed or mitigated;
•
The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern
basis of accounting in preparing them, and their identification of any material uncertainties to the group’s and company’s
ability to continue to do so over a period of at least twelve months from the date of approval of the financial statements;
•
The directors’ explanation as to their assessment of the group's and company’s prospects, the period this assessment covers
and why the period is appropriate; and
•
The directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue in
o
peration and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing
attention to any necessary qualifications or assumptions.
O
ur review of the directors’ statement regarding the longer-term viability of the group and company was substantially less in scope
than an audit and only consisted of making inquiries and considering the directors’ process supporting their statement; checking that
the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and considering whether the
statement is consistent with the financial statements and our knowledge and understanding of the group and company and their
environment obtained in the course of the audit.
I
n addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial statements and our knowledge obtained during the audit:
•
T
he directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and
provides the information necessary for the members to assess the group’s and company's position, performance, business
model and strategy;
•
The section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems; and
•
The section of the Annual Report describing the work of the Ecclesiastical Insurance Office plc Audit Committee.
W
e have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s compliance
with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review
by the auditors.
R
esponsibilities for the financial statements and the audit
R
esponsibilities of the directors for the financial statements
As explained more fully in the Directors' responsibilities statement, the directors are responsible for the preparation of the financial
statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are
also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
66
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
I
n preparing the financial statements, the directors are responsible for assessing the group’s and the Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the group or the company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
I
rregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud, is detailed below.
B
ased on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and
regulations related to breaches of UK regulation, such as those governed by the Prudential Regulation Authority and the Financial
Conduct Authority, and we considered the extent to which non-compliance might have a material effect on the financial statements.
We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of
override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate the
financial statements, as well as management bias in accounting estimates, in particular the valuation of specific general insurance
contract liabilities including Physical and Sexual Abuse ("PSA") reserves and the valuation of unlisted equity investments. The group
engagement team shared this risk assessment with the component auditors so that they could include appropriate audit procedures
in response to such risks in their work. Audit procedures performed by the group engagement team and/or component auditors
included:
•
E
nquired of Group functions including compliance, risk and internal audit and consideration of known or suspected instances
of non-compliance with laws and regulation and fraud;
•
Reviewed key correspondence with the Prudential Regulation Authority and the Financial Conduct Authority in relation to
compliance with laws and regulations;
•
Reviewed relevant meeting minutes including those of the Board, Audit Committee and Group Audit, Risk & Compliance
Committee;
•
Procedures related to the valuation of specific general insurance contract liabilities such as PSA reserves described in the
related key audit matter;
•
Risk based target testing of journal entries, in particular any journal entries which include characteristics which were
identified as potentially being indicative of a fraudulent journal; and
•
Procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also,
the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We
will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
U
se of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with Chapter
3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
67
Ecclesiastical Insurance Office public limited company
Independent auditors’ report to the members of the Ecclesiastical
Insurance Office public limited company
Ot
her required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•
we
have not obtained all the information and explanations we require for our audit; or
•
adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received
from branches not visited by us; or
•
certain disclosures of directors’ remuneration specified by law are not made; or
•
the Company financial statements are not in agreement with the accounting records and returns; or
•
a corporate governance statement has not been prepared by the Company.
We
have no exceptions to report arising from this responsibility.
Appointment
We were first appointed by the Company for the financial year ended 31
December
2020. Our uninterrupted engagement covers 6
financial years.
Oth
er matter
The Company is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules to include these financial
statements in an annual financial report prepared under the structured digital format required by DTR 4.1.15R - 4.1.18R and filed on the
National Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides no assurance over whether the
structured digital format annual financial report has been prepared in accordance with those requirements.
Ga
ry Shaw (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
19
March
2026
68
Ecclesiastical Insurance Office public limited company
Consolidated statement of profit or loss
for the year ended 31 December 2025
Notes | 2025 | 2024 | |
£000 | £000 | ||
Insurance revenue | 5, 6 | ||
Insurance service expenses | 7 | ( | ( |
Insurance service result before reinsurance contracts held | |||
Net expense from reinsurance contracts | ( | ( | |
Insurance service result | |||
Net insurance financial result | 8 | ( | ( |
Net investment result | 9 | ||
Fee and commission income | 10 | ||
Other operating expenses | 11 | ( | ( |
Other finance costs | ( | ( | |
Profit before tax | |||
Tax expense | 14 | ( | ( |
Profit for the year | 11 |
69
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of comprehensive income
for the year ended 31 December 2025
Notes | 2025 | 2024 | |||
Group | Parent | Group | Parent | ||
£000 | £000 | £000 | £000 | ||
Profit for the year | 93,512 | 67,852 | |||
Other comprehensive income/(expense) | |||||
Items that will not be reclassified to profit or loss: | |||||
Actuarial gains/(losses) on retirement benefit plans | 17 | 1,376 | ( | (1,630) | |
Attributable tax | ( | (344) | 408 | ||
1,032 | ( | (1,222) | |||
Items that may be reclassified subsequently to profit or loss: | |||||
Losses on currency translation differences | 25 | ( | (1,377) | ( | (5,105) |
Gains on net investment hedges | 25 | 2,379 | 4,420 | ||
Attributable tax | 25 | ( | (595) | ( | (1,105) |
407 | ( | (1,790) | |||
Net other comprehensive income/(expense) | 1,439 | ( | (3,012) | ||
Total comprehensive income | 94,951 | 64,840 |
70
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of financial position
at 31 December 2025
Notes | 31 December 2025 | 31 December 2024 | |||
Group | Parent | Group | Parent | ||
£000 | £000 | £000 | £000 | ||
Assets | |||||
Cash and cash equivalents | 23 | 68,841 | 80,330 | ||
Financial investments | 20 | 768,355 | 674,401 | ||
Other assets | 22 | 140,986 | 153,337 | ||
Current tax recoverable | 424 | 1,545 | |||
Reinsurance contract assets | 26 | 176,970 | 178,143 | ||
Investment property | 19 | 121,701 | 128,563 | ||
Property, plant and equipment | 18 | 28,898 | 32,509 | ||
Deferred tax assets | 28 | 7 | 6 | ||
Goodwill and other intangible assets | 16 | 15,865 | 26,425 | ||
Pension assets | 17 | 18,710 | 17,552 | ||
Total assets | 1,340,757 | 1,292,811 | |||
Equity | |||||
Share capital | 24 | 120,477 | 120,477 | ||
Share premium account | 4,632 | 4,632 | |||
Retained earnings and other reserves | 453,621 | 435,851 | |||
Total shareholders' equity | 578,730 | 560,960 | |||
Liabilities | |||||
Other liabilities | 29 | 56,493 | 66,640 | ||
Current tax liabilities | 512 | 96 | |||
Provisions for other liabilities | 27 | 4,485 | 5,886 | ||
Insurance contract liabilities | 26 | 605,281 | 567,572 | ||
Lease obligations | 32 | 21,095 | 22,906 | ||
Deferred tax liabilities | 28 | 43,174 | 39,307 | ||
Investment contract liabilities | 31 | - | - | ||
Subordinated liabilities | 30 | 26,835 | 25,112 | ||
Retirement benefit obligations | 17 | 4,152 | 4,332 | ||
Total liabilities | 762,027 | 731,851 | |||
Total shareholders' equity and liabilities | 1,340,757 | 1,292,811 |
No statement of profit or loss is presented for Ecclesiastical Insurance Office public limited company as permitted by Section 408 of the
Companies Act 2006. The profit after tax of the parent company for the year was £93.5m (2024: profit of £67.9m).
The financial statements of Ecclesiastical Insurance Office public limited company, registered number 00024869, on pages [X] to [X] were
approved and authorised for issue by the Board of Directors on 19 March 2026 and signed on its behalf by:
Francois-Xavier Boisseau
Mark Hews
Chair
Group Chief Executive
71
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of changes in equity
for the year ended 31 December 2025
Translation | |||||||
Share | Share | Revaluation | and hedging | Retained | |||
capital | premium | reserve | reserve | earnings | Total | ||
Group | Notes | £000 | £000 | £000 | £000 | £000 | £000 |
At 1 January 2025 | |||||||
Profit for the year | |||||||
Other net income | |||||||
| Total comprehensive income | |||||||
Dividends on ordinary shares | 15 | ( | ( | ||||
Dividends on preference shares | 15 | ( | ( | ||||
Gross charitable grant | 15 | ( | ( | ||||
Tax relief on charitable grant | 15 | ||||||
At 31 December 2025 | |||||||
At 1 January 2024 | |||||||
Profit for the year | |||||||
Other net expense | ( | ( | ( | ||||
Total comprehensive (expense)/income | ( | ||||||
Dividends on ordinary shares | 15 | ( | ( | ||||
Dividends on preference shares | 15 | ( | ( | ||||
Gross charitable grant | 15 | ( | ( | ||||
Tax relief on charitable grant | 15 | ||||||
Reserve transfers | ( | ||||||
At 31 December 2024 |
Parent
At 1 January 2025
120,477
4,632
-
6,545
429,306
560,960
Profit for the year
-
-
-
-
93,512
93,512
Other net income
-
-
-
407
1,032
1,439
Total comprehensive income
-
-
-
407
94,544
94,951
Dividends on ordinary shares
-
-
-
-
(50,000)
(50,000)
Dividends on preference shares
-
-
-
-
(9,181)
(9,181)
Gross charitable grant
-
-
-
-
(24,000)
(24,000)
Tax relief on charitable grant
-
-
-
-
6,000
6,000
At 31 December 2025
120,477
4,632
-
6,952
446,669
578,730
At 1 January 2024
120,477
4,632
857
8,335
425,750
560,051
Profit for the year
-
-
-
-
67,852
67,852
Other net expense
-
-
-
(1,790)
(1,222)
(3,012)
Total comprehensive (expense)/income
-
-
-
(1,790)
66,630
64,840
Dividends on ordinary shares
-
-
-
-
(30,000)
(30,000)
Dividends on preference shares
-
-
-
-
(9,181)
(9,181)
Gross charitable grant
-
-
-
-
(33,000)
(33,000)
Tax relief on charitable grant
-
-
-
-
8,250
8,250
Reserve transfers
-
-
(857)
-
857
-
At 31 December 2024
120,477
4,632
-
6,545
429,306
560,960
The revaluation reserve represented cumulative net fair value gains on owner-occupied property with the movement in the year representing the
sale of a property. Details of the translation and hedging reserve are included in note 25.
72
Ecclesiastical Insurance Office public limited company
Consolidated and parent statements of cash flows
for the year ended 31 December 2025
| Notes | 2025 | 2024 | |||
Group | Parent | Group | Parent | ||
£000 | £000 | £000 | £000 | ||
Profit before tax from operations | 110,732 | 84,749 | |||
Adjustments for: | |||||
Depreciation of property, plant and equipment | 4,981 | 5,628 | |||
Loss/(profit) on disposal of property, plant and equipment | 42 | ( | (178) | ||
Amortisation and impairment of intangible assets | 17,710 | 3,466 | |||
Movement in expected credit loss provision | ( | - | ( | - | |
Net fair value gains on financial instruments and investment property | ( | (42,064) | ( | (28,203) | |
Dividend and interest income | ( | (60,869) | ( | (31,311) | |
Finance costs | 3,173 | 3,102 | |||
Other adjustments for non-cash items | 24 | 594 | |||
Changes in operating assets and liabilities: | |||||
Net decrease/(increase) in reinsurance contract assets | (3,025) | ( | (26,120) | ||
Net increase in investment contract liabilities | - | - | |||
Net increase in insurance contract liabilities | 38,564 | 7,229 | |||
Net increase in other assets | ( | (34,334) | ( | (22,130) | |
Net increase/(decrease) in other liabilities | (11,765) | 26,030 | |||
| Cash generated by operations | 23,169 | 22,856 | |||
Purchases of financial instruments and investment property | ( | (149,600) | ( | (103,820) | |
Sale of financial instruments and investment property | 120,994 | 109,376 | |||
Dividends received | 28,251 | 11,708 | |||
| Interest received | 18,435 | 18,441 | |||
Tax paid | ( | (6,751) | ( | (5,579) | |
Net cash from operating activities | 34,498 | 52,982 | |||
Cash flows from investing activities | |||||
| Purchases of property, plant and equipment | ( | (1,394) | ( | (3,273) | |
Proceeds from the sale of property, plant and equipment | - | 1,961 | |||
Purchases of intangible assets | ( | (7,160) | ( | (6,180) | |
Net cash used by investing activities | ( | (8,554) | ( | (7,492) | |
Cash flows from financing activities | |||||
Interest paid | ( | (2,855) | ( | (2,625) | |
Payment of lease liabilities | ( | (1,851) | ( | (1,796) | |
Dividends paid to Company's shareholders | ( | (9,181) | ( | (9,181) | |
Charitable grant paid to ultimate parent undertaking | ( | (24,000) | ( | (33,000) | |
Net cash used by financing activities | ( | (37,887) | ( | (46,602) | |
Net decrease in cash and cash equivalents | ( | (11,943) | ( | (1,112) | |
Cash and cash equivalents at beginning of year | 80,330 | 83,436 | |||
Exchange gains/(losses) on cash and cash equivalents | 454 | ( | (1,994) | ||
Cash and cash equivalents at end of year | 23 | 68,841 | 80,330 |
73
Notes to the financial statements
1 Accounting policies
Ecclesiastical Insurance Office plc (hereafter referred to as the ‘Company’, or ‘Parent’), a public limited company incorporated and domiciled in
in the UK & Ireland, Australia and Canada. The Company is limited by shares. The material accounting policies adopted in preparing the
financial statements of the Group and Parent are set out below.
74
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
75
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
Product classification
Contracts under which the Group accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the
policyholder or other beneficiary if a specified uncertain future event (the insured event) adversely affects the policyholder are classified as
insurance contracts. Contracts that do not transfer significant insurance risk are classified as investment or service contracts. All of the
Group's life business contracts written up to April 2013 are classified as insurance contracts and those written from August 2021 are classified
as investment contracts. The closed book of business (insurance contracts) relates to funeral plan business directly written by Ecclesiastical
Life Limited (ELL) backed by a Whole of Life policy, which is administered by Ecclesiastical Planning Services Limited (EPSL). This was closed
to new business in 2013. EPSL is a subsidiary undertaking of the Benefact Group. New business (investment contracts) written from August
2021 creates unit trust backed life policies to secure the pre-paid funeral plans written by EPSL and a third party provider.
Contracts may contain a discretionary participating feature, which is defined as a contractual right to receive additional benefits as a
supplement to guaranteed benefits. The Group does not have any such participating contracts (referred to as with-profit contracts). The
Group's long-term business contracts are referred to as non-profit contracts in the financial statements.
76
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
Ne
t investment return
Net investment return consists of dividends, interest and rents receivable for the period, realised gains and losses, unrealised gains and losses
on financial investments and investment properties. Dividends on equity securities are recorded as revenue on the ex-dividend date. Interest
and rental income is recognised as it accrues.
Unrealised gains and losses are calculated as the difference between carrying value and original cost, and the movement during the period is
recognised through profit or loss. The value of realised gains and losses includes an adjustment for previously recognised unrealised gains or
losses on investments disposed of in the accounting period.
77
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
83
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
Investment contract liabilities
For products that have no significant insurance risk and therefore classified as investment contracts, the Group recognises a liability
measured at fair value. The fair value of these liabilities is estimated based on an arms-length transaction between willing market participants
with consideration given to the cost of the minimum repayment guarantee to the policyholders. The cost of the guarantee is determined using
risk free rates of return, with the associated volatility assumption and allowing for the costs of administration associated with this low risk
investment strategy.
Intangible assets
84
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
85
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
Subordinated liabilities
Subordinated liabilities are recognised initially at fair value, being the issue proceeds net of premiums, discounts and transaction costs
incurred. All borrowings are subsequently measured at amortised cost using the effective interest rate method. The amortisation is recognised
as an interest expense using the effective interest rate method.
86
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
87
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
1 Accounting policies (continued)
Appropriations
Charitable donation to ultimate parent undertaking
Payments are made via Gift Aid to the ultimate parent company, Benefact Trust Limited, a registered charity. The Group does not regard these
payments as being expenses of the business and, as such, recognises these net of tax in equity in the period in which they are approved.
Use of Alternative Performance Measures (APM)
As detailed in the Strategic Report, the Group uses certain key performance indicators which, although not defined under IFRS, provide useful
information and aim to enhance understanding of the Group's performance. These include gross written premiums, net written premiums, net
earned premiums, underwriting result and combined operating ratio. The key performance indicators should be considered complementary to,
rather than a substitute for, financial measures defined under IFRS. Note 36 provides details of how these key performance indicators
reconcile to the results reported under IFRS.
88
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
89
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
90
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
91
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
92
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
95
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
96
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
105
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
4 Financial risk and capital management (continued)
(i) Capital management
106
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
107
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
108
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
109
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
110
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
9 Net investment result
General
Life
business
business
Total
£000
£000
£000
For the year ended 31 December 2025
Income from financial assets at fair value through profit or loss
- equity income
12,975
330
13,305
- debt income
14,329
1,902
16,231
Income from financial assets calculated using the effective interest rate method
- cash and cash equivalents income
2,287
152
2,439
- other income received
7,647
-
7,647
Other income/(expense)
- rental income
8,237
-
8,237
- exchange movements
(1,816)
-
(1,816)
Investment income
43,659
2,384
46,043
Fair value movements on financial instruments at fair value through profit or loss
38,483
1,650
40,133
Fair value movements on investment property
4,431
-
4,431
Profit on disposal of investment property
102
-
102
Movement in expected credit loss allowance
268
-
268
Net investment return
86,943
4,034
90,977
For the year ended 31 December 2024
Income from financial assets at fair value through profit or loss
- equity income
11,535
335
11,870
- debt income
13,634
2,316
15,950
- structured note income
-
1,119
1,119
Income from financial assets calculated using the effective interest rate method
- cash and cash equivalents income 2,645 236 2,881
- other income received
8,766
-
8,766
Other income
- rental income
8,730
-
8,730
- exchange movements
831
-
831
Investment income
46,141
4,006
50,147
Fair value movements on financial instruments at fair value through profit or loss
23,681
(2,287)
21,394
Fair value movements on investment property
291
-
291
Movement in expected credit loss allowance
18
-
18
Net investment return
70,131
1,719
71,850
Included within fair value movements on financial instruments at fair value through profit or loss are gains of £2.9m (2024: £6.9m gains) in respect
of derivative financial instruments.
111
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
112
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
113
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
114
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
15 Appropriations
2025
2024
£000
£000
Amounts paid directly from equity in the year:
Charitable grants
Gross charitable grants to the ultimate parent company, Benefact Trust Limited
24,000
33,000
Tax relief
(6,000)
(8,250)
18,000
24,750
115
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
116
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
17 Retirement benefit schemes
Defined contribution pension plans
The Group operates a number of defined contribution pension plans, for which contributions by the Group are disclosed in note 13.
Defined benefit pension plan
The Group's defined benefit plan is operated by the parent company in the UK. The plan closed to new entrants on 5 April 2006. The terms of the
plan for future service changed in August 2011 from a non-contributory final salary scheme to a contributory scheme in which benefits are based
on career-average revalued earnings. The scheme closed to future accrual on 30 June 2019. Active members in employment at this date retained
certain enhanced benefits after the plan closed to future accrual, including benefits in relation to death in service and ill health retirement. They
also retain the link to final salary whilst they remain employed by the parent company. From 1 July 2019, active members in employment joined
one of the Group’s defined contribution plans. The scheme previously had two separate sections: the EIO Section and the Ansvar Section. With
effect from 1 January 2021, the two separate sections of the scheme have been combined.
The assets of the defined benefit plan are held separately from those of the Group by the Trustee of the Ecclesiastical Insurance Office public
limited company Staff Retirement Benefit Fund (the 'Fund'). The Fund is subject to the Statutory Funding Objective under the Pensions Act 2004.
An independent, qualified actuary appointed by the Trustee is responsible for undertaking triennial valuations to determine whether the Statutory
Funding Objective is met. Pension costs for the plan are determined by the Trustee, having considered the advice of the actuary and having
consulted with the employer. The most recent triennial valuation was as at 31 December 2022. The next triennial actuarial valuation is as at 31
December 2025 and has until March 2027 to be completed. No contributions are expected to be paid by the Group in 2026.
Actuarial valuations were reviewed and updated by an actuary at 31 December 2025 for IAS 19 purposes. The surplus in the scheme attributable to
the former EIO Section has been assessed against the economic benefit available to the Parent as a reduction in future contributions in accordance
with IFRIC 14. This has resulted in the recognisable surplus being restricted by £81.7m. The Parent has an unconditional right to a refund of the
surplus attributable to the former Ansvar Section of the Fund, which has been recognised in full in accordance with IFRIC 14.
In the current year, actuarial gains arising from changes in financial assumptions of £4.7m (2024: gains of £26.8m) have been recognised in the
statement of other comprehensive income. This includes a £1.3m gain from a 0.05% increase in the discount rate, along with further £3.4m gains
due to a decrease in inflation. In the prior year, a £28.9m gain arising from a 0.97% increase in the discount rate, partially offset by a £2.1m loss due
to an increase in inflation.
The experience loss on the defined benefit obligation of £0.7m (2024: loss of £0.2m) was predominantly due to actual inflation exceeding the
inflation assumptions. In the prior year, the experience loss was the result of updating for actual member experience and from actual inflation
exceeding the inflation assumptions. A review and update to certain demographic assumptions resulted in an actuarial loss of £0.9m (2024: gain of
£0.5m) being recognised in the current year.
The defined benefit plan typically exposes the Group to risks such as:
-
Investment risk: The Fund holds some of its investments in asset classes, such as equities, which have volatile market values. While these assets
are expected to provide the best returns over the long term, any short-term volatility could cause funding to be required if a deficit emerges.
Derivative contracts are used from time to time, which would limit losses in the event of a fall in equity markets;
-
Interest rate risk: Scheme liabilities are assessed using market rates of interest to discount the liabilities and are therefore subject to any
volatility in the movement of the market rate of interest. The net interest income or expense recognised in profit or loss is also calculated using
the market rate of interest. The Group's defined benefit plan holds Liability Driven Investments (LDIs) to hedge part of the exposure of the
scheme's liabilities to movements in interest rates;
-
Inflation risk: A significant proportion of scheme benefits are linked to inflation. Although scheme assets are expected to provide a good hedge
against inflation over the long term, movements over the short term could lead to a deficit emerging. The Group's defined benefit plan holds LDIs
to hedge part of the exposure of the scheme's liabilities to movements in inflation expectations;
-
Mortality risk: In the event that members live longer than assumed the liabilities may be understated originally, and a deficit may emerge if
funding has not adequately provided for the increased life expectancy; and
117
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
118
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
17 Retirement benefit schemes (continued)
119
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
17 Retirement benefit schemes (continued)
The movements in the fair value of plan assets and the present value of the defined benefit obligation over the year are as follows:
2025
2024
£000
£000
Plan assets
At 1 January
297,212
305,644
Interest income
15,962
13,509
Actual return on plan assets, excluding interest income
5,146
(11,038)
Pension benefits paid and payable
(10,073)
(10,261)
Administration cost
(745)
(642)
At 31 December
307,502
297,212
Defined benefit obligation
At 1 January
208,987
235,583
Current service cost
208
255
Past service cost
-
79
Interest cost
11,167
10,382
Pension benefits paid and payable
(10,073)
(10,261)
Experience losses on liabilities
653
227
Losses/(gains) from changes in demographic assumptions
905
(510)
Gains from changes in financial assumptions
(4,705)
(26,768)
At 31 December
207,142
208,987
Asset ceiling
At 1 January
70,673
50,273
Effect of interest on the asset ceiling
3,866
2,262
Change in asset ceiling
7,111
18,138
At 31 December
81,650
70,673
History of plan assets and liabilities
2025
2024
2023
2022
2021
£000
£000
£000
£000
£000
Present value of defined benefit obligations
(207,142)
(208,987)
(235,583)
(229,343)
(377,113)
Fair value of plan assets
307,502
297,212
305,644
301,773
422,885
100,360
88,225
70,061
72,430
45,772
Restrictions on asset recognised
(81,650)
(70,673)
(50,273)
(57,092)
(17,468)
Surplus
18,710
17,552
19,788
15,338
28,304
The weighted average duration of the defined benefit obligation at the end of the reporting year is 13.1 years (2024: 13.7 years).
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, inflation, expected salary increases and
mortality. The sensitivity analysis below has been determined based on reasonably possible changes in the assumptions occurring at the end of
the reporting year assuming that all other assumptions are held constant.
(Decrease)/increase
Assumption
Change in assumption
in plan liabilities
2025
2024
£000
£000
Discount rate
Increase by 0.5%
(12,049)
(12,543)
Decrease by 0.5% 13,346 14,026
Inflation
Increase by 0.5%
7,910
8,095
Decrease by 0.5%
(7,858)
(8,056)
Salary increase
Increase by 0.5%
769
865
Decrease by 0.5%
(733)
(900)
Life expectancy
Increase by 1 year
5,631
5,836
Decrease by 1 year
(5,657)
(5,851)
Post-employment medical benefits
The Parent operates a post-employment medical benefit plan, for which it chooses to self-insure. The method of accounting, assumptions and the
frequency of valuation are similar to those used for the defined benefit pension plan.
120
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
17 Retirement benefit schemes (continued)
The provision of the plan leads to a number of risks as follows:
-
Interest rate risk: The reserves are assessed using market rates of interest to discount the liabilities and are therefore subject to volatility in the
movement of the market rates of interest. A reduction in the market rate of interest would lead to an increase in the reserves required to be held;
-
Medical expense inflation risk: Future medical costs are influenced by a number of factors including economic trends and advances in medical
technology and sciences. An increase in medical expense inflation would lead to an increase in the reserves required to be held;
-
Medical claims experience: Claims experience can be volatile, exposing the Company to the risk of being required to pay over and above the
assumed reserve. If future claims experience differs significantly from that experienced in previous years, this will increase the risk to the
Company;
-
Spouse and widow(er)s' contributions: The self-insured benefit includes a potential liability for members who pay contributions in respect of
their spouse and widow(er) contributions. There is the possibility that the contributions charged may not be sufficient to cover the medical costs
that fall due; and
-
Mortality risk: If members live longer than expected, the Company is exposed to the expense of medical claims for a longer period, with
increased likelihood of needing to pay claims.
The amounts recognised in the statement of financial position are determined as follows:
Group and Parent
2025
2024
£000
£000
Present value of unfunded obligations and net obligations in the statement of financial position
4,152
4,332
Movements in the net obligations recognised in the statement of financial position are as follows:
At 1 January
4,332
4,801
Total expense charged to profit or loss
228
209
Net actuarial gains during the year, recognised in other comprehensive income
(194)
(495)
Benefits paid
(214)
(183)
At 31 December
4,152
4,332
The amounts recognised through profit or loss are as follows:
Interest cost
228
209
Total, included in employee benefits expense
228
209
The weighted average duration of the net obligations at the end of the reporting year is 8.5 years (2024: 9.0 years).
The main actuarial assumptions for the plan are are an increase in the medical cost inflation of 7.47% (2024: 7.26%) and a discount rate of 5.52%
(2024: 5.47%). The actuarial gain recognised in the current year has been driven by a £0.3m actuarial gain caused by actual experience of the
pension scheme differing from actuarial assumptions. This has been partially offset by an actuarial loss of £0.1m arising from a 0.21% increase in
the medical cost inflation assumption. In the prior year, an actuarial gain of £0.5m was recognised as a result of a increase in the discount rate. This
was partially offset by an actuarial loss of £0.1m arising from a 0.12% increase in the medical cost inflation assumption. The sensitivity analysis
below has been determined based on reasonably possible changes in the assumptions occurring at the end of the accounting year assuming that
all other assumptions are held constant.
(Decrease)/increase
Assumption
Change in assumption
in plan liabilities
2025
2024
£000
£000
Discount rate
Increase by 0.5%
(163)
(258)
Decrease by 0.5%
174
285
Medical expense inflation
Increase by 1.0%
330
537
Decrease by 1.0%
(294)
(456)
Life expectancy
Increase by 1 year
352
325
Decrease by 1 year
(332)
(303)
121
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
122
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
18 Property, plant and equipment (continued)
123
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
124
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
125
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
126
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
127
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
128
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
129
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
147
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
148
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
149
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
150
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
151
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
152
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
153
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
154
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
36 Reconciliation of Alternative Performance Measures
The Group uses alternative performance measures (APMs) in addition to the figures which are prepared in accordance with IFRS. The financial
measures in our key financial performance data include gross written premiums and the combined operating ratio and are used to manage the
Group's general insurance business. Similar measures are commonly used in the industries we operate in and we believe they provide useful
information and enhance the understanding of our results. No life insurance premiums were written in the year (2024: none) and the life insurance
revenue is the earning of the legacy business over its life, expected to be in excess of 10 years.
Users of the accounts should be aware that similarly titled APM reported by other companies may be calculated differently. For that reason, the
comparability of APM across companies might be limited.
2025
Other
Inv'mnt
Corporate
income and
Insurance
return
costs
charges
Total
General
Life
£000
£000
£000
£000
£000
£000
Insurance revenue
[1]
644,948
6,088
442
*
-
(62)
651,416
Insurance service expenses
(453,550)
(4,820)
12,075
**
-
61
(446,234)
Insurance service result before reinsurance contracts held
191,398
1,268
12,517
-
(1)
205,182
Net expense from reinsurance contracts
(100,502)
- -
-
-
(100,502)
Insurance service result
90,896
1,26812,517
-
(1)
104,680
Net insurance financial result
-
(1,738)
(17,214)
-
-
(18,952)
Net investment result
-
2,800
88,177
-
-
90,977
Fee and commission income
-
- -
-
1,973
1,973
Other operating expenses
(28,729)
(2,010)
(4,810)
(54,207)
(1,086)
(90,842)
Other finance costs
-
- -
-
(3,239)
(3,239)
Profit/(loss) before tax
[2]
62,167
320
78,670
(54,207)
(2,353)
84,597
*
instalment handling charges
**
discounting on non-latent claims provisions
Combined operating ratio = ( [3] - [2] ) / [3]
83.7%
The underwriting profit/(loss) of the Group is defined as the profit/(loss) before tax of the general insurance business.
The Group uses the net combined operating ratio as a measure of underwriting efficiency. The combined operating ratio expresses the total
underwriting costs of the general insurance business as a percentage of net earned premiums. It is calculated as ( [3] - [2] ) / [3].
155
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
36 Reconciliation of Alternative Performance Measures (continued)
The tables below provide a breakdown of the gross written premiums, net written premiums, net earned premiums and the combined operating
ratio by segment.
2025
UK & Ireland
Australia
Canada
Other
Total
Gross written premiums by segment
£000
£000
£000
£000
£000
Insurance revenue
[1]
452,821
90,238
94,797
7,092
644,948
Deduct change in the gross unearned premium provision
8,428
(1,263)
1,066
655
8,886
GMM insurance revenue adjustments
(57)
-
- -
(57)
Gross written premiums
461,192
88,975
95,863
7,747
653,777
Outward reinsurance premiums written
(194,009)
(59,031)
(31,894)
16,356
(268,578)
Net written premiums
267,183
29,944
63,969
24,103
385,199
Change in the net unearned premium provision
(5,877)
(739)
2,716
(655)
(4,555)
Net earned premiums
[3]
261,306
29,205
66,685
23,448
380,644
2025
UK & Ireland
Australia
Canada
Other
Total
Underwriting result by segment
£000£000
£000
£000
£000
Insurance revenue
[1]
452,821
90,238
94,797
7,092
644,948
Insurance service expenses
(308,510)
(67,639)
(68,660)
(8,741)
(453,550)
Insurance service result before reinsurance contracts held
144,311
22,599
26,137
(1,649)
191,398
Net (expense)/income from reinsurance contracts
(74,992)(23,194)
(7,973)
5,657
(100,502)
Insurance service result
69,319
(595)
18,164
4,008
90,896
Other operating expenses
(19,785)
(2,126)
(6,818)
-
(28,729)
Underwriting result
[2]
49,534
(2,721)
11,346
4,008
62,167
Combined operating ratio = ( [3] - [2] ) / [3]
81.0%
109.3%
83.0%
83.7%
156
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
36 Reconciliation of Alternative Performance Measures (continued)
Group
2024
General insurance
£000
Insurance revenue
[1]623,195
Deduct change in the gross unearned premium provision
17,406
Gross written premiums
640,601
Outward reinsurance premiums written
(261,194)
Net written premiums
379,407
Change in the net unearned premium provision
(16,050)
Net earned premiums
[3] 363,357
2024
Other
Inv'mnt
Corporate
income and
Insurance
return
costs
charges
Total
General
Life
£000
£000£000
£000£000
£000
Insurance revenue
[1]623,195
6,078735
*
-
(55)
629,953
Insurance service expenses
(465,905)
(5,033)
9,066
**
-
55
(461,817)
Insurance service result before reinsurance contracts held
157,290
1,045
9,801
- -
168,136
Net expense from reinsurance contracts
(84,590)
- -
- -
(84,590)
Insurance service result
72,700
1,045
9,801
- -
83,546
Net insurance financial result
-
319(7,181)
- -
(6,862)
Net investment result
-
1,318
70,532
- -
71,850
Fee and commission income
-
- -
-
544
544
Other operating expenses (25,058) (1,276) (3,219) (33,152) (796) (63,501)
Other finance costs
-
- -
-
(3,102)
(3,102)
Profit/(loss) before tax
[2]
47,642
1,406
69,933
(33,152)(3,354)
82,475
*
instalment handling charges
**
discounting on non-latent claims provisions
Combined operating ratio = ( [3] - [2] ) / [3]
86.9%
157
Ecclesiastical Insurance Office public limited company
Notes to the financial statements
36 Reconciliation of Alternative Performance Measures (continued)
2024
UK & Ireland
Australia
Canada
Other
Total
Gross written premiums by segment
£000£000
£000£000£000
Insurance revenue
[1]
418,569
96,281
101,881
6,464
623,195
Deduct change in the gross unearned premium provision 18,294 (936) (325) 373
17,406
Gross written premiums
436,863
95,345
101,556
6,837
640,601
Outward reinsurance premiums written
(185,084)
(50,669)
(27,965)
2,524
(261,194)
Net written premiums
251,779
44,676
73,591
9,361
379,407
Change in the net unearned premium provision
(14,822)
(747)
(109)
(372)
(16,050)
Net earned premiums
[3]
236,957
43,929
73,482
8,989
363,357
2024
UK & Ireland
Australia
Canada
Other
Total
Underwriting result by segment
£000£000
£000£000£000
Insurance revenue
[1]
418,569
96,281
101,881
6,464
623,195
Insurance service expenses (294,224) (89,888) (73,308) (8,485)
(465,905)
Insurance service result before reinsurance contracts held
124,345
6,393
28,573
(2,021)
157,290
Net expense from reinsurance contracts
(53,408)
(7,333)
(9,463)
(14,386)
(84,590)
Insurance service result
70,937
(940)
19,110
(16,407)
72,700
Other operating expenses
(17,325)
(2,294)
(5,439)
-
(25,058)
Underwriting result
[2]
53,612(3,234)
13,671
(16,407)
47,642
Combined operating ratio = ( [3] - [2] ) / [3]
77.4%
107.4%
81.4%
86.9%
158
ECCLESIASTICAL INSURANCE OFFICE PUBLIC LIMITED COMPANY
NOTICE OF MEETING
NOTICE is hereby given that the Annual General Meeting of Ecclesiastical Insurance Office public limited company will be
held at Benefact House, 2000 Pioneer Avenue, Gloucester Business Park, Brockworth, Gloucester, GL3 4AW on Thursday,
th
25
June 2026 at 10.55am for the following purposes:
Ordinary business
st
1. To receive the Report of the Directors and Accounts for the year ended 31
December 2025 and the report of
the auditors thereon.
2. To re-elect Mr M. Bennett as a director.*
3. To re-elect The Venerable K. Best as a director.*
4. To re-elect Mr F. X. Boisseau as a director.*
5. To re-elect Mr J. Coyle as a director.*
6. To re-elect Mr M. C. J. Hews as a director.*
7. To re-elect Sir S. Lamport as a director.*
8. To re-elect Mrs S. J. Whyte as a director.*
9. To elect Mrs J. Dale as a director.*
10. To elect Mr M. Murphy as a director.*
11. To elect Ms G. Tucker as a director.*
12. To consider the declaration of a dividend.
13. To re-appoint PricewaterhouseCoopers LLP as auditors and authorise the directors to fix their remuneration.
By Order of the Board
Mrs R J Hall, Secretary
nd
22
May 2026
* Brief biographies of the directors seeking election or re-election are shown on pages 25 to 26 of the 2025 Annual Report.
All non-executive directors seeking re-election have been subject to formal performance evaluation by the Chair who is
satisfied that the performance of each non-executive director is effective and sufficient time has been spent on the
Company’s affairs.
Only a member holding ordinary shares, or their duly appointed representative(s), is entitled to attend, vote and speak at the
annual general meeting.
A member holding ordinary shares is entitled to appoint a proxy or proxies (who need not be a member of the Company) to
exercise all or any of their rights to attend, speak and vote on their behalf at the annual general meeting. Such a member
may appoint more than one proxy in relation to the annual general meeting provided that each proxy is appointed to exercise
the rights attached to a different share or shares held by that member.
Any corporation which is a member holding ordinary shares can appoint one or more corporate representatives who may
exercise, on its behalf, all of the same powers as that corporation could exercise if it were an individual member, provided
that they do not do so in relation to the same share or shares and that they act within the powers of their appointment.
This notice is sent purely for information to the holders of 8.625% Non-Cumulative Irredeemable Preference shares who
are not entitled to attend and vote at the annual general meeting.
159