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03011193

St Andrew's Group Limited

Annual Report and Accounts

2021

Member of Lloyds Banking Group

ST ANDREW'S GROUP LIMITED (03011193)	FINANCIAL STATEMENTS
CONTENTS	PAGE(S)
Company Information	3
Strategic Report	4 - 9
Directors' Report	10 - 11
Independent Auditors' Report to the Member of St Andrew's Group Limited	12 - 14
Statement of Comprehensive Income for the year ended 31 December 2021	15
Balance Sheet as at 31 December 2021	16
Statements of Cash Flows for the year ended 31 December 2021	17
Statements of Changes in Equity for the year ended 31 December 2021	18
Notes to the Financial Statements for the year ended 31 December 2021	19 - 30

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COMPANY INFORMATION

Board of Directors

S C Quinn (Chair)

C J Thornton*

M K Staples*

J M Phythian

* denotes Executive Director

Company Secretary

K J McKay

Independent Auditors

Deloitte LLP

Temple Quay

3 Rivergate

Bristol

BS1 6GD

Registered Office

33 Old Broad Street

London

EC2N 1HZ

Company Registration Number

03011193

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STRATEGIC REPORT

The Directors present their strategic report on St Andrew's Group Limited (the 'Company') for the year ended 31 December 2021.

The Company forms part of the General Insurance business unit within the Insurance and Wealth Division ('Insurance') of Lloyds Banking Group plc (Lloyds Banking Group), focusing on providing insurance to meet our customers' needs.

Our strategy is to help our customers by:

• Delivering a leading customer experience
• Digitising Lloyds Banking Group and its subsidiaries (the 'Group')
• Maximising the Group's capabilities
• Transforming ways of working

The Company is focused on ensuring policyholder obligations are met, while at the same time ensuring the Company is managed to maximise capital efficiency and returns for its shareholder and Lloyds Banking Group Insurance.

To support this, the Company is focused on the result, including dividends, as the key performance indicator of the Company.

Principal activities

The principal activities of the Company are to receive creditor policy premium renewals and settle customer payments on behalf of other Group companies.

Result for the year

The result for the year ended 31 December 2021 is a loss after tax of £3 thousand (2020: £2,396 thousand profit). The profit for the prior year was driven by the recovery of impairments recognised in 2019 and 2017. The provisions were in respect of premiums receivable from external parties where the premiums were paid on to the underwriter St. Andrew's Insurance plc (STAI) where there was no likelihood of recovery. No such recoveries were made in 2021. Before such recoveries the prior year loss was £11 thousand. The total net assets of the Company as at 31 December 2021 are £4,763 thousand (2020: £4,766 thousand).

No dividends were paid during the year in respect of 2021 (2020: £nil).

Long term impact of the UK's exit from the EU

Uncertainties in respect of the medium to long-term implications of the UK's exit from the European Union (EU) on trade, regulation and employment continue to present risks. This includes impacts on supply chains, affordability of goods and services and UK demographics and prosperity. Activity to respond to potential risks include customer communications, market volatility scenario exercises, contingency planning and monitoring of emerging European Economic Area (EEA) regulatory requirements.

COVID-19

The outbreak of COVID-19 continues to significantly impact the principal risks faced by the Company. Note 16 provides further details of the impact on market risk (note 16 (a)) and credit risk (note 16 (b)).

Russian invasion of Ukraine

The Russian invasion of Ukraine, beginning in February 2022, has increased tensions between members of the North Atlantic Treaty Organisation (NATO) and Russia and caused sanctions to be imposed. This could have significant adverse economic effects on financial markets and on energy costs, and may also result in increased cyber attacks and an increase in costs associated with such cyber attacks, all of which could have a materially adverse effect on the Company's results of operations, financial condition or prospects. The Company will continue to monitor the situation and risks to the business.

Climate Change

Lloyds Banking Group is committed to supporting the aims of the 2015 Paris Agreement, the UK Government's Net Zero target and Ten Point Plan for a Green Industrial Revolution, in transitioning to a more sustainable, low carbon economy and recognises the importance of embedding climate-related risks and opportunities into business operations and strategy.

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