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<br /> 2019/20<br /> ANNUAL<br /> REPORT &<br /> ACCOUNTS<br /> <br /> WHAT’S INSIDE<br /> OVERVIEW<br /> Chair’s statement 6<br /> Chief Executive Officer’s statement 10<br /> Chief Financial Officer’s statement 14<br /> STRATEGIC REPORT<br /> About NHBC 24<br /> Market overview 26<br /> Our strategy 28<br /> Risks to our business 32<br /> Wider impact and non-financial<br /> information statement 38<br /> Section 172(1) statement 42<br /> GOVERNANCE<br /> The Board 48<br /> The Council <a title=" Annual Report and Accounts 2019-2020 page 1" href="http://viewer.zmags.com/publication/bc33eb78?page=1"> 2019/20 ANNUAL REPORT & ACCOUNTS</a> <a title=" Annual Report and Accounts 2019-2020 page 2" href="http://viewer.zmags.com/publication/bc33eb78?page=2"> </a> <a title=" Annual Report and Accounts 2019-2020 page 3" href="http://viewer.zmags.com/publication/bc33eb78?page=3"> WHAT’S INSIDE OVERVIEW Chair’s statement </a> <a title=" Annual Report and Accounts 2019-2020 page 4" href="http://viewer.zmags.com/publication/bc33eb78?page=4"> OVERVIEW Chair’s statement </a> <a title=" Annual Report and Accounts 2019-2020 page 5" href="http://viewer.zmags.com/publication/bc33eb78?page=5"> 5 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 6" href="http://viewer.zmags.com/publication/bc33eb78?page=6"> CHAIR’S STATEMENT </a> <a title=" Annual Report and Accounts 2019-2020 page 7" href="http://viewer.zmags.com/publication/bc33eb78?page=7"> 7 On building safety, we have pr</a> <a title=" Annual Report and Accounts 2019-2020 page 8" href="http://viewer.zmags.com/publication/bc33eb78?page=8"> CHAIR’S STATEMENT The impact of the current Cov</a> <a title=" Annual Report and Accounts 2019-2020 page 9" href="http://viewer.zmags.com/publication/bc33eb78?page=9"> 9 </a> <a title=" Annual Report and Accounts 2019-2020 page 10" href="http://viewer.zmags.com/publication/bc33eb78?page=10"> CHIEF EXECUTIVE OFFICER’S STATEMENT The Covid-1</a> <a title=" Annual Report and Accounts 2019-2020 page 11" href="http://viewer.zmags.com/publication/bc33eb78?page=11"> 11 appropriate costs. Encouraging</a> <a title=" Annual Report and Accounts 2019-2020 page 12" href="http://viewer.zmags.com/publication/bc33eb78?page=12"> CHIEF EXECUTIVE OFFICER’S STATEMENT Looking for</a> <a title=" Annual Report and Accounts 2019-2020 page 13" href="http://viewer.zmags.com/publication/bc33eb78?page=13"> 13 </a> <a title=" Annual Report and Accounts 2019-2020 page 14" href="http://viewer.zmags.com/publication/bc33eb78?page=14"> CHIEF FINANCIAL OFFICER’S STATEMENT The stateme</a> <a title=" Annual Report and Accounts 2019-2020 page 15" href="http://viewer.zmags.com/publication/bc33eb78?page=15"> 15 NHBC’s Solvency II regulatory </a> <a title=" Annual Report and Accounts 2019-2020 page 16" href="http://viewer.zmags.com/publication/bc33eb78?page=16"> CHIEF FINANCIAL OFFICER’S STATEMENT VOLUMES Ou</a> <a title=" Annual Report and Accounts 2019-2020 page 17" href="http://viewer.zmags.com/publication/bc33eb78?page=17"> 17 </a> <a title=" Annual Report and Accounts 2019-2020 page 18" href="http://viewer.zmags.com/publication/bc33eb78?page=18"> CHIEF FINANCIAL OFFICER’S STATEMENT Other incom</a> <a title=" Annual Report and Accounts 2019-2020 page 19" href="http://viewer.zmags.com/publication/bc33eb78?page=19"> 19 CAPITAL At 31 March 2020, accumulated</a> <a title=" Annual Report and Accounts 2019-2020 page 20" href="http://viewer.zmags.com/publication/bc33eb78?page=20"> SUPPORTING OUR REGISTERED BUILDERS DURING COVID-1</a> <a title=" Annual Report and Accounts 2019-2020 page 21" href="http://viewer.zmags.com/publication/bc33eb78?page=21"> CASE STUDY “ I WOULD RECOMMEND NHBC 100%. </a> <a title=" Annual Report and Accounts 2019-2020 page 22" href="http://viewer.zmags.com/publication/bc33eb78?page=22"> STRATEGIC REPORT About NHBC </a> <a title=" Annual Report and Accounts 2019-2020 page 23" href="http://viewer.zmags.com/publication/bc33eb78?page=23"> 23 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 24" href="http://viewer.zmags.com/publication/bc33eb78?page=24"> ABOUT NHBC We are the UK’s leading independent </a> <a title=" Annual Report and Accounts 2019-2020 page 25" href="http://viewer.zmags.com/publication/bc33eb78?page=25"> 25 RESOLUTION AND CLAIMS SERVICE FOR</a> <a title=" Annual Report and Accounts 2019-2020 page 26" href="http://viewer.zmags.com/publication/bc33eb78?page=26"> MARKET OVERVIEW We operate in the UK new house-</a> <a title=" Annual Report and Accounts 2019-2020 page 27" href="http://viewer.zmags.com/publication/bc33eb78?page=27"> 27 “THE IMPACT OF COVID-19 HAS COMPOUNDED </a> <a title=" Annual Report and Accounts 2019-2020 page 28" href="http://viewer.zmags.com/publication/bc33eb78?page=28"> OUR STRATEGY Our core purpose is to build confi</a> <a title=" Annual Report and Accounts 2019-2020 page 29" href="http://viewer.zmags.com/publication/bc33eb78?page=29"> 29 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 30" href="http://viewer.zmags.com/publication/bc33eb78?page=30"> OUR STRATEGY During the year we have continued </a> <a title=" Annual Report and Accounts 2019-2020 page 31" href="http://viewer.zmags.com/publication/bc33eb78?page=31"> 31 FOCUS AREA: IMPROVING CONSTRUCTIO</a> <a title=" Annual Report and Accounts 2019-2020 page 32" href="http://viewer.zmags.com/publication/bc33eb78?page=32"> RISKS TO OUR BUSINESS OUR APPROACH TO RISK MAN</a> <a title=" Annual Report and Accounts 2019-2020 page 33" href="http://viewer.zmags.com/publication/bc33eb78?page=33"> 33 RISK APPETITE The Board sets our</a> <a title=" Annual Report and Accounts 2019-2020 page 34" href="http://viewer.zmags.com/publication/bc33eb78?page=34"> RISKS TO OUR BUSINESS PRINCIPAL RISKS We have </a> <a title=" Annual Report and Accounts 2019-2020 page 35" href="http://viewer.zmags.com/publication/bc33eb78?page=35"> 35 OOVVEERRVVIIEEWW KEY RISKS </a> <a title=" Annual Report and Accounts 2019-2020 page 36" href="http://viewer.zmags.com/publication/bc33eb78?page=36"> RISKS TO OUR BUSINESS EMERGING RISKS In additi</a> <a title=" Annual Report and Accounts 2019-2020 page 37" href="http://viewer.zmags.com/publication/bc33eb78?page=37"> 37 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 38" href="http://viewer.zmags.com/publication/bc33eb78?page=38"> WIDER IMPACT AND NON-FINANCIAL INFORMATION STATEM</a> <a title=" Annual Report and Accounts 2019-2020 page 39" href="http://viewer.zmags.com/publication/bc33eb78?page=39"> 39 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 40" href="http://viewer.zmags.com/publication/bc33eb78?page=40"> WIDER IMPACT AND NON-FINANCIAL INFORMATION STATEM</a> <a title=" Annual Report and Accounts 2019-2020 page 41" href="http://viewer.zmags.com/publication/bc33eb78?page=41"> 41 STREAMLINED ENERGY AND CARBON REPORTIN</a> <a title=" Annual Report and Accounts 2019-2020 page 42" href="http://viewer.zmags.com/publication/bc33eb78?page=42"> SECTION 172(1) STATEMENT The Board makes decisi</a> <a title=" Annual Report and Accounts 2019-2020 page 43" href="http://viewer.zmags.com/publication/bc33eb78?page=43"> 43 STAKEHOLDER </a> <a title=" Annual Report and Accounts 2019-2020 page 44" href="http://viewer.zmags.com/publication/bc33eb78?page=44"> CUSTOMER SATISFACTION Whenever we investigate a </a> <a title=" Annual Report and Accounts 2019-2020 page 45" href="http://viewer.zmags.com/publication/bc33eb78?page=45"> CASE STUDY </a> <a title=" Annual Report and Accounts 2019-2020 page 46" href="http://viewer.zmags.com/publication/bc33eb78?page=46"> GOVERNANCE The Board </a> <a title=" Annual Report and Accounts 2019-2020 page 47" href="http://viewer.zmags.com/publication/bc33eb78?page=47"> 47 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 48" href="http://viewer.zmags.com/publication/bc33eb78?page=48"> THE BOARD We have a strong, experienced and div</a> <a title=" Annual Report and Accounts 2019-2020 page 49" href="http://viewer.zmags.com/publication/bc33eb78?page=49"> DAVID CAMPBELL Commercial Director David joined </a> <a title=" Annual Report and Accounts 2019-2020 page 50" href="http://viewer.zmags.com/publication/bc33eb78?page=50"> THE BOARD IAN CRASTON Non-Executive Director I</a> <a title=" Annual Report and Accounts 2019-2020 page 51" href="http://viewer.zmags.com/publication/bc33eb78?page=51"> 51 PHILIP RYCROFT Non-Executive Director </a> <a title=" Annual Report and Accounts 2019-2020 page 52" href="http://viewer.zmags.com/publication/bc33eb78?page=52"> THE COUNCIL Below is a list of members of the</a> <a title=" Annual Report and Accounts 2019-2020 page 53" href="http://viewer.zmags.com/publication/bc33eb78?page=53"> 53 OVERVIEW Ms J Park NHBC Board Appoin</a> <a title=" Annual Report and Accounts 2019-2020 page 54" href="http://viewer.zmags.com/publication/bc33eb78?page=54"> CORPORATE GOVERNANCE REPORT This report summari</a> <a title=" Annual Report and Accounts 2019-2020 page 55" href="http://viewer.zmags.com/publication/bc33eb78?page=55"> 55 NHBC BOARD The Board’s principal </a> <a title=" Annual Report and Accounts 2019-2020 page 56" href="http://viewer.zmags.com/publication/bc33eb78?page=56"> CORPORATE GOVERNANCE REPORT All directors make </a> <a title=" Annual Report and Accounts 2019-2020 page 57" href="http://viewer.zmags.com/publication/bc33eb78?page=57"> 57 OVERVIEW STRATEGIC REPORT </a> <a title=" Annual Report and Accounts 2019-2020 page 58" href="http://viewer.zmags.com/publication/bc33eb78?page=58"> DIRECTORS’ REPORT The directors submit their An</a> <a title=" Annual Report and Accounts 2019-2020 page 59" href="http://viewer.zmags.com/publication/bc33eb78?page=59"> 59 The key immediate actions tak</a> <a title=" Annual Report and Accounts 2019-2020 page 60" href="http://viewer.zmags.com/publication/bc33eb78?page=60"> DIRECTORS’ REPORT In preparing these financial </a> <a title=" Annual Report and Accounts 2019-2020 page 61" href="http://viewer.zmags.com/publication/bc33eb78?page=61"> 61 OVERVIEW STRATEGIC REPORT GOVERNANCE </a> <a title=" Annual Report and Accounts 2019-2020 page 62" href="http://viewer.zmags.com/publication/bc33eb78?page=62"> AUDIT COMMITTEE REPORT AUDIT COMMITTEE MEMBER </a> <a title=" Annual Report and Accounts 2019-2020 page 63" href="http://viewer.zmags.com/publication/bc33eb78?page=63"> 63 EXTERNAL AUDIT As part of the re</a> <a title=" Annual Report and Accounts 2019-2020 page 64" href="http://viewer.zmags.com/publication/bc33eb78?page=64"> BOARD RISK COMMITTEE REPORT BOARD RISK COMMITT</a> <a title=" Annual Report and Accounts 2019-2020 page 65" href="http://viewer.zmags.com/publication/bc33eb78?page=65"> 65 The BRC met five times during </a> <a title=" Annual Report and Accounts 2019-2020 page 66" href="http://viewer.zmags.com/publication/bc33eb78?page=66"> INVESTMENT COMMITTEE REPORT INVESTMENT COMMITT</a> <a title=" Annual Report and Accounts 2019-2020 page 67" href="http://viewer.zmags.com/publication/bc33eb78?page=67"> 67 OVERVIEW STRATEGIC REPORT </a> <a title=" Annual Report and Accounts 2019-2020 page 68" href="http://viewer.zmags.com/publication/bc33eb78?page=68"> REMUNERATION COMMITTEE REPORT REMUNERATION COM</a> <a title=" Annual Report and Accounts 2019-2020 page 69" href="http://viewer.zmags.com/publication/bc33eb78?page=69"> 69 OVERVIEW STRATEGIC REPORT </a> <a title=" Annual Report and Accounts 2019-2020 page 70" href="http://viewer.zmags.com/publication/bc33eb78?page=70"> NOMINATIONS COMMITTEE REPORT NOMINATIONS COMMI</a> <a title=" Annual Report and Accounts 2019-2020 page 71" href="http://viewer.zmags.com/publication/bc33eb78?page=71"> 71 OVERVIEW STRATEGIC REPORT </a> <a title=" Annual Report and Accounts 2019-2020 page 72" href="http://viewer.zmags.com/publication/bc33eb78?page=72"> BUILDING RELATIONSHIPS IN THE AFFORDABLE AND RENT</a> <a title=" Annual Report and Accounts 2019-2020 page 73" href="http://viewer.zmags.com/publication/bc33eb78?page=73"> CASE STUDY </a> <a title=" Annual Report and Accounts 2019-2020 page 74" href="http://viewer.zmags.com/publication/bc33eb78?page=74"> DIRECTORS’ REMUNERATION REPORT</a> <a title=" Annual Report and Accounts 2019-2020 page 75" href="http://viewer.zmags.com/publication/bc33eb78?page=75"> 75 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 76" href="http://viewer.zmags.com/publication/bc33eb78?page=76"> DIRECTORS’ REMUNERATION REPORT On behalf of the</a> <a title=" Annual Report and Accounts 2019-2020 page 77" href="http://viewer.zmags.com/publication/bc33eb78?page=77"> 77 2020 / 21 REMUNERATION DECISIONS </a> <a title=" Annual Report and Accounts 2019-2020 page 78" href="http://viewer.zmags.com/publication/bc33eb78?page=78"> DIRECTORS’ REMUNERATION REPORT DIRECTORS’ REMUN</a> <a title=" Annual Report and Accounts 2019-2020 page 79" href="http://viewer.zmags.com/publication/bc33eb78?page=79"> 79 OVERVIEW NHBC REMUNERATION POLI</a> <a title=" Annual Report and Accounts 2019-2020 page 80" href="http://viewer.zmags.com/publication/bc33eb78?page=80"> DIRECTORS’ REMUNERATION REPORT The key employme</a> <a title=" Annual Report and Accounts 2019-2020 page 81" href="http://viewer.zmags.com/publication/bc33eb78?page=81"> 81 ANNUAL REMUNERATION REPORT THE REMUNER</a> <a title=" Annual Report and Accounts 2019-2020 page 82" href="http://viewer.zmags.com/publication/bc33eb78?page=82"> DIRECTORS’ REMUNERATION REPORT REMUNERATION FOR</a> <a title=" Annual Report and Accounts 2019-2020 page 83" href="http://viewer.zmags.com/publication/bc33eb78?page=83"> 83 OVERVIEW STRATEGIC REPORT GOVERNANCE </a> <a title=" Annual Report and Accounts 2019-2020 page 84" href="http://viewer.zmags.com/publication/bc33eb78?page=84"> DIRECTORS’ REMUNERATION REPORT NON-EXECUTIVE DI</a> <a title=" Annual Report and Accounts 2019-2020 page 85" href="http://viewer.zmags.com/publication/bc33eb78?page=85"> 85 SUMMARY TABLE OF NON-EXECUTIVE DIRECT</a> <a title=" Annual Report and Accounts 2019-2020 page 86" href="http://viewer.zmags.com/publication/bc33eb78?page=86"> HOW NHBC VIRTUAL TRAINING PROVIDED THE INDUSTRY W</a> <a title=" Annual Report and Accounts 2019-2020 page 87" href="http://viewer.zmags.com/publication/bc33eb78?page=87"> CASE STUDY DURING THE LOCKDOWN PERIOD WE</a> <a title=" Annual Report and Accounts 2019-2020 page 88" href="http://viewer.zmags.com/publication/bc33eb78?page=88"> FINANCIAL STATEMENTS</a> <a title=" Annual Report and Accounts 2019-2020 page 89" href="http://viewer.zmags.com/publication/bc33eb78?page=89"> 89 STRATEGIC REPORT GOV</a> <a title=" Annual Report and Accounts 2019-2020 page 90" href="http://viewer.zmags.com/publication/bc33eb78?page=90"> FINANCIAL STATEMENTS Financial statements </a> <a title=" Annual Report and Accounts 2019-2020 page 91" href="http://viewer.zmags.com/publication/bc33eb78?page=91"> 91 91 14 Director emoluments </a> <a title=" Annual Report and Accounts 2019-2020 page 92" href="http://viewer.zmags.com/publication/bc33eb78?page=92"> INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TH</a> <a title=" Annual Report and Accounts 2019-2020 page 93" href="http://viewer.zmags.com/publication/bc33eb78?page=93"> 93 2 Summary of our audit approach Key au</a> <a title=" Annual Report and Accounts 2019-2020 page 94" href="http://viewer.zmags.com/publication/bc33eb78?page=94"> 4.1 Valuation of gross insurance claims reserves </a> <a title=" Annual Report and Accounts 2019-2020 page 95" href="http://viewer.zmags.com/publication/bc33eb78?page=95"> 95 95 How the scope of our audit </a> <a title=" Annual Report and Accounts 2019-2020 page 96" href="http://viewer.zmags.com/publication/bc33eb78?page=96"> 5 Our application of materiality 5.1 Materiality</a> <a title=" Annual Report and Accounts 2019-2020 page 97" href="http://viewer.zmags.com/publication/bc33eb78?page=97"> 97 97 5.3 Error reporting threshold We agre</a> <a title=" Annual Report and Accounts 2019-2020 page 98" href="http://viewer.zmags.com/publication/bc33eb78?page=98"> 9 Auditor's responsibilities for the audit of the</a> <a title=" Annual Report and Accounts 2019-2020 page 99" href="http://viewer.zmags.com/publication/bc33eb78?page=99"> 99 99 10.2 Audit response to risks identifie</a> <a title=" Annual Report and Accounts 2019-2020 page 100" href="http://viewer.zmags.com/publication/bc33eb78?page=100"> 13 Other matters 13.1 Auditor tenure Following t</a> <a title=" Annual Report and Accounts 2019-2020 page 101" href="http://viewer.zmags.com/publication/bc33eb78?page=101"> 101 101 OVERVIEW STRATEGIC REPORT GOVERNAN</a> <a title=" Annual Report and Accounts 2019-2020 page 102" href="http://viewer.zmags.com/publication/bc33eb78?page=102"> CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME </a> <a title=" Annual Report and Accounts 2019-2020 page 103" href="http://viewer.zmags.com/publication/bc33eb78?page=103"> 103 NON-TECHNICAL ACCOUNT 2020 </a> <a title=" Annual Report and Accounts 2019-2020 page 104" href="http://viewer.zmags.com/publication/bc33eb78?page=104"> CONSOLIDATED STATEMENT OF FINANCIAL POSITION 20</a> <a title=" Annual Report and Accounts 2019-2020 page 105" href="http://viewer.zmags.com/publication/bc33eb78?page=105"> 105 2020 </a> <a title=" Annual Report and Accounts 2019-2020 page 106" href="http://viewer.zmags.com/publication/bc33eb78?page=106"> COMPANY STATEMENT OF FINANCIAL POSITION 2020 </a> <a title=" Annual Report and Accounts 2019-2020 page 107" href="http://viewer.zmags.com/publication/bc33eb78?page=107"> 107 2020 </a> <a title=" Annual Report and Accounts 2019-2020 page 108" href="http://viewer.zmags.com/publication/bc33eb78?page=108"> NOTES TO THE FINANCIAL STATEMENTS CONSOLIDATED ST</a> <a title=" Annual Report and Accounts 2019-2020 page 109" href="http://viewer.zmags.com/publication/bc33eb78?page=109"> 109 CONSOLIDATED STATEMENT OF CASH FLOWS 2020</a> <a title=" Annual Report and Accounts 2019-2020 page 110" href="http://viewer.zmags.com/publication/bc33eb78?page=110"> NOTES TO THE FINANCIAL STATEMENTS 1 Company inf</a> <a title=" Annual Report and Accounts 2019-2020 page 111" href="http://viewer.zmags.com/publication/bc33eb78?page=111"> 111 These major areas of judgement on p</a> <a title=" Annual Report and Accounts 2019-2020 page 112" href="http://viewer.zmags.com/publication/bc33eb78?page=112"> NOTES TO THE FINANCIAL STATEMENTS Movements in </a> <a title=" Annual Report and Accounts 2019-2020 page 113" href="http://viewer.zmags.com/publication/bc33eb78?page=113"> 113 Increases in value are recognised i</a> <a title=" Annual Report and Accounts 2019-2020 page 114" href="http://viewer.zmags.com/publication/bc33eb78?page=114"> NOTES TO THE FINANCIAL STATEMENTS 5.9 Insurance</a> <a title=" Annual Report and Accounts 2019-2020 page 115" href="http://viewer.zmags.com/publication/bc33eb78?page=115"> 115 In calculating the estimated cost o</a> <a title=" Annual Report and Accounts 2019-2020 page 116" href="http://viewer.zmags.com/publication/bc33eb78?page=116"> NOTES TO THE FINANCIAL STATEMENTS The defined b</a> <a title=" Annual Report and Accounts 2019-2020 page 117" href="http://viewer.zmags.com/publication/bc33eb78?page=117"> 117 Provisions are measured at the pres</a> <a title=" Annual Report and Accounts 2019-2020 page 118" href="http://viewer.zmags.com/publication/bc33eb78?page=118"> NOTES TO THE FINANCIAL STATEMENTS 5.16.2 Financ</a> <a title=" Annual Report and Accounts 2019-2020 page 119" href="http://viewer.zmags.com/publication/bc33eb78?page=119"> 119 6.1 Insurance / underwriting risk In</a> <a title=" Annual Report and Accounts 2019-2020 page 120" href="http://viewer.zmags.com/publication/bc33eb78?page=120"> NOTES TO THE FINANCIAL STATEMENTS 6.2 Market ri</a> <a title=" Annual Report and Accounts 2019-2020 page 121" href="http://viewer.zmags.com/publication/bc33eb78?page=121"> 121 6.2.5 Currency risk The Group oper</a> <a title=" Annual Report and Accounts 2019-2020 page 122" href="http://viewer.zmags.com/publication/bc33eb78?page=122"> NOTES TO THE FINANCIAL STATEMENTS Areas particu</a> <a title=" Annual Report and Accounts 2019-2020 page 123" href="http://viewer.zmags.com/publication/bc33eb78?page=123"> 123 6.3.5 Credit risk exposure and age</a> <a title=" Annual Report and Accounts 2019-2020 page 124" href="http://viewer.zmags.com/publication/bc33eb78?page=124"> NOTES TO THE FINANCIAL STATEMENTS The table bel</a> <a title=" Annual Report and Accounts 2019-2020 page 125" href="http://viewer.zmags.com/publication/bc33eb78?page=125"> 125 6.3.6 Impairment of assets The Gro</a> <a title=" Annual Report and Accounts 2019-2020 page 126" href="http://viewer.zmags.com/publication/bc33eb78?page=126"> NOTES TO THE FINANCIAL STATEMENTS 6.4 Liquidity</a> <a title=" Annual Report and Accounts 2019-2020 page 127" href="http://viewer.zmags.com/publication/bc33eb78?page=127"> 127 6.5.1 Investments The Scheme’s cur</a> <a title=" Annual Report and Accounts 2019-2020 page 128" href="http://viewer.zmags.com/publication/bc33eb78?page=128"> NOTES TO THE FINANCIAL STATEMENTS In addition, </a> <a title=" Annual Report and Accounts 2019-2020 page 129" href="http://viewer.zmags.com/publication/bc33eb78?page=129"> 129 6.5.2.2 Liabilities – inflation ri</a> <a title=" Annual Report and Accounts 2019-2020 page 130" href="http://viewer.zmags.com/publication/bc33eb78?page=130"> NOTES TO THE FINANCIAL STATEMENTS 8 Turnover Gr</a> <a title=" Annual Report and Accounts 2019-2020 page 131" href="http://viewer.zmags.com/publication/bc33eb78?page=131"> 131 10 Movements in prior year's claims p</a> <a title=" Annual Report and Accounts 2019-2020 page 132" href="http://viewer.zmags.com/publication/bc33eb78?page=132"> NOTES TO THE FINANCIAL STATEMENTS Net interest </a> <a title=" Annual Report and Accounts 2019-2020 page 133" href="http://viewer.zmags.com/publication/bc33eb78?page=133"> 133 The amounts set out above include r</a> <a title=" Annual Report and Accounts 2019-2020 page 134" href="http://viewer.zmags.com/publication/bc33eb78?page=134"> NOTES TO THE FINANCIAL STATEMENTS 15.4 Research</a> <a title=" Annual Report and Accounts 2019-2020 page 135" href="http://viewer.zmags.com/publication/bc33eb78?page=135"> 135 16.3 Reconciliation of tax charge Ta</a> <a title=" Annual Report and Accounts 2019-2020 page 136" href="http://viewer.zmags.com/publication/bc33eb78?page=136"> NOTES TO THE FINANCIAL STATEMENTS 18 Land and b</a> <a title=" Annual Report and Accounts 2019-2020 page 137" href="http://viewer.zmags.com/publication/bc33eb78?page=137"> 137 THE GROUP AND THE COMPANY 2020 </a> <a title=" Annual Report and Accounts 2019-2020 page 138" href="http://viewer.zmags.com/publication/bc33eb78?page=138"> NOTES TO THE FINANCIAL STATEMENTS The Company’s</a> <a title=" Annual Report and Accounts 2019-2020 page 139" href="http://viewer.zmags.com/publication/bc33eb78?page=139"> 139 21 Deferred tax asset GROUP </a> <a title=" Annual Report and Accounts 2019-2020 page 140" href="http://viewer.zmags.com/publication/bc33eb78?page=140"> NOTES TO THE FINANCIAL STATEMENTS 22 Tangible a</a> <a title=" Annual Report and Accounts 2019-2020 page 141" href="http://viewer.zmags.com/publication/bc33eb78?page=141"> 141 The following is a summary of the G</a> <a title=" Annual Report and Accounts 2019-2020 page 142" href="http://viewer.zmags.com/publication/bc33eb78?page=142"> NOTES TO THE FINANCIAL STATEMENTS 25.2 General </a> <a title=" Annual Report and Accounts 2019-2020 page 143" href="http://viewer.zmags.com/publication/bc33eb78?page=143"> 143 25.4.2 Builder behaviour For defec</a> <a title=" Annual Report and Accounts 2019-2020 page 144" href="http://viewer.zmags.com/publication/bc33eb78?page=144"> NOTES TO THE FINANCIAL STATEMENTS 25.4.6 Other </a> <a title=" Annual Report and Accounts 2019-2020 page 145" href="http://viewer.zmags.com/publication/bc33eb78?page=145"> 145 25.6 Movements in the gross provisio</a> <a title=" Annual Report and Accounts 2019-2020 page 146" href="http://viewer.zmags.com/publication/bc33eb78?page=146"> NOTES TO THE FINANCIAL STATEMENTS 25.8 Loss dev</a> <a title=" Annual Report and Accounts 2019-2020 page 147" href="http://viewer.zmags.com/publication/bc33eb78?page=147"> 147 DEVELOPMENT YEAR </a> <a title=" Annual Report and Accounts 2019-2020 page 148" href="http://viewer.zmags.com/publication/bc33eb78?page=148"> NOTES TO THE FINANCIAL STATEMENTS 26 Reinsuranc</a> <a title=" Annual Report and Accounts 2019-2020 page 149" href="http://viewer.zmags.com/publication/bc33eb78?page=149"> 149 26.4 Movements in reinsurers' share </a> <a title=" Annual Report and Accounts 2019-2020 page 150" href="http://viewer.zmags.com/publication/bc33eb78?page=150"> NOTES TO THE FINANCIAL STATEMENTS 28 Creditors </a> <a title=" Annual Report and Accounts 2019-2020 page 151" href="http://viewer.zmags.com/publication/bc33eb78?page=151"> 151 The amount recognised in the consol</a> <a title=" Annual Report and Accounts 2019-2020 page 152" href="http://viewer.zmags.com/publication/bc33eb78?page=152"> NOTES TO THE FINANCIAL STATEMENTS 29.1.1 Princi</a> <a title=" Annual Report and Accounts 2019-2020 page 153" href="http://viewer.zmags.com/publication/bc33eb78?page=153"> 153 29.1.4 Fair value of Scheme assets</a> <a title=" Annual Report and Accounts 2019-2020 page 154" href="http://viewer.zmags.com/publication/bc33eb78?page=154"> NOTES TO THE FINANCIAL STATEMENTS 29.2 Defined c</a> <a title=" Annual Report and Accounts 2019-2020 page 155" href="http://viewer.zmags.com/publication/bc33eb78?page=155"> 155 30.2 Fair value hierarchy analysis T</a> <a title=" Annual Report and Accounts 2019-2020 page 156" href="http://viewer.zmags.com/publication/bc33eb78?page=156"> NOTES TO THE FINANCIAL STATEMENTS 31 Financial </a> <a title=" Annual Report and Accounts 2019-2020 page 157" href="http://viewer.zmags.com/publication/bc33eb78?page=157"> 157 31.1 Derivative financial instruments</a> <a title=" Annual Report and Accounts 2019-2020 page 158" href="http://viewer.zmags.com/publication/bc33eb78?page=158"> NOTES TO THE FINANCIAL STATEMENTS 33 Provisions</a> <a title=" Annual Report and Accounts 2019-2020 page 159" href="http://viewer.zmags.com/publication/bc33eb78?page=159"> 159 36 Related party transactions Transac</a> <a title=" Annual Report and Accounts 2019-2020 page 160" href="http://viewer.zmags.com/publication/bc33eb78?page=160"> GLOSSARY MEANINGS OF KEY WORDS AND PHRASES Cert</a> <a title=" Annual Report and Accounts 2019-2020 page 161" href="http://viewer.zmags.com/publication/bc33eb78?page=161"> 161 NOTES OVERVIEW STRATEGIC REPORT GOVERNANCE</a> <a title=" Annual Report and Accounts 2019-2020 page 162" href="http://viewer.zmags.com/publication/bc33eb78?page=162"> NOTES</a> <a title=" Annual Report and Accounts 2019-2020 page 163" href="http://viewer.zmags.com/publication/bc33eb78?page=163"> 163 NOTES OVERVIEW STRATEGIC REPORT GOVERNANCE</a> <a title=" Annual Report and Accounts 2019-2020 page 164" href="http://viewer.zmags.com/publication/bc33eb78?page=164"> NHBC is authorised by the Prudential Regulation A</a>