160 / 204
158
Rothschild & Co | Annual Report 2017
Amounts recognised in statement of comprehensive income
In thousands of euro
31/12/2017 31/03/2017
Remeasurement gains recognised in the period
11,359
4,918
Cumulative remeasurement losses recognised in the statement of comprehensive income
(200,531)
(211,890)
Actuarial assumptions and sensitivities
The principal actuarial assumptions used as at the balance sheet date were as follows:
31/12/2017
31/03/2017
NMRP and
NMROP
RBZP
RNAP
NMRP and
NMROP
RBZP
RNAP
Discount rate
2.6%
0.7%
2.9%
2.8%
0.6%
3.0%
Retail price inflation
3.2%
n/a
n/a
3.2%
n/a
n/a
Consumer price inflation
2.1%
0.3%
n/a
2.1%
0.3%
n/a
Expected rate of salary increases
2.0%
0.5%
n/a
2.0%
0.5%
n/a
Expected rate of increase of pensions in
payment:
Uncapped increases
n/a
0.0%
n/a
n/a
0.0%
n/a
Capped at 5.0%
3.1%
n/a
n/a
3.1%
n/a
n/a
Capped at 2.5%
2.1%
n/a
n/a
2.1%
n/a
n/a
Life expectancy in years of a:
Male pensioner aged 60
28.8
27.2
25.6
29.2
27.2
26.0
Female pensioner aged 60
29.9
29.5
29.1
30.4
29.5
29.0
Male pensioner aged 60 in 20 years’ time
30.3
29.1
n/a
31.1
29.1
n/a
Female pensioner aged 60 in 20 years’ time
31.4
31.3
n/a
32.3
31.3
n/a
The value placed on the defined benefit net liabilities and assets is sensitive to the actuarial assumptions used. Those assumptions that have the most
significant impact on the measurement of the liability, along with an illustration of the sensitivity to each assumption, are as follows:
Approximate increase/(decrease) in balance sheet liability
In thousands of euro
31/12/2017
NMRP and
NMROP
RBZP
0.5% increase in discount rate
(98,000)
(19,000)
0.5% increase in inflation
77,000
1,000
One year increase in life expectancy
38,000
n/a
The sensitivities shown above reflect only an estimate of the change in the assessed defined benefit obligation for the funds. In practice, any movement
leading to a change in the discount rate or price inflation is likely to be partially offset by a change in asset values, and the corresponding overall impact
on the net liability is therefore likely to be lower than the amounts above.
Composition of plan assets
31/12/2017
31/03/2017
NMRP
NMROP
RBZP
NMRP
NMROP
RBZP
Equities – quoted
35%
36%
31%
33%
44%
30%
Bonds – quoted
16%
26%
45%
18%
19%
44%
Liability hedges
22%
25%
2%
22%
20%
2%
Hedge funds and private equity
12%
4%
11%
17%
10%
11%
Cash and gilts
12%
7%
5%
8%
4%
6%
Property and others
3%
2%
6%
2%
3%
7%
100%
100%
100%
100%
100%
100%
Equities includes €0.8 million (31 March 2017: €0.8 million) of shares in companies that are related parties of the Company.
Notes to the consolidated financial statements