The Chartered Insurance Institute (CII) has declared a consolidated operating surplus of £3.3m for 2021, compared with a £4m operating deficit in 2020.
The professional body’s 2021 financial statement, published in May, shows the institute is on the road to financial recovery thanks to the collective efforts of members, students, corporate customers, volunteers, trustees and staff, resulting in increased revenue and reduced costs.
There was a £2.2m increase in revenue from qualifications and educational activities in 2021, as insurance and personal finance professionals moved to develop their knowledge and skills.
Local Institutes opted to voluntarily utilise their reserves last year, before taking additional grant payments, which further aided the financial recovery of the professional body.
The financial statement also shows that CII staff reduced operating costs by £5.17m last year.
A significant cost saving was generated by the move from two offices to one hub in 20 Fenchurch Street, known as the ‘Walkie Talkie’, in early 2021.
This move was made possible by the professional body’s digital transformation during the last five years, which enabled CII staff to work anywhere, anytime, while still having a presence in the heart of the City of London.
Another financial milestone in 2021 was the decision to proceed with the buyout of the defined benefit (DB) pension scheme. The first step of this process completed in 2021 was an initial buy-in of £6.6m.
By mid-2023, the CII hopes to be able to complete the pension buyout, which will result in future operating surpluses no longer being needed to address financial liabilities accrued in the past.
As a result of a tax provision plus the £6.6m DB pension cost, the CII Group reported a total deficit of £4.4m for 2021.
To read the CII’s annual report, visit: www.cii.co.uk/annual-report