LifeStar Group H1 profit after tax revised to €209,984 under new accounting standards
Group's Half-Yearly Financial Report was updated in accordance with the requirements and terms of accounting standards IFRS 17 and IFRS 9
by Paul Cocks
The LifeStar Group registered a profit after tax of €209,984 for the first six months of 2023, under the newly-adopted accounting standards IFRS 17 and IFRS 9, compared to a revised loss for the same period last year of €3,025,877.
The group comprises LifeStar Holding plc and its subsidiaries LifeStar Insurance plc, LifeStar Health Limited and GlobalCapital Financial Management Limited.
The group's board of directors had previously approved the unaudited Half-Yearly Financial Report under accounting standard IFRS 4 , as announced in a public announcement dated 31 August 2023. That Half-Yearly Financial Report was subsequently revised and updated in accordance with the requirements and terms of accounting standards IFRS 17 and IFRS 9.
This has resulted in a change to the profit after tax for the Group from €901,323 reported under the IFRS 4 accounting standard, to a profit after tax for the Group of €209,984 under the IFRS 17 accounting standard.
The change is exclusively due to the different treatment of certain figures between the two accounting standards including in particular the Value of In-Force business of LifeStar Holding, which under the IFRS 4 accounting standard used to be reported onto the face of the profit and loss statement under LifeStar Holding plc.
The IFRS 17 accounting standard has eliminated the concept of Value of-in-force Business, resulting in changes to the figures reported within the financial statements. The change in accounting standards has resulted in a net adverse movement of €613,397 in terms of profit after tax for the Group from the accounting standard IFRS 4 to the accounting standard IFRS 17.
The main contributors to these results for the first six months of the year are:
LifeStar Insurance plc
- LifeStar Insurance plc registered a profit before tax of €646,327 when compared to a revised loss, under IFRS 17, of €2,802,265 during the six month period to 30 June 2022.
- The insurance service result registered a loss of €205,444 when compared to a revised loss of €226,435 for the period ending 30 June 2022.
LifeStar Health Limited
- LifeStar Health Limited registered a profit before tax of €469,229 when compared to €432,382 in the comparative period or an increase of 8.52% year-on-year.
- Commissions earned from normal operations increased by 16.7% when compared to previous period to close off at €652,923.
- Total Commissions receivable increased by 10.4% when compared to the previous period to close off at €1,168,569.
- Total indirect costs decreased by 8.9% over the same period last year.
- Operating profit before depreciation increased by 8.3% when compared to the previous period to close off at €460,240.
GlobalCapital Financial Management Limited
- GlobalCapital Financial Management Limited registered a loss before tax of €83,557 when compared to a loss €293,533 in the comparative period.
- Total revenue has decreased by €105,122 when compared to the previous period last year mainly due to the sale of the retail book which is nearing its total completion.
- Total direct costs have reduced by €89,104 due mainly to the sale of the retail book.
- Total indirect costs have similarly reduced by €77,605 or 22.9% when compared to the same period last year.
- Directors did not recommend the payment of an interim dividend.
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