Retirement benefit obligations (Tables)

12 Months Ended

Dec. 31, 2025

Retirement benefit obligations

Schedule of the Group's retirement benefit obligations


		2025		2024
		$ million		$ million
Funded plans:
UK Plan		64		63
US Plan		–		–
Other plans		(16)		(10)
		48		53
Unfunded plans:
Other plans		(59)		(60)
Retirement healthcare		(9)		(9)
		(20)		(16)
Amount recognised on the balance sheet – liability		(84)		(79)
Amount recognised on the balance sheet – asset		64		63

Reconciliation of benefit obligations and pension assets


		2025						2024
		Obligation		Asset		Total		Obligation		Asset		Total
		$ million		$ million		$ million		$ million		$ million		$ million
Amounts recognised on the balance sheet at beginning of the period		(625)		609		(16)		(961)		942		(19)
Income statement expense:
Current service cost		(7)		–		(7)		(7)		–		(7)
Settlements		–		–		–		255		(250)		5
Interest (expense)/income		(28)		29		1		(26)		26		–
Administration costs and taxes		(7)		–		(7)		(4)		–		(4)
Costs recognised in income statement		(42)		29		(13)		218		(224)		(6)
Remeasurements:
Actuarial (loss)/gain due to liability experience		(8)		–		(8)		(6)		–		(6)
Actuarial gain due to financial assumptions change		23		–		23		62		–		62
Actuarial (loss)/gain due to demographic assumptions		(2)		–		(2)		1		–		1
Return on plan assets (less)/greater than discount rate		–		(8)		(8)		–		(41)		(41)
Remeasurements recognised in OCI		13		(8)		5		57		(41)		16
Cash:
Employer contributions		–		8		8		–		(9)		(9)
Employee contributions		(3)		3		–		(3)		3		–
Benefits paid directly by the Group		4		–		4		3		–		3
Benefits paid, taxes and administration costs paid from scheme assets		48		(52)		(4)		41		(45)		(4)
Net cash		49		(41)		8		41		(51)		(10)

Exchange movements		(55)		51		(4)		20		(17)		3
Amount recognised on the balance sheet		(660)		640		(20)		(625)		609		(16)
Amount recognised on the balance sheet – liability		(230)		146		(84)		(213)		134		(79)
Amount recognised on the balance sheet – asset		(430)		494		64		(412)		475		63

Represented by:

2025

2024

Obligation

Asset

Total

Obligation

Asset

Total

$ million

 

$ million

 

$ million

 

$ million

 

$ million

 

$ million

UK Plan

(414)

478

64

(396)

459

63

Other Plans

(246)

162

(84)

(229)

150

(79)

Total

(660)

640

(20)

(625)

609

(16)

Market value of the US, UK and Other Plans assets


		2025		2024		2023
		$ million		$ million		$ million
UK Plan:
Assets with a quoted market price:
Cash and cash equivalents		56		56		61
Other bonds		8		7		–
		64		63		61
Other assets:
Insurance contract		414		396		457
Market value of assets		478		459		518
US Plan:
Assets with a quoted market price:
Cash and cash equivalents		–		–		267
Market value of assets		–		–		267
Other Plans:
Assets with a quoted market price:
Cash and cash equivalents		8		2		7
Equity securities		56		56		50
Government bonds – fixed interest		6		6		5
Corporate and other bonds		13		12		10
Insurance contracts		19		18		23
Property		24		25		28
Other quoted securities		14		11		10
		140		130		133
Other assets:
Insurance contracts		22		20		24
Market value of assets		162		150		157
Total market value of assets		640		609		942

Schedule of principal actuarial assumptions


		2025		2024		2023
		% per annum		% per annum		% per annum
UK Plan:
Discount rate		5.5		5.5		4.5
Future salary increases		n/a		n/a		n/a
Future pension increases		2.8		3.0		3.0
Inflation (RPI)		2.9		3.2		3.1
Inflation (CPI)		2.4		2.7		2.5
US Plan:
Discount rate		n/a		n/a		5.0
Future salary increases		n/a		n/a		n/a
Inflation		n/a		n/a		n/a

Current longevities underlying the values of the obligations in the defined benefit plans


		2025		2024		2023
		years		years		years
Life expectancy at age 60
UK Plan:
Males		26.9		26.6		26.9
Females		29.6		29.5		29.7
US Plan:
Males		n/a		n/a		25.0
Females		n/a		n/a		27.2
Life expectancy at age 60 in 20 years’ time
UK Plan:
Males		28.5		28.1		28.4
Females		31.0		30.9		31.1
US Plan:
Males		n/a		n/a		25.0
Females		n/a		n/a		27.6

Sensitivity analysis


		Increase/(decrease) in pension obligation				Increase /(decrease) in pension cost
$ million		+50bps/+1yr		-50bps/-1yr		+50bps/+1yr		-50bps/-1yr
UK Plan:
Discount rate		(25.0)		28.0		–		–
Inflation		21.5		(19.4)		–		–
Mortality		18.0		(18.0)		–		–

Risk

The pension plans expose the Group to the following risks:

Interest rate risk		Volatility in financial markets can change the calculations of the obligation significantly as the calculation of the obligation is linked to yields on AA rated corporate bonds. A decrease in the bond yield will increase the measure of plan liabilities, although this will be partially offset by increases in the value of matching plan assets such as bonds and insurance contracts. The UK buy-in in June 2023 removed all remaining material pension liability exposure from the balance sheet, hence, eliminating the interest rate risk for the UK Plan. Following the completion of the US buy-out on 4 January 2024, no further interest risk is linked to the valuation of liability for the US Plan as no liability remains in the Plan.
Inflation risk		The UK Plan is linked to inflation. A high rate of inflation will lead to a higher liability. This risk is managed by holding inflation-linked bonds and an inflation-linked insurance contract in respect of some of the obligation. In the UK, the liability matching portfolio held in conventional and index-linked gilts was transferred into liability driven investments in order to reduce inflation risk. The UK Plan is closed to future accrual which reduces the exposure to this risk. The US Plan is also closed to future accrual and has no other inflation-linkage thus eliminating the exposure to this risk. Following the full UK Pension buy-in in 2023, the residual inflation risks associated with the UK Plan have been transferred to the UK Plan’s Life Insurance Partners.
Investment risk		If the return on plan assets is below the discount rate, all else being equal, there will be an increase in the Plan deficit. In the UK, following the full buy-in for the UK Plan, the investment risk has been transferred to the UK Plan’s Life Insurer Partners. The US Plan has a dynamic de-risking policy to shift plan assets from return-seeking (growth) assets to liability matching assets over time. The US Pension Plan has an established glide path that is designed to stabilise funding status by reducing the Plan’s exposure to return-seeking assets. Following the completion of the US buy-out on 4 January 2024, no further investment risk is linked to the valuation of liability for the US Plan as no liability remains in the Plan.
Longevity risk		The present value of the Plan’s defined benefit liability is calculated by reference to the best estimate of the mortality of the Plan participants both during and after their employment. An increase in the life expectancy of plan participants above that assumed will increase the benefit obligation. Following the full buy-in, the UK Plan has entered into insurance contract which covers all of the pensioners’ obligations. Following the completion of the US buy-out on 4 January 2024, there is no further longevity risk linked to the valuation of liability for the US Plan as no liability remains in the Plan.