PPS Integrated Report 2021 221 | Notes to the Consolidated Financial Statements 39.GOING CONCERN The Trustees / Directors assess the Group’s future performance and financial position on an ongoing basis and have no reason to believe that the Group will not be a going concern in the reporting period ahead. For this reason, these financial statements are prepared on a going concern basis. COVID-19 VIRUS PANDEMIC The outbreak of the COVID-19 virus pandemic continued to have a significant financial impact on the results of the Group in 2021. The financial impact is seen in the increase in gross long-term insurance claims (both sickness and death claims). There was a positive impact on the Short-term insurance claims as a result of reduced activity due to the lockdown continuing through part of 2021. The impact of the virus is expected to continue in 2022, although at a lower intensity compared to 2021. The Group is monitoring the impact on a continuous basis and management actions are taken where appropriate. Going concern and solvency PPS prepared scenarios of the potential impact of the pandemic on its operations. These scenarios included qualitative and quantitative analyses. The results of these scenarios indicate that the pandemic will not impact the going concern status of the Group, as assets are estimated to be sufficient to settle liabilities. Although the pandemic has continued to have a material negative impact on operating profits in 2021, the solvency of the Group remains resilient and is expected to meet regulatory requirements, even under extreme stressed conditions.
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