Summary of financial accounts

Trevor Edwards, Finance Director, gives a summary of the financials during the last year.


The CII delivered robust financial results in 2019. Revenue was £45.2m compared to £43.2m earned in 2018. This represents an increase in 2019 of £2m or 5%. We continue to focus our efforts on delivering valued services for our members, and relevant learning to benefit the professional development of insurance and financial planning professionals.

Our total operating expenditure in 2019 was £42.9m (2018: £43.4m) which includes £0.9m (2018: £2.4m) of transformation expenditure. In 2018, operating expenditure also included £0.6m of mainly one-off building move costs. In addition, a further £4.2m (2018: £0.6m) of transformation cost was capitalised and added to our balance sheet. Transformation activity in 2019 predominantly comprised enhancement of our information technology (IT) infrastructure, to deliver an improved customer experience. Given the nature of the transformation expenditure in 2019, being predominantly related to IT, we have added much of this expenditure to our balance sheet (capitalised expenditure), which reflects the benefits expected in future by the CII. Our new IT will be made available to customers during 2020. When this occurs, the ‘capitalised expenditure’ will then be included in operating expenditure, spread over several years beginning in 2020.

Surplus before tax was £2.8m (2018: £1.1m) which includes £0.5m (2018: £0.2m) of treasury gains but excludes contributions made to the CII pension scheme 1993 in both years. In the last quarter of 2019, we paid £1.0m to the pension scheme from an escrow account of deposited funds, in line with the agreed deficit recovery plan. 2018 surplus before tax also included a £1.1m gain on the sale of the Aldermanbury building.


Financial stability


An indicator of our financial stability is the level of our Group funds. The CII’s policy is to maintain sufficient total funds which ensures that the CII can continue to operate for the foreseeable future, with a minimum level of six months of operating expenditure. At 31 December 2019, the CII’s total accumulated funds were £39.2m (31 December 2018: £37.6m).

As we navigate the ‘unchartered waters’ brought about by the Covid-19 virus, both in the UK and internationally, the CII remains financially well positioned to support our membership and continue the development of our proposition to continue raising standards and professionalism.