Financial Statements
The coronavirus pandemic significantly reduced the Chartered Insurance Institute’s ability to generate revenue last year.
In 2019 we reported revenue of £45.2m and a surplus before tax of £2.8m. In 2020, our revenue decreased by 18 per cent to £36.9m and we are reporting a deficit of £3.8m before tax.
The main cause of lower revenue was physical exam sittings were unable to take place during the first half of the year and all physical events were cancelled due to measures to slow the spread of coronavirus.
Our inability to hold examination sittings during the first half of 2020 resulted in a 25 per cent reduction in revenue from qualifications & educational activities for the year.
In the third quarter there was a gradual re-opening of test centres albeit with Covid-19 capacity restrictions of 50% occupancy and the CII accelerated the launch of remote invigilation to enable 39,555 (2019: 67,669) candidates to safely complete their examination and achieve qualifications during the pandemic.
The CII was able to accelerate the launch of online assessments and continue with our transformation programme, which is focussed on ensuring the CII is a modern, relevant and inclusive professional body, because we have sufficient reserves to absorb the impact of the revenue deficit in 2020.
At the start of 2020 the CII Group had reserves of £39.2m. By the start of 2021 the Group’s reserves were £34.3m.
Action is being taken to manage net reserves to within an acceptable tolerance so that the CII, a not-for-profit professional body, can maintain a financial position which allows us to continue delivering to members and students in the years to come.
For example, given the CII’s commitment to move to digital first for members and ‘anytime, anywhere’ working for staff, we decided in 2020 that maintaining two UK offices no longer made sense financially or in terms of delivery of service.
Moving from two offices to a single UK Hub in 20 Fenchurch Street will save the Chartered Insurance Institute more than £5m over the five-years of the lease of this work and events space.
Any savings will be invested in continuing to improve the services and support we offer to our insurance and personal finance members and students.
The CII remains dedicated to building public trust in the insurance and personal finance profession. We continue to be well equipped and sufficiently resourced to raise professional standards through delivering relevant learning, insightful leadership and an engaged membership.