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LifeStar Insurance p.l.c. – Annual Financial Report 2024
LifeStar Holding p.l.c
Annual Report &Consolidated Financial Statements 31 December 2024 Company Registration Number: C19526 Company Registration Number: C6393
1
LifeStar Holding p.l.c. – Annual Financial Report 2024

| Pages
Chairman and CEO statement – LifeStar Holding plc | 2 - 7
Directors’ report | 8 - 11
Statement of directors’ responsibilities | 12 – 14
Corporate Governance – Statement of compliance | 15 - 23
Remuneration report | 24 - 26
Statement of comprehensive income | 27 - 28
Statement of financial position | 29 - 30
Statement of changes in equity | 31 - 34
Statement of cash flows | 35 - 37
Material accounting policies | 38 – 79
Notes to the financial statements | 80 - 175
Independent auditor’s report | 176 – 186

Chairman and CEO Statement - LifeStar Holding plc
For the Financial Year Ended 31 December 2024
2
LifeStar Holding p.l.c. – Annual Financial Report 2024
Prof. Paolo Catalfamo – Executive Chairman Roberto Apap Bologna – Group CEO
Introduction
The year 2024 has been a defining period for LifeStar Group, marked by strong financial performance, strategic growth, and an unwavering commitment to innovation, regulatory compliance, and operational excellence. Amid evolving economic conditions, regulatory changes, and industry-wide digital transformation, we continued to strengthen our market position while upholding our values and responsibilities to stakeholders.
As we present the financial statements for the year ending December 31, 2024, we are excited to highlight key milestones, reflect on the challenges we navigated, and outline our strategic vision for the future.
Business Performance & Strategic Growth
Throughout 2024, LifeStar Group achieved notable revenue growth, fuelled by organic expansion, product innovation, and geographical diversification.
Aligned with our company vision, we successfully embarked on a journey of international expansion. The execution of our passporting strategy established our presence in Italy, allowing us to serve a broader client base, while reinforcing our commitment to penetrate the European market. These developments are pivotal in our long-term strategy to position LifeStar as a regional leader in the insurance sector. The following map illustrates the number of policies either in the process of being concluded or sold between 1 September to 31 December 2024, resulting in actual sales for this period amounting to €486,984 and a total of 373 life covers.
Chairman and CEO Statement - LifeStar Holding plc (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
Business Performance & Strategic Growth (Continued)
We also remain committed to enhancing customer value through digital transformation. A key milestone this year was the initiation of a 10-year digitalisation partnership with Vermeg Ltd, the creators of the life insurance policy management system, Solife. This strategic investment will modernise our operations, streamline processes, and improve service delivery through improved technological infrastructure. In parallel, we conducted a comprehensive review of our product portfolio, launched new insurance solutions, and revamped existing offerings to ensure they align with our customers’ evolving needs.
The successes of 2024 are reflected in our key performance indicators:
Gross Written Premium Year-on-Year +12.3%
Insurance Revenue+ 5.3%
Insurance service result- 12.3%
Net Insurance financial result+ 4.1%
Our Life business generated Gross Written Premiums of €25.64M, a 12.3% uplift on the previous year, while LifeStar Health contributed €1.1M in premium commissions, a 6.5% increase on the same period last year, to the overall results. At the Insurance Group level, LifeStar served 40,447 Policy Holders and generated a Total Income of €5.9 million. Additionally, our Total Assets grew to €156 million (2024: €144 million).
Chairman and CEO Statement - LifeStar Holding plc (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
LifeStar Health Limited (“LifeStar Health”) has also experienced some very positive results. It once again distributed a net interim dividend to LifeStar Insurance plc of €440K and revenue has remained above the €1 million record resulting in a 6.5% increase on the previous year. Earnings before interest, tax, company recharges and amortisation for the year 2024 increased by 2.01% over last year to €668K from €655K. Profit before tax reduced by €109K when compared to the same period last year, as well as the reduction in profit commission of €123K compared to 2023.
GlobalCapital Finance Management Ltd (“GCFM”) During the year ending 31 December 2024, the Company generated revenue of €616K (2023: €662K) and other income of € nil (2023: €89K). The Company recognised reversal of provisions for claims settlement of € 413K (2023: additional provision € 33K) and recorded settled claims of € 353K (2023: € 113K) in its statement of comprehensive income. However, this was offset by direct costs and administrative expenses totalling € 826K (2023: € 748K) which principally relate to recharged salaries € 396K (2023: € 428K) and legal and professional fees of € 231K (2023: €151K).
During 2023, the shareholder has reclassified amounts payable of € 200K to shareholder’s loan as both parties agreed that the amount will be repayable at the discretion of the borrower. Shareholder loans and contribution amount to € 1,407K (2023: € 1,407K). This amount includes a share capital contribution done in 2020 amounting to € 504K, the latter is subject to regulatory approval. As set out in note 19 the shareholder’s loan is unsecured, interest free, repayable at the discretion of the Company and has no fixed repayment.
Regulatory Compliance & Corporate Governance
LifeStar remains fully committed to upholding the highest standards of corporate governance and regulatory compliance. In 2024, the financial sector faced increased scrutiny from regulators, prompting our organisation to proactively engage in compliance efforts that align with international best practices and regulatory requirements.
Additionally, we addressed key regulatory reviews, including a Malta Financial Services Authority (MFSA) investigation and a ‘minded letter’ issued last June 2024, reaffirming our commitment to ethical business practices and financial prudence. We are still awaiting the settlement agreement from the MFSA. Our leadership team worked closely with regulatory authorities to ensure full compliance, demonstrating our proactive approach to risk management and corporate responsibility.
We remain vigilant in monitoring regulatory trends that impact our industry, particularly in areas such as solvency requirements, thematic reviews, and digital resilience. The introduction of the Digital Operational Resilience Act (DORA) highlights the growing importance of cloud-based infrastructure, cybersecurity, and operational resilience; all key components of our long-term technology strategy.
Economic & Market Environment
The macroeconomic landscape in 2024 remains complex, influenced by high interest rates, persistent inflationary pressures, and geopolitical uncertainties. Globally, interest rates remain high, with the US and the UK both at 4.5%, and the Euro Area at 2.65%. Inflation rates also remain high, with a global median inflation of 1.9%. Key economies, such as Argentina (66.9%) and Turkey (42.5%), are also grappling with severe inflation.
The following graph depicts the key interest rates of the European Central Bank
Chairman and CEO Statement - LifeStar Holding plc (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
One of the most significant external factors shaping global markets has been a series of elections across key economies, resulting in shifts toward more nationalistic governance policies. In 2024, countries like the US, India, and several European countries witnessed a rise in far-right parties. These political developments introduced trade uncertainties, and led to fiscal policy adjustments, and regulatory shifts, all of which had a cascading effect on financial markets.
In Europe, the challenges of high interest rates and inflation persist. The Euro Area's inflation rate stands at 2.4%, with interest rates at 2.65%. The EU faces economic hurdles exacerbated by geopolitical tensions and the repercussions of nationalistic governance. These factors contributed to trade uncertainties and fiscal policy adjustments, impacting the region’s overall economic stability.
Despite these external challenges, Malta demonstrated resilience, maintaining a relatively strong economic growth rate compared to other European countries. Malta's GDP growth rate was 4.9% in the third quarter of 2024, although it slowed to 2.8% in the fourth quarter. This growth is driven by robust private consumption and services exports.
However, key structural challenges remain. The sustainability of the state pension system is in question, with projections indicating potential significant deficits relative to GDP by 2061. Recent reforms have tightened the system for those born in and after 1962, requiring longer work periods and higher contributions. Despite these reforms, pensions’ adequacy remains a concern, particularly for low-income earners who may struggle to save for retirement.
Additionally, Malta's labour market is increasingly reliant on third-country nationals (TCNs), who are essential to maintaining economic momentum. As of 2024, TCNs make up 28.7% of Malta’s active workforce, predominantly employed in sectors such as administration, accommodation, food services, construction, and manufacturing. This dependency underscores the need for comprehensive migration policies to ensure these workers are properly integrated and treated fairly.
As an organisation operating within this dynamic environment, we continue to adapt our strategic planning, financial modelling, and risk assessment frameworks to mitigate potential economic pressures.
Investing in Our People & Culture
At LifeStar, we believe our success is driven by our people’s passion. In 2024, we continued to prioritise talent development, employee engagement, and workplace inclusivity. A key focus has been on professional growth, with the company sponsoring employees to complete the Chartered Insurance Institute (CII) certification. Additionally, we expanded our internship and trainee programmes,
Chairman and CEO Statement - LifeStar Holding plc (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
offering MCAST students and summer interns invaluable hands-on experience in the insurance sector.
Diversity and inclusion are the cornerstones of our workforce strategy. We are proud to report significant progress in gender representation at the management level, with a notable increase in female leadership. These efforts reflect our broader vision to foster a workplace culture that champions equality, innovation, and continuous learning.
In addition to professional development, we also appreciate the importance of a healthy work-life balance and a positive working atmosphere. We host regular festivities for employees, and their families, as well as small events that create a sense of community and belonging. Our goal is to ensure LifeStar is not just an employer, but a place where everyone feels connected.
Corporate Social Responsibility & Community Engagement
At LifeStar, our commitment extends beyond financial success. We remain deeply invested in corporate social responsibility (CSR) and community engagement. In 2024, we actively supported various initiatives that promote healthcare, sports, education, and social welfare.
Some of our key activities included:
•The Puttinu Good Friday Walk: Our employees showed solidarity with cancer patients by taking part in this fund-raising walk.
•Sponsorship of international events: LifeStar sponsored prominent gatherings such as the NIAF Gala in the United States, and Investopia in Dubai and Milan where our executive chairman, Prof. Paolo Catalfamo, was a speaker.
• Malta Marathon Sponsorship: In 2023, LifeStar committed to be the marathon’s main sponsor for three years. This event, which has become a popular fixture on international and local athletes’ calendar, saw several of our employees take an active part.
•Health and well-being initiatives: LifeStar made a number of contributions, including to the Marigold Foundation for rare disease awareness and financial aid for Andrea’s recovery fund.
•Support for local sports: Our partnership with the local football Premier League brought people across Malta together for the love of the game.
•Collaborations with business organisations: Our partnerships with key entities, such as Finance Malta and the Malta Chamber of Commerce, reinforce our role in Malta’s business and financial community.
These initiatives reflect our belief that corporate success must be accompanied by a meaningful contribution to society. We remain committed to upholding these values as we grow and evolve.
Chairman and CEO Statement - LifeStar Holding plc (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
Board & Leadership Developments
We extend our gratitude to the entire Board, whose guidance, vision, and leadership have been instrumental in steering the company through regulatory changes, technological advancements, and market expansion efforts.
We would also like to welcome on board Mr. Alessio Germani who has been appointed as LifeStar Insurance plc’s CEO on 20 March 2025.
Looking Ahead: Our Vision for Innovation & Sustainable Growth
As we look ahead, LifeStar is well-positioned to seize emerging opportunities, while addressing potential challenges. Our strategic focus in the coming years will be on:
•Strengthening digital capabilities through the continued investment in cutting-edge technology and automation to increase efficiency and service delivery.
•Enhancing customer experience by leveraging data-driven insights and innovative product offerings.
•Navigating regulatory changes with a proactive and compliant approach to ensure we remain ahead of the game.
•Expanding our market reach and profitability by pursuing expansion opportunities abroad and engaging in strategic partnerships.
•Fostering a dynamic, inclusive, and high-performing workforce that drives business success.
We end this report by expressing our sincere appreciation to our employees, TIIs, Customers, Shareholders, and Business Partners for their trust, dedication, and collaboration. Together, we will continue to build a future defined by excellence, innovation, and resilience.
Directors’ Report
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
The Directors present their annual report and the audited consolidated financial statements for the year ended 31 December 2024.
Principal activities
LifeStar Holding p.l.c. (the “Company”) together with its subsidiaries (the “Subsidiaries”), together hereinafter referred to as the “LifeStar Group” or “the Group”, is involved in:
-the carrying on of long-term business of insurance under the Insurance Business Act (Cap. 403 of the Laws of Malta);
-acting as an agent for sickness and accident insurance in terms of the Insurance Distribution Act (Cap. 487 of the Laws of Malta);
-the provision of investment services and advice in terms of the Investment Services Act (Cap. 370 of the Laws of Malta); and
-the provision on behalf of Group undertakings of property management and consultancy services, including property acquisitions, disposals and development projects.
Review of business
Consolidated results
LifeStar Holding plc on a consolidated basis generated a total loss for the year after tax of €598K compared to a loss of €182K in 2023. This adverse result is mainly due to several reasons, further details may be found in the following paragraphs.
During the year, the Group continued to undertake restructuring and transformation activity to align the business operations with the Board’s approved strategy and to strengthen its capital based. This was achieved by implementing a holistic strategic plan, designed to permanently resolve various legacy issues that continue to negatively impact the LifeStar Group and to support the consolidation and future growth of the Group.
Total group assets increased by 8% (2023: decrease by 7%) from €142 million as at 31 December 2023 to €152 million as at 31 December 2024. Total Liabilities increased by €10.4 million when compared to the previous year closing off at €136 million. Total equity closed off at €16.1 million compared to €16.17 million in 2023, a reduction of €598K.
LifeStar Insurance p.l.c. (“LSI plc”)
The financial statements being presented are under IFRS 17 which came into effect on 1 January 2023.
LifeStar Insurance plc (LSI) registered a loss before tax of €538K compared to a restated profit before tax of €477K in 2023. The adverse performance is the combined result of higher insurance revenue, which grew by €297K or 5.3% when compared to the previous year. On the other hand, insurance service expense increasing by €1.3 million. The Insurance Service Result from Insurance Contracts Issued amounted to €2.7 million compared to €3.7 million in 2023. The Insurance Service Results closed off at €2.1 million compared to €2.3 million in 2024.
As mentioned above Gross Written Premium increased by 12.3%, our pension related products increased by 42.8% over the previous year, our protection policies increase by 6.3% and Group Life increased by 36.6%. Net Insurance Financial Results closed off at €1.2 million showing a marginal increase on 2023.
Directors’ Report (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
In 2024 LifeStar Health Limited declared a gross interim dividend of €583K, a net dividend of €440K (2023: gross €596K / net dividend €500K). Over the past four years, LifeStar Health has distributed just over €3 million in gross dividends to its immediate parent, LifeStar Insurance plc.
Total assets of LSI increased by €11.5 million when compared to the restated previous year to close off at €156 million. Total liabilities increased by €11.7 million when compared to restated 2023 mainly due to the increase in Insurance contract liabilities which increased by €10.5 million. Total equity decreased by €243K.
The Board of directors approved a 2024 bonus declaration of 3.5% for Money Plus policies (2023: 3.5%) and 1.0% (2023: 1.0%%) for all other interest sensitive products. The Company also announced a bonus rate of 0.5% (2023: 0.5%) for paid up policies.
LifeStar Health Limited
This is the second consecutive year where total commissions earned from normal operations exceeded the €1 million mark, registering a 6.5% uplift on the previous year. Total commissions receivable, including profit commission, remained fairly stable over last year with a slight reduction of 1.1% over the same period last year, due to higher claims. We have also experienced a notable increase in the value of claims, with an increasing number of clients seeking cancer treatment, among others. This seems to have been the general trend throughout the health insurance market in 2024, with several policy holders of Bupa Malta receiving treatment abroad that may not be available in Malta. Gross contribution reduced marginally by 2.54% over the same period last year.
Earnings before interest, tax, company recharges and amortisation for the year 2024 increased by 2.01% over last year to €668K from €655K. Profit before tax reduced by €109K when compared to the same period last year, as well as the reduction in profit commission of €123K compared to 2023.
Total assets decreased by €894K to close off at €1.4 million when compared to €2.3 million in 2023 The decrease is mainly due to a reduction in cash & cash equivalents. Total equity reduced by €196K to close off at €787K compared to 2023 of €982K, mainly due to the distribution of the dividend. Total liabilities decreased by €698K to close off at €653K. This decrease is mainly due to a reduction in trade and other payables.
LifeStar Health Limited is required to comply with the own funds requirement as set by the Malta Financial Services Authority. The minimum capital requirements (defined as “the capital resource requirements”) must be maintained at all times throughout the year. LifeStar Health Limited monitors its capital level through detailed reports compiled with management accounts. Any transactions that may potentially affect LifeStar Health Limited’s regulatory position are immediately reported to the directors for resolution prior to notifying the Malta Financial Services Authority. The Company always exceeded the required minimum capital requirements during the year under review.
GlobalCapital Financial Management Limited (“GCFM”)
During the year ending 31 December 2024, GCFM generated revenue of €616K (2023: €662K) and other income of €nil (2023: €89K). The Company recognised reversal of provisions for claims settlement of €413K (2023: additional provision €33K) and recorded settled claims of €353K (2023: €113K) in its statement of comprehensive income. However, this was offset by direct costs and administrative expenses totalling €826K (2023: €748K) which principally relate to recharged salaries €396K (2023: €428K) and legal and professional fees of €231K (2023: €151K).
During 2023, the shareholder has reclassified amounts payable of €200K to shareholder’s loan as both parties agreed that the amount will be repayable at the discretion of the borrower. Shareholder loans and contribution amount to €1,407K (2023: €1,407K). This amount includes a share capital contribution done in 2020 amounting to €504K, the latter is subject to regulatory approval. As set out in note 19 the
Directors’ Report (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
shareholder’s loan is unsecured, interest free, repayable at the discretion of the Company and has no fixed repayment date.
Future outlook
The directors intend to continue to operate in line with the Group’s current business plan.
Principal risks and uncertainties
The Group’s principal risks and uncertainties are further disclosed in Note 1 – Critical accounting estimates and judgements, Note 2 – Management of insurance and financial risk, and Note 15 – Investment property disclosing the significant observable inputs.
Financial risk management
Note 2 to the financial statements provides details in connection with the Group’s use of financial instruments, its financial risk management objectives and policies and the financial risks to which it is exposed.
Results and dividends
The consolidated statement of comprehensive income sets out the results of the Group. The Group’s total comprehensive loss after tax amounted to €0.6 million (2023: loss of €0.1million), whilst the pre-tax loss for the year amounted to €0.9 million (2023: loss of €0.04 million). The Directors do not recommend the declaration of a dividend (2023: Nil). However, a net dividend of €0.4 million was declared by LifeStar Health Limited as subject to regulatory no objection.
Events after the financial reporting date
As we progress through 2025, certain events which might have the potential of impacting the results of the holding company and the group are possible repercussions from the conflicts in the middle-east and in Ukraine on the European and, more generally, on the world economy as well as fluctuating inflation and stock market uncertainty.
Post the end of the reporting date however, as aforementioned, the potential risks to the performance of any company is from high inflation witnessed in the last few months which has forced many major central banks to increased interest rates as a counter-measure for inflation we have started seeing signs of interest reductions though inflation still remains volatile.
So far, Malta has been well shielded from increases in fuel and utility prices, though the Government has hinted that this may not be sustainable in the longer term. We have also seen increased pressure from the EU on a possible removal of these subsidies. Should the government halt its subsidies on energy and other assistance to industry in general, this could lead to further price increases and possibly a reduction in disposable income, which would adversely influence the propensity to save.
To date we have not seen any impact on the level of business being written with us. Our next challenge is now to increase efficiency even further to mitigate as much as possible the effect of rising prices but also with a view to help in protecting the environment in line with national targets and efforts done by industry as well as our peers.
We are not otherwise aware of any further events that could possibly have an effect on the operations of the LifeStar Holdings Group.
Directors’ Report (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
Going concern
The Directors, as required by Capital Markets Rule 5.62, have considered the Group’s operating performance, the statement of financial position at year end, as well as the business plan for the coming year, and they have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Directors
The Directors of the Company who held office during the period were:
Paolo Catalfamo (Executive Chairman)
Joseph Schembri (Senior Independent Director)
Joseph Vincent Del Raso
Gregory Eugene McGowan
Cinzia Akbaraly Catalfamo
In terms of the Company’s Articles of Association, Directors elected at an Annual General meeting shall hold office until the next subsequent Annual General Meeting, unless they resign or are removed from office. On the lapse of such term, a Director shall be eligible for re-appointment.
Remuneration Committee and Corporate Governance
The Board of Directors has set up an Audit and Risk Committee, as well as a Remuneration and Nominations Committee. The Board of the Company will be submitting to the Shareholders at the next Annual General Meeting the Remuneration Report for the financial year ending 31 December 2024 (the “Reporting Period”). The Remuneration Report is drawn up in accordance with, and in fulfilment of the provisions of Chapter 12 of the Capital Markets Rules issued by the Malta Financial Services Authority (“Capital Markets Rules”) relating to the Remuneration Report and Section 8A of the Code of Principles of Good Corporate Governance (Appendix 5.1 of the Capital Market Rules) regarding the Remuneration Statement.
The Remuneration Report provides a comprehensive overview of the nature and quantum of remuneration paid to the individual Directors and members of Executive Management during the Reporting Period and details how this complies with the Company’s Remuneration Policy. The Remuneration Report is intended to provide increased corporate transparency, increased accountability and a better shareholder oversight of the remuneration paid to Directors and members of Executive Management. The contents of the Remuneration Report have been reviewed by the Company’s Auditors to ensure that the information required in terms of Appendix 12.1 of the Capital Market Rules has been included.
The Group’s arrangements for corporate governance are reported in the ‘Corporate Governance – State.
Statement of directors’ responsibilities
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
The Directors are required by the Insurance Business Act (Cap. 403 of the Laws of Malta), the Investment Services Act (Cap. 370 of the Laws of Malta) and the Companies Act (Cap. 386 of the Laws of Malta) to prepare financial statements which give a true and fair view of the state of affairs of the Group as at the end of each financial year and of the profit or loss for that year.
In preparing the financial statements, the Directors are responsible for:
•ensuring that the financial statements have been drawn up in accordance with International Financial Reporting Standards (IFRS’s) as adopted by the EU;
•selecting and applying appropriate accounting policies;
•making accounting estimates that are reasonable in the circumstances; and
•ensuring that the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Group will continue in business as a going concern.
The Directors are responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Group and which enable the Directors to ensure that the financial statements comply with the Companies Act (Cap. 386 of the Laws of Malta). This responsibility includes designing, implementing and maintaining such internal control as the Directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Directors are also responsible for safeguarding the assets of the Group and including by taking reasonable steps for the prevention and detection of fraud and other irregularities.
Remuneration Committee and Corporate Governance (Continued)
In addition, the Directors are required to ensure that the Group companies have, at all times, complied an observed the various requirements, more specifically that LifeStar Insurance p.l.c. adhered to the provisions and requirements of the Insurance Business Act (Cap. 403 of the Laws of Malta); that LifeStar Health Limited has, at all times, complied with and observe the various requirements of the Insurance Distribution Act (Cap. 487 of the Law of Malta); and that Global Capital Financial Management Limited was in compliance of the Investment Services Act (Cap. 370 of the Laws of Malta).
Information provided in accordance with Capital Markets Rule 5.70.1
There were no material contracts to which the Company, or its subsidiary was a party, and in which anyone of the Company’s Directors was directly or indirectly interested.
Auditors
Grant Thornton have intimated their willingness to continue in office.
A resolution to reappoint Grant Thornton as auditor of the Group will be proposed at the forthcoming annual general meeting.
Information pursuant to Capital Markets Rule 5.64
The Company has an authorised share capital of €58,234,400 divided into 200,000,000 ordinary shares with a nominal value of €0.291172 each (2023: €58,234,400). The issued share capital of the Company is €7,017,841,81 dividend into 24,102,049 ordinary shares of the nominal value of €0.291172 each.
Statement of directors’ responsibilities (continued)
For the Financial Year Ended 31 December 2024
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LifeStar Holding p.l.c. – Annual Financial Report 2024
Information pursuant to Capital Markets Rule 5.64 (continued)
The issued shares of the Company consist of one class of ordinary shares with equal voting rights attached. The shares carry equal rights to participate in any distribution of dividends declared by the Company. Each share shall be entitled to one vote at the meetings of the shareholders. The shares are freely transferable in accordance with the rules and regulations of the Malta Stock Exchange, as applicable from time to time, and in terms of the provisions of the Articles of Association of the Company.
The Directors confirm that, as at 31 December 2024, Investar p.l.c. 60.58% (2023: 60.58%), GlobalCapital Financial Management Limited as nominee for Client accounts 30.81% (2023: 30.81%) held a shareholding in excess of 5% of the total issued share capital.
The Nominations and Remuneration Committee of the Board of Directors currently consists solely of independent Non-Executive Directors. It has the responsibility to assist and advise the Board of Directors on matters relating to the remuneration of the Board of Directors and senior management, in order to motivate and retain executives and ensure that the Company is able to attract the best talents in the market in order to maximise shareholder value.
The rules governing the appointment and replacement of the Company’s Directors are contained in Articles 73 to 81 of the Company’s Articles of Association. Directors of the Company shall be elected on an individual basis by ordinary resolution of the Company in general meeting. The said ordinary resolution shall be determined and decided by means of a poll. The Company may, by an ordinary resolution of the members entitled to vote at a general meeting of the Company, remove any Director before the expiration of his term of office.
The Directors can only issue and allot shares up to such maximum amount not exceeding the authorised share capital of the Company, as may be authorised by ordinary resolution of the general meeting in accordance with section 85 of the Companies Act. This and other powers vested in the Company’s Directors are confirmed in Articles 82 to 99 of the Company’s Articles of Association.
It is hereby declared that as at 31 December 2022, the information required under Capital Markets Rules 5.64.4, 5.64.5, 5.64.7, 5.64.10 and 5.64.11 is not applicable to the Company.
Information pursuant to Capital Markets Rule 5.70.1
The Company made advances to Investar p.l.c. during the year which were still outstanding as at 31 December 2024. Other than the above, there were no material contracts to which the Company, or its subsidiary was a party, and in which anyone of the Company’s Directors was directly or indirectly interested.
Information pursuant to Capital Markets Rule 5.70.2
The Company Secretary is Dr Clinton Calleja and the registered office is LifeStar Holding p.l.c., Testaferrata Street, Ta’ Xbiex, Malta.
Statement by the Directors pursuant to Capital Markets Rule 5.68
We, the undersigned, declare that to the best of our knowledge, the financial statements prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and its subsidiaries included in the consolidation taken as a whole, and that this Director’s Report includes a fair review of the performance of the business and the position of the Company and its subsidiaries included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Statement of directors’ responsibilities (continued)
For the Financial Year Ended 31 December 2024
14
LifeStar Holding p.l.c. – Annual Financial Report 2024
Statement by the Directors pursuant to Capital Markets Rule 5.68 (continued)
Signed on behalf of the Board of Directors on 30 April 2025 by Prof. Paolo Catalfamo (Chairman) and Joseph Schembri (Director) as per the Directors’ Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report.
Corporate Governance – Statement of compliance
For the Financial Year Ended 31 December 2024
15
LifeStar Holding p.l.c. – Annual Financial Report 2024
Introduction
Pursuant to the Capital Markets Rules issued by the Malta Financial Services Authority, the Company whose equity securities are listed on a regulated market should endeavour to adopt the Code of Principles of Good Corporate Governance (“the Code”) as contained in Appendix 5.1 to Chapter 5 of the Capital Markets Rules. In terms of the Capital Markets Rules, the Company is hereby reporting on the extent of its adoption of the Code.
The Company acknowledges that the Code does not prescribe mandatory rules but recommends principles so as to provide proper incentives for the Board of Directors (“the Board”) and the Company’s management to pursue objectives that are in the interests of the Company and its shareholders. Good corporate governance is the responsibility of the Board, and in this regard the Board has carried out a review of the Company’s compliance with the Code during the period under review, and hereby provides its report thereon.
As demonstrated by the information set out in this statement, the Company believes that during the reporting period, it has been in full compliance with the Code.
Compliance with the Code
Principles One and Four: The Board
The Directors report that for the financial year under review, the Directors have provided the necessary leadership in the overall direction of the Company and have performed their responsibilities for the efficient and smooth running of the Company with honesty, competence and integrity. The Company is committed to the highest standards of business conduct and seeks to maintain these standards across all of its operations.
Directors, individually and collectively, are of appropriate calibre, with the necessary skill and experience to assist them in providing leadership, integrity and judgement in directing the Company towards the maximisation of shareholder value and to make an effective contribution to the leadership and decision-making processes of the Company as reflected by the Company’s strategy and policies. In fact, the Board comprises of a number of individuals, with extensive knowledge of insurance, financial markets and regulatory matters. Members of the Board are selected on the basis of their core competencies and professional background in the industry so as to ensure the continued success of the Company.
All the members of the Board are fully aware of, and conversant with, the statutory and regulatory requirements connected to the business of the Company. The Board is accountable for its performance and that of its delegates to shareholders and other relevant stakeholders.
Its responsibilities also involve the oversight of the Company’s internal control procedures and financial performance, and the review of business risks facing the Company, ensuring that these are adequately identified, evaluated, managed and minimised. The activities of the Board are exercised in a manner designed to ensure that it can effectively supervise the operations of the Company and protect the interests of bondholders, external borrowers and the shareholders.
The Company has a structure that ensures a mix of executive and non-executive directors and that enables the Board to have direct information about the Company’s performance and business activities.
All directors are required to:
•Exercise prudent and effective controls which enable risk to be assessed and managed in order to achieve continued prosperity to the Company;
•Be accountable for all actions or non-actions arising from discussion and actions taken by them or their delegates;
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
16
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principles One and Four: The Board (Continued)
•Determine the Company’s strategic aims and the organisational structure;
•Regularly review management performance and ensure that the Company has the appropriate mix of financial and human resources to meet its objectives and improve the economic and commercial prosperity of the Company;
•Acquire a broad knowledge of the business of the Company;
•Be aware of and be conversant with the statutory and regulatory requirements connected to the business of the Company;
•Allocate sufficient time to perform their responsibilities; and
•Regularly attend meetings of the board.
In terms of the Capital Markets Rules 5.117 – 5.134 the Board has established an Audit committee to monitor the Company’s present and future operations, threats and risks in the external environment and current and future strengths and weaknesses. The Audit committee ensures that the Company has the appropriate policies and procedures in place to ensure that the Company and its employees maintain the highest standards of corporate conduct, including compliance with applicable laws, regulations, business and ethical standards. The Audit committee has a direct link to the board and is represented by the Chairman of the Audit committee in all Board meetings.
Principle Two: Executive Chairman and Chief Executive Officer
In compliance with the provisions of this Principle, the functions of the Executive Chairman and the CEO of the Company are segregated from one another. Prof. Paolo Catalfamo occupies the post of Executive Chairman whilst Mr Roberto Apap Bologna occupies the post of CEO.
Prof. Paolo Catalfamo occupies the post of Executive Chairman and is responsible to:
•Lead the board and set its agenda;
•Ensure that the directors of the board receive precise, timely and objective information so that they can take sound decisions and effectively monitor the performance of the Company;
•Ensure effective communication with shareholders; and
•Encourage active engagement by all members of the board for discussion of complex or contentious issues.
Joseph C. Schembri is appointed as the Senior Independent Director of the Company to act a reference and coordination point for the requests and contributions of non-executive directors and, in particular, those who are independent.
The regulated operating subsidiaries of the Company, LifeStar Insurance plc, LifeStar Health Limited and GlobalCapital Financial Management Limited each have a CEO or Managing Director. The CEO of LifeStar Insurance plc is Alessio Germani. The Managing Director of LifeStar Health Limited is Adriana Zarb Adami. In the case of GlobalCapital Financial Management Limited, the Managing Director is Konrad Camilleri.
Principle Three: Composition of the Board
In accordance with the provisions of the Company’s Articles of Association, the appointment of Directors to the Board is exclusively reserved to the Company’s shareholders, except in so far as appointment is made to fill a casual vacancy on the Board, and which appointment would expire at the Company’s Annual General Meeting following appointment. Any vacancy among the Directors may be filled by the co-option of another person to fill such vacancy, which co-option shall be made by the Board of Directors.
The Board has the overall responsibility for the activities carried out within the Company and the Group. The Board understands and fully appreciates the business risk issues and key performance indicators affecting the ability of the Company to achieve its objectives.
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
17
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Three: Composition of the Board (Continued)
The Board is composed of five (5) Directors (one (1) of whom is the Executive Chairman). All Directors other than the Executive Chairman are non-executive Directors.
For the purpose of Capital Markets Rules 5.118 and 5.119, Mr Joseph C Schembri, Mr Joseph Vincent Del Raso and Mr Gregory Eugene McGowan are the non-executive Directors who are deemed to be independent. The independent non-executive Directors constitute a majority of the Board. Mr Joseph Schembri was confirmed in his position as non-executive Senior Independent Director of the Company during the last Annual General Meeting of the Company held on the 31st July 2024. Each Director is mindful-of maintaining independence, professionalism and integrity in carrying out his duties, responsibilities and providing judgement as a director of the Company.
The Board co nsiders that none of the independent directors of the Company:
•Are or have been employed in any capacity by the Company;
•Have or have had, over the past three years, a significant business relationship with the Company;
•Have received or receives significant additional remuneration from the Company in addition to his director’s fee;
•Have close family ties with any of the Company’s executive directors or senior employees;
•Have served on the Board of the Company for more than twelve consecutive years; and
•Have or have been within the last three years an engagement partner or a member of the audit team of the present or former external auditor of the Company, or any member of the Group.
Each of the directors hereby declares that he undertakes to:
•Maintain in all circumstances his independence of analysis, decision and action;
•Not to seek or accept any unreasonable advantages that could be considered as compromising his independence; and
•Clearly express his opposition in the event that he finds that a decision of the board may harm the Company.
The Board of Directors is currently chaired by Prof. Paolo Catalfamo, who assumed the role of an Executive Chairman following the last Annual General Meeting. The Company Secretary (Dr. Clinton Calleja) attends all meetings and takes minutes of the Board meetings. Under the direction of the Chairman, the Company Secretary’s responsibilities include ensuring good information flows between the Board of Directors and its Committees and between senior management and the Directors, as well as ensuring that the Board of Directors’ procedures are followed. The Company’s Articles of Association also provide for adequate controls and procedures in so far as the treatment of conflicts of interest during Board of Directors meetings is concerned.
The following Directors served on the Board during the period under review:

Prof. Paolo Catalfamo | Executive Chairman
Mr. Joseph Schembri | Senior, Independent, Non-executive Director
Mr. Joseph Vincent Del Raso | Independent, Non-executive Director
Mr. Gregory Eugene McGowan | Independent, Non-executive Director
Ms. Cinzia Akbaraly Catalfamo | Non-executive Director

Principle Five: Board Meetings
The Directors meet regularly to dispatch the business of the Board. The Directors are notified of forthcoming meetings by the Company Secretary with the issue of an agenda and supporting Board papers, which are circulated in advance of the meeting. Board Meetings are also convened at short notice, from time to time, depending on the urgency with which the items of the agenda would require Board discussion.
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
18
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Five: Board Meetings (Continued)
Minutes of Board meetings are taken, recording inter alia attendance, and resolutions taken at the meeting. The Executive Chairman ensures that all relevant issues are on the agenda supported by all available information, whilst encouraging the presentation of views pertinent to the subject matter and giving all Directors every opportunity to contribute to relevant issues on the agenda. The agenda for the meetings seeks to achieve a balance between long-term strategic and short-term performance and operational issues.
The Board of Directors meets in accordance with a regular schedule of meetings, and also at such intervals as may be necessary from time to time, and reviews and evaluates the Group’s strategy, major operational and financial plans, as well as new material initiatives to be undertaken by the Group. The Board of Directors meets formally at least once every quarter and at other times on an ‘as and when’ required basis.
During the period under review, the Board of Directors met thirteen (13) times. The following Directors attended Board meetings as follows:

| Meetings
Prof. Paolo Catalfamo | 13
Mr. Joseph Schembri | 13
Mr. Joseph Vincent Del Raso | 12
Mr. Gregory Eugene McGowan | 12
Ms. Cinzia Akbaraly Catalfamo | 10

Principle Six: Information and Professional Development
The Company ensures that it provides directors with relevant information to enable them to effectively contribute to Board decisions. The Company Secretary ensures effective information flows within the Board, committees and between senior management and Directors, as well as facilitating professional development. The Company Secretary advises the Board through the Executive Chairman on all governance matters.
Directors may, in the course of their duties, take independent professional advice on any matter at the Company’s expense. The Company will provide for additional individual Directors' training on a requirements basis.
The Chief Executive Officer ensures that systems are in place:
1.to provide for the development and training of the management and employees generally so that the Group remains competitive;
2.to provide additional training for individual Directors where necessary;
3.to monitor management and staff morale; and
4.to establish a succession plan for senior management.
Principle Seven: Evaluation of the Board’s Performance
The Chairman of the Board informally evaluates the performance of the Board members, which assessment is followed by discussions within the Board. Through this process, the activities and working methods of the Board and each committee member are evaluated. Amongst the things examined by the Chairman through his assessment are the following: how to improve the work of the Board further, whether or not each individual member takes an active part in the discussions of the Board and the committees; whether they contribute independent opinions and whether the meeting atmosphere facilitates open discussions. Under the present circumstances the Board does not consider it necessary to appoint a committee to carry out a performance evaluation of its role as the Board’s performance is furthermore also under the scrutiny of the shareholders. The self-evaluation of the Board has not led to any material changes in the Company’s governance structures and organisations.
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
19
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Eight: Committees
Audit and Risk Committee
The Board of Directors delegates certain responsibilities to the Audit Committee, the terms of reference of which reflect the requirements stipulated in the Capital Markets Rules. As part of its terms of reference, the Audit Committee of the Company has the responsibility to, if required, vet, approve, monitor and scrutinise related party transactions falling within the ambits of the Capital Markets Rules, and to make its recommendations to the Board of Directors on any such proposed related party transactions. The Audit Committee also assists the Board of Directors in monitoring and reviewing the Group’s financial statements, accounting policies and internal control mechanisms in accordance with the Committee’s terms of reference.
The primary purpose of the Audit Committee is to protect the interests of the Company’s shareholders and assist the Directors in conducting their role effectively so that the Company’s decision-making capability and the accuracy of its reporting and financial results are maintained at a high level at all times. In the performance of its duties the Audit Committee calls upon any person it requires to attend meetings. The external auditors of the Company are invited to attend relevant meetings in order to report on key matters arising from the audit. The internal auditors are also invited to attend certain meetings of the Audit Committee, as necessary, in order to report directly any findings of their audit process. The head of legal and compliance, as well as the compliance officers of the regulated subsidiaries are also invited to participate during meetings of the Audit Committee to present their compliance reports. In addition, the Audit Committee invites the Acting Chief Financial Officer and other members of management to attend Audit Committee meetings on a regular basis and as deemed appropriate.
The Audit Committee also approves and reviews the Group’s Compliance Plan and Internal Audit Plan prior to the commencement of every financial year and monitors the implementation of these plans. The remit of the Audit Committee was also extended to include Group risk management, and it is also referred to as the Audit and Risk Committee.
During the financial year under review, the Audit Committee held nineteen (19) meetings:
Members
Committee meetings attended
Joseph Schembri
19
Joseph Del Raso
19
Gregory Eugene McGowan
13
The Audit Committee was chaired by Joseph Schembri, who is an auditor by profession, and is considered to be an independent non-executive member possessing the necessary competence in auditing/accounting as required in terms of the Capital Markets Rules. All the members that served on the Audit Committee were deemed by the Board of Directors to be Independent Non-Executive Directors, and the Board of Directors felt that as a whole the Audit Committee had the necessary skills, qualifications and experience in satisfaction of the Capital Markets Rules.
The terms of reference of the Audit Committee include, inter alia, its support to the Board of the Company in its responsibilities in dealing with issues of risk management, control and governance and associated assurance. The Board has set formal terms that establish the composition, role, function, the parameters of the Audit Committee’s remit as well as the basis for the processes that it is required to comply with.
Principally, the Audit Committee deals with and advises the Board on the following matters:
•its monitoring responsibility over the financial reporting processes, financial policies and internal control structures;
•monitoring the performance of the entity or entities borrowing funds (the subsidiaries) from the Company;
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
20
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Eight: Committees (Continued)
•maintaining communications on such matters between the Board, management and the independent auditors;
•facilitating the independence of the external audit process and addressing issues arising from the audit process; and
•preserving the Company’s assets by understanding the risk environment and determining how to deal with those risks.
In addition, the Audit Committee has the role and function of scrutinising and evaluating any proposed transaction prior to be entered into by the Company and a related party, to ensure that the execution of any such transaction is at arm's length and on a commercial basis and ultimately in the best interests of the Company. The Audit Committee oversees the financial reporting of the Company and ensures the process takes place in a timely manner. The Audit Committee is free to question the Board of Directors on any information that may seem unclear.
Nominations and Remuneration Committee
The Board of Directors has appointed a Nominations and Remuneration Committee, which fulfils the joint function of a Nominations Committee as well as a Remuneration Committee. In fulfilling the nominations’ function, the Committee is responsible for recommending Directors for election by shareholders at the Annual General Meeting, for planning the structure, size, performance and composition of the Group’s subsidiary boards, for the appointment of senior executives and management and for the development of a succession plan for senior executives and management.
During the financial year under review, the Nominations and Remuneration Committee met twice (2) times and was composed of Joseph Vincent Del Raso as Chairman, and Joseph Schembri and Gregory Eugene McGowan as members.
Remuneration Function
The Remuneration and Nomination Committee monitors, reviews, and advises on the Company’s remuneration policy as well as approves the remuneration packages of senior executives and management. The main activities of the Remuneration and Nomination Committee include devising appropriate policies and remuneration packages to attract, retain, and motivate Directors and senior management of a high calibre in order to well position the Group within the insurance market and its areas of business.
In the fulfilment of its remuneration matters oversight, the Committee monitors, reviews and advises on the Group’s Remuneration Policy, as well as approves the remuneration packages of senior executives and Management.
Nominations Function
The Remuneration and Nominations Committee is also responsible for making recommendations for appointment to the Board and for reviewing in order to ensure that appointments to the Boards are conducted in a systematic, objective and consistent manner. It is also responsible for the review of performance of the Company’s Board members and committees, the appointment of senior executives and management and the development of a succession plan for senior executives and management. Additionally, this committee monitors, reviews and advises on the Company’s remuneration policy as well as approves the remuneration packages of senior executives and management.
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
21
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Eight: Committees (Continued)
Executive Management Committee
The Executive Management Committee manages the Group’s day-to-day business and the implementation of the strategy established by the Board of Directors. The Executive Management Committee as at 31 December 2024 was composed of the Managing Directors of each of the operating regulated subsidiaries of the Group, as well as of the Chief Financial Officer, the Chief Information Officer, the Chief Operations Officer and Risk and the Head of Legal and Compliance.

Members | Role
Roberto Apap Bologna | Chief Executive Officer LifeStar Holding p.l.c.
Adriana Zarb Adami | Managing Director LifeStar Health Limited
Konrad Camilleri | Managing Director GlobalCapital Financial Management Limited
Amanda Mifsud | Acting Chief Financial Officer
Adrian Mizzi | Chief Information Officer
Jonathan Camilleri | Chief Operations Officer
Michael Schembri | Head Legal and Compliance

Internal controls
The Board is ultimately responsible for the Company’s system of internal controls and for reviewing its effectiveness. The Company has an appropriate organisational structure for planning, executing, controlling and monitoring business operations in order to achieve its objectives.
The Group encompasses different licensed activities regulated by the MFSA. These activities include the carrying on of long-term business of insurance under the Insurance Business Act (Cap. 403 of the Laws of Malta); acting as an agent for sickness and accident insurance in terms of the Insurance Distribution Act (Cap. 487 of the Laws of Malta); and the provision of investment services and advice in terms of the Investment Services Act (Cap. 370 of the Laws of Malta). The Board of Directors has continued to ensure that effective internal controls and processes are maintained to support sound operations. The regulated subsidiaries have also set up Committees to further enhance internal controls and processes. These include the setting up of an Executive Committee, Asset and Liability Committee and the Risk Management Committee at life company level. Policies such as Risk Compliance Monitoring Programmes, Risk Management, Complaints, Data Protection, Internal Audit and Anti-Money Laundering Policies and Procedures as well as a Conflict of Interest Policy have been adopted.
The Directors are aware that internal control systems are designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and can only provide reasonable, and not absolute, assurance against normal business risks. During the financial year under review, the Company operated a system of internal controls which provided reasonable assurance of effective and efficient operations covering all controls, including financial and operational controls and compliance with laws and regulations. Processes are in place for identifying, evaluating and managing the significant risks facing the Company.
The Company has implemented control procedures designed to ensure complete and accurate accounting for financial transactions and to limit the potential exposure to loss of assets or fraud. Measures taken include physical controls, segregation of duties and reviews by management, internal audit and the external auditors. The Internal Audit Department monitors and reviews the Group’s compliance with policies, standards and best practice in accordance with an Internal Audit Plan approved by the Audit Committee. BDO Malta fulfil the functions of internal auditors of the Company.
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
22
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Nine and Ten: Relations with Shareholders and with the Market, and Institutional Shareholders
The Company recognises the importance of maintaining a dialogue with its shareholders and of keeping the market informed to ensure that its strategies and performance are well understood. During the period under review, the Company has maintained an effective communication with the market through a number of channels including Company announcements and Circulars.
The Company shall also communicate with its shareholders through the Company’s Annual General Meeting (“AGM”) to be held later in 2025, which will include resolutions such as the approval of the Annual Report and Audited Financial Statements for the year ended 31 December 2024, the election/re-election of Directors, the determination of the maximum aggregate emoluments that may be paid to Directors, the appointment of auditors and the authorisation of the Directors to set the auditors’ remuneration, as well as any other resolution as may necessary in terms of law, the Capital Markets Rules, or as required by the Company. In terms of Rule 12.26L of the Capital Markets Rules, an annual general meeting shall have the right to hold an advisory vote on the remuneration report of the most recent financial year. Both the Chairman of the Board and the Chairman of the Audit Committee will be available to answer shareholder questions, which may be put forward in terms of Rule 12.24 of the Capital Markets Rules.
Apart from the AGM, the Group communicates and shall communicate with its shareholders through the publication of its Annual Report and Financial Statements, the publication of interim results, updates and articles on the Group’s website, the publication of Group announcements and press releases.
The Office of the Company Secretary is also available to act as a liaison of communication between the Company and its investors. Individual shareholders can raise matters relating to their shareholdings and the business of the Company at any time throughout the year, and are given the opportunity to ask questions at the AGM or to submit written questions in advance.
As provided by the Companies Act (Cap. 386), minority shareholders may convene Extraordinary General Meetings.
Principle Eleven: Conflicts of Interest
The Directors are fully aware of their responsibility always to act in the best interests of the Company and its shareholders as a whole irrespective of whoever appointed or elected them to serve on the Board.
On joining the Board and regularly thereafter, the Directors are informed of their obligations on dealing in securities of the Company within the parameters of law, including the Capital Markets Rules, and Directors follow the required notification procedures.
Directors’ direct interest in the shareholding of the Group:

| Number of shares held directly as at 31 December 2024
Prof. Paolo Catalfamo | Nil
Mr. Joseph Schembri | Nil
Mr. Gregory McGowan | Nil
Mr. Joseph Vincent Del Raso | Nil
Ms. Cinzia Akbaraly Catalfamo | Nil

With the exception of Paolo Catalfamo, none of the Directors of the Company have any interest in the shares of the Company’s subsidiaries or investees or any disclosable interest in any contracts or arrangements either subsisting at the end of the last financial year or entered into during this financial year. No other changes in the Directors’ direct interest in the shareholding of the Company between year-end and the date of the approval of the financial statements.
Corporate Governance – Statement of compliance (continued)
For the Financial Year Ended 31 December 2024
23
LifeStar Holding p.l.c. – Annual Financial Report 2024
Principle Eleven: Conflicts of Interest (Continued)
Paolo Catalfamo holds shares in the Company indirectly through his shareholding in Investar plc which is the Company’s ultimate holding company as disclosed in Note 33.
Principle Twelve: Corporate social responsibility
The Company seeks to adhere to sound Principles of Corporate Social Responsibility in its management practices, and is committed to enhance the quality of life of all stakeholders of the Company. The Board is mindful of the environment and its responsibility within the community in which it operates. In carrying on its business the Company is fully aware of and at the forefront in preserving the environment and continuously reviews its policies aimed at respecting the environment and encouraging social responsibility and accountability. During the financial year under review, the Group pursued its corporate social responsibility by supporting and contributing to a number of charitable causes.
Remuneration report
For the Financial Year Ended 31 December 2024
24
LifeStar Holding p.l.c. – Annual Financial Report 2024
Remuneration Committee
The remuneration functions of the Remuneration and Nominations Committee were performed by Joseph Vincent del Raso as Chairman, and Joseph C. Schembri and Gregory Mc Gowan as members.
Remuneration policy
The Company’s remuneration of its Directors and senior executives is based on the remuneration policy adopted and approved by the shareholders of the Company at the Annual General Meeting. The Remuneration Policy of the Company is available for inspection on the Company’s website. During the latest general meeting held on 31st July 2024 the meeting approved the Remuneration Statement published as part of the annual report of the Company for the financial year ended 31 December 2024.
The Remuneration Policy of the Company is intended to provide an over-arching framework that establishes the principles and parameters to be applied in determining the remuneration to be paid to any member of the Board of Directors, and the senior executives. The policy describes the components of such remuneration and how this contributes to the Company’s business strategy, in the context of its long term sustainable value creation. This remuneration policy is divided into five (5) parts distinguishing between directors, senior management, employees, intermediaries and service providers.
Remuneration payable to Directors
Fixed remuneration
The remuneration payable to Directors not serving in an executive capacity is fixed and does not have any incentive programmes and such Directors will therefore not receive any performance-based remuneration. None of the Directors, in their capacity as Directors of the Company, is entitled to profit-sharing, share options or pension benefits.
In addition to fixed remuneration in respect of their position as members of the Board of Directors of the Company, individual Directors who are also appointed to chair, or to sit as members of, one or more committees or sub-committees of the Company, or its subsidiaries, are entitled to receive additional remuneration as may be determined by the Board of Directors from time to time. Any such additional remuneration shall, however, form part of the aggregate emoluments of the Directors as approved by the General Meeting of the Company. The basis upon which such additional remuneration is paid shall take into account the skills, competencies and technical knowledge that members of such committees require and the respective functions, duties and responsibilities attaching to membership of such committees.
Other entitlements
The Group may also pay out fringe benefits, comprising of medical and life insurance.
Remuneration payable to executives
•Chief Executive Officer: The remuneration of the Chief Executive Officer will consist of a salary, and any performance related bonuses and any fringe benefits will be at the sole discretion of the Chairman and submitted for approval of the Remuneration and Nominations Committee. The Chairman (directly or through the Chief Finance Officer) will forward any recommendations for any changes to the remuneration of the Chief Executive Officers for the consideration of the Remuneration and Nominations Committee which will in turn review any such request and forward any request to the Board for the Board’s final approval.
•Head/Senior Manager: The remuneration of the Head / Senior Managers will be at the sole discretion of the Chairman and/or the Chief Executive Officer (where one is appointed) without the need to refer to the Remuneration and Nominations Committee or the Board of Directors subject-at the remuneration does not exceed a yearly remuneration of Fifty Thousand Euros (€50,000). Any amount over this threshold will require the endorsement of the Remuneration Committee.
Remuneration report (continued)
For the Financial Year Ended 31 December 2024
25
LifeStar Holding p.l.c. – Annual Financial Report 2024
Senior executive service contracts
All senior executive contracts are of an indefinite duration and subject to the termination notice periods prescribed by law.
Remuneration report
In terms of Rule 12.26K of the Capital Markets Rules, the Group is also required to draw up an annual remuneration report (the “Remuneration Report”), which report is to:
i.provide an overview of the remuneration, including benefits in whatever form, awarded or due to members of the Board of Directors and the CEO during the financial year under review; and
ii.explain whether any deviations have been made from the Remuneration Policy of the Company.
In this respect, the Company is hereby producing its remuneration report following the approval and entry into effectiveness, in July 2024, of the Remuneration Policy described in the preceding sections.
Remuneration paid to Directors
All remuneration for directors was in conformity with this policy. The remuneration paid to individual Directors during the year under review was as follows:

Name | Position | 2024 | 2023
|  | € | €
Paolo Catalfamo: | Non-Executive Director and Chairman | 250,000 | 100,000
Joseph Schembri | Independent Non-Executive Director | 31,000 | 21,000
Joseph Vincent Del Raso | Independent Non-Executive Director | 26,000 | 21,000
Cinzia Catalfamo | Non-Executive Director | 20,000 | 15,000
Gregory Eugene McGowan | Independent Non-Executive Director | 23,000 | 18,000

The remuneration paid to the Directors covers both their role as directors of Company and their role as members of chairpersons or members of any sub-committees of the Company, as well as their position as directors of subsidiaries forming part of the Group.
It is the shareholders, in terms of the memorandum and articles of association of the company, who determine the maximum annual aggregate emoluments of the directors by resolution at the annual general meeting of the company. Remuneration payable to directors (in their capacity as directors) is reviewed as and when necessary and is not linked to the share price or the company’s performance.
These are benchmarked against market practice for major local companies of similar size and complexity.
The aggregate amount fixed for this purpose during the last Annual General Meeting of LifeStar Holding plc was €450,000. A maximum annual aggregate emoluments of the Directors of the Company shall be fixed at the upcoming Annual General Meeting.
The aggregate emoluments of the Directors in respect of their role as directors of the Company and, where applicable, as members of sub-committees of the Board of Directors of the Company, amounted to €350,000. The Directors do not expect the that the maximum aggregate remuneration limit of €450,000 to be exceeded during the financial year ending 31 December 2025.
The Remuneration Committee is satisfied that the fixed remuneration for the year under review is in line with the core principles of the Remuneration Policy applicable during the year under review, including giving due regard to market conditions and remuneration rates offered by comparable organisations for comparable roles.
Remuneration report (continued)
For the Financial Year Ended 31 December 2024
26
LifeStar Holding p.l.c. – Annual Financial Report 2024
Remuneration paid to Senior Management
Remuneration paid to Senior Management amounts to €977,742 (2023: €920,060) and excludes the fringe benefit for health insurance and life cover as described above.
Decision-making with respect to the Remuneration Policy
Whereas the Board of Directors is responsible for determining the Remuneration Policy of the Company, the Remuneration and Nominations Committee, acting in its function as the Remuneration Committee, is, in turn, responsible for overseeing and monitoring its implementation and ongoing review thereof. This policy is to be reviewed annually by the Remuneration and Nominations Committee of the Company. The annual review will ensure that the policy remains relevant for the Company and that any improvements by way of amendments are indeed effected.
In evaluating whether it is necessary or beneficial to supplement or otherwise alter the Remuneration Policy of the Company, the Remuneration Committee have regard to, inter alia, best industry and market practice on remuneration, the remuneration policies adopted by companies operating in the same industry sectors, as well as legal and, or statutory rules, recommendations or guidelines on remuneration, including but not limited to the Code of Principles of Good Corporate Governance contained in Appendix 5.1 of the Capital Markets Rules of the Listing Authority.
Whilst members of the Remuneration Committee may be present while his/her remuneration as a Director or other officer of the Company and, or of any other company forming part of the Group, is being discussed at a meeting of such Committee, any decision taken by the Committee in this respect shall be subject to the approval of the Board of Directors. At a meeting of the Board of Directors, no Director may be present while his/her remuneration as a Director or other officer of the Company and, or of any other company forming part of the Group, is being discussed.
Other information on remuneration in terms of Appendix 12.1 of the Capital Markets Rules
In terms of the requirements within Appendix 12.1 of the Capital Market Rules, the following table presents the annual change of remuneration, of the company’s performance, and of average remuneration on a full-time equivalent basis of the company’s employees (other than directors) over the two most recent financial years. The Company’s non-executive Directors, have been excluded from the table below since they have a fixed fee as described above.

Position | 2024 | 2023 | Change
| € | € | %
Annual aggregate employee remuneration | 2,880,885 | 3,076,281 | -6.35
Group performance, profit after tax | (597,999) | (145,271) | 311.64
Average employee remuneration (excluding CEO) – full-time equivalent | 34,071 | 36,508 | -6.68

The contents of the Remuneration Report have been reviewed by the external auditor to ensure that the information required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets rules have been included.
Statement of comprehensive income
For the year ended 31 December
27
LifeStar Holding p.l.c. – Annual Financial Report 2024
Consolidated
Holding Company
Notes
2024
2023
2024
2023
(Restated)
€
€
€
€
Insurance revenue
5,935,707
5,638,941
-
-
Insurance service expense
(3,201,372)
(1,903,944)
-
-
Insurance service result from insurance contracts issued
2,734,335
3,734,997
-
-
Allocation of reinsurance premiums paid
3.3
(2,260,570)
(2,284,581)
-
-
Amounts recovered from reinsurers
3.3
1,610,853
885,840
-
-
Net expense from reinsurance contracts held
(649,717)
(1,398,741)
-
-
Insurance service result
2,084,618
2,336,256
-
-
Net investment income
4
13,679,545
8,669,728
-
-
Interest income on financial assets at amortised cost
253,211
757,838
-
-
Net movement in provision for expected credit loss
(206,870)
(252,677)
-
-
Insurance finance expense from insurance contracts issued
(12,293,918)
(7,967,056)
-
-
Reinsurance finance expense from reinsurance contracts held
149,394
787,355
-
-
Movement in investments contract liabilities
(741,674)
(491,075)
-
-
Net insurance financial result
839,688
1,504,113
-
-
Statement of comprehensive income (continued)
For the year ended 31 December
28
LifeStar Holding p.l.c. – Annual Financial Report 2024
Consolidated
Holding Company
Notes
2024
2023
2024
2023
(Restated)
€
€
€
€
Net investment loss
-
-
(1,976,091)
(364,609)
Commissions and fees receivable
5
2,192,441
1,943,288
-
-
Other income
693,911
66,539
1,424,870
715,217
Administrative and other expenses
6
(6,546,373)
(5,658,298)
(495,310)
(468,568)
Finance cost
7
(176,509)
(228,707)
(350,060)
(392,913)
Loss before tax
(912,224)
(36,809)
(1,396,591)
(510,873)
Income tax income (expense)
8
314,224
(145,271)
(207,933)
-
Loss for the year
(598,000)
(182,080)
(1,604,524)
(510,873)
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of property
-
44,292
-
-
Total other comprehensive income for the year
-
44,292
-
-
Total comprehensive (loss) for the year
(598,000)
(137,789)
(1,604,524)
(510,873)
Statement of financial position
As at 31 December
29
LifeStar Holding p.l.c. – Annual Financial Report 2024
Consolidated
Holding Company
Notes
2024
2023
2024
2023
(Restated)
€
€
€
€
ASSETS
Intangible assets
12
4,130,331
3,590,026
-
-
Right-of-use asset
28
97,236
220,103
95,389
210,178
Property, plant and equipment
14
5,735,253
3,598,627
-
-
Investment property
15
22,184,120
24,350,199
-
-
Investment in group undertakings
16
-
-
22,475,836
24,451,978
Other investments
17
108,576,141
96,977,456
-
-
Other assets
18
198,680
-
-
-
Taxation receivable
-
-
-
-
Deferred tax asset
13
1,705,968
1,475,265
-
-
Reinsurance contract assets
3,571,127
2,565,601
-
-
Trade and other receivables
19
4,022,979
3,648,404
2,623,751
2,169,090
Cash and cash equivalents
25
2,196,194
5,650,437
244,405
424,810
Asset held-for-sale
-
-
-
-
Total assets
152,418,029
142,076,118
25,439,381
27,256,056
Liabilities

Insurance contract liabilities | 3.5 | 115,645,941 | 105,163,291 | - | -
Investment contract liabilities | 3.6 | 8,619,624 | 6,705,671 | - | -
Lease liability | 28 | 101,886 | 217,601 | 99,962 | 208,144
Taxation payable |  | 2,747,817 | 3,519,545 | 87,305 | 53,923
Deferred tax liability | 13 | 2,373,478 | 2,250,821 | - | -
Interest bearing borrowings | 22 | 3,281,464 | 3,806,006 | 8,188,742 | 8,725,315
Trade and other payables | 23 | 2,438,883 | 2,190,263 | 2,662,578 | 2,015,888
Accruals and deferred income | 23 | 1,132,043 | 1,548,027 | 1,081,378 | 1,328,846
Total liabilities |  | 136,341,136 | 125,401,225 | 12,119,965 | 12,332,116

Statement of financial position (continued)
As at 31 December
30
LifeStar Holding p.l.c. – Annual Financial Report 2024
Consolidated
Holding Company

| Notes | 2024 | 2023 | 2024 | 2023
|  |  | (Restated) |  |
|  | € | € | € | €
Capital and reserves |  |  |  |  |
Share capital | 20 | 7,017,842 | 7,017,842 | 7,017,842 | 7,017,842
Own shares |  | - | - | - | -
Other reserves | 21 | 1,022,909 | 1,022,909 | 19,747 | 19,747
Merger reserve |  | - | - | 5,651,631 | 5,651,631
Capital redemption reserve |  | 800,000 | 800,000 | - | -
Retained earnings |  | 939,466 | 1,375,551 | 630,196 | 2,234,720
Non-controlling interest |  | 6,296,676 | 6,458,591 | - | -
Total equity |  | 16,076,893 | 16,674,893 | 13,319,416 | 14,923,940
Total equity and liabilities |  | 152,418,029 | 142,076,118 | 25,439,381 | 27,256,056

The accompanying notes are an integral part of these financial statements.
The financial statements were approved and authorised for issue by the Board of Directors on 30 April 2025. The financial statements were signed on behalf of the Board of Directors by Prof. Paolo Catalfamo (Director) and Mr Joseph Schembri (Director) as per the Directors' Declaration on ESEF Annual Financial Report submitted in conjunction with the Annual Financial Report.
Statement of changes in equity
For the year ended 31 December
31
LifeStar Holding p.l.c. – Annual Financial Report 2024
Group
Share capital
Other reserves
Capital redemption reserve
Retained earnings
Attributable to the owners of the parent
Non-controlling interest
Total
€
€
€
€
€
€
€
Balance as at 1 January 2024
7,017,842
1,022,909
800,000
1,375,551
10,216,302
6,458,591
16,674,893
Loss for the year
-
-
-
(436,085)
(436,085)
(161,915)
(598,000)
Total comprehensive loss for the year
-
-
-
(436,085)
(436,085)
(161,915)
(598,000)
Balance as at 31 December 2024
7,017,842
1,022,909
800,000
939,466
9,780,217
6,296,676
16,076,893
Statement of changes in equity (continued)
For the year ended 31 December
32
LifeStar Holding p.l.c. – Annual Financial Report 2024
Group (continued)

| Share capital | Other reserves | Capital redemption reserve | Retained earnings | Attributable to the owners of the parent | Non-controlling interest | Total
| € | € | € | € | € | € | €
Balance as at 1 January 2023 | 7,017,842 | 978,617 | 800,000 | 1,614,183 | 10,410,642 | 6,402,039 | 16,812,681
Profit for the year (restated) | - | - | - | (238,632) | (238,632) | 56,552 | (182,080)
Other comprehensive gain for the year | - | 44,292 | - | - | 44,292 | - | 44,292
Total comprehensive gain/(loss) for the year (restated) | - | 44,292 | - | (238,632) | (194,340) | 56,552 | (137,789)
Balance as at 31 December 2023 (restated) | 7,017,842 | 1,022,909 | 800,000 | 1,375,551 | 10,216,302 | 6,458,591 | 16,674,893

Statement of changes in equity (continued)
For the year ended 31 December
33
LifeStar Holding p.l.c. – Annual Financial Report 2024
Holding Company

| Share capital | Other reserves | Merger reserve | Retained earnings | Total
| € | € | € | € | €
Balance as at 1 January 2024 | 7,017,842 | 19,747 | 5,651,631 | 2,234,720 | 14,923,940
Loss for the year | - | - | - | (1,604,524) | (1,604,524)
Total comprehensive loss for the year | - | - | - | (1,604,524) | (1,604,524)
Balance as at 31 December 2024 | 7,017,842 | 19,747 | 5,651,631 | 630,196 | 13,319,416

Statement of changes in equity (continued)
For the year ended 31 December
34
LifeStar Holding p.l.c. – Annual Financial Report 2024
Holding Company (continued)

| Share capital | Other reserves | Merger reserve | Retained earnings | Total
| € | € | € | € | €
Restated balance as at 1 January 2023 | 7,017,842 | 19,747 | 5,651,631 | 2,745,593 | 15,434,813
Loss for the year | - | - | - | (510,873) | (510,873)
Total comprehensive loss for the year | - | - | - | (510,873) | (510,873)
Dividend declared | - | - | - | - | -
Capital redemption reserve | - | - | - | - | -
Balance as at 31 December 2023 | 7,017,842 | 19,747 | 5,651,631 | 2,234,720 | 14,923,940

The accounting policies and explanatory notes form an integral part of these financial statements.
Statement of cash flows
For the year ended 31 December
35
LifeStar Holding p.l.c. – Annual Financial Report 2024

|  | Consolidated | Holding Company
| Notes | 2024 | 2023 | 2024 | 2023
|  | € | € | € | €
Cash flows generated from operations | 23 | 10,210,479 | 7,500,807 | 456,217 | 648,824
Dividends received |  | - | 589,706 | - | -
Interest received |  | 1,449,735 | 1,127,802 | - | -
Interest paid |  | - | - | - | -
Tax (paid)/refund |  | (557,217) | 326,213 | - | 522
Net cash flows generated from operating activities |  | 11,102,997 | 9,544,528 | 456,217 | 649,346

Statement of cash flows (continued)
For the year ended 31 December
36
LifeStar Holding p.l.c. – Annual Financial Report 2024

|  | Consolidated |  | Holding Company
| Notes | 2024 | 2023 | 2024 | 2023
|  | € | € | € | €
Cash flows (used in) investing activities |  |  |  |  |
Purchase of intangible assets | 12 | (1,485,159) | (1,158,328) | - | -
Purchase of property, plant and equipment | 14 | (176,932) | (62,355) | - | -
Purchase of investment property | 15 | (8,035) | - | - | -
Purchase of investments at fair value through profit or loss | 17 | (14,448,876) | (18,033,405) | - | -
Purchase of investments at available-for-sale | 17 | - | - | - | -
Proceeds on disposal of assets held for sale |  | - | - | - | -
Purchase of investments in equity measured at cost | 17 | - | - | - | -
Proceeds on disposal of investments at fair value through profit or loss | 17 | 2,711,510 | 8,197,009 | - | -
Proceeds on disposal of available-for-sale financial assets | 17 | - | - | - | -
Other investments | 17 | (61,538) | (252,717) | - | -
Net proceeds from other investments - loans and receivables |  | - | (63,013) | - | (24,340)
Addition of term deposits |  | (400,000) | - | - | -
Proceeds from disposal of term deposits | 17 | 100,000 | 1,500,000 | - | -
Net cash flows used in investing activities |  | (13,769,030) | (9,872,809) | - | (24,340)

Statement of cash flows (continued)
For the year ended 31 December
37
LifeStar Holding p.l.c. – Annual Financial Report 2024

|  | Consolidated |  | Holding Company
| Notes | 2024 | 2023 | 2024 | 2023
|  | € | € | € | €
Cash flows (used in) from financing activities |  |  |  |  |
Payment of lease liability |  | (123,776) | (121,688) | (116,000) | (116,128)
Payment of bond issue costs |  | (97,252) | (97,252) | - | -
Net payments of interest-bearing borrowings |  | (567,182) | (446,754) | (520,622) | (538,680)
Net cash flows (used in) financing activities |  | (788,210) | (665,694) | (636,622) | (654,808)
Net movement in cash and cash equivalents |  | (3,454,243) | (993,975) | (180,405) | (29,802)
Cash and cash equivalents as at the beginning of the year |  | 5,650,437 | 6,645,132 | 424,810 | 454,612
Cash and cash equivalents as at the end of the year | 24 | 2,196,194 | 5,650,437 | 244,405 | 424,810

The accounting policies and explanatory notes form an integral part of the financial statements.
Material accounting policies
38
LifeStar Holding p.l.c. – Annual Financial Report 2024
The material accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, except for those adopted for the first time during 2024.
The consolidated financial statements have been prepared from the financial statements of the companies comprising the group as detailed in notes to the consolidated financial statements.
1.Basis of preparation
Lifestar Holding P.L.C was incorporated on 12 December 1995 to act as a Holding Company. The registered address and Principal Place of business of the Company is Lifestar, Testaferata Street, Ta Xbiex.
These financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU (EU IFRSs), and with the Companies Act (Cap. 386 of the Laws of Malta). The consolidated financial statements include the financial statements of LifeStar Holding p.l.c. and its subsidiary undertakings. They also comply with the requirements of the Insurance Business Act (Cap. 403 of the Laws of Malta), the Investment Services Act (Cap. 370 of the Laws of Malta), and the Insurance Distribution Act (Cap. 487 of the Laws of Malta) in consolidating the results of LifeStar Insurance plc, LifeStar Health Limited, and GlobalCapital Financial Management Limited where appropriate. The financial statements are prepared under the historical cost convention, as modified by the fair valuation of investment property, financial assets and financial liabilities at fair value through profit or loss and available for sale investments.
The preparation of financial statements in conformity with EU IFRS’s requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies of the company and the subsidiary (the Group). The areas involving a higher degree of judgement or complexity are disclosed in Note 1 to these financial statements.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
-Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
-Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
-Level 3 inputs are unobservable inputs for the asset or liability.
For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group determines when transfers are deemed to have occurred between Levels in the hierarchy at the end of each reporting period.
The preparation of financial statements in conformity with EU IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise their judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement and estimates or complexity are disclosed in Note 1 to these financial statements.
The consolidated statement of financial position are presented in increasing order of liquidity, with additional disclosures on the current or non-current nature of the assets and liabilities provided within the notes to the financial statements.
Material accounting policies (continued)
39
LifeStar Holding p.l.c. – Annual Financial Report 2024
1.Basis of preparation (continued)
These financial statements include a restatement of the comparative figures as at 31 December 2023 to retrospectively correct for a prior period error in accordance with IAS 8 Basis of Preparation of Financial Statements as disclosed in Note 32. No third statement of financial position as at 1 January 2023 has been presented, as the restatement had no impact on that date’s balances.
Appropriateness of going concern assumption in the preparation of the Group’s financial statements
As explained in the Directors’ report, the Group made a loss of €600k (2023: restated loss of €140k) for the year ended 31 December 2024 and, at balance sheet date, had net assets amounting to €16 million (2023: €16.7 million).
The volatility in the financial markets had a significant impact on the Group’s financial performance for the financial year ending 31 December 2024, and will continue to impact its performance going forward. Furthermore, an analysis was carried out on the credit rating of the main counterparties and no significant downgrades were noted since 31 December 2024. Such analysis was also extended to analyse the effect on the Solvency Capital Requirements (the “SCR”) of the Group by reference to stressed scenarios in the latest ORSA report prepared by the Group. Taking into consideration the current laws and regulations and the result from the stressed scenarios. However, the Group continues to explore any and all ways possible to strengthen its capital base.
Having concluded this assessment the Directors expect that the Group will be able to sustain its operations over the next twelve months and in the foreseeable future and consider the going concern assumption in the preparation of the Group’s financial statements as appropriate as at the date of authorisation for issue of these financial statements.
Appropriateness of going concern assumption in the preparation of the Company’s financial statements
As explained in the Directors’ report, the company made a total comprehensive loss of €1.6 million (2023: profit of €0.6 million) for the year ended 31 December 2024 and, at balance sheet date, had net assets amounting to €13.3 million (2023: €15 million).
When assessing the going concern assumption for the Company, the Directors have made reference to the Group’s performance and noted that the loss resulted from movements in fair value of some of its subsidiaries.
The directors have submitted a plan to the regulator which shows that the company’s balances due to related companies will be settled from the sale of certain assets and the receipt of dividends from subsidiaries. This plan is reviewed periodically by the directors.
Having concluded this assessment the Directors expect that the Group and the Company will be able to sustain its operations over the next twelve months and in the foreseeable future and consider the going concern assumption in the preparation of the financial statements as appropriate as at the date of authorisation for issue of these financial statements.
Material accounting policies (continued)
40
LifeStar Holding p.l.c. – Annual Financial Report 2024
1.Basis of preparation (continued)
Standards, interpretations and amendments to published standards as endorsed by the EU that are effective in the current year.
In the current year, the Group and the Company applied a number of amendments to IFRS Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that are mandatorily effective in the EU for an accounting period that begins on or after 1 January 2024. Their adoption does not have any material impact on the disclosures or on the amounts reported in these financial statements.
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures titled Supplier Finance Arrangements
The Group has adopted the amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures titled Supplier Finance Arrangements for the first time in the current year.
The amendments add a disclosure objective to IAS 7 stating that an entity is required to disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows. In addition, IFRS 7 is amended to add supplier finance arrangements as an example within the requirements to disclose information about an entity’s exposure to concentration of liquidity risk.
The group does not have any arrangements which fall within the scope of the amendments.
Amendments to IAS 1 Classification of Liabilities as Current or Non-current
The Group has adopted the amendments to IAS 1, published in January 2020, for the first time in the current year. The amendments affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items.
The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The adoption of these amendments has not had any material impact on the disclosures or on the amounts reported in these financial statements.
Amendments to IAS 1 Presentation of Financial Statements—Non-current Liabilities with Covenants
The Group has adopted the amendments to IAS 1, published in November 2022, for the first time in the current year. The amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date (and therefore must be considered in assessing the classification of the liability as current or non-current). Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant is assessed only after the reporting date (e.g. a covenant based on the entity’s financial position at the reporting date that is assessed for compliance only after the reporting date).
Material accounting policies (continued)
41
LifeStar Holding p.l.c. – Annual Financial Report 2024
1.Basis of preparation (continued)
Standards, interpretations and amendments to published standards as endorsed by the EU that are effective in the current year (continued)
Amendments to IAS 1 Presentation of Financial Statements—Non-current Liabilities with Covenants (continued)
The IASB also specifies that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after the reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within twelve months after the reporting period. The adoption of these amendments has not had any material impact on the disclosures or on the amounts reported in these financial statements.
Amendments to IFRS 16 Leases — Lease Liability in a Sale and Leaseback
The Group has adopted the amendments to IFRS 16 for the first time in the current year. The amendments to IFRS 16 add subsequent measurement requirements for sale and leaseback transactions that satisfy the requirements in IFRS 15 Revenue from Contracts with Customers to be accounted for as a sale. The amendments require the seller-lessee to determine ‘lease payments’ or ‘revised lease payments’ such that the seller-lessee does not recognise a gain or loss that relates to the right of use retained by the seller-lessee, after the commencement date.
The adoption of these amendments has not had any material impact on the disclosures or on the amounts reported in these financial statements.
Standards, amendments and Interpretations to existing Standards that are not yet effective and have not been adopted early by the Group and Company.
At the date of authorisation of these financial statements, several new, but not yet effective, Standards and amendments to existing Standards, and Interpretations have been published by the IASB. None of these Standards or amendments to existing Standards have been adopted early by the Group and Company.
2.Insurance contracts
For presentation in the statement of financial position, the Group aggregates portfolios of insurance contracts issued (including investment contracts with discretionary participation features), and reinsurance contracts held and presents separately:
•Portfolios of insurance contracts issued that are assets;
•Portfolios of reinsurance contracts held that are assets;
•Portfolios of insurance contracts issued that are liabilities;
•Portfolios of reinsurance contracts held that are liabilities.
The portfolios referred to above are those established at initial recognition in accordance with the IFRS 17 Insurance Contracts requirements, which has been initially applied from 1 January 2023.
Material accounting policies (continued)
42
LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Insurance contracts (continued)
The line item descriptions on the statement of profit or loss and other comprehensive income are aligned with the requirements of IFRS 17, leading to the separate presentation of:
•Insurance revenue.
•Insurance service expense.
•Allocation of reinsurance premiums.
•Amounts recoverable from reinsurers for incurred claims.
•Insurance finance income or expenses.
•Reinsurance finance income or expenses.
The Group provides disaggregated qualitative and quantitative information in the notes to the financial statements about:
•Amounts recognised in its financial statements from insurance contracts.
•Significant judgements, and changes in those judgements, when applying the standard.
2.1 Insurance contracts – Product lines
The Group presents disaggregated information about insurance contracts issued by major product line. The following table summarises the characteristics of the Group’s insurance contracts that are measured under IFRS 17 and the measurement methods.

IFRS 17 Product Line | Contracts issued | Measurement Method | Insurance finance income and expense
Participating | Direct participating insurance contracts and investment contracts with discretionary participation features where the Group shares the performance of underlying items with policyholders. Guaranteed returns may also be offered. | Variable Fee Approach | Profit or loss
Savings | Investment-linked insurance policies which have a life insurance coverage and an investment account balance. These contracts also include individual and group pension plans which are based on life insurance unit-linked policies. | Variable Fee Approach | Profit or loss
Other life | Group life and non-participating individual life insurance contracts. Individual insurance contracts include Term, Endowment and Whole of Life insurance contracts. | Premium Allocation Approach General Measurement Model | Profit or loss
Sickness & Accident | Individual insurance contracts providing coverage for health and personal accidents. | General Measurement Model | Profit or loss

Material accounting policies (continued)
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2.Insurance contracts (continued)
2.2 Aggregation basis
In addition to issuing insurance contracts, the Group holds reinsurance contracts to mitigate certain risk exposures.
The following table summarises the characteristics of the Group’s reinsurance contracts held and the measurement methods.

IFRS 17 Product Line | Reinsurance contracts held (underlying risk covered) | Measurement Method | Insurance finance income and expense
Life | Life risk reinsurance contracts with underlying Unit Linked, Term, Endowment and Whole life insurance contracts. | General Measurement Model | Profit or loss
Reinsurance treaties with underlying group life insurance contracts. | Premium Allocation Approach | Profit or loss
Catastrophe cover reinsurance contract covering the aggregate risk of the underlying contracts arising from catastrophic events. | Premium Allocation Approach | Profit or loss

2.3 Definition and classification of insurance and reinsurance contracts
Insurance contracts are contracts under which the Group accepts significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder.
In making this assessment, all substantive rights and obligations, including those arising from law or regulation, are considered on a contract-by-contract basis at the contract issue date. The Group uses judgement to assess whether a contract transfers insurance risk (that is, if there is a scenario with commercial substance in which the Group has the possibility of a loss on a present value basis) and whether the accepted insurance risk is significant.
The Group determines whether it has significant insurance risk, by comparing benefits payable after an insured event with benefits payable if the insured event had not occurred.
The Group issues contracts under which it accepts significant insurance risk from its policyholders, which are classified as insurance contracts.
Some investment contracts contain discretionary participation features (“DPF”), whereby the investor has the right and is expected to receive, as a supplement to the amount not subject to the Group’s discretion, potentially significant additional benefits based on the return of specified pools of investment assets.
The Group issues investment contracts with DPF which are linked to the same pool of assets as insurance contracts and have economic characteristics similar to those of insurance contracts. The Company shall account for these contracts applying IFRS 17.
Contracts are classified as direct participating contracts or contracts without direct participation features.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.3 Definition and classification of insurance and reinsurance contracts (continued)
A Contract with direct participation features is defined as one which, at inception, meets the following criteria:
The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
•the Group expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and
•the Group expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.
These criteria are assessed at the individual contract level based on the Group’s expectations at the contract’s inception, and they are not reassessed in subsequent periods, unless the contract is modified. The variability in the cash flows is assessed over the expected duration of a contract. The duration of a contract takes into account all cash flows within the boundary.
The savings and pensions (unit linked) contracts as well as the profit sharing contracts held within the run-off portfolio of the Group will be classified as direct participating contracts.
Such contracts allow policyholders to participate in investment returns with the Group, in addition to compensation for losses from insured risk. These contracts are substantially investment service-related contracts where the return on the underlying items is shared with policyholders. Underlying items comprise specified portfolios of investment assets that determine amounts payable to policyholders.
In addition to issuing insurance contracts, the Group holds reinsurance contracts to mitigate certain risk exposures. A reinsurance contract is an insurance contract issued by a reinsurer to compensate the Group for claims arising from one or more insurance contracts issued by the Group. These are quota share and excess of loss reinsurance contracts. For reinsurance contracts held by the Group, even if they do not expose the issuer (the reinsurer) to the possibility of a significant loss they would still be deemed to transfer significant insurance risk if they transfer substantially all of the insurance risk relating to the reinsured portions of the underlying insurance contracts to the reinsurer.
2.4 Separating components from insurance contracts
At inception, the Group separates the following components from an insurance contract and accounts for them as if they were stand-alone financial instruments:
•derivatives embedded in the contract whose economic characteristics and risks are not closely related to those of the host contract, and whose terms would not meet the definition of an insurance contract as a stand-alone instrument; and
•distinct investment components i.e., investment components that are not highly inter-related with the insurance components and for which contracts with equivalent terms are sold, or could be sold, separately in the same market or the same jurisdiction.
The Group issues certain contracts which include a promise to transfer a good or non-insurance service. These transfers of a good or non-insurance service are not distinct and therefore are not separated from the contracts.
An investment component comprises of the amounts that an insurance contract requires the Group to repay to a policyholder in all circumstances, regardless of whether an insured event occurs. Investment components which are highly interrelated with the insurance contract of which they form a part are considered non-distinct and are not separately accounted for.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.4 Separating components from insurance contracts (continued)
The Group assesses its insurance contracts to determine whether they contain any derivatives or investment components or promises to transfer to policyholders’ distinct goods or services other than insurance coverage and investment services which must be accounted for under a different IFRS than IFRS 17. The Group applies, IFRS 17 to all remaining components of the host insurance contract.
After separating any embedded derivatives or distinct investment components, the Group separates any promises to transfer to policyholders’ distinct goods or services other than insurance coverage and investment services and accounts for them as separate contracts with customers (i.e. not as insurance contracts). A good or service is distinct if the policyholder can benefit from it either on its own or with other resources that are readily available to the policyholder. A good or service is not distinct and is accounted for together with the insurance component if the cash flows and risks associated with the good or service are highly inter-related with the cash flows and risks associated with the insurance component, and the Group provides a significant service of integrating the good or service with the insurance component.
The Group issues some contracts which include an embedded derivative (surrender option) and/or investment component (account balance) under which the surrender value is paid to the policyholder on maturity or earlier lapse of the contract. These components have been assessed to meet the definition of a highly related and/or non-distinct component. The surrender option is interrelated with the value of the insurance contract and as such, is not separated. Concerning the account balance, the Group is unable to measure the investment component separately from the contract and the policyholder is unable to benefit from the investment component unless the insurance component is also present and as such they are not separated.
Once the embedded derivatives and investment components and the goods and services components are separated, the Group assesses whether the contract should be separated into several insurance components that, in substance, should be treated as separate contracts.
To determine whether a single legal contract does not reflect the substance of the transaction and its insurance components recognised and measured separately instead, the Group considers whether there is an interdependency between the different risks covered, whether components can lapse independently of each other and whether the components can be priced and sold separately.
When the Group enters into one legal contract with different insurance components operating independently of each other, insurance components are recognised and measured separately applying IFRS 17.
Concerning the contracts with supplementary benefits (riders) the Group has determined that the legal contract reflects the substance of the transaction and as such the insurance components are not separated.
The reinsurance contracts held by the Group, despite the fact that they may cover more than one types of risk exposures, reflect single contracts in substance and are treated as one single accounting contract for IFRS 17.
2.5 Aggregation level
The Group identifies portfolios by aggregating insurance contracts that are subject to similar risks and managed together. The Group expects that all contracts within each product line, as defined for management purposes, have similar risks and, therefore, would represent a portfolio of contracts when they are managed together. Reinsurance contracts held have been grouped into portfolios taking into consideration the nature of the risk and the type of reinsurance cover.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.5 Aggregation level (continued)
Each portfolio is sub-divided into groups of contracts to which the recognition and measurement requirements of IFRS 17 are applied. At initial recognition, the Group segregates contracts based on when they were issued. A portfolio contains all contracts that were issued within a 12-month period.
Each annual cohort is then further disaggregated into three groups of contracts:
•any contracts that are onerous on initial recognition;
•any contracts that, on initial recognition, have no significant possibility of becoming onerous subsequently; and
•any remaining contracts in the portfolio.
P ortfolios of reinsurance contracts held are assessed for aggregation separately from portfolios of insurance contracts issued. Applying the grouping requirements to reinsurance contracts held, the Group aggregates reinsurance contracts held into groups of:
•contracts for which there is a net gain at initial recognition, if any;
•contracts for which, at initial recognition, there is no significant possibility of a net gain arising subsequently; and
•remaining contracts in the portfolio, if any.
The Group makes an evaluation of whether a set of contracts can be treated together in making the profitability assessment based on reasonable and supportable information. In the absence of such information the Group assesses each contract individually.
If insurance contracts within a portfolio would fall into different groups only because law or regulation specifically constrains the Group’s practical ability to set a different price or level of benefits for policyholders with different characteristics, the Group may include those contracts in the same group.
The determination of whether a contract or a group of insurance contracts issued is onerous is based on the expectations as at the date of initial recognition, with fulfilment cash flow expectations determined on a probability-weighted basis. The Group determines the appropriate level at which reasonable and supportable information is available to assess whether the contracts are onerous at initial recognition and whether the contracts not onerous at initial recognition have a significant possibility of becoming onerous subsequently.
A similar assessment is done for reinsurance contracts held to determine the contracts for which there is a net gain at initial recognition or whether contracts for which there is not a net gain at initial recognition have a significant possibility of a net gain subsequently.
For contracts applying the Premium Allocation Approach (“PAA”) the Group assumes that contracts are not onerous (for reinsurance contracts there is not a net gain) on initial recognition unless there are facts and circumstances indicating otherwise. The Group assesses the likelihood of changes in applicable facts and circumstances to determine whether contracts not onerous (for reinsurance contracts there is not a net gain) at initial recognition belong to a group with no significant possibility of becoming onerous (for reinsurance contracts no significant possibility of a net gain) in the future.
The composition of groups established at initial recognition is not subsequently reassessed.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.6 Initial recognition
The Group recognises groups of insurance contracts that it issues from the earliest of the following:
•The beginning of the coverage period of the group of contracts;
•The date when the first payment from a policyholder in the group is due, or when the first payment is received if there is no due date;
•When the Group determines that a group of contracts becomes onerous.
Concerning onerous contracts such contracts expected on initial recognition to be loss-making are grouped together and such groups are measured and presented separately. Once contracts are allocated to a group, they are not re-allocated to another group, unless they are substantively modified.
The Group recognises a group of reinsurance contracts held:
•If the reinsurance contracts provide proportionate coverage, at the later of the beginning of the coverage period of the group, or the initial recognition of any underlying contract;
•In all other cases, from the beginning of the coverage period of the first contract in the group.
If the Group entered into the reinsurance contract held at or before the date when an onerous group of underlying contracts is recognised prior to the beginning of the coverage period of the group of reinsurance contracts held, the reinsurance contract held is recognised at the same time as the group of underlying insurance contracts is recognised.
The Group adds new contracts to the group when they meet the recognition criteria.
2.7 Contract boundaries
Insurance contracts
The Group includes in the measurement of a group of insurance contracts all the future cash flows within the boundary of each contract in the group.
Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Group can compel the policyholder to pay the premiums, or in which the Group has a substantive obligation to provide the policyholder with services.
Cash flows within the boundary of an insurance contract are those that relate directly to the fulfilment of the contract, including cash flows for which the Group has discretion over the amount or timing.
A substantive obligation to provide services ends when:
•The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks; or
•Both of the following criteria are satisfied:
-The Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio;
-The pricing of the premiums for coverage up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.7 Contract boundaries (continued)
Insurance contracts (continued)
In determining whether all the risks have been reflected either in the premium or in the level of benefits, the Group considers all risks that policyholders would transfer had it issued the contracts (or portfolio of contracts) at the reassessment date. Similarly, the Group concludes on its practical ability to set a price that fully reflects the risks in the contract or portfolio at a renewal date by considering all the risks that it would assess when underwriting equivalent contracts on the renewal date for the remaining service.
The assessment on the Group’s practical ability to reprice existing contracts takes into account all contractual, legal and regulatory restrictions. In doing so, the Group disregards restrictions that have no commercial substance. The Group also considers the impact of market competitiveness and commercial considerations on its practical ability to price new contracts and repricing existing contracts. Judgement is required to decide whether such commercial considerations are relevant in concluding as to whether the practical ability exists at the reporting date.
The Group issues contracts that include an option to add insurance coverage at a future date so that the Group is obligated to provide additional coverage if the policyholder exercises the option. The Group has no right to compel the policyholder to pay premiums and the option to add insurance coverage at a future date is an insurance component that is not measured separately from the insurance contract.
When the insurance option is not in substance a separate contract and the terms are guaranteed by the Group, the cash flows arising from the option are within the boundary of the contract. If the option is not a separate contract and the terms are not guaranteed by the Group, the cash flows arising from the option might be either within or outside the contract boundary, depending on whether the Group has the practical ability to set a price that fully reflects the reassessed risks of the whole contract. In case where the Group does not have the practical ability to reprice the whole contract when the policyholder exercises the option to add coverage, the expected cash flows arising from the additional premiums after the option exercise date would be within the original contract boundary.
In estimating expected future cash flows of the group of contracts the Group applies its judgement in assessing future policyholder behaviour surrounding the exercise of options available to them such as surrenders options, and other options falling within the contract boundary.
The Group assesses the contract boundary at initial recognition and at each subsequent reporting date to include the effect of changes in circumstances on the Group’s substantive rights and obligations.
Reinsurance contracts
For groups of reinsurance contracts held, cash flows are within the contract boundary if they arise from substantive rights and obligations of the cedant that exist during the reporting period in which the Group is compelled to pay amounts to the reinsurer or has a substantive right to receive insurance contract services from the reinsurer.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.7 Contract boundaries (continued)
Reinsurance contracts (continued)
A substantive right to receive services from the reinsurer ends when the reinsurer:
•has the practical ability to reassess the risks transfer to it and can set a price or level of benefits that fully reflects those reassessed risks; or
•has a substantive right to terminate the coverage.
The boundary of a reinsurance contract held includes cash flows resulting from the underlying contracts covered by the reinsurance contract. This includes cash flows from insurance contracts that are expected to be issued by the Group in the future if these contracts are expected to be issued within the boundary of the reinsurance contract held.
The Group holds proportional life reinsurance contracts which have an unlimited duration but which allow both the reinsurer and the Group to terminate the contract at three months’ notice for new business ceded. The Group includes within the contracts boundary only cash flows arising from such three months’ notice period because it does not have substantive rights or obligations beyond that point. Therefore, on initial recognition, the cash flows within the reinsurance contract boundary are determined to be those arising from underlying contracts that the Group expects to issue and cede under the reinsurance contract within the next three months. Subsequently, expected cash flows beyond the end of this initial notice period are considered cash flows of new reinsurance contracts and are recognised, separately from the initial contract, as they fall within the rolling three-month notice period. Other life reinsurance agreements have a cancellability clause for new business with three months’ notice but this being effective at the next annual renewal of the agreement and hence, in this case, on initial recognition the cash flows within the reinsurance contract boundary are determined to be those arising from underlying contracts that the Group expects to issue and cede under the reinsurance contract within the year. The Group treats all the above mentioned reinsurance contracts as a series of contracts that form an annual group and cover underlying business issued within a year.
The Group holds proportional group life reinsurance contracts that have a -short-term boundary and cover short-term underlying contracts issued within the term on a risk-attaching basis. All cash flows arising from claims incurred and expected to be incurred during the life of the underlying contracts are included in the measurement.
Finally, the Group’s non-proportional, excess of loss reinsurance contracts held, have an annual term and provide coverage for claims incurred during an accident year (i.e., loss occurring). Thus, all cash flows arising from claims incurred and expected to be incurred in the accident year are included in the measurement of the reinsurance contracts held.
2.8 Insurance acquisition cashflows
Insurance acquisition cash flows arise from the costs of selling, underwriting and starting a group of insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs. Such cash flows include cash flows that are not directly attributable to individual contracts or groups of insurance contracts within the portfolio. Costs which are not directly attributable are recognised in the profit and loss account immediately.
Insurance acquisition cash flows that are directly attributable to a group of insurance contracts are allocated to that group and to renewal groups of insurance contracts using a systematic and rational method and considering, in an unbiased way, all reasonable and supportable information that is available without undue cost or effort.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.8 Insurance acquisition cashflows (continued)
A systematic and rational method is also used to allocate insurance acquisition cash flows directly attributable to a portfolio but not to groups of contracts to such groups in the portfolio.
Insurance acquisition cash flows arising before the recognition of the related group of contracts are recognised as an asset. Insurance acquisition cash flows arise when they are paid or when a liability is required to be recognised under a standard other than IFRS 17. Such an asset is recognised for each group of contracts to which the insurance acquisition cash flows are allocated. The asset is derecognised, fully or partially, when the insurance acquisition cash flows are included in the measurement of the group of contracts.
At each reporting date, the Group revises the amounts allocated to groups to reflect any changes in assumptions that determine the inputs to the allocation method used. Amounts allocated to a group are not revised once all contracts have been added to the group.
The Group reverses any impairment losses in profit or loss and increases the carrying amount of the asset to the extent that the impairment conditions have improved.
2.9 Measurement of insurance contracts issued
The liability for remaining coverage (“LRC”) represents the Group’s obligation to investigate and pay valid claims under existing contracts for insured events that have not yet occurred (i.e., the obligation that relates to the unexpired portion of the coverage period), comprising (a) fulfilment cash flows relating to future service and (b) the contractual service margin yet to be earned.
The liability for incurred claims (“LIC”) includes the Group’s liability to pay valid claims for insured events that have already incurred, other incurred insurance expenses arising from past coverage service and it includes the Group’s liability to pay amounts the Group is obliged to pay the policyholder under the contract, including repayment of investment components, when a contract is derecognised. The current estimate of LIC comprises the fulfilment cash flows related to current and past service allocated to the group at the reporting date.
The carrying amount of a group of insurance contracts at each reporting date is the sum of the LRC and the LIC.
2.9.1 Measurement on initial recognition of contracts not measured under the PAA
Under the general measurement model (“GMM”) the Group measures a group of contracts on initial recognition as the sum of the expected fulfilment cash flows within the contract boundary and the contractual service margin representing the unearned profit in the contracts relating to services that will be provided under the contracts.
Fulfilment Cashflows (“FCF”)
FCF comprise unbiased and probability-weighted estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows, to the extent that the financial risks are not included in the estimates of the future cash flows, plus a risk adjustment for non-financial risk.
The Group’s objective in estimating future cash flows is to determine the expected value, or the probability weighted mean, of the full range of possible outcomes, considering all reasonable and supportable information available at the reporting date without undue cost or effort, that reflect the timing and uncertainty of those future cash flows.
The Group estimates future cash flows considering a range of scenarios which have commercial substance and give a good representation of possible outcomes. The cash flows from each scenario are probability-weighted and discounted using current assumptions.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.9 Measurement of insurance contracts issued (continued)
2.9.1 Measurement on initial recognition of contracts not measured under the PAA (continued)
Fulfilment Cashflows (“FCF”) (continued)
The Group estimates certain FCF at the portfolio level or higher and then allocates such estimates to groups of contracts.
When estimating future cash flows, the Group includes all cash flows that are within the contract boundary including:
•Premiums and related cash flows;
•Claims and benefits, including reported claims not yet paid, incurred claims not yet reported and expected future claims;
•Payments to policyholders resulting from embedded surrender value options;
•An allocation of insurance acquisition cash flows attributable to the portfolio to which the contract belongs;
•Claims handling costs;
•Policy administration and maintenance costs;
•An allocation of fixed and variable overheads directly attributable to fulfilling insurance contracts;
•Transaction-based taxes;
•Costs incurred for performing investment activities that enhance insurance coverage benefits for the policyholder;
•Costs incurred for providing investment-related service to policyholders.
The cash flow estimates include both market variables, which are consistent with observable market prices, and non-market variables, which are not contradictory with market information and based on internally and externally derived data.
The Group updates its estimates at the end of each reporting period using all newly available, as well as historic evidence and information about trends. The Group determines its current expectations of probabilities of future events occurring at the end of the reporting period. In developing new estimates, the Group considers the most recent experience and earlier experience, as well as other information.
Risk of the Group’s non-performance is not included in the measurement of groups of insurance contracts issued.
Risk Adjustment (“RA”)
The risk adjustment for non-financial risk for a group of insurance contracts, determined separately from the other estimates, is the compensation required for bearing uncertainty about the amount and timing of the cash flows that arises from non-financial risk to fulfill insurance contracts.
The risk adjustment also reflects the degree of diversification benefit the Group includes when determining the compensation it requires for bearing that risk; and both favourable and unfavourable outcomes, in a way that reflects the Group’s degree of risk aversion.
The Group uses a Risk-based capital approach based on which the risk adjustment can be determined at the chosen level of confidence.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.9 Measurement of insurance contracts issued (continued)
2.9.1 Measurement on initial recognition of contracts not measured under the PAA (continued)
Time value of money and financial risks
The Group adjusts the estimates of future cash flows to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. The discount rates applied to the estimates of the future cash flows:
•reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance contracts;
•are consistent with observable current market prices (if any) for financial instruments with cash flows whose characteristics are consistent with those of the insurance contracts, in terms of, for example, timing, currency and liquidity; and
•exclude the effect of factors that influence such observable market prices but do not affect the future cash flows of the insurance contracts.
In determining discount rates for cash flows that do not vary based on the returns of underlying items, the Group uses the ‘bottom-up approach’ to estimate discount rates.
Contractual Service Margin (“CSM”)
The CSM is a component of the overall carrying amount of a group of insurance contracts representing unearned profit the Group will recognise as it provides insurance contract services over the coverage period.
On initial recognition of a group of insurance contracts, if the total of (a) the fulfilment cash flows, (b) any cash flows arising at that date and (c) any amount arising from the derecognition of any assets or liabilities previously recognised for cash flows related to the group (including assets for insurance acquisition cash flows) is a net inflow, the CSM is measured as the equal and opposite amount of the net inflow, which results in no gain no loss, arising on initial recognition.
If the total is a net outflow, then the group is onerous. In this case, the net outflow is recognised as a loss in profit or loss. A loss component is created to depict the amount of the net cash outflow, which determines the amounts that are subsequently presented in profit or loss as reversals of losses on onerous contracts and are excluded from insurance revenue. During the fiscal year, no contracts were assessed as onerous.
The Group determines, at initial recognition, the group’s coverage units and allocates the allocates the group’s CSM based on the coverage units provided in the period.
2.9.2 Subsequent measurement of contracts not measured under the PAA
Changes in fulfilment cash flows
At the end of each reporting period, the Group will update the fulfilment cash flows for both LIC and LRC to reflect the current estimates of the amounts, timing and uncertainty of future cash flows, as well as discount rates and other financial variables.
Experience adjustments would be the difference between:
•The expected cash flow estimate at the beginning of the period and the actual cash flows for premiums received in the period (and any related cash flows paid such as insurance acquisition cash flows); and
•The expected cash flow estimate at the beginning of the period and the actual incurred amounts of insurance service expenses in the period (excluding insurance acquisition expenses).
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.9 Measurement of insurance contracts issued (continued)
2.9.2 Subsequent measurement of contracts not measured under the PAA (continued)
Changes in fulfilment cash flows (continued)
Experience adjustments relating to current or past service will be recognised in profit or loss. For incurred claims (including incurred but not reported) and other incurred insurance service expenses, experience adjustments would always relate to current or past service. They would be included in profit or loss as part of insurance service expenses. Experience adjustments relating to future service will be included in the LRC by adjusting the CSM.
Adjustments to the CSM - Insurance contracts without direct participation features
For a group of insurance contracts, the carrying amount of the CSM of the group at the end of the reporting period equals the carrying amount at the beginning of the reporting period adjusted, as follows:
•The effect of any new contracts added to the group in the reporting period;
•Interest accreted on the carrying amount of the CSM during the reporting period, measured at the discount rates at initial recognition;
•The changes in fulfilment cash flows relating to future service, except to the extent that:
-Such increases in the fulfilment cash flows exceed the carrying amount of the CSM, giving rise to a loss; or
-Such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining coverage;
•The effect of any currency exchange differences on the CSM;
•The amount recognised as insurance revenue because of the transfer of services in the period, determined by the allocation of the CSM remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period.
The locked-in discount rate is the weighted average of the rates applicable at the date of initial recognition of contracts that joined a group over a 12-month period.
The changes in fulfilment cash flows relating to future service that adjust the CSM comprise of:
•Experience adjustments that arise from the difference between the premium receipts (and any related cash flows such as insurance acquisition cash flows) and the estimate, at the beginning of the period, of the amounts expected.
•Changes in estimates of the present value of future cash flows in the liability for remaining coverage, except those relating to the time value of money and changes in financial risk (recognised in the statement of profit or loss and other comprehensive income rather than adjusting the CSM).
•Differences between:
-any investment component expected to become payable in the year, determined as the payment expected at the start of the year plus any insurance finance income or expenses related to that expected payment before it becomes payable; and
-the actual amount that becomes payable in the year.
•Changes in the risk adjustment for non-financial risk that relate to future service.
Except for changes in the risk adjustment, adjustments to the CSM noted above are measured at discount rates that reflect the characteristics of the cash flows of the group of insurance contracts at initial recognition.
The CSM at the end of the reporting period represents the profit in the group of insurance contracts that has not yet been recognised in profit or loss, because it relates to future service.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.9 Measurement of insurance contracts issued (continued)
2.9.2 Subsequent measurement of contracts not measured under the PAA (continued)
Adjustments to the CSM - Insurance contracts without direct participation features (continued)
An amount of the CSM is released to profit or loss in each period during which the insurance contract services are provided.
In determining the amount of the CSM to be released in each period, the Group follows three steps:
•determines the total number of coverage units in the group. The amount of coverage units in the group is determined by considering for each contract the quantity of benefits provided under the contract and the expected coverage period;
•allocates the CSM at the end of the period (before any of it is released to profit or loss to reflect the insurance contract services provided in the period) equally to each of the coverage units provided in the current period and expected to be provided in the future;
•recognises in profit or loss the amount of CSM allocated to the coverage units provided during the period.
The number of coverage units changes as insurance contract services are provided, contracts expire, lapse or surrender and new contracts are added into the group. The total number of coverage units depends on the expected duration of the obligations that the Group has from its contracts, which can differ from the legal contract maturity because of the impact of policyholder behaviour and the uncertainty surrounding future insured events. In determining a number of coverage units, the Group exercises judgement in estimating the likelihood of insured events occurring and policyholder behaviours to the extent that they affect expected period of coverage in the group, the different levels of service offered across periods and the ‘quantity of benefits’ provided under a contract.
The Group does not issue insurance contracts generating cash flows in a foreign currency that is different from the functional currency of the Group.
Adjustments to the CSM - Insurance contracts with direct participation features
Direct participating contracts are contracts under which the Group’s obligation to the policyholder is the net of:
•the obligation to pay the policyholder an amount equal to the fair value of the underlying items; and
•a variable fee in exchange for future services provided by the contracts, being the amount of the Group’s share of the fair value of the underlying items less fulfilment cash flows that do not vary based on the returns on underlying items.
When measuring a group of direct participating contracts, the Group adjusts the fulfilment cash flows for the whole of the changes in the obligation to pay policyholders an amount equal to the fair value of the underlying items. These changes do not relate to future services and are recognised in profit or loss. The Group then adjusts any CSM for changes in the amount of the Group’s share of the fair value of the underlying items which relate to future services.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.9 Measurement of insurance contracts issued (continued)
2.9.2 Subsequent measurement of contracts not measured under the PAA (continued)
Adjustments to the CSM - Insurance contracts with direct participation features (continued)
Hence, the carrying amount of the CSM at each reporting date is the carrying amount at the start of the year, adjusted for:
•the CSM of any new contracts that are added to the group in the year;
•the change in the amount of the Group’s share of the fair value of the underlying items and changes in fulfilment cash flows that relate to future services, except to the extent that:
-a decrease in the amount of the Group’s share of the fair value of the underlying items, or an increase in the fulfilment cash flows that relate to future services, exceeds the carrying amount of the CSM, giving rise to a loss in profit or loss (included in insurance service expenses) and creating a loss component; or
-an increase in the amount of the Group’s share of the fair value of the underlying items, or a decrease in the fulfilment cash flows that relate to future services, is allocated to the loss component, reversing losses previously recognised in profit or loss (included in insurance service expenses);
•the effect of any currency exchange differences on the CSM; and
•the amount recognised as insurance revenue because of the services provided in the year.
Changes in fulfilment cash flows that relate to future services include the changes relating to future services specified above for contracts without direct participation features (measured at current discount rates) and changes in the effect of the time value of money and financial risks that do not arise from underlying items – e.g. the effect of financial guarantees.
Onerous Contracts
After the loss component is recognised, the Group allocates any subsequent changes in fulfilment cash flows of the LRC on a systematic basis between ‘loss component’ and ‘LRC excluding the loss component’.
The subsequent changes in the fulfilment cash flows of the LRC to be allocated are:
•insurance finance income or expense;
•changes in risk adjustment for non-financial risk recognised in profit or loss representing release from risk in the period; and
•estimates of the present value of future cash flows for claims and expenses released from the LRC because of incurred insurance service expense in the period.
The Group determines the systematic allocation of insurance service expenses incurred based on the percentage of loss component to the total outflows included in the LRC, excluding any investment component amount.
Any subsequent decreases relating to future service in fulfilment cash flows allocated to the group arising from changes in estimates of future cash flows and the risk adjustments for non-financial risk are allocated first only to the loss component, until it is exhausted. Once it is exhausted, any further decreases in fulfilment cash flows relating to future service create the Group’s CSM.
On initial recognition the Group applies the PAA:
•When the coverage period of each insurance contract in the group is one year or less;
•For groups of insurance contracts including contracts with a coverage period extending beyond one year the Group reasonably expects that such simplification would produce a measurement of the LRC for the group that would not differ materially from the one that would be produced applying the requirements of the general measurement model.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.9 Measurement of insurance contracts issued (continued)
2.9.2 Subsequent measurement of contracts not measured under the PAA (continued)
Measurement of contracts under the PAA
On initial recognition, the Group measures the LRC at the amount of premiums received in cash. As all the issued insurance contracts to which the PAA is applied have coverage of a year or less, the Group has elected the policy of expensing insurance acquisition cash flows as they are incurred.
On initial recognition of each group of contracts, the Group expects that the time between providing each part of the services and the related premium due date is no more than a year. Accordingly, the Group has chosen not to adjust the liability for remaining coverage to reflect the time value of money and the effect of financial risk.
There are no investment components within insurance contracts issued that are measured under the PAA.
The carrying amount of a group of insurance contracts issued at the end of each reporting period is the sum of (a) the LRC and (b) the LIC, comprising the FCF related to past service allocated to the group at the reporting date.
The carrying amount of the LRC for subsequent measurement purposes is increased by any premiums received and decreased by the amount recognised as insurance revenue for services provided.
The LIC is measured similarly to the LIC’s measurement under the GMM. The liability equals the amount of the fulfilment cash flows relating to incurred claims. For claims that the Group expects to be paid within one year or less from the date of incurring the Group does not adjust future cash flows for the time value of money and the effect of financial risk. However, claims expected to take more than one year to settle are discounted.
If facts and circumstances indicate that a group of insurance contracts measured under the PAA is onerous on initial recognition or becomes onerous subsequently, the Group increases the carrying amount of the LRC to the amount of the FCF determined under the GMM with the amount of such an increase recognised in insurance service expenses, and a loss component is established for the amount of the loss recognised. The fulfilment cash flows are discounted at current rates, as the liability for incurred claims is also discounted.
2.10 Measurement of reinsurance contracts held
The same accounting policies will be applied as for insurance contracts issued to measure a group of reinsurance contracts held, adapted where necessary to reflect features that differ from those of insurance contracts.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.10 Measurement of reinsurance contracts held (continued)
2.10.1 Measurement of the asset for remaining coverage (“ARC”)
Reinsurance contracts measured under the general model
The measurement of reinsurance contracts held follows the same principles as those for insurance contracts issued, with the exception of the following:
•Measurement of the cash flows include an allowance on a probability-weighted basis for the effect of any non-performance by the reinsurers, including the effects of collateral and losses from disputes;
•The Group determines the risk adjustment for non-financial risk so that it represents the amount of risk being transferred to the reinsurer;
•The Group recognises both day 1 gains and day 1 losses at initial recognition in the statement of financial position as a CSM and releases this to profit or loss as the reinsurer renders services, except for any portion of a day 1 loss that relates to events before initial recognition as described below;
•Changes in the fulfilment cash flows are recognised in profit or loss if the related charges arising from the underlying ceded contracts have been recognised in profit or loss. Alternatively, changes in the fulfilment cash flows adjust the CSM.
The Group measures the estimates of the present value of future cash flows using assumptions that are consistent with those used to measure the estimates of the present value of future cash flows for the underlying insurance contracts.
On initial recognition, the CSM of a group of reinsurance contracts represents a net cost or net gain on purchasing reinsurance. It is measured as the equal and opposite amount of the total of (a) the fulfilment cash flows, (b) any amount arising from the derecognition of any assets or liabilities previously recognised for cash flows related to the group, (c) any cash flows arising at that date and (d) any income recognised in profit or loss because of onerous underlying contracts recognised at that date.
However, if any net cost on purchasing reinsurance coverage relates to insured events that occurred before the purchase of the group, then the Group recognises the cost immediately in profit or loss as an expense.
The carrying amount of the CSM at each reporting date is the carrying amount at the start of the year, adjusted for:
•the CSM of any new contracts that are added to the group in the year;
•interest accreted on the carrying amount of the CSM during the year, measured at the discount rates determined on initial recognition;
•income recognised in profit or loss in the year on initial recognition of onerous underlying contracts;
•reversals of a loss-recovery component to the extent that they are not changes in the fulfilment cash flows of the group of reinsurance contracts;
•changes in fulfilment cash flows that relate to future services, measured at the discount rates determined on initial recognition, unless they result from changes in fulfilment cash flows of onerous underlying contracts, in which case they are recognised in profit or loss and create or adjust a loss-recovery component;
•the effect of any currency exchange differences on the CSM; and
•the amount recognised in profit or loss because of the services received in the year.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.10 Measurement of reinsurance contracts held (continued)
2.10.1 Measurement of the asset for remaining coverage (“ARC”) (continued)
Reinsurance contracts measured under the general model (continued)
For a group of reinsurance contracts covering onerous underlying contracts, the Group establishes a loss-recovery component of the asset for remaining coverage, adjusts the CSM and as a result recognises income when it recognises a loss on initial recognition of onerous underlying contracts, if the reinsurance contract is entered into before or at the same time as the onerous underlying contracts are recognised. The adjustment to the CSM is determined by multiplying:
•the amount of the loss that relates to the underlying contracts; and
•the percentage of claims on the underlying contracts that the Group expects to recover from the reinsurance contracts.
The loss-recovery component is adjusted for changes in FCFs of the group of reinsurance contracts relating to future services that result from changes in FCFs of the onerous underlying contracts. If the reinsurance contract covers only some of the insurance contracts included in an onerous group of contracts, then the Group uses a systematic and rational method to determine the portion of losses recognised on the onerous group of contracts that relates to underlying contracts covered by the reinsurance contract.
The loss-recovery component determines the amounts that are subsequently presented in profit or loss as reversals of recoveries of losses from the reinsurance contracts and are excluded from the allocation of reinsurance premiums paid. It is adjusted to reflect changes in the loss component of the onerous group of underlying contracts, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the Group expects to recover from the reinsurance contracts.
Reinsurance contracts measured under the Premium Allocation Approach (“PAA”)
The Group applies the PAA to measure a group of reinsurance contracts using the same accounting policies to the insurance contracts, as adapted where necessary to reflect the features of reinsurance contracts.
The Group applies the PAA to reinsurance contracts that it holds, as follows:
•to groups of reinsurance contracts that it holds which at the inception of the group the effective coverage period of each contract in the group of reinsurance contracts held is one year or less;
•to groups of reinsurance contracts that it holds including contracts with a coverage period extending beyond one year when the Group reasonably expects that such simplification would produce a measurement of the asset for remaining coverage for the group that would not differ materially from the one that would be produced applying the requirements of the general measurement model.
Under the PAA, the initial measurement of the asset equals the reinsurance premium paid. The Group measures the amount relating to remaining service by allocating the amount of expected reinsurance premium payments over the coverage period of receiving services for the group. For all reinsurance contracts held the allocation is based on the passage of time.
On initial recognition of each group of reinsurance contracts held, the Group expects that the time between receiving each part of the services and the related reinsurance premium due date is no more than a year. Accordingly, the Group has chosen not to adjust the asset for remaining coverage to reflect the time value of money and the effect of financial risk.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.10 Measurement of reinsurance contracts held (continued)
2.10.1 Measurement of the asset for remaining coverage (“ARC”) (continued)
Reinsurance contracts measured under the Premium Allocation Approach (“PAA”) (continued)
Where the reinsurance contracts held cover a group of onerous underlying insurance contracts, the Group adjusts the carrying amount of the asset for remaining coverage and recognises a gain when, in the same period, it reports a loss on initial recognition of an onerous group of underlying insurance contracts or on additional loss from an already onerous group of underlying insurance contracts. The recognition of this gain results in the accounting for the loss recovery component of the asset for the remaining coverage of a group of reinsurance contracts held. The loss-recovery component is adjusted to reflect changes in the loss component of the onerous group of underlying contracts, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the Group expects to recover from the reinsurance contracts.
2.10.2 Measurement of the asset for incurred claims (“AIC”)
The Group uses consistent assumptions to measure the estimates of the present value of future cash flows for the group of reinsurance contracts held and the estimates of the present value of future cash flows for the group(s) of underlying insurance contracts. The Group includes in the estimates of the present value of the future cash flows for the group of reinsurance contracts held the effect of any risk of non-performance by the issuer of the reinsurance contract, including the effects of collateral and losses from disputes.
The risk adjustment for non-financial risk for reinsurance contracts held represents the amount of risk being transferred by the Group to the reinsurer.
2.11 Insurance contracts – Modification and derecognition
The Group derecognises insurance contracts when, and only when:
•The rights and obligations relating to the contract are extinguished (i.e., discharged, cancelled or expired); or
•The contract is modified such that the modification results in:
-the contract being outside the scope of IFRS 17;
-a different insurance contract due to separating components from the host contract;
-a substantially different contract boundary;
-the contract being included in a different group of contracts.
If any of the modification criteria described above are met, the Group derecognises the initial contract and recognises the modified contract as a new contract.
On derecognition of a contract from within a group of contracts:
•the fulfilment cash flows allocated to the group are adjusted to eliminate those that relate to the rights and obligations derecognised;
•the CSM of the group is adjusted for the change in the fulfilment cash flows, except where such changes are allocated to a loss component; and
•the number of coverage units for the expected remaining services is adjusted to reflect the coverage units derecognised from the group.
If a contract is derecognised because it is transferred to a third party, then the CSM is also adjusted for the premium charged by the third party, unless the group is onerous.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.11 Insurance contracts – Modification and derecognition (continued)
If a contract is derecognised because its terms are modified, then the CSM is also adjusted for the premium that would have been charged had the Group entered into a contract with the new contract’s terms at the date of modification, less any additional premium charged for the modification. The new contract recognised is measured assuming that, at the date of modification, the Group received the premium that it would have charged less any additional premium charged for the modification.
If the contract modification does not meet the above conditions the Group treats the effect of the modification as changes in the estimates of fulfilment cash flows.
For insurance contracts accounted for applying the PAA the Group adjusts insurance revenue prospectively from the time of the contract modification.
2.12 Investment contracts with discretionary participation features (DPF)
The Group recognises investment contracts with DPF at the date when the Group becomes a party to the contract. The investment contracts with DPF are aggregated in the same manner as insurance contracts. The Group identified portfolios of such investment contracts with DPF. Within that portfolio, the Group aggregated them based on three expected profitability levels (groups of onerous contracts, groups of contracts that have no significant possibility of becoming onerous subsequently, and groups that are neither onerous nor have no significant possibility of becoming onerous subsequently). Groups comprise of contracts issued not more than a year apart.
At initial recognition, similar to insurance contracts, the Group estimates the fulfilment cash flows based on the present value of expected future cash flows and a risk adjustment for non-financial risk. Any expected net inflows are accounted for as the initial CSM.
In estimating future cash flows, the Group considers the contract boundary which only includes cash flows if they result from a substantive obligation of the Group to deliver cash at a present or future date.
In estimating the risk adjustment for non-financial risk for investment contracts with DPF, the Group considers other non-financial risks, such as the risks arising from the contract holder behaviour, e.g. lapse risk and expense risk.
The Group discounts cash flows using discount rates that reflect the characteristics of the fulfilment cash flows, including the extent of their dependency on the fair value of the underlying items.
The Group allocates the CSM over the group’s whole duration period in a systematic way reflecting the transfer of investment services under a contract. The Group measures investment contracts with DPF at initial recognition as detailed in “Measurement on initial recognition of contracts not measured under the PAA” and at subsequent measurement in accordance to “Subsequent measurement of contracts not measured under PAA” “Adjustments to the CSM – Insurance contracts with direct participation features”.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.13 Presentation
The Group presents separately, in the statement of financial position, the carrying amount of portfolios of:
1.insurance contracts and investment contracts with DPF issued that are assets;
2.insurance contracts and investment contracts with DPF issued that are liabilities;
3.reinsurance contracts held that are assets;
4.reinsurance contracts held that are liabilities.
Any assets or liabilities for insurance acquisition cash flows recognised before the corresponding insurance contracts are included in the carrying amount of the related portfolio of contracts.
The Group disaggregates the total amount recognised in the statement of comprehensive income into an insurance service result, comprising insurance revenue and insurance service expense, and insurance finance income or expenses.
The Group does not disaggregate the change in risk adjustment for non-financial risk between a financial and non-financial portion and includes the entire change as part of the insurance service result.
The Group separately presents income or expenses from reinsurance contracts held from the expenses or income from insurance contracts and investments contracts with DPF issued.
2.13.1 Insurance Service Revenue
Contracts not measured under the PAA
The Group’s insurance revenue depicts the provision of coverage and other services arising from a group of insurance contracts and investment contracts with DPF at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. Insurance revenue from a group of insurance contracts and a group of investment contracts with DPF is therefore the relevant portion for the period of the total consideration for the contracts, (i.e., the amount of premiums paid to the Group adjusted for financing effect (the time value of money) and excluding any investment components).
The total consideration for a group of contracts covers amounts related to the provision of services and is comprised of:
•Insurance service expenses, excluding any amounts allocated to the loss component of the liability for remaining coverage;
•The risk adjustment for non-financial risk related to current service, excluding any amounts allocated to the loss component of the liability for remaining coverage;
•The CSM release measured based on coverage units provided.
In addition, the Group allocates a portion of premiums that relate to recovering insurance acquisition cash flows to each period in a systematic way based on the passage of time. The Group recognises the allocated amount, as insurance service revenue and an equal amount as insurance service expenses.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.13 Presentation (continued)
2.13.1 Insurance Service Revenue (continued)
Contracts not measured under the PAA (continued)
The amount of the CSM of a group of insurance contracts and a group of investment contracts with DPF that is recognised as insurance revenue in each year is determined by identifying the coverage units in the group, allocating the CSM remaining at the end of the year (before any allocation) equally to each coverage unit provided in the year and expected to be provided in future years, and recognising in profit or loss the amount of the CSM allocated to coverage units provided in the year. The number of coverage units is the quantity of services provided by the contracts in the group, determined by considering for each contract the quantity of benefits provided and its expected coverage period. The coverage units are reviewed and updated at each reporting date.
Services provided by insurance contracts include insurance coverage and, for all direct participating contracts, investment services for managing underlying items on behalf of policyholders. In addition, some contracts without direct participating features may also provide investment services for generating an investment return for the policyholder, if and only if:
•an investment component exists or the policyholder has a right to withdraw an amount (e.g. the policyholder’s right to receive a surrender value on cancellation of a contract);
•the investment component or withdrawal amount is expected to include an investment return; and
•the Group expects to perform investment activities to generate that investment return.
The expected coverage period reflects expectations of lapses and cancellations of contracts, as well as the likelihood of insured events occurring to the extent that they would affect the expected coverage period. The period of investment services ends no later than the date on which all amounts due to current policyholders relating to those services have been paid.
Contracts measured under the PAA
For contracts measured under the PAA, the insurance revenue for each period is the amount of expected premium receipts for providing services in the period. The Group recognises such insurance revenue based on the passage of time by allocating premium receipts including premium experience adjustments to each period of service.
2.13.2 Loss Component
The Group groups contracts that are onerous at initial recognition separately from contracts in the same portfolio that are not onerous at initial recognition. Groups that were not onerous at initial recognition can also subsequently become onerous if assumptions and experience changes. The Group has established a loss component of the liability for remaining coverage for any onerous group depicting the future losses recognised.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.13 Presentation (continued)
2.13.3 Insurance Service Expenses
Insurance service expenses arising from insurance contracts and investments contracts with DPF are recognised in profit or loss generally as they are incurred. They exclude repayments of investment components and comprise of:
•Incurred claims and other insurance service expenses: For some life risk contracts, incurred claims also include premiums waived on detection of critical illness;
•Amortisation of insurance acquisition cash flows: For contracts not measured under the PAA, this is equal to the amount of insurance revenue recognised in the year that relates to recovering insurance acquisition cash flows. For contracts measured under the PAA, the Group has elected to expense insurance acquisition cash flows as incurred;
•Losses on onerous contracts and reversals of such losses;
•Adjustments to the liabilities for incurred claims that do not arise from the effects of the time value of money, financial risk and changes therein.
2.13.4 Insurance finance income and expense
Insurance finance income or expenses comprise the change in the carrying amount of the group of insurance contracts and investment contracts with DPF arising from:
•The effect of the time value of money and changes in the time value of money;
•The effect of financial risk and changes in financial risk.
For contracts without direct participation features insurance finance income or expenses reflect interest accreted on the future cash flows and the CSM and the effect of changes in interest rates and other financial assumptions.
For contracts with direct participation features, insurance finance income or expenses comprise changes in the measurement of the groups of contracts caused by changes in the value of underlying items (excluding additions and withdrawals), interest accreted and the effect of changes in interest rated on future cash flows that do not vary with returns on underlying items.
For contracts measured under the PAA insurance finance or expenses reflect interest accreted on the future cash flows under the LIC and the effect of changes in interest rates and other financial assumptions.
The Group does not disaggregate changes in the risk adjustment for non-financial risk between insurance service result and insurance financial income or expenses.
The Group has an accounting policy choice to either present all of the period’s insurance finance income or expenses in profit or loss or to split the amount between profit or loss and other comprehensive income (OCI). The accounting policy choice is applied on a portfolio-by-portfolio basis. The Group will include all insurance finance income or expenses for the reporting period in profit or loss for all its portfolios.
2.13.5 Net income or expense from reinsurance contracts held
Net expenses from reinsurance contracts comprise an allocation of reinsurance premiums paid less amounts recovered from reinsurers.
The Group presents separately on the face of the statement of comprehensive income the amounts expected to be recovered from reinsurers, and an allocation of the reinsurance premiums paid.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.13 Presentation (continued)
2.13.5 Net income or expense from reinsurance contracts held (continued)
The Group treats reinsurance cash flows that are contingent on claims on the underlying contracts as part of the claims that are expected to be reimbursed under the reinsurance contract held. Ceding commissions that are not contingent on claims of the underlying contracts are presented as a deduction in the premiums to be paid to the reinsurer which is then allocated to profit or loss.
2.14 Transition applicable to the year ended 31 December 2023
Changes in accounting policies resulting from the adoption of IFRS 17 were applied using the full retrospective approach to the extent practicable, except as described below.
Contracts measured under the PAA
The Group applied the full retrospective approach on transition for all groups of insurance and reinsurance contracts containing contracts with short-term coverage period not extending beyond one year. For these short- term contracts it was concluded that reasonable and supportable information that is necessary to apply the full retrospective approach is available.
Applying the full retrospective approach, the Group has:
•identified, recognised and measured each group of insurance contracts as if IFRS 17 had always applied;
•identified, recognised and measured any assets for insurance acquisition cash flows as if IFRS 17 had always applied;
•derecognised previously reported balances that would not have existed if IFRS 17 had always been applied;
•and recognised any resulting net difference in equity.
Contracts not measured under the PAA
Changes in accounting policies resulting from the adoption of IFRS 17 for all groups of insurance contracts, investment contracts with DPF and reinsurance contracts containing contracts with long-term coverage period extending beyond one year are applied using the fair value transition approach. Obtaining reasonable and supportable information to apply the full retrospective approach, for these contracts, was impracticable without undue cost or effort. Under this method these groups of contracts on transition date, 1 January 2022, are measured at fair value, any existing balances that would not exist had IFRS 17 applied are derecognised and the resulting net difference is recognised in equity.
Under the fair value approach, the CSM (or the loss component) at 1 January 2022 was determined as the difference between the fair value of a group of contracts at that date and the fulfilment cash flows at that date. In determining fair value, the Group has applied the requirements of IFRS 13 Fair Value Measurement, except for the demand deposit floor requirement, as is prescribed by IFRS 17. Specifically, the fair value of the insurance contracts was measured as the sum of (a) the present value of the net cash flows expected to be generated by the contracts, determined using a discounted cash flow technique; and (b) an additional margin, determined using a cost of capital technique.
Material accounting policies (continued)
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2.Insurance contracts (continued)
2.14 Transition applicable to the year ended 31 December 2023 (continued)
Contracts not measured under the PAA (continued)
Differences in the Group's approach to measuring fair value from the IFRS 17 requirements for measuring fulfilment cash flows gave rise to a CSM at 1 January 2022. In particular, in measuring fair value the Group includes a margin comprising a risk premium to reflect what market participants demanded as compensation for the uncertainty inherent in the cash flows and a profit margin to reflect what market participants would require assuming the obligations to service the insurance contracts. In determining this margin, the Group has considered certain costs that are not directly attributable to fulfilling the contracts (e.g. general overheads) and certain risks that were not reflected in the fulfilment cash flows, among other factors that a market participant would consider.
When applying the fair value transition approach the Group aggregated contracts issued more than one year apart.
For the application of the fair value approach, the Group has not used the permitted modification to use reasonable and supportable information available at the transition date and instead used information available at the date of inception or initial recognition in order to determine whether any contracts are direct participating contracts. Despite this, the Group used the permitted modification to use reasonable and supportable information available at the transition date to identify groups of contracts.
The discount rate when applying the fair value approach was determined at the transition date.
3.Basis of consolidation
Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an investee when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The existence and effect of potential voting rights that are when those rights give the Group the current ability to direct the relevant activities are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition related costs are recognised in the profit and loss as incurred, except for costs to issue debt or equity securities.
Material accounting policies (continued)
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3.Basis of consolidation (continued)
Subsidiaries (continued)
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.
Inter-Group transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. A listing of the Group’s principal subsidiaries is set out in note 17.
4.Intangible assets
(a)Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised using the straight-line method over their estimated useful lives (between five and thirteen years). Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred.
(b)Goodwill
Goodwill arising in a business combination that is accounted for using the acquisition method is recognised as an asset at the date that control is acquired.
Goodwill is measured as the excess of (a) the aggregate of: (i) the consideration transferred; (ii) the amount of any non-controlling interests in the acquiree; and (iii) in a business combination achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree; and (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Any gain on a bargain purchase, after reassessment, is recognised immediately in profit or loss.
(c)Passporting assets
Separately acquired passporting assets are shown at historical cost, which represent their acquisition price. Passporting assets have an indefinite useful life because management assesses that there is no foreseeable limit to the period over which the domain assets are expected to generate net cash inflows for the group.
Material accounting policies (continued)
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5.Deferred income tax
Deferred income tax is provided using the balance sheet liability method for temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates or those that are substantively enacted by the end of the reporting period are used in the determination of deferred income tax.
Deferred income tax related to the fair value re-measurement of investments is allocated between the technical and non-technical account depending on whether the temporary differences are attributed to policyholders or shareholders respectively.
Deferred tax assets are recognised only to the extent that future taxable profit will be available such that realisation of the related tax benefit is probable.
6.Property, plant and equipment
Office furniture, fittings and equipment are initially recorded at cost, and are subsequently shown at cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount, or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
Property is initially recorded at cost and are subsequently measured at revalued amounts less accumulated depreciation and impairment losses, with the exception of land which is shown at cost. Land and Buildings are revalued at regular intervals. After revaluation date, property is recognised at revalued amount less accumulated depreciation and impairment losses.
A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus on equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss, the increase is recognised in profit and loss. A revaluation deficit is recognised in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognised in the revaluation surplus.
An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred to retained earnings.
Depreciation is calculated using the straight-line method to allocate the cost of the assets to their residual values over their estimated useful lives using the following depreciation rates:

| %
Buildings | 2-20
Office furniture, fittings and equipment | 20-25

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each report period. Gains and losses on disposals of plant and equipment are determined by comparing proceeds with the carrying amount, and are taken into account in determining operating profit. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.
Material accounting policies (continued)
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7.Investment property
Freehold and leasehold properties treated as investments principally comprise buildings that are held for long term rental yields or capital appreciation or both, and that are not occupied by the Group. Investment property is initially measured at cost including related transaction costs. Investment property is subsequently carried at fair value, representing open market value determined annually by external valuers or by virtue of a directors’ valuation. It is the Group’s policy to engage the services of an external expert valuer every two years at a minimum. Fair value is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset.
If this information is not available, the Group uses alternative valuation methods such as recent prices on less active markets or discounted cash flow projections. The fair value of investment property reflects, among other things, rental income from current leases and assumptions about rental income from future leases in the light of current market conditions.
Subsequent expenditure is charged to the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the profit and loss account during the financial period in which they are incurred.
Unrealised gains and losses arising from changes in fair value (net of deferred taxation) are initially recognised in profit or loss.
8.Investment in group undertakings
In the Group’s financial statements, shares in group undertakings are accounted for at fair value through profit and loss (FVTPL). The Group accounts for the investment at FVTPL and did not make the irrevocable election to account for it at fair value through other comprehensive income (FVOCI).
The dividend income from such investments is included in profit or loss in the accounting year in which the Group’s right to receive payment of any dividend is established.
9.Other financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognised at their fair value, except for trade receivables that do not have a significant financing component which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Financial assets and financial liabilities are off-set and the net amount presented in the statement of financial position when the Group has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or when the entity transfers the financial asset and the transfer qualifies for derecognition.
Financial liabilities are derecognised when they are extinguished. This occurs when the obligation specified in the contract is discharged, cancelled or expires.
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Material accounting policies (continued)
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9.Other financial instruments (continued)
Financial assets
All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
•The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows;
•The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest in the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI):
•The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets;
•The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).
Despite the foregoing, the Group may make the following irrevocable election / designation at initial recognition of a financial asset:
•The Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met; and
•The Group may irrevocably designate a debt investment that meets the amortised cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
The Group did not irrevocably elect to present subsequent changes in fair value of an equity investments not held for trading in other comprehensive income as permitted by IFRS 9. Furthermore, the Group did not irrevocably designate a debt investment that would have met the amortised cost or FVTOCI criteria, as measured at FVTPL to eliminate or significantly reduce an accounting mismatch.
Regular way purchases or sales of financial assets are recognised and derecognised on trade date.
An assessment of business models for managing financial assets is fundamental to the classification of a financial asset. The Group determines the business models at a level that reflects how groups of financial assets are managed together to achieve a particular business objective.
The Group’s business model does not depend on management’s intentions for an individual instrument, therefore the business model assessment is performed at a higher level of aggregation rather than on an instrument-by-instrument basis. The information considered includes: (a) the stated policies and objectives for the portfolio and the operation of those policies in practice; (b) how the performance of the portfolio is evaluated and reported to the Group’s management; (c) the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; (d) how managers of the business are compensated; and (e) the frequency, value and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.
Material accounting policies (continued)
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9.Other financial instruments (continued)
Financial assets (continued)
The Group classifies its financial assets into the following two categories: a) financial assets at fair value through profit or loss, and b) financial assets at amortised cost.
Financial assets at FVTPL
Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at FVTPL, specifically:
-investments in equity instruments are classified as at FVTPL. However, a Group may designate an equity investment that is neither held for trading nor a contingent consideration arising from a business combination as at FVTOCI on initial recognition;
-debt instruments that do not meet the amortised cost criteria or the FVTOCI criteria are classified as at FVTPL.
Financial assets measured at FVTPL are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses including foreign exchange gains and losses, recognised in profit or loss.
Where applicable, dividend income is recognised with other dividend income, if any, arising on other financial assets within the line item ‘Investment income’. Fair value gains and losses are recognised within the line items ‘Net investment income/(losses)’.
Debt instruments measured at amortised cost
The following financial assets are classified within this category – trade receivables, cash at bank, intergroup balances.
Appropriate allowances for expected credit losses (‘ECLs’) are recognised in profit or loss in accordance with the Group’s accounting policy on ECLs.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.
Interest Income using the effective interest method
Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised cost and is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. For financial instruments other than purchased or originated credit-impaired financial assets, the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding ECLs, through the expected life of the debt instrument, or where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition.
Changes in the carrying amount as a result of foreign exchange gains or losses, impairment gains or losses and interest income are recognised in profit or loss. On derecognition, any difference between the carrying amount and the consideration received is recognised in profit or loss and is presented separately in the line item ‘Gains and losses arising from the derecognition of financial assets measured at amortised cost’.
Interest income is recognised using the effective interest method and is presented separately in the statement of comprehensive income. Appropriate allowances for expected credit losses
Material accounting policies (continued)
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9.Other financial instruments (continued)
Financial assets (continued)
(‘ECLs’) are recognised in profit or loss in accordance with the Group’s accounting policy on ECLs. Trade receivables which do not have a significant financing component are initially measured at their transaction price and are subsequently state at their nominal value less any loss allowance for ECLs.
Expected Credit Losses (ECLs)
The Group recognises a loss allowance for ECLs on, debt instruments measured at amortised cost, intergroup receivables, trade receivables and cash at bank.
The amount of ECLs is updated at each reporting date to reflect changes in credit risk since the initial recognition.
For trade receivables that do not contain a significant financing component (or for which the IFRS 15 practical expedient for contracts that are one year or less is applied), the Group applies the simplified approach and recognises lifetime ECL.
Where a collective basis is applied (see the Accounting Policy entitled ‘Collective basis’ below), the ECLs on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience based on the past due status of the debtors, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date.
For all other financial instruments, the Group uses the general approach and recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL (‘12m ECL’). The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk of a default occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the reporting date or an actual default occurring.
Lifetime ECL represents the ECLs that will result from all possible default events over the expected life of a financial instrument. In contrast, 12m ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Group measures the loss allowance at an amount equal to 12m ECL at the current reporting date.
The Group recognises an impairment gain or loss in profit or loss for all financial assets with a corresponding adjustment to their carrying amount.
Material accounting policies (continued)
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9.Other financial instruments (continued)
Financial assets (continued)
Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort and, where applicable, the financial position of the counterparties.
The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.
Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors operate as obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s core operations.
Irrespective of the outcome of the above assessment, the Group presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information, that is available without undue cost or effort, that demonstrates otherwise.
The Group considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that receivables that meet either of the following criteria are generally not recoverable:
-when there is a breach of financial covenants by the counterparty; or
-information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group).
Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group and Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.
Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred.
Evidence that a financial asset is credit-impaired includes observable data about the following events:
(i)significant financial difficulty of the borrower;
(ii)a breach of contract, such as a default or past due event;
(iii)the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
(iv)it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
(v)the disappearance of an active market for that finncial asset because of financial difficulties.
Material accounting policies (continued)
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9.Other financial instruments (continued)
Financial assets (continued)
Write-off policy
The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery.
Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Recoveries made are recognised in profit or loss as impairment gains.
Measurement and recognition of ECLs
For financial assets, the credit loss is the difference between all contractual cash flows that are due to the Group and the Company in accordance with the contract and all the cash flows that the Group and the Company expects to receive, discounted at the original effective interest rate. ECLs represent the weighted average of credit losses with the respective risks of a default occurring as the weights.
The measurement of ECLs is a function of:
•the probability of default, which is an estimate of the likelihood of default over a given time horizon estimated at a point in time;
•the loss given default, which is an estimate of the loss arising on default, taking into consideration the cash flows expected from collateral and other credit enhancements that are part of the contractual terms and are not recognised separately;
•the exposure at default, which is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date that are permitted by the current contractual terms, including amortisation profiles and early repayment or overpayment.
The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information, where applicable. Where applicable, the financial position of the counterparties is also taken into consideration.
Where applicable, forward-looking information considered includes the future prospects of the industries in which the Group and Company’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group and Company’s core operations.
Collective basis
If evidence of a significant increase in credit risk at the individual instrument level is not yet available, the Group and Company performs the assessment of significant increases in credit risk on a collective basis by considering information on, for example, a group or sub-group of financial instruments.
Where the Group and Company does not have reasonable and supportable information that is available without undue cost or effort to measure lifetime ECL on an individual instrument basis, lifetime ECL is measured on a collective basis.
Material accounting policies (continued)
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9.Other financial instruments (continued)
Financial assets (continued)
Collective basis (continued)
In such instances, the financial instruments are grouped on the basis of shared credit risk characteristics, as follows:
•Nature of financial instruments;
•Past-due status;
•Nature, size and industry of debtors;
•Nature of collaterals for finance lease receivables;
•External credit ratings where available;
•Date of initial recognition;
•Remaining term to maturity;
•Geographical location of the borrower;
•The value of collateral relative to the financial asset if it has an impact on the probability of default occurring (for example, loan-to-value ratios).
The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics.
Financial liabilities and equity
Trade payables are classified with current liabilities and are stated at their amortised cost using the EIR method.
Ordinary shares issued by the Group are classified as equity instruments.
Financial assets and financial liabilities are recognised when the Group and the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognised at their fair value plus directly attributable transaction costs for all financial assets or financial liabilities not classified at fair value through profit or loss.
Financial assets and financial liabilities are off-set and the net amount presented in the statement of financial position when the Group and the Company have a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or when the entity transfers the financial asset and the transfer qualifies for derecognition.
Financial liabilities are derecognised when they are extinguished. This occurs when the obligation specified in the contract is discharged, cancelled or expires.
An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
(i)Trade receivables
Trade receivables are classified with current assets and are stated at their nominal value.
Material accounting policies (continued)
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10.Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.
11.Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits, together with short-term, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value. For the purposes of the consolidated statement of cash flows, cash and cash equivalents comprise cash in hand, deposits held at call with banks and time deposits maturing within three months (unless these are held specifically for investment purposes) and are net of the bank overdraft, which is included with liabilities.
12.Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method. Trade payables are stated at their nominal value unless the effect of discounting is material.
Borrowing costs are capitalised within property held for development in so far as they relate to the specific external financing of assets under development. Such borrowing costs are capitalised during the development phase of the project. Other borrowing costs are recognised as an expense in the year to which they relate.
13.Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
14.Dividend distribution
Dividend distribution to the Group’s Shareholders is recognised as a liability in the Group’s financial statements in the period in which the dividends are declared by the directors in the case of interim dividends or approved by the shareholders in case of final dividends.
15.Fiduciary activities
Client monies are held by the Group as a result of clients’ trades that have not yet been fulfilled. They are not included in the financial statements as these assets are held in a fiduciary capacity.
16.Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Material accounting policies (continued)
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17.Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.
Revenue also includes interest, dividend and rental income and is recognised as follows:
(a)Rendering of services
Premium recognition dealing with insurance contracts and investments contracts with DPF is described in accounting policy 2.12. Revenue arising from the issue of investment contracts without DPF is recognised in the accounting period in which the services are rendered.
Other turnover arising on rendering of services represents commission, consultancy and advisory fees receivable in respect of the Group’s activities in providing insurance agency, brokerage or investment services. Revenues are recognised in the financial statements in line with fulfilment of the performance obligations and the consideration is allocated to each performance obligation and recognised as revenue as the performance obligation is performed over the duration of the contract.
(b)Dividend income
Dividend income is recognised when the right to receive payment is established.
(c)Interest income
Interest income from financial assets not classified as fair value through profit or loss is recognised using the effective interest method.
(d)Rental income
Rental income from the leasing of immovable property is recognised on a straight-line basis over the lease term.
18.Foreign currencies
(a)Functional and presentation currency
Items included in the financial statements of the Group entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Euro, which is the Group’s functional and presentation currency.
(b)Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. Non-monetary assets and liabilities denominated in currencies other than the functional currency that are measured at fair value are re-translated using the exchange rate ruling on the date the fair value was measured. Non-monetary assets and liabilities denominated in currencies other than the functional currency that are measured in terms of historical cost are not re-translated. Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the period, except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is also recognised in other comprehensive income.
Material accounting policies (continued)
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19.Investment return
Investment return includes dividend income, net fair value movements on financial assets at fair value through profit or loss (including interest income from financial assets classified as fair value through profit or loss), interest income from financial assets not classified as fair value through profit or loss, rental receivable and net fair value movements on investment property and is net of investment expenses, charges and interest.
20.Leases
(i)Group as a lessor
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for a major part of the economic life of the asset.
The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other income’ – note 4.
(ii)Group as a lessee
A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.
Right-of-use asset
The Group recognises a right-of-use asset at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset of the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The Group presents right-of-use asset that do not meet the definition of investment property as ‘right-of-use assets’.
Lease liability
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
Material accounting policies (continued)
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20.Leases (continued)
(ii)Group as a lessee (continued)
Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate ("IBR") to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
Lease payments included in the measurement of the lease liability comprise the following:
-fixed payments (including payments which are essentially fixed), minus any incentive to lease to be paid;
-the price for exercising a purchase option which the lessee is reasonably certain to exercise; and
-payments for early cancellation.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in rate, if there is a change in the Group estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
Material accounting policies (continued)
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21.Taxation
Current tax is recognised in profit or loss, except when it relates to items recognised in other comprehensive income or directly in equity, in which case the current tax is also dealth with in other comprehensive income or in equity, as appropriate. Current tax is based on the taxable result for the period. The taxable result for the period differs from the result as reported in profit or loss because it excludes items which are non-assessable or disallowed and it further excludes items which are taxable or deductible in other periods. It is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is provided using the liability method for all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates are used in the determination of deferred income tax. Deferred tax assets are recognised only to the extent that future taxable profit will be available such that realisation of the related tax benefit is probable.
Notes to the financial statements
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1.Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimates and judgements are continually evaluated and based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.
Except for the areas specified hereunder, in the opinion of the Directors, the accounting estimates and judgements made in the course of preparing these financial statements are not difficult, subjective or complex to a degree which would warrant their description as critical in terms of the requirements of IAS 1 (revised).
(a)Insurance contracts
Definition and classification
The Group has applied judgment to determine whether contracts are within the scope of IFRS 17 and, for contracts determined to be within the scope of IFRS 17, what measurement model is applicable, as explained below.
•The Group issues certain contracts that do not transfer significant insurance risk and classifies such contracts as investment contracts with DPF. In assessing whether these are within the scope of IFRS 17, the Group assessed if the discretionary amount is a significant amount of the total benefits;
•Contracts determined to be within the scope of IFRS 17 are assessed on whether they meet the definition of an insurance contract with direct participation features (subject to IFRS 17 criteria). The savings (unit-linked), the non-linked contracts with profit sharing and the investment contracts with DPF issued by the Group are classified as direct participation contracts;
•For the proportional group life reinsurance contracts on a risk-attaching basis the Group elects to apply the PAA if at the inception of the group the Group reasonably expects that it will provide a liability/asset for remaining coverage that would not differ materially from the general model. The Group applies its judgement in determining whether the PAA eligibility criteria are met at initial recognition.
Insurance contracts unit of account
The Group is required to aggregate insurance contracts issued on initial recognition into groups of onerous contracts, groups of contracts with no significant possibility of becoming onerous, and groups of other contracts. Concerning the life long-term contracts, the Group has applied its judgment on initial recognition to distinguish between non-onerous contracts (those having no significant possibility of becoming onerous) and other contracts by assessing the likelihood of adverse changes in assumptions that might result in contracts becoming onerous.
For short-term group life contracts measured under the PAA, management judgement is required to assess whether facts and circumstances indicate that a group of contracts is onerous at initial recognition or has become onerous subsequently and whether any loss component measurement is required. In 2024 and 2023, the Group did not identify any facts or circumstances that might have indicated that a group of contracts measured under the PAA had become onerous.
Notes to the financial statements (continued)
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1.Critical accounting estimates and judgements (continued)
(a)Insurance contracts (continued)
Measurement of future cash flows
The measurement of a group of insurance contracts includes all the future cash flows arising within the contract boundary. In determining which cash flows fall within a contract boundary, the Group considers its substantive rights and obligations arising from the terms of the contract, and also from applicable law and regulation. Cash flows are considered to be outside of the contract boundary if the Group has the practical ability to reprice existing contracts to reflect their reassessed risks and if the contract’s pricing for coverage up to the date of reassessment considers only the risks till that next reassessment date.
The following assumptions were used when estimating future cash flows:
•Mortality and morbidity rates
Mortality and morbidity risks are inherent in most lines of business. The Group performs an investigation, at least on an annual basis, to ensure the validity of the mortality assumptions, and when deemed necessary the assumptions are adjusted accordingly. The assumptions are set based on the internal experience of the Group when there are sufficient volumes of data to support a credible investigation. When internal experience is not sufficient, the assumptions are set with reference to industry experience and commonly used mortality tables.
•Expenses
Assessment of directly attributable cash flows
The Group applies judgement in assessing whether cash flows are directly attributable to a specific portfolio of insurance contracts. Insurance acquisition cash flows are included in the measurement of a group of insurance contracts only if they are directly attributable to either the individual contracts in a group, or to the group itself, or the portfolio of insurance contracts to which the group belongs. The Group also considers as attributable cash flows fixed and variable overheads directly attributable to the fulfilment of insurance contracts.
Expense basis for cashflow projections
The Group performs a detailed expense investigation, at least on an annual basis, to determine the expense assumptions used in the cashflow projections. The expense basis is set in accordance with the budgeted attributable expenses and the projected volumes of business. The Group also determines an assumption for the future expense inflation.
•Lapse and surrender rates
Lapse and surrenders assumptions relate to the rate by which policyholders cancel/surrender their policies. The assumptions are set in line with recent Group experience, by adjusting for expected improvements/deteriorations where necessary. The rates vary by product and duration in force.
Discount rates
Life insurance contract liabilities are calculated by discounting expected future cash flows. The Group uses the bottom-up approach in determining the discount rates and hence uses a risk-free rate, plus an illiquidity premium. Risk free rates are determined by reference to the European Insurance and Occupational Pensions Authority (EIOPA) yields and the illiquidity premium is determined by the volatility adjustment as published by EIOPA.
Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
1.Critical accounting estimates and judgements (continued)
(a)Insurance contracts (continued)
Discount rates (continued)
The discount rates that were used to discount the estimates of future cash flows of the life insurance contracts issued and reinsurance contracts held are based on the EUR risk-free rate with volatility adjustment, as these are published by EIOPA. EIOPA annual spot rates are presented in the below table:

1 year | 3 years | 5 years | 10 years | 20 years
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024
3.557% | 2.466% | 2.639% | 2.323% | 2.523% | 2.372% | 2.593% | 2.497% | 2.606% | 2.489%

Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is determined to reflect the compensation that the Group requires for bearing non-financial risk and its degree of risk aversion. The risk adjustment is determined using a confidence level technique and specifically a Risk-based capital approach with its target confidence level set at 80 percent, over a one year period, which represents the Group’s degree of risk aversion.
CSM amortisation
The CSM of a group of contracts is recognised in profit or loss to reflect services provided in each year, by identifying the coverage units in the group, allocating the CSM remaining at the end of the year (before any allocation) equally to each coverage unit provided in the year and expected to be provided in future years, and recognising in profit or loss the amount of the CSM allocated to coverage units provided in the year. The number of coverage units is the quantity of services provided by the contracts in the Group, determined by considering for each contract the quantity of the benefits provided and its expected coverage period. The coverage units will be reviewed and updated at each reporting date. The Group determined the coverage units for its insurance contracts and investment contracts with DPF on the basis of their quantity of benefits (sum insured), including any investment components, and the respective expected durations of each contract.
For reinsurance contracts held, the CSM amortisation reflects the level of service received and depends on the number of underlying contracts in-force.
(b)Fair valuation of investment property
The determination of the fair value of investment property at the year-end requires the use of significant management estimates. Details of key assumptions are disclosed in note 15 to the financial statements.
(c)Valuation of Level 3 Investments
The valuation of Level 3 investments requires significant judgement and management estimates. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets in the future. Details of key judgements, estimates and assumptions relating to Level 3 investments are disclosed in Note 17 and 26 to the financial statements.
2.Management of insurance and financial risk
The Group issues contracts that transfer insurance risk or financial risk or both. This section summarises these risks and the way the Group manages them.
Insurance risk
The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore unpredictable.
Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Insurance risk (continued)
For a portfolio of insurance contracts where the theory of probability is applied to pricing and provisioning, the principal risk that the Group faces under its insurance contracts is that the actual claims and benefit payments exceed the carrying amount of the insurance liabilities. This could occur because the frequency or severity of claims and benefits are greater than estimated. Insurance events are random and the actual number and amount of claims and benefits will vary from year to year from the estimate established using statistical techniques.
Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected across the board by a change in any subset of the portfolio. The Group has developed its insurance underwriting strategy to diversify the type of insurance risk accepted and within each of these categories to achieve a sufficiently large population of risks to reduce the variability of the expected outcome.
Factors that aggravate insurance risk include lack of risk diversification in terms of type and amount of risk and geographical location.
(a)Frequency and severity of claims
For contracts where death is the insured risk, the most significant factors that could increase the overall frequency of claims are epidemics or widespread changes in lifestyle, resulting in earlier or more claims than expected.
At present, these risks do not vary significantly in relation to the location of the risk insured by the Group. However, undue concentration by amounts could have an impact on the severity of benefit payments on a portfolio basis.
For contracts with fixed and guaranteed benefits and fixed future premiums, there are no mitigating terms and conditions that reduce the insurance risk accepted. Investment contracts with DPF (“Discretionary participation feature”) carry negligible insurance risk.
The Group manages these risks through its underwriting strategy and reinsurance agreements. The underwriting strategy is intended to ensure that the risks underwritten are well diversified in terms of type of risk and the level of insured benefits. Medical selection is also included in the Group’s underwriting procedures with premiums varied to reflect the health condition and lifestyle of the applicants.
The Group has retention limits on any single life assured for term business or risk premium business. The Group reinsures the excess of the insured benefits over approved retention limits under a treaty reinsurance arrangement. Short term insurance contracts are also protected through a combination of selective quota share and surplus reinsurance. Further, the Group has a “CAT XL” reinsurance arrangement to cover its exposure in the case of an event affecting more than three lives.
In general, all large sums assured are facultatively reinsured on terms that substantially limit the Group’s maximum net exposure. The Directors consider that all other business is adequately protected through treaty reinsurance with a reasonable spread of benefits payable according to the age of the insured, and the size of the sum assured. The Group is largely exposed to insurance risk in one geographical area, Malta. Single event exposure is capped through the “CAT XL” reinsurance arrangement as referred above.
(b)Lapse and surrender rates
Lapses relate to the termination of policies due to non–payment of premiums. Surrenders relate to the voluntary termination of policies by policyholders. Policy termination assumptions are determined using statistical measures based on the Group’s experience and vary by product type, policy duration and sales trends.
Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Insurance risk (continued)
(b)Lapse and surrender rates (continued)
An increase in lapse rates early in the life of the policy would tend to reduce profits for shareholders, but later increases are broadly neutral in effect.
(c)Policy maintenance expenses
Operating expenses assumptions reflect the projected costs of maintaining and servicing in–force policies and associated overhead expenses. The current level of expenses is taken as an appropriate expense base, adjusted for expected expense inflation if appropriate.
An increase in the level of expenses would result in an increase in expenditure, thereby reducing profits for the shareholders.
(d)Discount rates and investment return
Life insurance liabilities are determined as the sum of the discounted value of the expected benefits and future administration expenses directly related to the contract, less the discounted value of the expected theoretical premiums that would be required to meet these future cash outflows. Discount rates are based on current industry risk rates, as these are published by EIOPA.
Consistent rates are used also as investment return assumptions to ensure a risk neutral valuation basis.
A change in interest rates will impact the value of the insurance liability and therefore affect the profits for the shareholders.
(e)Sources of uncertainty in the estimation of future benefit payments and premium receipts
Uncertainty in the estimation of future benefit payments and premium receipts for long term insurance contracts arises from the unpredictability of long-term changes in overall levels of mortality and the variability in contract holder behaviour. The Group uses appropriate base tables of standard mortality according to the type of contract being written.
Sensitivity analysis
Life business
The table below analyses how the CSM, profit or loss and equity would have increased (decreased) if changes in underwriting risk variables that were reasonably possible at the reporting date had occurred. This analysis presents the sensitivities both gross and net of reinsurance held and is based on a change in one risk variable with all other variables held constant. Sensitivity analysis assumes that changes to variables can be made independently, which is very unlikely to occur in practice.
Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Insurance risk (continued)
(e)Sources of uncertainty in the estimation of future benefit payments and premium receipts (continued)
Sensitivity analysis (continued)
Life business (continued)

Key assumption | Change in assumption | Impact on CSM€ | Impact on profit€ | Impact on equity€
Year ended 2024 |  |  |  |
Insurance contract liabilities |  |  |  |
Mortality rates | +10% | (1,948,180) | (300,264) | (195,172)
Mortality rates | -10% | 2,144,009 | 117,959 | 76,673
Expenses | +10% | (1,249,963) | (174,756) | (113,591)
Expenses | -10% | 1,363,472 | 61,247 | 39,811
Lapse rates | +10% | (851,944) | (146,886) | (95,476)
Lapse rates | -10% | 1,062,765 | 76,219 | 49,542
Reinsurance contract assets |  |  |  |
Mortality rates | +10% | 1,449,424 | 168,762 | 109,695
Mortality rates | -10% | (1,456,175) | (169,544) | (110,204)
Lapse rates | +10% | (331,187) | (35,161) | (22,854)
Lapse rates | -10% | 393,408 | 41,699 | 27,104

Key assumption | Change in assumption | Impact on CSM€ | Impact on profit€ | Impact on equity€
Year ended 2023 |  |  |  |
Insurance contract liabilities |  |  |  |
Mortality rates | +10% | (1,855,572) | (207,564) | (134,917)
Mortality rates | -10% | 2,018,567 | 57,019 | 37,062
Expenses | +10% | (925,504) | (353,064) | (229,492)
Expenses | -10% | 1,252,679 | 25,889 | 16,828
Lapse rates | +10% | (688,726) | (76,775) | (49,904)
Lapse rates | -10% | 862,726 | 19,965 | 12,977
Reinsurance contract assets |  |  |  |
Mortality rates | +10% | 1,429,444 | 74,856 | 48,656
Mortality rates | -10% | (1,436,332) | (75,136) | (48,838)
Lapse rates | +10% | (305,859) | (13,647) | (8,871)
Lapse rates | -10% | 363,722 | 15,796 | 10,268

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Financial risk
The Group is exposed to financial risk through its financial assets and liabilities, reinsurance assets, and insurance liabilities. In particular, the key financial risk is that the proceeds from its financial assets are not sufficient to fund the obligations arising from its insurance and investment contracts with DPF. The most important components of financial risk are market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
These risks partly arise from open positions in interest rate, currency, debt and equity products, all of which are exposed to general and specific market movements. The Group manages these positions through adherence to an investment policy. The policy adopted is modelled to take into account actuarial recommendations and is developed to achieve long term investment returns in excess of its obligations under insurance and investment contracts with DPF. The principal technique underlying the Group’s framework is to broadly match assets to the liabilities arising from insurance and investment contracts with DPF by reference to the type of benefits payable to contract holders, and the recommended portfolio mix as advised by the approved actuary.
The Group’s investment policy is formally approved by the Board of Directors. Portfolio review processes and investment decisions are generally delegated to a dedicated Sub-Investment Committee or the Chief Executive Officer. Transactions in excess of pre-established parameters are subject to Board approval. The procedures consider, inter alia, a recommended portfolio structure, authorisation parameters, asset and counterparty limits and currency restrictions. Management reports to the Investment Committee on a regular basis. The Committee meets regularly to consider, inter alia, investment prospects, liquidity, the performance of the portfolio and the overall framework of the Group’s investment strategy. Solvency considerations as regulated by the relevant Authority are also taken into account as appropriate.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument, insurance contract issued or reinsurance contract held will fluctuate because of changes in market prices.
Market risk comprises three types of risk:
(a)Foreign exchange rates currency risk;
(b)Market interest rates risk; and
(c)Market prices risk.
(a)Foreign exchange rates currency risk
The Group’s exposure to foreign exchange risk arises primarily from investments that are denominated in currencies other than the Euro. As at 31 December 2024, the Group’s exposure to foreign currency investments (principally comprising a mix of US Dollar and UK pound) represented 5.7% (2023: 4.4%) of the Group’s total investments excluding the term deposits.
An amount equivalent to 0.9% (2023: 7.6%) of the Group’s cash and cash equivalents and term deposits, at 31 December 2024, are denominated in foreign currency (principally comprising a mix of US Dollar and UK pound). The Group’s corresponding proportion of cash and cash equivalents and term deposits which are denominated in foreign currency is 0.6% (2023: 5.4%).
The risk arising from foreign currency transactions is managed by regular monitoring of the relevant exchange rates and management’s reaction to material movements thereto.
Notes to the financial statements (continued)
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2.Management of insurance and financial risk (continued)
Market risk (continued)
(a)Foreign exchange rates currency risk (continued)
For financial instruments held or issued, a sensitivity analysis technique that measures the change in the fair value and the cash flows of the Group’s financial instruments at the reporting date for hypothetical changes in exchange rates has been used. The amounts generated from the sensitivity analysis are forward-looking estimates of market risk assuming certain market conditions. Actual results in the future may differ materially from those projected results due to the inherent uncertainty of global financial markets. The sensitivity analysis is for illustrative purposes only, as in practice market rates rarely change in isolation and are likely to be interdependent.
Should exchange rates at the end of the reporting period differ by +/-10% (2023: +/-10%), with all other variables held constant, the impact on the Group’s and the Group’s pre-tax profit would be +/- €620,916 (2023: +/- €455,742).
(b)Market interest rates risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument or insurance contract or reinsurance contract will fluctuate because of changes in market interest rates.
(c)Market prices risk
The Group is exposed to market price risk arising from the uncertainty about the future prices of investments held that are classified in the statement of financial position as at fair value through profit or loss or as available for sale. This risk is mitigated through the adherence to an investment policy geared towards diversification as described earlier.
The total assets subject to equity price risk are the following:

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Investments in group undertakings (Note 16) | - | - | 22,475,836 | 24,451,978
Other investments (Note 17) | 21,024,952 | 25,811,413 | - | -

The sensitivity analysis for price risk illustrates how changes in the fair value of equity securities will fluctuate because of changes in market prices, whether these changes are caused by factors specific to the individual equity issuer, or factors affecting all similar equity securities traded in the market. The Group is principally exposed to price risk in respect of equity investments. Approximately 34% (2023: 29%) of equity securities held at fair value through profit or loss in Note 17 relate to holdings in three (2023: five) local banks. The remaining equity securities held at fair value through profit or loss are mainly held in equities in the Telecommunication Services, Property and Information Technology sectors.
The sensitivity analysis measures the change in the fair value of the instruments for a hypothetical change of 10% in the market price. The amounts generated from the sensitivity analysis are forward-looking estimates of market risk assuming certain market conditions. Actual results in the future may differ materially from those projected results due to the inherent uncertainty of global financial markets. Should market prices at the end of the reporting period increase/decrease by 10% (2023: 10%), with all other variables held constant, the impact on the Group’s pre-tax profit would be +/- €2,102,495 (2023: +/- €2,581,141). This sensitivity analysis is based on a change in an assumption while holding all assumptions constant and does not consider, for example, the mitigating impact of the DPF element on policyholder liabilities for contracts with a DPF.
Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Market risk (continued)
(c)Market prices risk (continued)

|  |  |  | 2024 |  |  |  | 2023
| Change | I | Impact on profit before tax | Impact on equity |  | Impact on profit before tax |  | Impact on equity
|  |  | € | € |  | € |  | €
Insurance contract liabilities | +10% | - | 11,026,773 | 36,404,284 | - | 12,279,049 | - | 40,581,592
Insurance contract liabilities | -10% | - | 12,102,415 | 13,275,096 | - | (8,753,609) | - | 19,548,934

Credit risk
The Group has exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. Financial assets that potentially subject the Group to concentrations of credit risk consist principally of:
-other investments;
-reinsurers’ contract contract assets;
-amount due from insurance policyholders and intermediaries associated with future premium inflows from insurance contracts issued;
-trade and other receivables; and
-cash and cash equivalents.
The Group structures the levels of credit risk it accepts by placing limits on its exposure to a single counterparty, or groups of counterparties. Limits on the level of credit risk by category are defined within the Group’s investment policy as described earlier. This policy also considers regulatory restrictions on asset and counterparty exposures. Further detail on the content of the Group’s investment portfolio is provided in note 17 to these financial statements.
The Group is exposed to credit risk as at the financial year-end in respect of receivable from Group undertakings and cash at bank balances, which are placed with reliable financial institutions.
Credit risk in respect of trade and other receivables is not deemed to be significant after considering the range of underlying receivables, and their creditworthiness. Receivables are stated net of impairment. Further detail in this regard is provided in note 18 to the financial statements.
Reinsurance is used to manage insurance risk. This does not, however, discharge the Group’s liability as primary insurer. If a reinsurer fails to pay a claim for any reason, the Group remains liable for payment to the policyholder. The creditworthiness of reinsurers is considered on an ongoing basis and by reviewing their financial strength prior to finalisation of any contract. The Group’s reinsurer retained its Standard and Poor’s rating of AAA to AA+ bracket as at 31 December 2024.
Notes to the financial statements (continued)
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2.Management of insurance and financial risk (continued)
Credit risk (continued)
The following table illustrates the assets that expose the Group to credit risk as at the end of the reporting period and includes the Standard & Poor’s, Moody’s and ARC’s composite rating for debt securities at fair value through profit or loss, when available, and the default rating for deposits with banks and cash and cash equivalents, when available.
Assets bearing credit risk at the end of the reporting period are analysed as follows:

| Consolidated
| As at 31 December 2024
| AAA to AA | A | BBB to B | Below B to unrated | Total
| € | € | € | € | €
Investments |  |  |  |  |
Debt securities at fair value through profit or loss | 279,006 | 3,657,194 | 6,723,297 | 3,642,025 | 14,301,522
| 279,006 | 3,657,194 | 6,723,297 | 3,642,025 | 14,301,522
Loans and receivables |  |  |  |  |
Loans secured on policies | - | - | - | 22,487 | 22,487
Other loans and receivables | - | 3,276,016 | - | - | 3,276,016
Trade and other receivables | - | - | - | 1,470,240 | 1,470,240
Amounts due from related parties | - | - | - | - | -
Term deposits | - | - | 300,000 | - | 300,000
Cash and cash equivalents | 1,126,404 | - | 1,059,462 | 10,328 | 2,196,194
| 1,126,404 | 3,276,016 | 1,359,462 | 1,503,055 | 7,262,937
Reinsurance Contract Assets | 3,571,127 | - | - | - | 3,571,127
Total assets bearing credit risk | 4,976,537 | 6,933,210 | 8,082,759 | 5,145,080 | 25,135,586

Notes to the financial statements (continued)
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2.Management of insurance and financial risk (continued)
Credit risk (continued)

| Consolidated
| As at 31 December 2023
| AAA to AA |  | A |  | BBB to B |  | Below B to unrated |  | Total
| € |  | € |  | € |  | € |  | €
Investments |  |  |  |  |  |  |  |  |
Debt securities at fair value through profit or loss | 2,041,746 | - | 5,110,614 | - | 6,113,306 | - | 4,153,954 | - | 17,419,620
| 2,041,746 | - | 5,110,614 | - | 6,113,306 | - | 4,153,954 | - | 17,419,620
Loans and receivables |  |  |  |  |  |  |  |  |
Loans secured on policies | - | - | - | - | - | - | 8,451 | - | 8,451
Other loans and receivables | - | - | 3,125,720 | - | - | - | - | - | 3,125,720
Trade and other receivables | - | - | - | - | - | - | 2,745,220 | - | 2,745,220
Amounts due from related parties | - | - | - | - | - | - | 353,013 | - | 353,013
Term deposits | - | - | - | - | - | - | - | - | -
Cash and cash equivalents | - | - | 266,082 | - | 5,384,355 | - | - | - | 5,650,437
| - |  | 3,391,802 |  | 5,384,355 |  | 3,106,684 |  | 11,882,841
Reinsurance Contract Assets | 2,565,601 | - | - | - | - | - | - | - | 2,565,601
Total assets bearing credit risk | 4,607,347 | - | 8,502,416 | - | 11,497,662 | - | 7,260,638 | - | 31,868,062

Notes to the financial statements (continued)
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2.Management of insurance and financial risk (continued)
Credit risk (continued)
Holding Company
As at 31 December 2024
AAA to AA
A
BBB to B
Below B to unrated
Total
€
€
€
€
€
Investments
Debt securities at fair value through profit or loss
-
-
-
-
-
-
-
-
-
-
Loans and receivables
Loans secured on policies
-
-
-
-
-
Other loans and receivables
-
-
-
-
-
Trade and other receivables
-
-
-
45,656
45,656
Amounts due from related parties
-
-
-
2,561,610
2,561,610
Term Deposits
-
-
-
-
-
Cash and cash equivalents
-
-
244,405
-
244,405
-
-
244,405
2,607,266
2,851,671
Reinsurance Contract Assets
-
-
-
-
-
Total assets bearing credit risk
-
-
244,405
2,607,266
2,851,671
Notes to the financial statements (continued)
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2.Management of insurance and financial risk (continued)
Credit risk (continued)
Holding Company
As at 31 December 2023
AAA to AA
A
BBB to B
Below B to unrated
Total
€
€
€
€
€
Investments
Debt securities at fair value through profit or loss
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Loans and receivables
Loans secured on policies
-
-
-
-
-
Other loans and receivables
-
-
-
-
-
Trade and other receivables
-
-
-
34,626
34,626
Amounts due from related parties
-
-
-
2,088,269
2,088,269
Term deposits
-
-
-
-
-
Cash and cash equivalents
-
-
424,810
-
424,810
-
-
424,810
2,122,895
2,547,705
Reinsurance Contract Assets
-
-
-
-
-
Total assets bearing credit risk
-
-
424,810
2,122,895
2,547,705
Unrated financial assets principally comprise locally traded corporate bonds on the Malta Stock Exchange, amounts due from group companies, trade and other receivables, loans secured on policies and certain deposits with local bank institutions for which no international rating is available.
As at 31 December 2024 and 2023 the Group had an exposure with the Government of Malta through investments in debt securities. In 2024 these were equivalent to 3% (2023: 8.2%) of the Group’s total investments.
Notes to the financial statements (continued)
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2.Management of insurance and financial risk (continued)
Liquidity risk
Liquidity is the risk that cash may not be available to pay obligations when due at a reasonable cost. The Group adopts a prudent liquidity risk management approach by maintaining a sufficient proportion of its assets in cash and marketable securities through the ability to close out market positions. Senior management is updated on a regular basis on the cash position of the Group illustrating, inter alia, actual cash balance net of operational commitments falling due in the short term as well as investment commitments falling due in the medium and long term.
The Group is exposed to daily calls on its available cash resources in order to meet its obligations, including claims arising from contracts in issue by the Group. Other financial liabilities which expose the Group to liquidity risk mainly comprise trade and other payables. Liquidity is the risk that cash may not be available to pay obligations when due at a reasonable cost.
Maturity analysis for insurance liabilities
The following table summarizes the maturity profile of the Group’s portfolios of insurance contracts issued that are liabilities based on the remaining contractual undiscounted net cash flows expected to be paid out in the periods presented. Liabilities for remaining coverage measured under the PAA have been excluded from this analysis.

2024 | Undiscounted net future cash flows
| 1 year or less | 1-2 years | 2-3 years | 3-4 years | 4-5 years | More than 5 years | Total
| € | € | € | € | € | € | €
Insurance contracts |  |  |  |  |  |  |
Participating | 12,595,229 | 9,873,429 | 8,914,441 | 5,782,838 | 5,129,581 | 16,351,807 | 58,647,325
Other life | (1,197,836) | (1,560,839) | (1,321,505) | (1,138,223) | (897,443) | (1,589,640) | (7,705,486)
Sickness and Accident | (2,399,767) | (3,615,455) | (2,324,981) | (1,239,097) | (492,003) | 94,590,842 | 84,519,539
Savings | (297,209) | (284,123) | (234,706) | (180,158) | (131,249) | (267,749) | (1,395,194)
Sub-Total | 8,700,417 | 4,413,012 | 5,033,249 | 3,225,360 | 3,608,886 | 109,085,260 | 134,066,184
Life Reinsurance Contracts | (3,673,408) | (254,728) | (260,278) | (261,737) | (260,584) | (3,575,358) | (8,286,093)
Sub-Total | (3,673,408) | (254,728) | (260,278) | (261,737) | (260,584) | (3,575,358) | (8,286,093)
Total | 5,027,009 | 4,158,284 | 4,772,971 | 2,963,623 | 3,384,302 | 105,509,902 | 125,780,090

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Liquidity risk (continued)
Maturity analysis for insurance liabilities (continued)

2023 | Undiscounted net future cash flows
| 1 year or less | 1-2 years | 2-3 years | 3-4 years | 4-5 years | More than 5 years | Total
| € | € | € | € | € | € | €
Insurance contracts |  |  |  |  |  |  |
Participating | 10,292,881 | 9,850,245 | 9,850,772 | 8,919,157 | 5,557,667 | 21,758,592 | 66,229,314
Other life | (1,540,962) | (1,298,711) | (1,116,032) | (947,495) | (814,732) | (1,463,765) | (7,181,697)
Sickness and Accident | 124,767 | (248,254) | (216,888) | (174,942) | (126,996) | (193,898) | (836,211)
Savings | (3,742,365) | (2,999,105) | (1,888,241) | (905,729) | (257,190) | 70,747,257 | 60,954,627
Total | 5,134,321 | 5,304,175 | 6,629,611 | 6,890,991 | 4,358,749 | 90,848,186 | 119,166,033
Life Reinsurance Contracts | (611,495) | (250,550) | (256,558) | (257,117) | (254,319) | (3,722,186) | (5,352,225)
Total | 4,522,826 | 5,053,625 | 6,373,053 | 6,633,874 | 4,104,430 | 87,126,000 | 113,813,808

The amounts of insurance contract liabilities that are repayable on demand are set out below.

2024 | Amount payable on demand | Carrying amount
| € | €
Participating | 49,141,467 | 58,301,311
Savings | 60,165,785 | 53,035,698
Total | 109,307,252 | 111,337,009

2023 | Amount payable on demand | Carrying amount
| € | €
Participating | 55,781,232 | 65,206,318
Savings | 41,543,444 | 35,348,323
Total | 97,324,676 | 100,554,641

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
2.Management of insurance and financial risk (continued)
Liquidity risk (continued)
Maturity analysis for financial assets
The following table summarises the maturity profile of financial assets of the Group based on remaining undiscounted contractual cash flows.
The tables below analyses the Group’s financial assets and reinsurance contract assets into relevant maturity groupings based on the remaining period between the end of the reporting period and the maturity date. The expected cash outflows for insurance and investment contracts do not consider the impact of early surrenders. Resilience and closure reserves are not included in the figures below.

| Consolidated
| Expected undiscounted cash inflows
Year ended 2024 | Less than one year | Between one and five years | Between five and ten years | Between 10 and 20 years | Over 20 years | Total
| € | € | € | € | € | €
Assets | 263,115 | 8,343,728 | 4,356,249 | 1,338,430 | - | 14,301,522

| Consolidated
| Expected undiscounted cash inflows
Year ended 2023 | Less than one year | Between one and five years | Between five and ten years | Between 10 and 20 years | Over 20 years | Total
| € | € | € | € | € | €
Assets | 271,400 | 9,769,145 | 6,622,784 | 756,291 | - | 17,419,620

Regulatory compliance risk
The risk of non-compliance with legal and regulatory requirements as well as supervisory expectations which may result in administrative or disciplinary sanctions, or of material financial loss, due to failure to comply with the provisions governing the Group’s activities. By ensuring that these rules are observed, the Group works to protect its customers, shareholders, counterparties and employees. This is conducted in alignment with the Group’s strategy as operating a business model based on prudence, sound governance and integrity.
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LifeStar Insurance p.l.c. – Annual Financial Report 2024
3.Particulars of business
3.1 Insurance revenue
The following tables presents an analysis of the insurance revenue recognised in the period.

| 2024 | 2023
| € | €
Contracts not measured under the PAA |  |
Amounts relating to changes in liabilities for remaining coverage |  |
-Expected incurred claims and other insurance service expenses | 3,816,098 | 4,338,796
-Change in risk adjustment for non-financial risk for risk expired | 161,626 | 147,890
-CSM recognised for services provided | 971,210 | 518,429
Recovery of insurance acquisition cash flows | 315,307 | 146,582
Contracts measured under the PAA | 671,466 | 487,244
Total insurance revenue | 5,935,707 | 5,638,941

3.2 Insurance service expenses
The table below shows an analysis of insurance service expenses recognised in the period:

| 2024 | 2023
| € | €
Incurred claims and other insurance service expenses | 2,624,565 | 2,343,999
Changes that relate to future service: losses on onerous contracts and reversals of those losses | (6,593) | 323,475
Changes that relate to past service: changes to liabilities for incurred claims | 216,498 | (948,013)
Amortisation of insurance acquisition cash flows | 366,902 | 184,484
Total insurance service expenses | 3,201,372 | 1,903,945

Notes to the financial statements (continued)
97
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.3 Net expense from reinsurance contracts held
An analysis of allocation of reinsurance premiums paid and amounts recovered from reinsurers are presented in the tables below:

| 2024 | 2023
| € | €
Amounts related to liabilities for remaining coverage |  |
-Recoveries for expected incurred claims and other expenses | (1,764,422) | (2,237,304)
-Risk adjustment for the risk expired | (73,182) | 77,677
-CSM for the service received | (126,569) | 118,513
Contracts not measured under the PAA | (1,964,173) | (2,041,114)
Contracts measured under the PAA | (296,397) | (243,467)
Allocation of reinsurance premiums | (2,260,570) | (2,284,581)
Recoveries for incurred claims and other expenses | 1,333,493 | 1,085,015
Changes that relate to future service: recoveries for losses on onerous contracts and reversals of those losses | (2,386) | (169,308)
Changes that relate to past service: changes to recoveries of liabilities for incurred claims | 279,746 | (29,867)
Effect of changes in non-performance risk of reinsurers | - | -
Amounts recovered from reinsurers | 1,610,853 | 885,840
Net income or expenses from reinsurance contracts held | (649,717) | (1,398,741)

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.4 Investment income and net insurance financial result
The tables below present analysis of net investment income and net insurance finance income/(expenses) recognised in profit and loss and OCI in the period:

| Consolidated
2024 | NON-LINKED WITH PROFITS | PENSION | VARIABLE LIFE | PROTECTION | SICKNESS & ACCIDENT | PASSPORTING | TOTAL
| € | € | € | € | € | € | €
Insurance finance income/(expenses) from insurance contracts issued |  |  |  |  |  |  |
Changes in fair value of underlying assets measured under VFA | 1,174,134 | 978,846 | 10,334,619 | - | - | - | 12,487,599
Interest accreted | - | - | - | (185,836) | (31,253) | (6,534) | (223,623)
Effect of changes in interest rates and other financial assumptions | - | - | - | 30,253 | 2,941 | 7,716 | 40,910
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates | - | - | - | (9,881) | (1,087) | - | (10,968)
Total insurance finance income/(expenses) from insurance contracts issued recognised in P&L | 1,174,134 | 978,846 | 10,334,619 | (165,464) | (29,399) | 1,182 | 12,293,918
|  |  |  | LIFE REINSURANCE PROTECTION | LIFE REINSURANCEI INVESTMENT | LIFE REINSURANCE PASSPORTING | TOTAL
|  |  |  | € | € | € | €
Finance income/(expenses) from reinsurance contracts held |  |  |  |  |  |  |
Interest accreted |  |  |  | 75,449 | 28,264 | (823) | 102,890
Effect of changes in interest rates and other financial assumptions |  |  |  | 8,630 | 8,775 | (1,092) | 16,313
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates |  |  |  | 15,445 | 14,746 | - | 30,191
Total finance income/(expenses) from reinsurance contracts held recognised in P&L |  |  |  | 99,524 | 51,785 | (1,915) | 149,394
Net insurance finance income |  |  |  |  |  |  | 12,443,312

Notes to the financial statements (continued)
99
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.4 Investment income and net insurance financial result (continued)
The tables below present analysis of net investment income and net insurance finance income/(expenses) recognised in profit and loss and OCI in the period:

2023 | NON-LINKED WITH PROFITS | PENSION | VARIABLE LIFE | PROTECTION | SICKNESS & ACCIDENT | PASSPORTING | TOTAL
| € | € | € | € | € | € | €
Insurance finance income/(expenses) from insurance contracts issued |  |  |  |  |  |  |
Changes in fair value of underlying assets measured under VFA | 518,009 | 159,311 | 6,890,371 | - | - | - | 7,567,691
Interest accreted | - | - | - | (108,557) | (34,668) | - | (143,225)
Effect of changes in interest rates and other financial assumptions | - | - | - | (5,625) | (19,315) | - | (24,940)
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates | - | - | - | 567,014 | 516 | - | 567,530
Total insurance finance income/(expenses) from insurance contracts issued recognised in P&L | 518,009 | 159,311 | 6,890,371 | 452,832 | (53,467) | - | 7,967,056
|  |  |  | LIFE REINSURANCE PROTECTION | LIFE REINSURANCE INVESTMENT | LIFE REINSURANCE PASSPORTING | TOTAL
|  |  |  | € | € | € | €
Finance income/(expenses) from reinsurance contracts held |  |  |  |  |  |  |
Interest accreted |  |  |  | 148,042 | 19,911 | - | 167,953
Effect of changes in interest rates and other financial assumptions |  |  |  | 224,884 | 31,534 | - | 256,418
Effect of changes in free cash flow at current rates when CSM is unlocked at locked-in rates |  |  |  | 397,558 | (34,574) | - | 362,984
Total finance income/(expenses) from reinsurance contracts held recognised in P&L |  |  |  | 770,484 | 16,871 | - | 787,355
Net insurance finance income/(expenses) |  |  |  |  |  |  | 8,754,411

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts
The table below sets out the carrying amounts of groups of insurance and reinsurance contracts assets and liabilities at the end of reporting date.

| 2024 | 2023
| Assets | Liabilities | Net | Assets | Liabilities | Net
| € | € | € | € | € | €
Total insurance contracts issued | - | (115,645,938) | (115,645,938) | 945,785 | (106,109,076) | (105,163,291)
Total reinsurance contracts held | 3,571,127 | - | 3,571,127 | 2,813,625 | (248,024) | 2,565,601

Notes to the financial statements (continued)
101
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.1 Reconciliation of changes in insurance contracts by remaining coverage and incurred claims
The tables below represent the reconciliation from the opening to the closing balances of the liabilities for the remaining coverage and the liabilities for incurred claims for insurance contracts
(Note: the table below is applicable for Other Life)
Consolidated

2024 | Liabilities for remaining coverage | Liabilities for incurred claims | Total
Excluding loss component | Loss component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Opening assets | (1,231,272) | (18,713) | 304,200 | - | - | (945,785)
Opening liabilities | 103,372,703 | 1,037,978 | 1,620,423 | 77,972 | - | 106,109,076
Net opening balance | 102,141,431 | 1,019,265 | 1,924,623 | 77,972 | - | 105,163,291
Changes in the statement of comprehensive income |  |  |  |  |  |
Contracts under fair value approach | - | - | - | - | - | -
Other contracts | - | - | - | - | - | -
Insurance revenue | (5,935,707) | - | - | - | - | (5,935,707)

Notes to the financial statements (continued)
102
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.1 Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)
Consolidated

2024 | Liabilities for remaining coverage | Liabilities for incurred claims | Total
Excluding loss component | Loss component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Incurred claims and other insurance service expenses | - | (58,615) | 2,267,143 | 416,037 | - | 2,624,565
Acquisition expenses | 366,902 | - | - | - | - | 366,902
Losses and reversal of losses on onerous contracts | - | (6,593) | - | - | - | (6,593)
Adjustments to liabilities for incurred claims | - | - | 216,498 | - | - | 216,498
Insurance service expenses | 366,902 | (65,208) | 2,483,641 | 416,037 | - | 3,201,372
Investment components | (15,273,291) | - | 15,273,291 | - | - | -
Insurance service results | (20,842,096) | (65,208) | 17,756,932 | 416,037 | - | (2,734,335)
Insurance finance income / expense | 12,309,396 | (15,478) | - | - | - | 12,293,918
Total changes in the statement of comprehensive income | (8,532,700) | (80,686) | 17,756,932 | 416,037 | - | 9,559,583

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.1 Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)
Consolidated

2024 | Liabilities for remaining coverage | Liabilities for incurred claims | Total
Excluding loss component | Loss component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Cash flows |  |  |  |  |  |
Premium received | 22,629,313 | - | - | - | - | 22,629,313
Claims and other insurance service expenses paid, including investment components | - | - | (17,078,542) | (353,574) | - | (17,432,115)
Insurance acquisition cash flows | (4,274,133) | - | - | - | - | (4,274,133)
Total cash flows | 18,355,180 | - | (17,078,542) | (353,574) | - | 923,065
Net closing balance | 111,963,910 | 938,579 | 2,603,014 | 140,435 | - | 115,645,938
Closing assets | (1,613,431) | (6,467) | (2,300) | - | - | (1,622,199)
Closing liabilities | 113,577,341 | 945,047 | 2,605,314 | 140,435 | - | 117,268,137
Net closing balance | 111,963,910 | 938,579 | 2,603,014 | 140,435 | - | 115,645,938

Notes to the financial statements (continued)
104
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.1 Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)
Consolidated

2023 | Liabilities for remaining coverage | Liabilities for incurred claims | Total
Excluding loss component | Loss component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Opening assets | (1,737,013) | 532,537 | (415,336) | - | - | (1,619,812)
Opening liabilities | 96,462,590 | 186,039 | 2,080,598 | 79,365 | - | 98,808,592
Net opening balance | 94,725,577 | 718,576 | 1,665,262 | 79,365 | - | 97,188,780
Changes in the statement of comprehensive income |  |  |  |  |  |
Contracts under fair value approach | (5,151,696) | - | - | - | - | (5,151,696)
Other contracts | (487,244) | - | - | - | - | (487,244)
Insurance revenue | (5,638,940) | - | - | - | - | (5,638,940)

Notes to the financial statements (continued)
105
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.1 Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)
Consolidated

2023 | Liabilities for remaining coverage | Liabilities for incurred claims | Total
Excluding loss component | Loss component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Incurred claims and other insurance service expenses | - | (24,699) | 2,292,118 | 76,580 | - | 2,343,999
Acquisition expenses | 184,484 | - | - | - | - | 184,484
Losses and reversal of losses on onerous contracts | - | 323,476 | - | - | - | 323,476
Adjustments to liabilities for incurred claims | - | - | (948,013) | - | - | (948,013)
Insurance service expenses | 184,484 | 298,777 | 1,344,105 | 76,580 | - | 1,903,946
Investment components | (13,555,619) | - | 13,555,619 | - | - | -
Insurance service results | (19,010,075) | 298,777 | 14,899,724 | 76,580 | - | (3,734,994)
Insurance finance income / expense | 7,965,147 | 1,912 | - | - | - | 7,967,059
Total changes in the statement of comprehensive income | (11,044,928) | 300,689 | 14,899,724 | 76,580 | - | 4,232,065

Notes to the financial statements (continued)
106
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.1 Reconciliation of changes in insurance contracts by remaining coverage and incurred claims (continued)
Consolidated

2023 | Liabilities for remaining coverage | Liabilities for incurred claims | Total
Excluding loss component | Loss component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Cash flows |  |  |  |  |  |
Premium received | 21,446,337 | - | - | - | - | 21,446,337
Claims and other insurance service expenses paid, including investment components | - | - | (14,640,363) | (77,973) | - | (14,718,336)
Insurance acquisition cash flows | (2,985,555) | - | - | - | - | (2,985,555)
Total cash flows | 18,460,782 | - | (14,640,363) | (77,973) | - | 3,742,446
Net closing balance | 102,141,431 | 1,019,265 | 1,924,623 | 77,972 | - | 105,163,291
Closing assets | (1,231,272) | (18,713) | 304,200 | - | - | (945,785)
Closing liabilities | 103,372,703 | 1,037,978 | 1,620,423 | 77,972 | - | 106,109,076
Net closing balance | 102,141,431 | 1,019,265 | 1,924,623 | 77,972 | - | 105,163,291

Notes to the financial statements (continued)
107
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.2 Reconciliation of measurement components of insurance contracts not measured under the PAA
The tables below represent the reconciliation from the opening to the closing balances for each measurement component of insurance contracts (other than those measured under the PAA).
Consolidated

2024 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Opening assets | (3,186,466) | 337,280 | 1,903,401 | (945,785)
Opening liabilities | 90,323,446 | 1,445,164 | 14,002,338 | 105,770,948
Net opening balance | 87,136,980 | 1,782,444 | 15,905,739 | 104,825,163
Changes in the statement of comprehensive income |  |  |  |
Changes that relate to current services |  |  |  |
CSM recognised for services provided | - | - | (971,211) | (971,211)
Risk adjustment recognised for the risk expired | - | (162,224) | - | (162,224)
Experience adjustments | (1,606,971) | - | - | (1,606,971)

Notes to the financial statements (continued)
108
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.2 Reconciliation of measurement components of insurance contracts not measured under the PAA (continued)
Consolidated

2024 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Changes that relate to future services |  |  |  |
Contracts initially recognised in the period | (3,691,430) | 444,269 | 3,426,695 | 179,534
Changes in estimates that adjust the CSM | (1,066,667) | 117,461 | 949,206 | -
Changes in estimates that result in losses and reversal of losses on onerous contracts | (210,074) | 23,949 | - | (186,125)
Changes that relate to past services |  |  |  |
Adjustments to liabilities for incurred claims | 216,497 | - | - | 216,497
Insurance service result | (6,358,645) | 423,455 | 3,404,690 | (2,530,500)
Insurance finance expenses | 12,172,800 | - | 121,118 | 12,293,918
Total changes in the statement of comprehensive income | 5,814,155 | 423,455 | 3,525,808 | 9,763,417
Cash flows | 473,305 | - | - | 473,304
Net closing balance | 93,424,440 | 2,205,899 | 19,431,547 | 115,061,884
Closing assets | (4,774,918) | 320,536 | 2,832,183 | (1,622,199)
Closing liabilities | 98,199,358 | 1,885,361 | 16,599,364 | 116,684,083
Net closing balance | 93,424,440 | 2,205,897 | 19,431,547 | 115,061,884

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.2 Reconciliation of measurement components of insurance contracts not measured under the PAA (continued)
Consolidated

2023 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Opening assets | (2,322,410) | 125,914 | 576,684 | (1,619,812)
Opening liabilities | 80,938,269 | 1,734,093 | 15,711,026 | 98,383,388
Net opening balance | 78,615,859 | 1,860,007 | 16,287,710 | 96,763,576
Changes in the statement of comprehensive income |  |  |  |
Changes that relate to current services |  |  |  |
CSM recognised for services provided | - | - | (518,429) | (518,429)
Risk adjustment recognised for the risk expired | - | (147,890) | - | (147,890)
Experience adjustments - expected | (2,071,377) | - | - | (2,071,377)
Experience adjustments - actual | - | - | - | -

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)do
3.5 Insurance and reinsurance contracts (continued)
3.5.2 Reconciliation of measurement components of insurance contracts not measured under the PAA (continued)
Consolidated

2023 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Changes that relate to future services |  |  |  |
Contracts initially recognised in the period | 3,005,586 | (271,783) | (2,733,803) | -
Changes in estimates that adjust the CSM | 236,500 | (14,735) | - | 221,765
Changes in estimates that result in losses and reversal of losses on onerous contracts | (3,102,302) | 356,845 | 2,847,169 | 101,712
Changes that relate to past services |  |  |  |
Adjustments to liabilities for incurred claims | (948,013) | - | - | (948,013)
Insurance service result | (2,879,606) | (77,563) | (405,063) | (3,362,232)
Insurance finance expenses | 7,943,967 | - | 23,092 | 7,967,059
Total changes in the statement of comprehensive income | 5,064,361 | (77,563) | (381,971) | 4,604,827
Cash flows | 3,456,760 | - | - | 3,456,759
Net closing balance | 87,136,980 | 1,782,444 | 15,905,739 | 104,825,163
Closing assets | (3,186,466) | 337,280 | 1,903,401 | (945,785)
Closing liabilities | 90,323,446 | 1,445,164 | 14,002,338 | 105,770,948
Net closing balance | 87,136,980 | 1,782,444 | 15,905,739 | 104,825,163

Notes to the financial statements (continued)
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LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.3 Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims
The tables below represent the reconciliation from the opening to the closing balances of the assets for the remaining coverage and the assets for incurred claims for reinsurance contracts held.
Consolidated

2024 | Liabilities for remaining coverage | Amounts recoverable for incurred claims | Total
Remaining coverage component | Loss-recovery component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Opening assets | 4,846,380 | 25,908 | (2,175,416) | 54,581 | - | 2,751,453
Opening liabilities | (175,245) | (10,607) | - | - | - | (185,852)
Net opening balance | 4,671,135 | 15,301 | (2,175,416) | 54,581 | - | 2,565,601
Changes in the statement of profit or loss |  |  |  |  |  |
Allocation of reinsurance premiums | (2,260,570) | - | - | - | - | (2,260,570)
Amounts recovered from reinsurers | - | (2,386) | 1,038,736 | 574,503 | - | 1,610,853
Recoveries for incurred claims and other expenses | - | - | 758,990 | 574,503 | - | 1,333,493

Notes to the financial statements (continued)
112
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.3 Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2024 | Liabilities for remaining coverage | Amounts recoverable for incurred claims | Total
Remaining coverage component | Loss-recovery component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Changes in the statement of profit or loss (continued) |  |  |  |  |  |
Changes that relate to future service: recoveries for losses on onerous contracts and reversals of those losses | - | (2,386) | - | - | - | (2,386)
Changes that relate to past service: changes to recoveries of liabilities for incurred claims | - | - | 279,746 | - | - | 279,746
Net expenses from reinsurance contracts | (2,260,570) | (2,386) | 1,038,736 | 574,503 | - | (649,717)
Finance income from reinsurance contracts held recognised in P&L | 148,566 | 828 | - | - | - | 149,394
Total changes in the statement of comprehensive income | (2,112,004) | (1,558) | 1,038,736 | 574,503 | - | (500,323)

Notes to the financial statements (continued)
113
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.3 Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2024 | Liabilities for remaining coverage | Amounts recoverable for incurred claims | Total
Remaining coverage component | Loss-recovery component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Cash flows |  |  |  |  |  |
Premiums paid | 2,188,409 | - | - | - | - | 2,188,408
Amounts received | - | - | (151,782) | (530,779) | - | (682,561)
Total cash flows | 2,188,409 | - | (151,782) | (530,779) | - | 1,505,847
Net closing balance | 4,747,539 | 13,743 | (1,288,462) | 98,305 | - | 3,571,125
Closing assets | 4,847,011 | 19,444 | (1,288,462) | 98,305 | - | 3,676,298
Closing liabilities | (99,472) | (5,702) | - | - | - | (105,174)
Net closing balance | 4,747,539 | 13,742 | (1,288,462) | 98,305 | - | 3,571,124

Notes to the financial statements (continued)
114
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.3 Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2023 | Liabilities for remaining coverage | Amounts recoverable for incurred claims | Total
Remaining coverage component | Loss-recovery component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Opening assets | 4,801,421 | 145,654 | (2,248,634) | 55,555 | - | 2,753,996
Opening liabilities | (152,337) | 9,250 | - | - | - | (143,087)
Net opening balance | 4,649,084 | 154,904 | (2,248,634) | 55,555 | - | 2,610,909
Changes in the statement of profit or loss |  |  |  |  |  |
Allocation of reinsurance premiums | (2,284,583) | - | - | - | - | (2,284,583)
Amounts recovered from reinsurers | - | - | - | - | - | -
Recoveries for incurred claims and other expenses | - | 28,141 | 405,147 | 651,728 | - | 1,085,016

Notes to the financial statements (continued)
115
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.3 Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2023 | Liabilities for remaining coverage | Amounts recoverable for incurred claims | Total
Remaining coverage component | Loss-recovery component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Changes in the statement of profit or loss (continued) |  |  |  |  |  |
Changes that relate to future service: recoveries for losses on onerous contracts and reversals of those losses | - | (169,308) | - | - | - | (169,308)
Changes that relate to past service: changes to recoveries of liabilities for incurred claims | - |  | (29,867) | - | - | (29,867)
Net expenses from reinsurance contracts | (2,284,583) | (141,167) | 375,280 | 651,728 | - | (1,398,742)
Finance income from reinsurance contracts held recognised in P&L | 785,792 | 1,564 | - | - | - | 787,356
Total changes in the statement of comprehensive income | (1,498,791) | (139,603) | 375,280 | 651,728 | - | (611,386)

Notes to the financial statements (continued)
116
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.3 Reconciliation of changes in reinsurance contracts held by remaining coverage and incurred claims (continued)

2023 | Liabilities for remaining coverage | Amounts recoverable for incurred claims | Total
Remaining coverage component | Loss-recovery component | Contracts not under PAA | Contracts under PAA
Estimates of present value of future cash flows | Risk adjustment for non-financial risk
| € | € | € | € | € | €
Cash flows |  |  |  |  |  |
Premiums paid | 1,520,842 | - | - | - | - | 1,520,842
Amounts received | - | - | (302,061) | (652,703) | - | (954,764)
Total cash flows | 1,520,842 | - | (302,061) | (652,703) | - | 566,078
Net closing balance | 4,671,135 | 15,301 | (2,175,415) | 54,580 | - | 2,565,601
Closing assets | 5,024,231 | 25,908 | (2,291,094) | 54,580 | - | 2,813,625
Closing liabilities | (353,096) | (10,607) | 115,679 | - | - | (248,024)
Net closing balance | 4,671,135 | 15,301 | (2,175,415) | 54,580 | - | 2,565,601

Notes to the financial statements (continued)
117
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.4 Reconciliation of measurement components of reinsurance contracts held not measured under the PAA
The table below represents the reconciliation from the opening to the closing balance for each measurement component of reinsurance contracts held (other than those measured under the PAA).

2024 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Opening assets | 196,550 | 574,910 | 1,802,684 | 2,574,144
Opening liabilities | 817,754 | 161,507 | (1,165,113) | (185,852)
Net opening balance | 1,014,304 | 736,417 | 637,571 | 2,388,292
Experience adjustments – expected | - | - | (126,569) | (126,569)
Opening assets | - | (73,182) | - | (73,182)
Opening liabilities | (1,005,432) | - | - | (1,005,432)

Notes to the financial statements (continued)
118
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.4 Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2024 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Changes that relate to future services |  |  |  |
Contracts initially recognised in the period | 277,432 | 130,230 | (407,662) | -
Changes in estimates that adjust the CSM | (564,058) | 30,765 | 533,293 | -
Changes in the FCF that do not adjust the CSM for the group of underlying insurance contracts | - | - | (18,650) | (18,650)
Changes in recoveries of losses on onerous underlying contracts that adjust the CSM | - | - | 16,264 | 16,264
Changes that relate to past services |  |  |  |
Changes in amounts recoverable arising from changes in liability for incurred claims | 279,746 | - | - | 279,746
Effect of changes in non-performance risk of reinsurers | - | - | - | -
Net expense from reinsurance contracts | (1,012,312) | 87,813 | (3,324) | (927,823)

Notes to the financial statements (continued)
119
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.4 Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2024 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Net finance income from reinsurance contracts | 183,062 | - | (33,669) | 149,393
Total changes in the statement of comprehensive income | (829,250) | 87,813 | (36,993) | (778,430)
Cash flows | 1,692,599 | - | - | 1,692,599
Net closing balance | 1,877,653 | 824,230 | 600,578 | 3,302,461
Closing assets | 1,392,130 | 643,392 | 1,372,112 | 3,407,634
Closing liabilities | 485,523 | 180,838 | (771,534) | (105,173)
Net closing balance | 1,877,653 | 824,230 | 600,578 | 3,302,461

Notes to the financial statements (continued)
120
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.4 Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2023 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Opening assets | (2,570,437) | (684,300) | 651,529 | (2,603,208)
Opening liabilities | (446,442) | (59,800) | 649,329 | 143,087
Net opening balance | (3,016,879) | (744,100) | 1,300,858 | (2,460,121)
Changes in the statement of comprehensive income |  |  |  |
Changes that relate to current services |  |  |  |
CSM recognised for services received | - | - | 118,513 | 118,513
Change in risk adjustment for non-financial risk expired | - | 77,677 | - | 77,677
Experience adjustments | 1,453,640 | - | - | 1,453,640

Notes to the financial statements (continued)
121
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.4 Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2023 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Changes that relate to future services |  |  |  |
Contracts initially recognised in the period | (805,936) | (107,004) | 858,447 | (54,493)
Changes in estimates that adjust the CSM | 2,909,289 | 45,213 | (2,954,502) | -
Changes in the FCF that do not adjust the CSM for the group of underlying insurance contracts | 177,510 | (8,202) | - | 169,308
Changes in recoveries of losses on onerous underlying contracts that adjust the CSM | - | - | 12,490 | 12,490
Changes in estimates that relate to losses and reversals of losses on onerous underlying contracts | - | - | - | -
Changes that relate to past services | 29,867 |  |  | 29,867
Net expense from reinsurance contracts | 3,764,370 | 7,684 | (1,965,052) | 1,807,002

Notes to the financial statements (continued)
122
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.4 Reconciliation of measurement components of reinsurance contracts held not measured under the PAA (continued)

2023 | Estimates of present value of future cash flows | Risk adjustment for non-financial risk | Contractual Service Margin | Total
| € | € | € | €
Net finance income from reinsurance contracts | (813,979) | - | 26,623 | (787,356)
Total changes in the statement of comprehensive income | 2,950,391 | 7,684 | (1,938,429) | 1,019,646
Cash flows | (947,816) | - | - | (947,816)
Net closing balance | (1,014,304) | (736,416) | (637,571) | (2,388,291)
Closing assets | 667,310 | (481,208) | (2,822,417) | (2,636,315)
Closing liabilities | (1,681,614) | (255,208) | 2,184,846 | 248,024
Net closing balance | (1,014,304) | (736,416) | (637,571) | (2,388,291)

Notes to the financial statements (continued)
123
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5 Insurance and reinsurance contracts (continued)
3.5.5 Effect of contracts initially recognised in the period

Profitable (non-onerous) contracts Onerous Contracts 2024 2023 2024 2023€€€€Insurance acquisition cash flows 2,065,226 2,947,652 169,613-Claims and other insurance service expenses payable 26,466,498-3,354,067-Estimates of present value of cash outflows 28,531,724 2,947,652 3,523,680-Estimates of present value of cash inflows(32,384,607)-(3,362,226)-Risk adjustment for non-financial risk 426,190 356,845 18,079-Contractual Service Margin (CSM)3,426,693 2,847,168--Losses recognised on initial recognition / Amount included in insurance contract liabilities for the period- 6,151,665 179,533-

Reinsurance contracts held | 2024 | 2023
€ | €
Estimates of PV of future cash inflows | 2,793,591 | -
Estimates of PV of future cash outflows | (2,516,159) | -
Risk adjustment | 130,230 | 107,004
Income recognised on initial recognition | - | 751,443
CSM | 407,662 | 858,447

Notes to the financial statements (continued)
124
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5.Insurance and reinsurance contracts (continued)
3.5.6 Expected recognition of the contractual service margin
An analysis of the expected recognition of the CSM remaining at the end of reporting period in profit or loss is presented below.

2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | >10 years | Total
| € | € | € | € | € | € | € | €
Insurance contracts |  |  |  |  |  |  |  |
-Participating | 197,263 | 203,208 | 212,315 | 220,793 | 226,619 | 1,201,176 | 3,820,552 | 6,081,926
-Other Life | 492,588 | 480,233 | 465,434 | 445,426 | 424,536 | 1,860,950 | 4,857,588 | 9,026,755
-Savings | 239,198 | 233,573 | 226,263 | 218,006 | 209,512 | 916,961 | 1,710,126 | 3,753,639
-Sickness & Accident | 89,607 | 82,668 | 75,313 | 67,925 | 61,330 | 192,384 | - | 569,227
Total CSM for insurance contracts | 1,018,656 | 999,682 | 979,325 | 952,150 | 921,997 | 4,171,471 | 10,388,266 | 19,431,547
Reinsurance contracts |  |  |  |  |  |  |  |
-Life Reinsurance | (104,000) | (88,573) | (73,361) | (59,051) | (46,868) | (126,067) | (102,658) | (600,578)
Total CSM for reinsurance contracts held | (104,000) | (88,573) | (73,361) | (59,051) | (46,868) | (126,067) | (102,658) | (600,578)
Total CSM net of reinsurance | 914,656 | 911,109 | 905,964 | 893,099 | 875,129 | 4,045,404 | 10,285,608 | 18,830,969

Notes to the financial statements (continued)
125
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.5.Insurance and reinsurance contracts (continued)
3.5.6 Expected recognition of the contractual service margin (continued)
Consolidated

2023 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | >10 years | Total
| € | € | € | € | € | € | € | €
Insurance contracts |  |  |  |  |  |  |  |
Participating | 180,292 | 201,511 | 217,802 | 234,238 | 247,893 | 1,376,623 | 4,782,654 | 7,241,013
Other Life | 255,587 | 269,572 | 280,122 | 287,605 | 290,899 | 1,469,454 | 4,927,284 | 7,780,523
Savings | 11,462 | 14,320 | 16,853 | 19,128 | 21,180 | 123,784 | 325,133 | 531,860
Sickness & Accident | 47,840 | 47,826 | 47,418 | 44,448 | 39,718 | 125,094 | - | 352,344
Total CSM for insurance contracts | 495,181 | 533,229 | 562,195 | 585,419 | 599,690 | 3,094,955 | 10,035,071 | 15,905,740
Reinsurance contracts |  |  |  |  |  |  |  |
Life Reinsurance | (60,696) | (58,823) | (56,736) | (53,812) | (50,267) | (200,180) | (157,057) | (637,571)
Total CSM for reinsurance contracts held | (60,696) | (58,823) | (56,736) | (53,812) | (50,267) | (200,180) | (157,057) | (637,571)
Total CSM for reinsurance contracts held | 434,485 | 474,406 | 505,459 | 531,607 | 549,423 | 2,894,775 | 9,878,014 | 15,268,169

Notes to the financial statements (continued)
126
LifeStar Holding p.l.c. – Annual Financial Report 2024
3.Particulars of business (continued)
3.6.Investment contract liabilities
The table shows a reconciliation of the opening to closing balance for the investment contract liabilities:

| Consolidated
| 2024 | 2023 (restated)
| € | €
At 1 January | 6,705,671 | 5,337,019
Amounts recognised in profit or loss |  |
Prior year adjustment | - | 1,286,169
Investment return from underlying assets | 741,674 | (795,094)
Recurring investment management fees deducted | (396,413) | (304,764)
Cash flows |  |
Contribution received | 2,432,547 | 1,723,933
Benefits paid | (863,855) | (541,592)
At 31 December | 8,619,624 | 6,705,671

In the above reconciliation, the investment return from the underlying assets represents changes in the fair value of the Investment contact liabilities due to changes in the market conditions. Asset management services revenue of €1,631,429 (2023: €1,052,183) in the profit or loss also includes the asset management fees charged and income trailer fees.
The above liabilities are substantially non-current in nature.
Prior to the restatement of the investment contract liabilities as at 31 December 2023, the balance of such liabilities amounted to €5,419,502. Note 32 described the impact on the investment return from the prior year adjustment as disclosed above. As a result of this adjustment, the 2023 investment return amounted to a resulted loss of €491,075.
Notes to the financial statements (continued)
127
LifeStar Holding p.l.c. – Annual Financial Report 2024
4.Investment return, fair value movements and other interest

| Consolidated
| 2024 | 2023
| € | €
Investment income |  |
Rental income from investment property | 149,760 | 249,393
Dividends received from: |  |
- investments at fair value through profit or loss | 785,185 | 589,706
- available-for-sale investments | - | -
Interest income from debt securities | 666,018 | 1,127,802
Other investment income | 112,883 | 33,972
| 1,713,846 | 2,000,873
Investment charges and expenses |  |
Reversal of impairment loss on financial assets | - | 252,677
| - | 252,677
Movement in fair value |  |
Net fair value (loss)/gain on investment property | (22,000) | 125,708
Net fair value gain on investment – equity and collective investment schemes | 11,987,699 | 6,290,470
| 11,965,699 | 6,416,178
Total investment return | 13,679,545 | 8,669,728

5.Commissions and fees receivable
Revenue represents the commissions receivable by LifeStar Health in respect of premia written relating to business generated during the year.
This includes profit commission earned during the year, which is determined on the basis of the estimated performance of business underwritten during the same period. This basis may change significantly once the insurance principal finalises its profit for the underwriting year under review. In view of this, the actual profit commission might be different from the estimated profit commission calculated as at the end of the reporting period.

| Consolidated
| 2024 | 2023
| € | €
Commission and fees receivable | 2,192,441 | 1,943,288

Notes to the financial statements (continued)
128
LifeStar Holding p.l.c. – Annual Financial Report 2024
6.Expenses by nature

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Staff costs | 3,362,443 | 3,089,431 | 175,000 | 158,575
Commission and direct marketing costs | 2,974,587 | 3,484,303 | - | -
Amortisation of computer software (Note 12) | 504,101 | 239,873 | - | -
Depreciation of property, plant and machinery (Note 14) | 192,420 | 136,900 | - | -
Other provisions | (60,574) | 161,133 | - | -
Legal and professional fees | 1,783,025 | 1,039,013 | 255,130 | 136,036
Insurance and licence costs | 314,100 | 633,084 | 35,407 | 33,426
IT related expenses | 524,808 | 517,177 | - | -
Staff training and welfare costs | 47,847 | 56,980 | - | -
Lease expenses | 49,719 | 62,599 | 6,614 | 13,212
Finance cost | 185,138 | 228,707 | 350,060 | 392,913
Other expenses | 5,414,539 | 476,397 | 23,159 | 127,319
Eliminations from application of IFRS 17 | (5,367,899) | (2,809,396) | - | -
| 9,924,254 | 7,316,201 | 845,370 | 861,481

Notes to the financial statements (continued)
129
LifeStar Holding p.l.c. – Annual Financial Report 2024
6.Expenses by nature (continued)

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Amounts attributed to insurance acquisition cash flows incurred during the year | (3,162,329) | (2,993,880) | - | -
Amortisation of insurance acquisition cash flows | 366,902 | 184,484 | - | -
Represented by: |  |  |  |
Insurance service expenses | 3,201,372 | 1,175,857 | - | -
Other operating expenses | 6,722,872 | 6,139,682 | 845,370 | 861,481

Auditor’s remuneration for the current financial year amounted to €242,616 (2023: €224,250) for the Group. Other fees payable to the auditor comprise Nil (2023: Nil) for other assurance services, Nil (2023: €33,650) for tax services and €6,055 (2023: €3,850) for other non-audit services.
Other provisions for the year under review represent the best estimate of the expected outflow of resources to settle a present obligation resulting from outstanding court and arbitration cases against the Group.
Staff costs

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
|  |  |  | -
Staff costs, including directors’ emoluments (Note 9): |  |  |  |
Wages and salaries | 3,208,909 | 2,946,883 | 3,208,909 | 2,946,883
Social security costs | 153,534 | 142,548 | 153,534 | 142,548
| 3,362,443 | 3,089,431 | 3,362,443 | 3,089,431
Recharged to group undertakings | - | - | (3,187,443) | (2,930,856)
| 3,362,443 | 3,089,431 | 175,000 | 158,575

Notes to the financial statements (continued)
130
LifeStar Holding p.l.c. – Annual Financial Report 2024
6.Expenses by nature (continued)
The average number of persons employed by both the Group and Holding Company during the year are analysed below:

| 2024 | 2023
Managerial | 8 | 8
Sales | 4 | 4
Administrative | 62 | 52
| 74 | 64

The table above represents salaried staff and does not include self-employed Tied Insurance Intermediaries.
7.Finance costs

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Interest on intra group loans | 79,257 | - | 350,060 | 261,458
Other interest | - | 131,745 | - | 131,455
Bond interest | 97,252 | 96,962 | - | -
| 176,509 | 228,707 | 350,060 | 392,913

8.Tax (credit)/charge

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Current tax | 24,245 | (54,700) | 17,430 | -
Overprovision of group surrender losses | (29,259) | - | - | -
Surrender of group losses | - | - | 190,503 | -
Current tax on IFRS 17 implementation | (201,164) | - | - | -
Deferred tax charge/ (credit) (Note 13) | (309,210) | 199,971 | - | -
Deferred tax on IFRS 17 implementation | 201,164 | - | - | -
Tax (credit)/ charge | (314,224) | 145,271 | 207,933 | -

Notes to the financial statements (continued)
131
LifeStar Holding p.l.c. – Annual Financial Report 2024
8.Tax (credit)/charge (continued)
The tax on the Group’s (loss) / profit before tax differs from the theoretical amount that would arise using the basic tax rate as follows:

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
|  | (Restated) |  |
(Loss) before tax | (912,224) | (36,809) | (1,396,591) | (510,873)
Tax on (loss) at 35% | 319,278 | 12,883 | 488,807 | 178,806
Tax effect of: |  |  |  |
Exempt income and income subject to a reduced rate of tax | 58,501 | 77,877 | 10 | -
Group loss claimed | - | - | - | -
Non-deductible expenditure | (196,114) | (179,584) | (694,625) | (174,650)
Deferred tax not recognised | 145,068 | (22,592) | (2,125) | (4,156)
Dividends received from the untaxed accounts and FTA | 143,069 | (137,012) | - | -
Consolidation adjustment | 29,255 | - | - | -
Other differences | (184,833) | 103,157 | - | -
Tax income/(expense) | 314,224 | (145,271) | (207,933) | -

Notes to the financial statements (continued)
132
LifeStar Holding p.l.c. – Annual Financial Report 2024
9.Directors’ emoluments
All directors’ emoluments are recharged by the intermediate parent company.

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Directors emoluments | 452,000 | 411,255 | 517,500 | 411,255
Recharged to group undertakings | - | - | (342,500) | (252,680)
| 452,000 | 411,255 | 175,000 | 158,575

10.Earnings per share
Earnings per share is based on the net profit for the year divided by the weighted average number of ordinary shares in issue during the year.

| Consolidated
| 2024 | 2023
| € | €
Net loss attributable to shareholders | (598,000) | 182,080
Weighted average number of ordinary shares in issue | 24,102,049 | 24,102,049
Earnings per share (cents) | (2c) | 0c

11.Dividends
The Directors of the Group do not recommend the payment of a dividend for 2024. No dividend was paid in 2023.
Notes to the financial statements (continued)
133
LifeStar Holding p.l.c. – Annual Financial Report 2024
12.Intangible assets

|  | Consolidated
| Goodwill | Value of in-force business | Computer software | Passporting asset | Total
| € | € | € | € | €
Year ended 31 December 2024 |  |  |  |  |
Opening carrying amount | 311,541 | - | 3,025,231 | 253,254 | 3,590,026
Additions | - | - | 1,278,283 | 206,876 | 1,485,159
Reclassification to other assets | - | - | (137,142) | - | (137,142)
Impairment recovery | - | - | (303,611) | - | (303,611)
Amortisation charge (Note 6) | - | - | (504,101) | - | (504,101)
Closing carrying amount | 311,541 | - | 3,358,660 | 460,130 | 4,130,331
At 31 December 2024 |  |  |  |  |
Cost or valuation | 311,541 | - | 6,177,182 | 460,141 | 6,948,864
Accumulated amortisation | - | - | (2,514,922) | - | (2,514,922)
Accumulated impairment | - | - | (303,611) | - | (303,611)
Carrying amount | 311,541 | - | 3,358,649 | 460,141 | 4,130,331

|  | Consolidated
| Goodwill | Value of in-force business | Computer software | Passporting asset | Total
| € | € | € | € | €
Year ended 31 December 202 3 |  |  |  |  |
Opening carrying amount | 311,541 | - | 2,138,927 | 221,102 | 2,671,570
Additions | - | - | 1,126,177 | 32,152 | 1,158,329
Reclassification | - | - | - | - | -
Impairment recovery | - | - | - | - | -
Amortisation charge (Note 6) | - | - | (239,873) | - | (239,873)
Closing carrying amount | 311,541 | - | 3,025,231 | 253,254 | 3,590,026
At 31 December 202 3 |  |  |  |  |
Cost or valuation | 311,541 | - | 5,169,974 | 253,254 | 5,734,769
Accumulated amortisation | - | - | (2,144,743) | - | (2,144,743)
Carrying amount | 311,541 | - | 3,025,231 | 253,254 | 3,590,026

Amortisation of computer software amounting to €504,101 (2023: €239,874) is included in expenses by nature (Note 6).
Computer software relates to the Group’s policy administration system. The carrying amount of the software is €3,356,880 (2023: €3,025,231) will be fully amortised in 5 years (2023: 6 years).
Notes to the financial statements (continued)
134
LifeStar Holding p.l.c. – Annual Financial Report 2024
12.Deferred income tax
Deferred taxes are calculated on temporary differences under the balance sheet liability method using a principal tax rate ranging between 8% and 35% (2023: 8% and 35%). In particular, temporary differences on investment properties situated in Malta that have been owned by the Group since 1 January 2004 are calculated under the liability method using a principal tax rate of 8% of the carrying amount, while investment properties situated in Malta that had been acquired by the Group before 1 January 2004 are calculated under the liability method using a principal tax rate of 10% of the carrying amount. Deferred tax on temporary differences on investment properties situated outside Malta has been calculated based on tax rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off a current tax asset against a current tax liability and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Notes to the financial statements (continued)
135
LifeStar Holding p.l.c. – Annual Financial Report 2024
13.Deferred income tax (continued)
The movement on the deferred tax asset account is as follows:

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
At beginning of year | 1,475,265 | 1,645,016
Reclassified to deferred tax liability | (82,326) | (60,328)
Other movement | 285 | -
Deferred tax (credit)/charge | 312,744 | (109,423)
At end of year | 1,705,968 | 1,475,265

Deferred income taxes are calculated on temporary differences under the liability method using a principal tax rate of 35% (2023: 35%).
The movement on the deferred tax liability account is as follows:

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
At the beginning of the year | 2,250,821 | 2,220,603
Reclassified to deferred tax asset | (82,326) | (60,328)
Debited to profit and loss account | 204,983 | 90,546
At end of the year | 2,373,478 | 2,250,821

Notes to the financial statements (continued)
136
LifeStar Holding p.l.c. – Annual Financial Report 2024
13.Deferred income tax (continued)
The net deferred taxation at the year-end comprises the following temporary differences:

| Consolidated
| 2024 | 2023
| € | €
Fair value losses on investments | 908,336 | 902,277
Property, plant and equipment | 181,255 | 48,627
Investment property | (1,897,933) | (2,070,724)
Investment property to PPE | (324,586) | (151,795)
Leases recognises under IFRS 16 | (35,744) | (19,280)
Unutilised tax losses and capital allowances | 616,377 | 500,312
Others | (115,215) | 15,027
Net deferred income tax liability | (667,510) | (775,556)

The directors consider that the above temporary differences are substantially non-current in nature.
Notes to the financial statements (continued)
137
LifeStar Holding p.l.c. – Annual Financial Report 2024
14.Property, plant and equipment

| Consolidated
| Land and buildings | Office furniture, fittings and equipment | At end of year
| € | € | €
Year ended 31 December 2024 |  |  |
Opening carrying amount | 3,535,243 | 63,384 | 3,598,627
Additions | 121,597 | 55,335 | 176,932
Transfer from investment property | 2,137,892 | - | 2,137,892
Depreciation charge (Note 6) | (139,984) | (38,214) | (178,198)
Closing carrying amount | 5,654,748 | 80,505 | 5,735,253
At 31 December 2024 |  |  |
Cost | 6,468,286 | 1,889,346 | 8,357,632
Accumulated depreciation | (813,538) | (1,808,841) | (2,622,379)
Carrying amount | 5,654,748 | 80,505 | 5,735,253
Year ended 31 December 2023 |  |  |
Opening carrying amount | 3,577,102 | 46,851 | 3,623,953
Additions | 10,856 | 51,499 | 62,355
Revaluation for the year | 44,292 | - | 44,292
Depreciation charge (Note 6) | (97,007) | (34,966) | (131,973)
Closing carrying amount | 3,535,243 | 63,384 | 3,598,627
At 31 December 2023 |  |  |
Cost | 4,208,800 | 1,834,011 | 6,042,811
Accumulated depreciation | (673,557) | (1,770,627) | (2,444,184)
Carrying amount | 3,535,243 | 63,384 | 3,598,627

Notes to the financial statements (continued)
138
LifeStar Holding p.l.c. – Annual Financial Report 2024
14.Property, plant and equipment (continued)
€2,033,838 (2023: €1,839,366) worth of office furniture, fittings and equipment assets are fully depreciated but still in use.
Holding Company
Office furniture, fittings and equipment
€
At 31 December 2024
Cost
114,279
Accumulated depreciation
(114,279)
Carrying amount
-
Year ended 31 December 2023
Opening carrying amount
-
Depreciation charge (note 6)
-
Closing carrying amount
-
At 31 December 2023
Cost
114,279
Accumulated depreciation
(114,279)
Carrying amount
-
Notes to the financial statements (continued)
139
LifeStar Holding p.l.c. – Annual Financial Report 2024
15.Investment property

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
Opening net book amount | 24,350,199 | 24,008,721
Additions | 8,035 | -
Reclassification to property, plant and equipment | (2,137,892) | -
Impairment | (14,223) | -
Net fair value gains | (21,999) | 341,478
At end of year | 22,184,120 | 24,350,199
At 31 December |  |
Cost | 9,751,255 | 11,881,112
Accumulated fair value gains | 12,432,865 | 12,469,087
Net book amount | 22,184,120 | 24,350,199

Details about the Group’s investment properties, including those classified as assets held-for-sale, and information about the fair value hierarchy at 31 December 2024 and 2023 are as follows:

| Fair value measurement at end of the reporting period using:
| Level 1 | Level 2 | Level 3 | Total
| € | € | € | €
2024 |  |  |  |
Investment property: |  |  |  |
Local property | - | - | 13,691,547 | 13,691,547
Foreign property | - | - | 8,492,573 | 8,492,573
Total | - | - | 22,184,120 | 22,184,120

| Fair value measurement at end of the reporting period using:
| Level 1 | Level 2 | Level 3 | Total
| € | € | € | €
2023 |  |  |  |
Investment property: |  |  |  |
Local property | - | - | 15,851,439 | 15,851,439
Foreign property | - | - | 8,498,760 | 8,498,760
Total | - | - | 24,350,199 | 24,350,199

Notes to the financial statements (continued)
140
LifeStar Holding p.l.c. – Annual Financial Report 2024
15.Investment property (continued)
In estimating the fair value of the properties, the highest and best use of the properties is their current use. In accordance with the Group's accounting policy, the valuation of investment properties is assessed by the Board of Directors at the end of every reporting period. An impairment charge was approved by the Board of Directors and debited to profit or loss and is presented within ‘Investment return and fair value movements’. During 2024, the Group did not obtain any valuations from an independent professionally qualified valuer.
During 2024, investment property amounting to €2,137,892 has been reclassified to property, plant and equipment to be used for own use.
During 2023, the Group revalued its investment property on the basis of valuations obtained from an independent professionally qualified valuer. The fair value movements in relation to investment property during 2023 were credited to profit or loss and are presented within ‘Investment return and fair value movements’. Fair value movements in relation to property classified for “own use” were credited to Other Comprehensive Income.
The table below includes further information about the Group’s Level 3 fair value measurements for local properties:

2024/2023 | Significant unobservable input | Narrative sensitivity
Local properties | Rental value per square metre, ranging from €200 to €400 (2023: €150 to €400) | The higher the price per square metre, the higher the fair value
| Rent growth of 5% (2023: 2.85%) per annum | The higher the rent growth, the higher the fair value
| Discount rate of 3.01% (2023: 5.55%) | The higher the discount rate, the lower the fair value
Foreign property – Croatia | Value per square metre of €166 (2023: €166) | The higher the price per square metre, the higher the fair value

The Group’s investment property portfolio also includes a property of an exceptional nature – a Baronial castle situated outside of Rome, which accounts for 5.4% (2023: 5.4%) of the Group’s total assets. The specialised nature of this property makes such an assessment particularly judgmental. A psrofessional valuation of the property was obtained in 2023 to provide the most probable market value of the asset on an ‘as is’ basis taking cognisance of the building’s physical condition, facilities and components. The 2024 valuation is based on an average value per square metre of €3,503 (2023: €3,503) based on a sales comparison approach.
The values proposed by the various valuation experts over the last 9 years varied materially from each other resulting in a wide range of possible estimates. This highlights the significance of the judgements involved in estimating the fair value of this property as well as the subjectivity of each valuation. The Directors resolved to maintain the carrying value of this property towards the lower end of this range.
Notes to the financial statements (continued)
141
LifeStar Holding p.l.c. – Annual Financial Report 2024
15.Investment property (continued)
Local property
Foreign property
Total
€
€
€
Year ended 31 December 2024
At the beginning of the year
15,851,439
8,498,760
24,350,199
Property reclassified to property, plant and equipment
(2,137,892)
-
(2,137,892)
Impairment
-
(14,223)
(14,223)
Additions
-
8,035
8,035
Fair value gains
(21,999)
-
(21,999)
At end of year
13,691,548
8,492,572
22,184,120

| Local property | Foreign property | Total
| € | € | €
Year ended 31 December 2023 |  |  |
At the beginning of the year | 15,835,730 | 8,172,991 | 24,008,721
Property reclassified to property, plant and equipment | - | - | -
Impairment | - | - | -
Additions | - | - | -
Fair value gains | 15,709 | 325,769 | 341,478
At end of year | 15,851,439 | 8,498,760 | 24,350,199

Operating leases relate to the investment property owned by the Group with lease terms of between 1 to 5 years. The lessee does not have an option to purchase the property at the expiry of the lease period. The rental income earned, under operating leases, amounted to €149,760 (2023: €249,393).
Notes to the financial statements (continued)
142
LifeStar Holding p.l.c. – Annual Financial Report 2024
16.Investments in group undertakings
The principal group undertakings at 31 December are shown below:

Group undertakings | Registered office | Principal place of business | Class of shares held | Percentage of shares held
|  |  |  | 2024 | 2023
Central Landmark Development Limited | Testaferrata Street, Ta’ Xbiex Malta | Malta | Ordinary shares | 100% | 100%
Global Estates Limited | Testaferrata Street, Ta’ Xbiex Malta | Malta | Ordinary ‘A’ shares | 100% | 100%
Global Properties Limited (Međunarodne Nekretnine d.o.o.) | 26/A/3 Gunduliceva, Split Croatia | Croatia | Ordinary shares | 100% | 100%
GlobalCapital Financial Management Limited * | Testaferrata Street, Ta’ Xbiex Malta | Malta | Ordinary shares | 100% | 100%
LifeStar Health Limited* | Testaferrata Street, Ta’ Xbiex Malta | Malta | Ordinary ‘A’ shares | 74% | 74%
LifeStar Insurance plc * | Testaferrata Street, Ta’ Xbiex Malta | Malta | Ordinary shares | 74% | 74%
Quadrant Italia S.R.L. | Via Bruxelles 34 Cap 00100 Rome RM Italy | Italy | Ordinary shares | 100% | 100%

* The distribution of dividends by these subsidiary undertakings may be restricted by the solvency requirements of relevant legislation, mainly the Insurance Business Act (Cap. 403 of the Laws of Malta), the Insurance Distribution Act (Cap. 487 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta) and any ad hoc specific notifications by the regulator to the marked regulated entities.
Notes to the financial statements (continued)
143
LifeStar Holding p.l.c. – Annual Financial Report 2024
16.Investments in group undertakings (continued)

| Holding Company
| 2024 | 2023
| € | €
Fair value |  |
Opening cost and net book amount | 24,451,978 | 24,616,588
Increase/(decrease) in fair value | (1,976,142) | (164,610)
Closing net books amount | 22,475,836 | 24,451,978

The fair value of the Group’s investments is determined on the basis of the net assets of the underlying companies as disclosed below. As from the year ending 31 December 2023, the fair value of the Group’s shares in LifeStar Insurance plc is determined on the basis of the quoted prices for those shares.

| Capital and reserves
| 2024 | 2023 (restated)
| € | €
Central Landmark Development Limited | (312,380) | (299,358)
Global Estates Limited | (25,804) | (21,080)
Global Properties Limited (Međunarodne Nekretnine d.o.o.) | 247,642 | 250,186
GlobalCapital Financial Management Limited | 443,154 | 401,151
LifeStar Insurance plc sub-group * | 24,363,644 | 24,990,008
Quadrant Italia S.R.L. | (466,337) | 89,646

| Profit/(loss)
| 2024 | 2023 (restated)
| € | €
Central Landmark Development Limited | (13,023) | (13,932)
Global Estates Limited | (4,725) | (6,006)
Global Properties Limited (Međunarodne Nekretnine d.o.o.) | 2,544 | 105,859
GlobalCapital Financial Management Limited | 42,044 | (126,067)
LifeStar Insurance plc. sub-group | (626,364) | 218,770
Quadrant Italia S.R.L. | (555,984) | (324,466)

Notes to the financial statements (continued)
144
LifeStar Holding p.l.c. – Annual Financial Report 2024
16.Investments in group undertakings (continued)
In 2022, LifeStar Insurance plc was listed on Malta Stock Exchange. The quoted price of its shares at 31 December 2024 was €0.47 per share (31 December 2023: €0.50 per share). The total amount of the investment in LifeStar Insurance plc amounts to €22,589,547 (31 December 2023: €24,031,425).
17.Other investments
The Group’s investments are summarised by measurement category in the table below:

| Consolidated
| 2024 | 2023
| € | €
Financial assets mandatorily at FVTPL | 90,676,116 | 76,423,665
Financial assets designated at FVTPL | 14,301,522 | 17,419,620
Loans and receivables | 3,298,503 | 3,134,171
Term deposits | 300,000 | -
Total investments | 108,576,141 | 96,977,456

(a)Investments at fair value through profit or loss

| Consolidated
| 2024 | 2023
| € | €
Equity securities and units in unit trusts: |  |
Listed shares | 21,024,952 | 25,809,379
Unlisted investments | 3,242,035 | 3,167,506
Collective investment schemes | 752,553 | 755,460
| 25,019,540 | 29,732,345
Assets held to cover linked liabilities: |  |
Collective investment schemes | 65,656,576 | 46,691,320

| Consolidated
| 2024 | 2023
| € | €
Debt securities - fixed interest rate: |  |
Government bonds | 7,696,531 | 9,643,160
Corporate bonds | 6,604,991 | 7,776,460
| 14,301,522 | 17,419,620
Total investments at fair value through profit or loss | 104,977,638 | 93,843,285

Notes to the financial statements (continued)
145
LifeStar Holding p.l.c. – Annual Financial Report 2024
17.Other investments (continued)
(a)Investments at fair value through profit or loss (continued)
Maturity of fixed income debt securities classified as fair value through profit or loss.

| Consolidated
| 2024 | 2023
| € | €
Within 1 year | 263,115 | 154,042
Between 1 and 2 years | 2,930,011 | 731,994
Between 2 and 5 years | 5,622,666 | 7,392,533
Over 5 years | 5,485,730 | 9,141,051
| 14,301,522 | 17,419,620

Consolidated and Holding Company
%
%
Weighted average effective interest rate at the balance sheet date
5
6
All other securities classified at fair value through profit or loss are non-current in nature.
The movements in investments classified at fair value through profit or loss are summarised as follows:

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
Balance at 1 January | 93,843,285 | 77,980,898
Impact on initial application of IFRS 9 | - | 4,835,730
Additions | 14,434,840 | 18,033,405
Disposals | (3,110,927) | (7,652,240)
Net fair value and foreign exchange movements | (189,560) | 645,492
Balance at 31 December | 104,977,638 | 93,843,285
At 31 December |  |
Cost | 98,138,588 | 86,814,675
Accumulated fair value and foreign exchange gains | 6,839,050 | 7,028,610
Net book amount | 104,977,638 | 93,843,285

Notes to the financial statements (continued)
146
LifeStar Holding p.l.c. – Annual Financial Report 2024
17.Other investments (continued)
(a)Investments at fair value through profit or loss (continued)
The table below analyses debt securities classified at fair value through profit or loss by sector:

| Consolidated
| 2024 | 2023
| € | €
Banks | 1,139,478 | 1,441,156
Energy | 2,453,972 | 2,930,104
Government | 7,696,532 | 9,643,160
Other | 3,011,540 | 3,405,200
| 14,301,522 | 17,419,620

(b)Loans and receivables

| Consolidated
| 2024 | 2023
| € | €
Loans secured on policies | 22,487 | 8,451
Other loans and receivables | 3,276,016 | 3,125,720
| 3,298,503 | 3,134,171

Loans secured on policies are substantially non-current in nature. Other loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those that the Group intends to sell in the short term. They are charged with interest at the rate of 12% (2023: 12%) per annum. The movements of loans and receivables are summarised as follows:

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
Balance at 1 January | 3,134,171 | 3,112,576
Additions | 14,036 | 63,013
Amortisation of premium | - | (24,340)
Provision for impairment | - | (17,078)
Foreign exchange movement | 150,296 | -
Balance at 31 December | 3,298,503 | 3,134,171

Notes to the financial statements (continued)
147
LifeStar Holding p.l.c. – Annual Financial Report 2024
17.Other investments (continued)
(c)Term Deposits

| Consolidated
| 2024 | 2023
| € | €
Loans secured on policies | 300,000 | -
| 300,000 | -

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
Balance at 1 January | - | -
Additions | 400,000 | -
Disposals | (100,000) | -
Balance at 31 December | 300,000 | -

Bank term deposits earn average interest of 7.75% per annum (2023:Nil). As at year end, their carrying amount approximated its fair value.
(d)Unlisted investments
At 31 December 2024, included with unlisted investments (Note 17(a)) and loans and receivables (Note 17(b)) are amounts of € 3,242,035 and € 3,276,016 respectively, relating to investments made in previous years by the Group in three securitisation vehicles (SVs) registered in Luxembourg. The Group’s investments are backed by investments which the SVs made in a UK data centre and in a biomass project in Brazil.
The Group has two loan notes titled Stellium Equity Notes and Stellium Credit Notes (the “Stellium Notes”), totalling £4.2 million which matured on 31 July 2024 and 31 August 2024 respectively, which have been extended for the reasons explained below. These loan notes form part of a wider £ 30 million funding arrangement for a fintech startup business, Stellium Datacentres Limited (UK Registration No 10028824), located in Newcastle UK.
The principal holders of the loan notes are Apex Group Nominees 1 (UK) Limited acting as trustee on behalf of the ultimate controlling parties Tiger Infrastructure Associates GP II and Tiger Infrastructure GP II (Europe).
Eram Capital Advisors Luxembourg (“Eram”), in their capacity as the Calculation Agent, Advisor and Alternative Asset Manager of the SVs linked to the Stellium Notes, confirmed to the Group that a sales process is underway for the sale of Stellium Holding Limited and that the sales process is being conducted by Rothschilds. It is expected that the sales process will be completed by the end of 2025, but there is no certainty that this will be completed. Eram has also confirmed that LifeStar’s held notes are valued at par as at 31 December 2024.
On the basis of the above, the Directors are of the opinion that given the limited information that is available due to the sales process that is underway, and on the strength of the confirmations received from Eram as the Calculation Agent of the SVs, the Stellium Notes are to continue being carried at their face value in these financial statements. However, the outcome of the sales process is not certain and consequently, should this not materialize, part or all of the value of these investments may have to be impaired.
Notes to the financial statements (continued)
148
LifeStar Holding p.l.c. – Annual Financial Report 2024
17.Other investments (continued)
(d)Unlisted investments (continued)
Eram Capital Advisors Luxembourg (“Eram”), in their capacity as the Calculation Agent, Advisor and Alternative Asset Manager, to these respective notes advised us that a sales process is underway for the sale of Stellium Holding Limited and the sales process is being conducted by Rothschilds. Eram has confirmed that LifeStar’s held notes should be valued at par as at 31 December 2024. We are of the opinion, given the limited information available due to the sales process, that this the most prudent approach and have reflected such value in these financial statements. It is expected that the sales process will be completed by end 2025. There is certain uncertainty on the outcome of the sales process which cannot be ascertained or quantified which could have a positive or negative effect on the final valuation and redemption.
18.Other assets

| Consolidated
| 2024 | 2023
| € | €
Year ended 31 December |  |
Balance at 1 January | - | -
Additions | 61,538 | -
Reclassification from intangible assets | 137,142 | -
Balance at 31 December | 198,680 | -

Notes to the financial statements (continued)
149
LifeStar Holding p.l.c. – Annual Financial Report 2024
19.Receivables, prepayments and accrued income

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Receivables arising out of direct insurance operations: |  |  |  |
Amounts due from ultimate parent | 286,142 | 280,547 | 286,142 | 280,547
Amount receivable from subsidiary (Note iii) | - | - | 2,144,613 | 1,735,256
Amounts receivable by shareholder | 130,855 | 72,466 | 130,855 | 72,466
Other receivables (Note iv) | 1,036,758 | 855,257 | 45,656 | 34,626
| 1,453,755 | 1,208,270 | 2,607,266 | 2,122,895
Prepayments and accrued income: |  |  |  |
-Prepayments | 217,940 | 550,171 | 16,485 | 46,195
-Accrued income | 1,956,541 | 1,889,963 | - | -
Deposits | 394,743 | - | - | -
| 2,569,224 | 2,440,134 | 16,485 | 46,195
Total trade and other receivables | 4,022,979 | 3,648,404 | 2,623,751 | 2,169,090

i.Interest-bearing automatic premium loans are classified as investments in Note 22 to the financial statements.
ii.Amounts receivable from Parent Group are unsecured and interest free. The loans in question have been approved by the Malta Financial Services Authority.
iii.Amounts due from subsidiaries are unsecured and interest-free. These balances are payable on demand except for amounts amounting to €551,230.
iv.Other receivables are unsecured, interest-free and repayable on demand. They are stated net of provision for impairment of €30,041 (2023: €30,041). A movement of Nil (2023: €21,991) is included in the statement of comprehensive income within administrative and other expenses. An amount of €110,618 represents receivables written off during the current year (2023: Nil).
There are no other material past due amounts in trade and other receivables.
All of the above amounts are current in nature.
Notes to the financial statements (continued)
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20.Share capital

| 2024 | 2023
| € | €
Authorised: |  |
2024: 200,000,000 (2023: 200,000,000) ordinary shares of €0.291172 each | 58,234,400 | 58,234,400
Issued and fully paid: |  |
2024: 24,102,049 (2023: 24,102,049) ordinary shares of €0.291172 each | 7,017,842 | 7,017,842

Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares or additional debt or sell assets to reduce debt.
The Directors consider that capital management is of particular relevance in the areas of the Group that are subject to regulatory supervision.
LifeStar Insurance plc, which is authorised by the Malta Financial Services Authority to carry out long term business of insurance, is required to hold regulatory capital to support its long-term insurance business as determined in accordance with Insurance Rule 5 issued by the Malta Financial Services Authority.
The capital of GlobalCapital Financial Management Limited is regulated by rules issued under the Investment Services Act and by the Financial Institutions Act.
The capital of LifeStar Health Limited is regulated by rules issued under the Insurance Distribution Act.
The above regulations set out the required minimum capital that must be maintained at all times throughout the year. Each Group monitors capital on a regular basis through detailed reports compiled with management accounts. Such reports are circulated to senior management. Any transactions that may potentially affect a Group’s regulatory position are immediately reported to the Directors for resolution prior to notifying the Malta Financial Services Authority.
At both year-ends, LifeStar Health Limited and GlobalCapital Financial Management Limited satisfied the own funds requirements. Moreover, LifeStar Insurance plc. is sufficiently capitalised and was compliant at all times in line with the Solvency II requirements.
Notes to the financial statements (continued)
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20.Share capital (continued)
Capital management (continued)
With respect to GlobalCapital Financial Management Limited, the Group is required to hold capital resource requirements in compliance with the rules issued by the Malta Financial Services Authority. These minimum capital requirements (defined as “the capital resource requirements”) must always be maintained throughout the year. The Group monitors its capital level on a quarterly basis through detailed reports compiled with management accounts. Any transactions that may potentially affect the Group’s regulatory position are immediately reported to the directors for resolution prior to notifying the Malta Financial Services Authority. During 2020 the shareholder contributed €703,421 by means of a shareholder’s loan and €504,000 by means of a shareholder’s contribution. In 2023, the shareholder has reclassified amounts receivable of €200,000 to the shareholder’s loan. The shareholder’s loan is unsecured, interest free, repayable at the discretion of the Group and has no fixed repayment date. These have not as yet been approved by the Malta Financial Services Authority (MFSA).
Non-regulated entities are financed by items presented within equity in the statement of financial position and long-term borrowings.
On 4 May 2021 the LifeStar Insurance plc issued an offer for sale of 18,518,519 of its ordinary shares at an offer price of €0.54 per share (‘the Share Offer’) and the offer of 6,570,000 ordinary shares to its shareholders in exchange for their ordinary shares in LifeStar Holding plc at an exchange ratio of 1 LifeStar Holding plc share to 1 of its shares (‘the Exchange Offer). Of the Share Offer, 10,854,000 shares (for a total value of €5,861,160) were received by LifeStar Insurance plc whilst 5,897,951 shares from the Exchange offer (for a total value of €3,184,894) were received by the insurance Group.
Notes to the financial statements (continued)
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21.Other reserves

| Other unrealised gains | Investment compensation scheme | Property revaluation reserve | Total
| € | € | € | €
Year ended 31 December 2023 | 107,947 | 8,162 | 906,800 | 1,022,909
Fair value movements - gross | - | - | - | -
Fair value movements – tax | - | - | - | -
Revaluation of property, plant and equipment | - | - | - | -
Year ended 31 December 2024 | 107,947 | 8,162 | 906,800 | 1,022,909

| Other unrealised gains | Investment compensation scheme | Property revaluation reserve | Total
| € | € | € | €
Year ended 31 December 2022 | 107,947 | 8,162 | 862,508 | 978,617
Revaluation of property, plant and equipment | - | - | 44,292 | 44,292
Year ended 31 December 2023 | 107,947 | 8,162 | 906,800 | 1,022,909

The above reserves are not distributable.
The property revaluation reserve represents the difference between the carrying amount of the property and its fair value at the date when the Directors has reassessed its used from an owner-occupied one to a property held to earn rentals or for capital appreciation.
The Investor Compensation scheme reserve represents to the required amount to be kept by the Group in relation to the Investor Compensation scheme regulations, 2013. Funds in this reserve were deposited in an interest-bearing bank account.
Notes to the financial statements (continued)
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22.Interest-bearing borrowings

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
5% bonds 2021 (note i) | 60,349 | 55,799 | 60,349 | 55,779
4% Unsecured Subordinated Bonds Due 2026 – 2031 (note iii) | 2,221,035 | 2,182,945 | - | -
Bank loan (Note ii) | 961,483 | 1,528,665 | 961,483 | 1,528,665
Loan from shareholder | 38,597 | 38,597 | 38,597 | 38,597
Loan from subsidiary | - | - | 7,128,313 | 7,102,274
Total borrowings | 3,281,464 | 3,806,006 | 8,188,742 | 8,725,315

(i)During 2016, by virtue of the offering memorandum dated 12 May 2016, the Group issued for subscription to the general public €10,000,000 bonds. The bonds were unsecured and were effectively issued on 8 June 2016 at the bond offer price of €100 per bond.
The bonds were subject to a fixed interest rate of 5.0% per annum payable yearly on 2 June.
All bonds were redeemed at par during June 2021.
The bond is disclosed at the value of the proceeds less the net book amount of the issue costs as follows:

| Consolidated
| 2024 | 2023
| € | €
Proceeds |  |
€10,000,000, 5% bonds 2021 | 10,000,000 | 10,000,000
Less: |  |
Issue cost | 321,519 | 321,519
Accumulated amortisation | (321,519) | (321,519)
| 10,000,000 | 10,000,000
Payment | (9,939,651) | (9,944,221)
| 60,349 | 55,779

Notes to the financial statements (continued)
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22.Interest-bearing borrowings (continued)
(ii)During 2020, the Group and Company entered into a loan agreement with BOV, pursuant to which it borrowed an amount of €3 million from BOV. This loan benefits from the support of the Malta Development Bank through the provision of a bank guarantee under the COVID-19 Loan Guarantee Scheme.
The loan is subject to a fixed rate of 2.5% for the first two years, increasing to 3% over the Base Rate of the Bank for the following six years.
The loan is guaranteed by a general hypothec issued by the Group, by a personal guarantee issued by Prof Paolo Catalfamo and by a corporate guarantee issued by LifeStar Insurance plc.
The following table sets out a maturity analysis of loan payments, to be paid after the reporting date.

| Consolidated and Holding Company
| 2024 | 2023
| € | €
Less than one year | 570,961 | 553,996
One to two years | 354,833 | 570,961
Two to three years | - | 403,708
Three to four years | - | -
Four to six years | - | -
| 925,794 | 1,528,665

(iii)In May 2021, LifeStar Insurance plc issued 100,000 4% unsecured subordinated bonds of a nominal value of €100 per bond. A total of 24,313 Subordinated Bonds (for a total value of €2,431,300) were received by the Group.
The bonds are redeemable at their nominal value on 2 June 2031, unless redeemed early on any interest payment date in the year 2026 and 2031.
Interest on the bonds is due and payable annually on 2 June of each year.
The bonds are listed on the Official List of the Malta Stock Exchange. The carrying amount of the bonds is net of direct issue costs of €222,599 (2023: €253,597) which are being amortised over the life of the bonds. The market value of debt securities on the last trading day before the statement of financial position date was €2,431,000 (2023: €2,431,000).
Notes to the financial statements (continued)
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23.Payables, accruals and deferred income

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Trade payables | 2,092,264 | 1,072,550 | 1,874,765 | 1,072,550
Statutory liabilities | 187,353 | 342,878 | 187,353 | 342,878
Other payables | 159,266 | 774,835 | - | -
Amount owed to group undertakings | - | - | 600,460 | 600,460
| 2,438,883 | 2,190,263 | 2,662,578 | 2,015,888
Accruals and deferred income |  |  |  |
-Accruals | 740,880 | 1,118,183 | 81,534 | 591,176
-Deferred income | 56,220 | 30,638 | - | -
-Interest on related party loan | - | - | 967,194 | 705,020
-Bond interest accrued | 43,223 | 88,875 | 32,650 | 32,650
-Provisions | 291,720 | 310,331 | - | -
| 1,132,043 | 1,548,027 | 1,081,378 | 1,328,846
Total trade and other payables | 3,570,926 | 3,738,290 | 3,743,956 | 3,344,734

All of the above amounts are payable within one year.
Trade and other payables include outstanding court and arbitration cases against GlobalCapital Financial Management Limited. During the year, GlobalCapital Financial Management Limited recorded a reversal on provision of €413,354 (2023: provision expense of €33,744). Client claims settlement amounted to €352,780 (2023: €113,389) resulting to a new provision income of €60,574 (2023: expense of €147,133).
Notes to the financial statements (continued)
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24.Cash generated from operations
Reconciliation of profit before tax to cash generated from operations:

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
|  | (Restated) |  |
| € | € | € | €
Cash flows generated from/(used in) operating activities |  |  |  |
Loss before tax | (912,224) | (36,809) | (1,396,591) | (510,873)
Adjustments for: |  |  |  |
Amortisation on computer software (Note 12) | 504,101 | 239,874 | - | -
Reversal of amortisation of lease | 122,867 | 121,166 | 114,796 | 114,789
Depreciation of property, plant and equipment (Note 14) | 178,198 | 131,973 | - | -
Interest on finance lease | 8,061 | 13,600 | 7,818 | 13,212
Net fair value movement on investment property (Note 15) | 36,222 | (341,478) | - | -
Reversal of fair value gains on investments in group undertakings | - | - | 1,976,142 | 164,609
Amortisation of premium and net impairment – Other investments (Note 17) | - | 41,418 | - | 41,418
Provision for impairment / (reversal of provision) – Loans and Receivables (Note 17) | - | 21,991 | - | -
Net fair value & FX movement on FVTPL investments (Note 17) | 438,681 | (645,452) | - | -
Movement of provisions | (60,574) | 32,809 | - | -
Interest income (Note 4) | (917,761) | (1,127,802) | - | -
Interest incurred (Note 6) | 97,252 | 97,252 | - | -
Dividend income (Note 4) | (785,185) | (589,706) | - | -
Impairment loss on available for sale equity instruments | - | (252,677) | - | -
Impairment on other equity measured at cost (Note 17) | - | - | - | -

Notes to the financial statements (continued)
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24.Cash generated from operations (continued)

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Impairment/(Recovery of impairment) on intangible assets (Note 12) | - | - | - | -
Net fair value & FX movement on AFS investments (Note 17) | - | - | - | -
Foreign exchange movement on other equity measured at cost (Note 17) | - | - | - | -
Amortisation of bond issue costs | 35,544 | - | - | -
Bad debts written off | 110,618 | - | - | -
Impairment of intangible assets | 303,611 |  |  |
Movement in: |  |  |  |
-Insurance and reinsurance contracts | 9,477,121 | 8,019,821 | - | -
-Trade and other receivables | (231,982) | (294,589) | (645,164) | 9,470
-Trade and other payables | (108,024) | 700,045 | 399,216 | 816,199
-Investment contract liabilities | 1,913,953 | 1,368,651 | - | -
Cash flows generated from operations | 10,210,479 | 7,500,087 | 456,217 | 648,824

25.Cash and cash equivalents
For the purposes of the statement of cash flows, the year-end cash and cash equivalents comprise the following:

| Consolidated | Holding Company
| 2024 | 2023 | 2024 | 2023
| € | € | € | €
Cash at bank and on hand | 2,196,194 | 5,650,437 | 244,405 | 424,810

Cash at bank earns interest on current deposits at floating rates.
Notes to the financial statements (continued)
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26.Fair values of financial assets and financial liabilities
The following table presents the assets measured in the statements of financial position at fair value by level of the following fair value measurement hierarchy at 31 December 2024 and 31 December 2023:
-Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
-Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilities, either directly (that is, as prices) or indirectly (that is, derived from prices (Level 2); and
-Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs (Level 3).
The group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
The following table presents the assets and liabilities measured at fair value at 31 December 2024.

| Fair value measurement at end of the reporting period using:
| Level 1 | Level 2 | Level 3 | Total
| € | € | € | €
2024 |  |  |  |
Assets |  |  |  |
Other Investments: |  |  |  |
Financial assets at fair value through profit or loss | 36,174,203 | 65,561,400 | 3,242,035 | 104,977,638
Financial assets at fair value through amortised cost | - | 322,487 | 3,276,016 | 3,598,503
Total | 36,174,203 | 65,883,887 | 6,518,051 | 108,576,141
Liabilities |  |  |  |
Unit linked financial instruments | - | 8,619,624 | - | 8,619,624
2,525,633 – MDB – BOV loan | - | 916,794 | - | 916,794
4% unsecured subordinated bonds due 2026 - 2031 | - | 2,431,300 | - | 2,431,300
| - | 11,967,718 | - | 11,967,718

At 31 December 2024 and 2023 the carrying amounts of financial assets and current financial liabilities approximated their fair values except for investment contracts with DPF. It is impracticable to determine the fair value of equity investment and the investment contracts with DPF due to the lack of a reliable basis to measure the future discretionary return that is a material feature of these contracts.
Included in Level 3 investments for the years ended 31 December 2024 and 2023 are the Stellium Notes. Note 17 (d) explains the directors’ assessment of the value of these notes..
Notes to the financial statements (continued)
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26.Fair values of financial assets and financial liabilities (continued)

Fair value measurement at end of the reporting period using:Level 1 Level 2 Level 3 Total€€€2023 Assets Other Investments:Financial assets at fair value through profit or loss 43,996,298 46,691,321 3,155,666 93,843,285 Financial assets at fair value through amortised cost-8,451 3,125,720 3,134,171 Total 43,996,298 46,699,772 6,281,386 96,977,456 Liabilities Unit linked financial instruments-6,705,671-6,705,671 Other payables-942,380-942,380 2,525,633 - MDB-BOV loan-1,528,665-1,528,665 4% unsecured subordinated bonds due 2026 - 2031-2,431,300-2,431,300 Total-11,608,016-11,608,016

27.Related party transactions
Group
Transactions during the year with other related parties were as follows:

| Consolidated
| 2024 | 2023
| € | €
Loan to shareholder | 58,389 | 24,568
Advances to parent company | 5,595 | 77,164

GlobalCapital Financial Management Limited, a group undertaking, used to act as Investment Advisor and Fund Manager to Global Funds SICAV plc prior to the fund’s dissolution. No advisory fees were earned by this group undertaking from its activity as Investment Advisor and Fund Manager. Global Funds SICAV plc used to be considered as a related party by way of key management.
Notes to the financial statements (continued)
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27.Related party transactions (continued)
Group (continued)
Interest payable to related parties is disclosed in note 22. Amounts owed by or to related parties are disclosed in notes 19 and 23 to these financial statements. The terms and conditions of the related party balances do not specify the nature of the consideration to be provided in settlement. No guarantees have been given or received in relation to these balances.
Key management personnel during 2024 and 2023 comprised of the Board of Directors and the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Technical Officer, Chief Compliance Office, Chief of Human Resources and Managing Directors of the Group. Total remuneration paid by the Group to its key management personnel amounted to €977,742 (2023: €900,978).
During 2024, the Group purchased further shares in a company where the main shareholder is also a director.
Company
Transactions during the year with other related parties were as follows:

| Holding Company
| 2024 | 2023
| € | €
Amounts recharged to subsidiaries | 1,424,870 | 715,217
Amounts due from subsidiaries | - | -
Amounts due from ultimate parent company | 280,142 | 280,547
Amounts due from shareholder | 130,855 | 72,466
Amounts due to subsidiaries | 600,400 | 600,460
Loans from subsidiary | 7,128,313 | 7,102,274
Interest on loans | 262,174 | 261,458

In 2023 an amount of €115,000 was owed by a subsidiary and waived during the current year.
Notes to the financial statements (continued)
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28.Leases
Group
(a)Leases as the lessee (IFRS 16)
The Group leases property which generally run for a period of two years with the option to renew. Lease payments are subsequently renegotiated to reflect market rates.
(i)Right-of-use assets
Right-of-use asset related to leased properties that do not meet the definition of investment property are presented as a separate line item on the face of the Statement of Financial Position.

| Consolidated
| Property | Motor Vehicles | Total
| € | € | €
2024 |  |  |
Balance on 1 January | 92,926 | 127,177 | 220,103
Accumulated depreciation | (91,079) | (31,788) | (122,867)
Balance on 31 December | 1,847 | 95,389 | 97,236

Consolidated
Property
Motor Vehicles
Total
€
€
€
2023
Balance on 1 January
167,531
-
167,531
Additions
14,772
158,966
173,738
Accumulated depreciation
(89,377)
(31,789)
(121,166)
Balance on 31 December
92,926
127,177
220,103
Notes to the financial statements (continued)
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28.Leases (continued)
Group (continued)
(a)Leases as the lessee (IFRS 16) (continued)
(ii)Amounts recognised in profit or loss
Consolidated
Property
Motor Vehicles
Total
€
€
€
2024
Depreciation of right-of-use asset
91,079
31,788
122,867
Interest expense on lease liabilities
2,234
5,827
8,061

| Consolidated
| Property | Motor Vehicles | Total
| € | € | €
2023 |  |  |
Depreciation of right-of-use asset | 89,377 | 31,789 | 121,166
Interest expense on lease liabilities | 6,303 | 7,297 | 13,600

(iii)Amounts recognised in statement of cash flows

| Consolidated
| 2024 | 2023
| € | €
Total cash outflows for leases | 123,777 | 121,688

(iv)Lease liability
The net value of the lease liability as at 31 December 2024 was €101,886 (2023: €217,602)
(b)Leases as the lessor (IFRS 16)
The Group leases out certain properties. Note 15 sets out information about investment property. The Group has classified these leases as operating leases because they do not transfer substantially all the risks and rewards incidental to the ownership of the assets.
The following table sets out a maturity analysis of lease payments receivable, showing the undiscounted lease payments to be received after the reporting date.
Notes to the financial statements (continued)
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28.Leases (continued)
Group (continued)
(b)Leases as the lessor (IFRS 16) (continued)
Operating leases under IFRS 16

| Consolidated
| 2024 | 2023
| € | €
Less than one year | 72,213 | 146,964
One to two years | - | 81,375
Two to three years | - | 85,443
| 72,213 | 313,782

Company

| Holding Company
| Property | Motor Vehicles | Total
| € | € | €
2024 |  |  |
Balance on 1 January | 83,001 | 127,177 | 210,178
Accumulated depreciation | (83,001) | (31,788) | (114,789)
Balance on 31 December | - | 95,389 | 95,389
| Holding Company
| Property | Motor Vehicles | Total
| € | € | €
2023 |  |  |
Balance on 1 January | 166,001 | - | 166,001
Additions | - | 158,966 | 158,966
Accumulated depreciation | (83,000) | (31,789) | (114,789)
Balance on 31 December | 83,001 | 127,177 | 210,178

Notes to the financial statements (continued)
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28.Leases (continued)
Company (continued)
(i)Amounts recognised in profit or loss
Holding Company
Property
Motor Vehicles
Total
€
€
€
2024
Depreciation of right-of-use asset
83,001
31,788
114,789
Interest expense on lease liabilities
1,991
5,827
7,818
Holding Company
Property
Motor Vehicles
Total
€
€
€
2023
Depreciation of right-of-use asset
83,000
31,789
114,789
Interest expense on lease liabilities
5,915
7,297
13,212
There were no operating lease agreements considered as short-term leases.
(ii)Amounts recognized in statement of cash flows
(a)Operating lease as the lessee (IAS 17)
Holding Company
2024
2023
€
€
Year ended 31 December
Total cash outflows for leases
116,000
116,000
Notes to the financial statements (continued)
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28.Leases (continued)
Company (continued)
(iii)Lease liabilities
Holding Company
Property
Motor Vehicles
Total
€
€
€
2024
Balance on 1 January
78,009
130,135
208,144
Interest on finance lease liability
1,991
5,827
7,818
Repayment of lease liabilities
(80,000)
(36,000)
(116,000)
Balance on 31 December
-
99,962
99,962
Holding Company
Property
Motor Vehicles
Total
€
€
€
2023
Balance on 1 January
152,094
-
152,094
Additions
-
158,838
158,838
Interest on finance lease liability
5,915
7,297
13,212
Repayment of lease liabilities
(80,000)
(36,000)
(116,000)
Balance on 31 December
78,009
130,135
208,144
Notes to the financial statements (continued)
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29.Segmental analysis
The Group’s reportable segments under IFRS 8 are identified as follows:
-Investment and advisory services - the provision of services in terms of the Investment Services Act (Cap. 370 of the Laws of Malta);
-Business of insurance - to carry on long-term business of insurance under the Insurance Business Act (Cap. 403 of the Laws of Malta);
-Agency and brokerage services - provision of agency or brokerage services for health or other general insurance in terms of the Insurance Distribution Act (Cap. 487 of the Laws of Malta); and
-Property services - to handle property acquisitions, disposals and development projects both long and short term.
The other operating segment includes corporate expenses and other activities which are not reportable segments due to their immateriality. Certain expenses, finance costs and taxes are not allocated across the segments.
The accounting policies of the reportable segments are the same as the Group’s accounting policies. Segment profit or loss represents the results generated by each segment without the allocation of certain finance costs, impairment of goodwill and taxation. This is the measure reported to the Group’s chief executive officer for the purpose of resource allocation and assessment of segment performance.
All the Group’s turnover is primarily generated in and from Malta.
Segment assets consist primarily of investments, receivables, intangible assets, property, plant and equipment and operating cash. Segment liabilities comprise insurance technical provisions and other operating liabilities. Capital expenditure comprises additions to computer software and to property, plant and equipment. Unallocated assets comprise investments that are not allocated to policyholders, taxation and intra group receivables. Unallocated liabilities mainly comprise borrowings, taxation and intra group payables.
All non-current assets (other than financial instruments, deferred tax assets and rights under insurance contracts) are held in Malta with the exception of investment property located in Italy amounting to €7,662,574 (2023: €7,668,760), in Croatia of €830,000 (2023: €830,000).
Notes to the financial statements (continued)
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29.Segmental analysis (continued)
The following is an analysis of the Group’s revenue and result by reportable segment, assets, liabilities, and other information for 2024:

| Investment and advisory services | Business of insurance | Agency services | Property services | Eliminations | Group
| € | € | € | € | € | €
Year ended 31 December 2024 |  |  |  |  |  |
Segment income |  |  |  |  |  |
Insurance revenue | - | 5,935,707 | - | - | - | 5,935,707
Commission and other fees receivable | 615,933 | - | 1,947,317 | - | (370,809) | 2,192,441
Amounts recovered from reinsurers | - | 1,610,853 | - | - | - | 1,610,853
Insurance finance income/ expense from insurance contracts issued | - | (12,293,918) | - | - | - | (12,293,918)
Movement in investments contract liabilities | - | (741,674) | - | - | - | (741,674)
Other income | - | 1,063,077 | - | - | (369,166) | 693,911
Total revenue | 615,933 | (4,425,955) | 1,947,317 | - | (739,975) | (2,602,680)
Revenue from external customers | 255,933 | (4,548,764) | 1,947,317 | - | (257,166) | (2,602,680)
Intersegment revenues | 360,000 | 122,809 | - | - | (482,809) | -

Notes to the financial statements (continued)
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29.Segmental analysis (continued)

| Investment and advisory services | Business of insurance | Agency services | Property services | Eliminations | Group
| € | € | € | € | € | €
Year ended 31 December 2024 |  |  |  |  |  |
Segment expenses |  |  |  |  |  |
Insurance service expense | - | (3,201,372) | - | - | - | (3,201,372)
Reinsurance finance income from reinsurance contracts held | - | 149,394 | - | - | - | 149,394
Allocation of reinsurance premiums paid | - | (2,260,570) | - | - | - | (2,260,570)
Other expenses | (765,149) | (4,805,940) | (1,585,480) | (562,079) | 2,138,808 | (5,579,840)
Depreciation and amortisation | (754) | (680,034) | (1,511) | (14,222) | - | (696,521)
Investment expenses / (income) | 1,468 | 14,686,656 | 19,712 | 24 | (981,973) | 13,725,887
Total expenses | (764,435) | 3,888,134 | (1,567,279) | (576,277) | 1,156,835 | 2,136,978
Segment (loss)/profit | (148,502) | (537,821) | 380,038 | (576,277) | 416,860 | (465,702)

Notes to the financial statements (continued)
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29.Segmental analysis (continued)

| Investment and advisory services | Business of insurance | Agency services | Property services | Eliminations | Group
| € | € | € | € | € | €
Year ended 31 December 2024 |  |  |  |  |  |
Unallocated items |  |  |  |  |  |
Other income | - | - | - | - | - | -
Other expenses | - | - | - | - | - | (446,522)
Total unallocated items | - | - | - | - | - | (446,522)
Group profit | - | - | - | - | - | (912,224)
Tax expense | - | - | - | - | - |
|  |  |  |  |  | 314,224
Profit after tax | - | - | - | - | - | (598,000)
Segment assets | 1,679,499 | 155,823,423 | 1,440,019 | 8,879,825 | (17,315,276) | 150,507,490
Unallocated assets | - | - | - | - | - | 1,910,539
|  |  |  |  |  | 152,418,029
Segment liabilities | 1,236,342 | 130,983,733 | 653,097 | 9,436,707 | (9,630,934) | 132,678,945
Unallocated liabilities | - | - | - | - | - | 3,662,191
|  |  |  |  |  | 136,341,136
Other segment items |  |  |  |  |  |
Capital expenditure | 1,925 | 166,567 | - | - | - | -

Notes to the financial statements (continued)
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29.Segmental analysis (continued)
The following is an analysis of the Group’s revenue and result by reportable segment, assets, liabilities, and other information for 2023:

| Investment and advisory services | Business of insurance | Agency services | Property services | Eliminations | Group
| € | € | € | € | € | €
Year ended 31 December 2023 |  |  |  |  |  |
Segment income |  |  |  |  |  |
Insurance revenue | - | 5,638,941 |  | - | - | 5,638,941
Commission and other fees receivable | 221,830 | - | 1,968,882 | - | (561,099) | 1,629,613
Amounts recovered from reinsurers | - | 885,840 | - | - | - | 885,840
Insurance finance income/ expense from insurance contracts issued | - | (7,967,056) | - | - | - | (7,967,056)
Movement in investments contract liabilities | - | (491,075) | - | - | - | (491,075)
Other income | 531,855 | 824,377 | - | - | - | 1,356,232
Total revenue (expense) | 753,685 | (1,108,973) | 1,968,882 | - | (561,099) | 1,052,495
Revenue from external customers | 313,685 | (1,192,078) | 1,968,882 | - | (37,994) | 1,052,495
Intersegment revenues | 440,000 | 83,105 | - | - | (523,105) | -

Notes to the financial statements (continued)
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29.Segmental analysis (continued)

| Investment and advisory services | Business of insurance | Agency services | Property services | Eliminations | Group
| € | € | € | € | € | €
Year ended 31 December 2023 |  |  |  |  |  |
Segment expenses |  |  |  |  |  |
Insurance service expense | - | 1,903,944 | - | - | - | 1,903,944
Reinsurance finance income/ expense from reinsurance contracts held | - | (787,355) | - | - | - | (787,355)
Allocation of reinsurance premiums paid | - | 2,284,581 | - | - | - | 2,284,581
Other expenses | 908,669 | 3,980,079 | 1,498,148 | 537,033 | (2,090,565) | 4,833,364
Depreciation and amortisation | 337 | 370,105 | 1,409 | 5,264 | - | 377,115
Investment expenses / (income) | - | (9,336,878) | (19,881) | (332,024) | 1,337,766 | (8,351,017)
Total expenses/(income) | 909,006 | (1,585,524) | 1,479,676 | 210,273 | (752,799) | 260,632
Segment (loss)/profit | (155,321) | 476,551 | 489,206 | (210,273) | 191,700 | 791,863

Notes to the financial statements (continued)
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29.Segmental analysis (continued)

| Investment and advisory services | Business of insurance | Agency services | Property services | Eliminations | Group
| € | € | € | € | € | €
Year ended 31 December 2023 |  |  |  |  |  |
Unallocated items |  |  |  |  |  |
Other income | - | - | - | - | - | -
Other expenses | - | - | - | - | - | (464,063)
Investment expenses | - | - | - | - | - | (364,609)
Total unallocated items | - | - | - | - | - | (828,672)
Group profit |  |  |  |  |  | (36,809)
Tax expense |  |  |  |  |  | (145,271)
Profit after tax |  |  |  |  |  | (182,080)
Segment assets | 1,280,104 | 144,338,747 | 2,334,276 | 8,891,916 | (16,519,997) | 140,325,046
Unallocated assets |  |  |  |  |  | 1,751,072
|  |  |  |  |  | 142,076,118
Segment liabilities | 878,953 | 119,256,013 | 1,351,847 | 8,872,522 | (8,494,455) | 121,864,880
Unallocated liabilities |  |  |  |  |  | 3,536,345
|  |  |  |  |  | 125,401,225
Other segment items |  |  |  |  |  |
Capital expenditure | 523 |  |  | 220,696 |  |

Notes to the financial statements (continued)
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30.Contingent liabilities
As explained in note 23, the Group has deposited amounts in court and made provisions for possible settlement of court cases instituted against it. The exact amount that would need to be paid to settle claims which would have been decided by the courts against the Group can only be determined once the court cases are decided. Consequently, the Group may have to settle amounts which exceed the amounts described in note 23.
31.Litigation and regulatory matters
On 4 April 2022, the Group instituted a lawsuit before the First Hall Civil Court against the Malta Financial Services Authority (the “Authority”), Mazars Consulting Limited (“Mazars”) and Mr Keith Cutajar, a sub-contractor of Mazars.
The Group has taken such judicial action to safeguard its legal right to communications which are privileged at law. This action follows the appointment of Mazars, on 26 November 2021, as an inspector in connection with an investigation by the Authority relating to the Company’s business and operations, and, inter alia, the powers conferred on Mazars by the Authority, on 25 January 2022, in relation to the Group’s information and documents, including its privileged communications.
While the Group continues to co-operate with the Authority and Mazars in relation to the investigation of the Group, based on legal advice, it considers its right to privileged communications to be significantly prejudiced by the Authority’s actions. Accordingly, the Group intends to pursue all remedies available to it at law in this regard.
In June 2024, the Authority communicated the preliminary conclusions of its investigation to the Group. The Group considers that it has acted in compliance with its legal and regulatory obligations. The Group has also confirmed to the Authority its intention to engage in without prejudice discussions with the aim of concluding the process in an unprotracted and non-contentious manner. In August 2024, the Group submitted its response to the Authority’s preliminary conclusions. As part of its response, the Group has undertaken to implement a number of measures to continue enhancing the governance, risk management and compliance functions within its group. The Group’s undertaking plan is already in an advanced stage of implementation. In addition, during 2024 and 2025 the Group has continued to hold without prejudice discussions with the Authority with a view to bringing the Authority’s investigation to a conclusion.
Nevertheless, it remains inherently difficult to predict the outcome of any judicial proceedings and regulatory investigation. There are many factors that may affect the range of outcomes, and the resulting impact, of these matters. As a result, it is not possible to predict or quantify a range of possible outcomes, or the timing thereof, at this stage.
The Directors recognise the fact that the Group may be subject to reputational, legal and compliance risk due to the extent and complexity of its operations and its regulatory obligations. Given the increased levels of regulatory scrutiny experienced in recent years across the financial services industry, the level of inherent legal and compliance risk faced by the Group is expected to continue to remain high for the foreseeable future.
The Group employs a range of policies and practices to mitigate such inherent risks and ensure they remain within its risk tolerance limits. Furthermore, the Group remains committed to adhere to its legal and regulatory obligations to meet its compliance requirement on an on-going basis at all times.
Notes to the financial statements (continued)
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32.Prior period error
During the closing of the financial statements for the year ended 31 December 2024, it was identified that there was an understatement of the investment contract lability incurred in prior year by recognizing a gain of EUR 747,419 instead of a loss of EUR 538,750. This error had an impact on the movement in investments contract liabilities and income tax expense. Consequently, the amounts in 2023 were restated to correct for this. The following table summarises the impact of the prior period error on the financial statements of the Group.
Consolidated Statement of Profit and Loss extract for the Group:

| 31 December 2023 (previously stated) | Adjustment | 31 December 2023 (Restated)
| € | € | €
Movement in investments contract liabilities | 795,094 | (1,286,169) | (491,075)
Income tax expense | (595,430) | 450,159 | (145,271)
Profit for the year | 653,930 | (836,010) | (182,080)

Statement of Financial Position extract for the Group:

| 31 December 2023 (previously stated) | Adjustment | 31 December 2023 (Restated)
| € | € | €
Assets |  |  |
Deferred tax asset | 1,236,986 | 238,279 | 1,475,265
Total assets | 141,837,839 | 238,279 | 142,076,118
Liabilities and equity |  |  |
Investment contract liabilities | 5,419,502 | 1,286,169 | 6,705,671
Taxation payable | 3,731,426 | (211,881) | 3,519,545
Total liabilities | 124,326,937 | 1,074,288 | 125,401,225
Retained earnings | 1,995,453 | (619,902) | 1,375,551
Non-controlling interest | 6,674,699 | (216,108) | 6,458,591
Net impact on equity | 17,510,903 | (836,010) | 16,674,893

The impact of the prior period error on profit per share is presented below:

| 31 December 2023 (previously stated) | Adjustment | 31 December 2023 (Restated)
| € | € | €
Impact on profit/(loss) per share (cents) for the Group | 0.02 | (0.03) | (0.01)

The change did not have an impact on OCI for the period or the Group’s operating, investing and financing cash flows.
Notes to the financial statements (continued)
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33.Statutory information
LifeStar Holding plc is a public limited liability company incorporated in Malta with registration number C19526. The registered address of the Group is Testaferrata Street, Ta’ Xbiex.
Consolidated financial statements prepared by LifeStar Holding plc may be obtained from the Group’s registered office. LifeStar Holding plc’s parent company, Investar plc., prepares consolidated financial statements in accordance with the Companies Act (Cap. 386 of the Laws of Malta). At year end, the directors considered the ultimate controlling party to be Prof. Paolo Catalfamo.
The parent company of LifeStar Holding is Investar p.l.c. a company registered in Malta, with its registered address at Testaferrata Street, Ta’ Xbiex, Malta. At year end, the directors considered the ultimate controlling party to be Prof. Paolo Catalfamo who owns 99.99% (2023: 99.99%) of the issued share capital of Investar p.l.c., which is the single major shareholder owning directly – 60.58% (2023: 60.58%) of the Company’s shareholding. Investar p.l.c. is also the beneficial owner of 30.81% (2023: 30.81%) through shares held by GlobalCapital Financial Management Limited as nominee.
34.Comparative figures
Certain comparative figures have been restated where necessary to conform with the current year presentation.
35.Post-reporting date events
No adjusting or significant non-adjusting events have occurred between the end of the reporting period and the date of authorisation by the board.
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Grant Thornton Malta
Fort Business Centre, Level 2
Triq L-Intornjatur, Zone 1
Central Business District
Birkirkara CBD1050 Malta
T +356 20931000
Independent auditor’s report
To the shareholders of Lifestar Holding p.l.c.
Report on the audit of the financial statements
Opinion
We have audited the financial statements of LifeStar Holding p.l.c. (the “Company”) and of the Group of which it is the parent, which comprise the statements of financial position as at 31 December 2024, and the statements of comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company and the Group as at 31 December 2024, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU), and have been properly prepared in accordance with the requirements of the Companies Act, Cap. 386 (the “Act”), the Insurance Business Act, 1998, Cap. 403 (the “Insurance Business Act”), Insurance Distribution Act, Cap 487 and Investment Services Act, Cap. 370, as applicable.
Our opinion is consistent with our additional report to the audit committee.
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Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act, Cap. 281 that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In conducting our audit we have remained independent of the Company and the Group and have not provided any of the non-audit services prohibited by article 18A of the Accountancy Profession Act, Cap. 281. The non-audit services that we have provided to the Company and the Group during the year ended 31 December 2024 are disclosed in note 6 to the financial statements.
Emphasis of matter
We draw attention to note 31 of the financial statements, which makes reference to an investigation by the Malta Financial Services Authority relating to the Company’s and two subsidiaries business and operations. The outcome of the regulatory investigation cannot be predicted at this stage and there are many factors that may affect the range of outcomes, and the resulting impact, of these matters. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our 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) that we identified. These matters 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.
We summarise below the key audit matters, together with our response by way of the audit procedures we performed to address those matters in our audit.
Valuation of investments
Key audit matter
The carrying amounts of the Group’s investments at 31 December 2024 amounted to € 108.58 million. These are described and disclosed in section 9 of the accounting policies and note 17 to the financial statements. These investments represent 40.37% of the total assets of the Group, and include a number of holdings which are unlisted, carried at € 6.84 million, and which therefore require a degree of judgement to be exercised when assessing their valuation.
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How the key audit matter was addressed in our audit
We ensured that the value of listed investments is based on quoted prices obtained from independent sources.
For the Group’s unlisted investments we evaluated the appropriateness of the valuation methodology applied by management and reviewed and challenged the methodology applied and the underlying assumptions. Where applicable we also assessed the values of any assets underlying the investments and challenged management’s assumptions and judgements made.
Particular attention has been given to the Group’s unlisted holdings in two securitisation vehicles (SVs) registered in Luxembourg, which holdings are backed by investments which the SVs made in a UK data centre. At 31 December 2024, these investments were carried at € 5.07 million and are included with unlisted investments in note 17, together with accrued interest not yet received by the Group amounting to € 1.28 million and included with accrued income in note 19. The directors have exercised significant judgement in reaching a conclusion about the carrying amount of these investments.
We communicated with management and those charged with governance and noted that they were able to provide satisfactory responses to our questions.
We also assessed the adequacy of the disclosures made in note 17 to the financial statements relating to these investments. In particular we wish to draw attention to section 1(c) of the critical accounting estimates and judgements, and notes 17(d) and 26 to the financial statements, in which the directors explained the basis of their conclusion about the valuation of the Group’s unlisted holdings in the SVs referred to above and about the uncertainty surrounding the valuation of these investments.
We have no other key observations to report, specific to this matter.
Valuation of insurance contract liabilities
Key audit matter
IFRS 17 sets out the requirements that an entity should apply in accounting for insurance contracts it issues, reinsurance contracts it holds and investment contracts with discretionary participating features it issues.
As at 31 December 2024, the Group recorded insurance contract liabilities of € 115.65 million.
As explained in section 2.9 of the accounting policies, the Group’s insurance contract liabilities are measured as the total of fulfilment cash flows (comprising probability-weighted estimates of future cash flows and RA) and CSM, the determination of which required judgement and interpretation. This includes the selection of accounting policies and the use of complex methodologies. Management’s selection and application of appropriate methodologies requires significant professional judgement. The valuation also requires the determination of assumptions about future events, both internal and external to the business, giving rise to estimation uncertainty. The valuation of these liabilities is complex and sensitive to changes in assumptions.
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We focused on this area due to its materiality and the subjectivity of the judgements made.
As part of our consideration of the entire set of assumptions, we focused particularly on expense assumptions and mortality and lapse assumptions as these are considered the most significant and judgemental. These are considered individually below.
Valuation of insurance contract liabilities
Insurance contract liabilities are sensitive to the choice of assumptions made by the Group. There is a risk that the assumptions are not appropriate given the variability in experience and the relatively small size of the Group’s business, given the pool of data from which to assess experience.
In setting the assumptions, management utilise the Group's own historic experience, supplemented with additional external data in the calculation of the appropriate assumptions. In doing so there is a risk that the assumptions are not appropriate.
Valuation of insurance contract liabilities - expense assumptions
The valuation of insurance contract liabilities includes estimated future expenses that are expected to be incurred in the administration and maintenance of the existing policies to their maturity and includes an allowance for future inflation. The assumptions used require judgement, particularly with respect to the allocation of expenses to future maintenance, the estimation of policy volumes and future cost inflation.
IFRS 17 brought about certain changes to the treatment of expenses, requiring the Group to analyse expenses between acquisition costs, directly attributable expenses and non-attributable (i.e. out of scope) expenses. The valuation of the insurance contract liabilities is sensitive to changes in allocations between categories and changes in assumptions.
How the key audit matter was addressed in our audit
We performed the following audit procedures to test the valuation of insurance contract liabilities (including estimate of liabilities, RA and CSM), using our IFRS 17 and actuarial specialist team members:
•Tested the design and, where applicable, operating effectiveness of the controls in place over the determination of the insurance contract liabilities, including those relating to model inputs, model operation and extraction of results from the actuarial model;
•Tested the design and, where applicable, the operating effectiveness of controls related to the completeness and accuracy of policyholder data used in the valuation of insurance contract liabilities;
•Tested the accuracy of the underlying data utilised for the purposes of measurement by reference to its source;
•Applied our industry knowledge and experience to assess the appropriateness of the methodology, model and assumptions used against recognised actuarial practices;
•Performed testing over the actuarial model calculations.
•Analysed the calculation methods for RA and CSM; and
•Ensured compliance of RA and CSM with IFRS17 standard.
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In respect of the expense assumptions, we performed the following additional procedures:
•We have tested and challenged the appropriateness of the allocation between attributable and non-attributable expenses;
•We have reviewed, and where relevant, challenged the appropriateness of these cost allocations in the context of IFRS 17 requirements and actual costs incurred during the year and in the comparative period;
•We have assessed the impact of the current inflationary environment on the assumptions. In this respect, we understood and challenged the basis on which expenses are projected by reference to market observable data (inflation curve); and
•We have assessed the reasonableness of the policy volumes used in the expense calculation.
In respect of all the assumptions referred to above, we have assessed the assumptions’ appropriateness based on internal and external data (where available).
Based on the work performed, we found the valuation of insurance contract liabilities (including the estimate, RA and CSM) to be consistent with the explanations and evidence obtained.
Fair value of investment properties
Key audit matter
The carrying amounts of the Group’s investment properties carried at fair value as at 31 December 2024 amounts to € 22.2 million. Management determined the fair values through internal assessments made by the directors. The fair value of investment properties was significant in our audit because the amounts are material to the financial statements of the Group.
The method used to determine the fair value of investment properties is fully described in note 15 to the financial statements.
How the key audit matter was addressed in our audit
We evaluated the suitability and appropriateness of the valuation methodology applied by management and reviewed and challenged the methodology applied and the underlying assumptions. We also communicated with management and those charged with governance and noted that they were able to provide satisfactory responses to our questions.
We also assessed the adequacy of the disclosures made in note 15 to the financial statements relating to these properties.
We have no key observations to report, specific to this matter.
Going concern in the financial statement of the Company
Key audit matter
At balance sheet date the Company had total liabilities amounting to € 12.1 million including loans of € 7.1 million due to related parties and a bank loan amounting to € 962 thousand. The repayment of these liabilities over the agreed term with the lenders warrants specific audit focus since the Company has no operations and consequently the repayment of these liabilities depends on possible future dividend income and proceeds from disposal of assets.
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The directors are continuing to monitor the situation closely to ensure that the Company will continue to have adequate levels of cash to sustain its operations and to meet its obligations as they fall due.
How the key audit matter was addressed in our audit
We reviewed the plans prepared by management showing how the Company intends to settle its liabilities as they fall due. As part of this process, we reviewed cash flow projections prepared by management.
We attended meetings with management and those charged with governance and noted that they were able to provide satisfactory responses to our questions relating to the Company’s plans. We also assessed the adequacy of the disclosures made in Note 1, Appropriateness of going concern assumption in the preparation of the financial statements.
Based on the audit work done, we concluded that management’s use of the going concern assumption in the preparation of the financial statements is appropriate.
Fair valuation of investments in group undertakings in the financial statements of the Company
Key audit matter
The carrying amount of the Company’s investments in group undertakings at 31 December 2024 amounted to € 22.5 million. These are described and disclosed in section 8 of the accounting policies and note 16 to the financial statements. These investments represent 88% of the total assets of the Company and are therefore very material to these financial statements.
How the key audit matter was addressed in our audit
We ensured that the value of listed investments is based on quoted prices obtained from independent sources.
For investments in group undertakings, we evaluated the appropriateness of the valuation methodology applied by management and reviewed and challenged the methodology applied and the underlying assumptions. Where applicable we also assessed the values of any assets underlying the investments and challenged management’s assumptions and judgements made. We also communicated with management and those charged with governance and noted that they were able to provide satisfactory responses to our questions.
We also assessed the adequacy of the disclosures in the financial statements relating to these investments.
We have no key observations to report, specific to this matter.
Other information
The directors are responsible for the other information. The other information comprises (i) the Chairman and CEO Statement – LifeStar Holding plc, (ii) the Directors’ report and the Statement of directors’ responsibilities (iii) the Corporate Governance – Statement of Compliance and (iv) the Remuneration Report which we obtained prior to the date of this auditor’s report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information, including the Directors’ report.
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In connection with our audit of the financial statements, our responsibility is to read the other information identified above 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.
With respect to the Directors’ report, we also considered whether the Directors’ report includes the disclosures required by Article 177 of the Act, and in the case of the Remuneration report included in the Corporate Governance – Statement of Compliance, whether this has been prepared in accordance with Chapter 12 of the Capital Market Rules issued by the Malta Financial Services Authority (the “Capital Market Rules”).
Based on the work we have performed, in our opinion:
•The information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements, and the Directors’ report has been prepared in accordance with the Act, and
•The Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules.
In addition, in light of the knowledge and understanding of the Company and the Group and their environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the Directors’ report and other information that we obtained prior to the date of this auditor’s report. We have nothing to report in this regard.
Responsibilities of the directors for the financial statements
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRS as adopted by the EU and are properly prepared in accordance with the provisions of the Act, the Insurance Business Act, Investment Services Act and Insurance Distribution Act and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s and the Group’s financial reporting process.
Auditor’s 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 auditor’s 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 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.
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As part of an audit in accordance with the ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
-Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and Group’s internal control.
-Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s or the Group’s ability to continue as a going concern.
-Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group to express and opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefit of such communication.
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Reports on other legal and regulatory requirements
Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6
We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Report and Consolidated Financial Statements of LifeStar Holding p.l.c. for the year ended 31 December 2024, entirely prepared in a single electronic reporting format.
Responsibilities of the directors
The directors are responsible for the preparation of the Report and Consolidated Financial Statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.
Our responsibilities
Our responsibility is to obtain reasonable assurance about whether the Report and Consolidated Financial Statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.
Our procedures included:
-Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Report and Consolidated Financial Statements, in accordance with the requirements of the ESEF RTS.
-Obtaining the Annual Report and Consolidated Financial Statements and performing validations to determine whether the Annual Report and Consolidated Financial Statements have been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.
-Examining the information in the Annual Report and Consolidated Financial Statements to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.
-We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the Annual Report and Consolidated Financial Statements for the year ended 31 December 2024 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.
Report on the Statement of Compliance with the Principles of Good Corporate Governance
The Capital Market Rules require the directors to prepare and include in their Annual Report a Statement of Compliance providing an explanation of the extent to which they have adopted the Code of Principles of Good Corporate Governance and the effective measures that they have taken to ensure compliance throughout the accounting period with those Principles.
The Capital Market Rules also require us, as the auditor of the Company, to include a report on the Statement of Compliance prepared by the directors.
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We read the Statement of Compliance with the Code of Principles of Good Corporate Governance and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements included in the Annual Report. Our responsibilities do not extend to considering whether this statement is consistent with any other information included in the Annual Report.
We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance with the Code of Principles of Good Corporate Governance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures.
In our opinion, the Corporate governance statement has been properly prepared in accordance with the requirements of the Capital Market Rules.
Other matters on which we are required to report by exception
We also have responsibilities
•under the Companies Act, Cap. 386 to report to you if, in our opinion:
-adequate accounting records have not been kept, or that returns adequate for our audit have not been received from branches not visited by us
-the financial statements are not in agreement with the accounting records and returns
-we have not received all the information and explanations we require for our audit
-certain disclosures of directors’ remuneration specified by law are not made in the financial statements, giving the required particulars in our report.
•in terms of Capital Market Rules to review the statement made by the Directors that the business is a going concern together with supporting assumptions or qualifications as necessary.
We have nothing to report to you in respect of these responsibilities.
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Auditor tenure
We were first appointed as auditors of the Company and the Group on 9 October 2020. Our appointment has been renewed annually by a shareholders’ resolution representing a total period of uninterrupted engagement appointment of five years.
The Principal on the audit resulting in this independent auditor’s report is Mark Bugeja.
Grant Thornton
Fort Business Centre
Triq L-Intornjatur, Zone 1
Central Business District
Birkirkara CBD 1050
Malta
Mark Bugeja
Principal
30 April 2025
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T: +356 21 342 342
E:info@lifestarholding.com
W:www.lifestarholding.com
A: LifeStar Building, Testaferrata Street, Ta’ Xbiex, XBX1403, Malta
LifeStar Insurance plc (C29086) is authorised under the Insurance Business Act, Cap 403 and is regulated by the MFSA.
LifeStar Health Limited (C6393) is enrolled as an insurance agent under the Insurance Distribution Act, Cap 487 of the Laws of Malta and is regulated by the MFSA.
GlobalCapital Financial Management (C30053) is licensed to provide investment services in Malta by the MFSA.