Novae Group PLC Novae Group Plc: Annual Financial Report

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Novae Grp	LSE:NVA	London	Ordinary Share	GB00B40SF849	ORD 112.5P

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	714.00	714.00	715.00				0.00	01:00:00

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

 
TIDMNVA 
 
 
   31 March 2017 
 
   NOVAE GROUP PLC 
 
   Annual Financial Report and Notice of Annual General Meeting 
 
   Novae Group plc ("the Company") confirms that the following documents 
have today been posted or otherwise made available to shareholders. 
 
 
   1.  Annual Report and Accounts for the year ended 31 December 2016 
 
   2.  Notice of Annual General Meeting to be held on 10 May 2017 
 
   3.  Proxy form for the Annual General Meeting to be held on 10 May 2017 
 
 
   In accordance with Listing Rule 9.6.1 a copy of each of these documents 
has been uploaded to the National Storage Mechanism and is available for 
inspection at: www.Hemscott.com/nsm.do. 
 
   The Annual Report and Notice of AGM are also available on the Company's 
website at www.novae.com. 
 
   Compliance with Disclosure and Transparency Rule 6.3.5 ("DTR 6.3.5") - 
Extracts from the 2016 Annual Report 
 
   The information below, which is extracted from the 2016 Annual Report, 
is included solely for the purpose of complying with DTR 6.3.5 and the 
additional requirements it imposes on the publication of Annual 
Financial Reports. It should be read in conjunction with the Company's 
Preliminary Announcement issued on 9 March 2017 (available on 
www.novae.com.). Together, these constitute the material required by DTR 
6.3.5 to be communicated to the media in unedited full text through a 
Regulatory Information Service. This material is not a substitute for 
reading the full 2016 Annual Report. All page numbers and 
cross-references in the extracted information below refer to page 
numbers in the 2016 Annual Report. 
 
   The information contained in this announcement and in the Preliminary 
Announcement does not constitute the Company's statutory accounts, but 
is derived from those statutory accounts. The statutory accounts for the 
year ended 31 December 2016 have been approved by the Board and will be 
delivered to the Registrar of Companies following the Company's Annual 
General Meeting. The auditors have reported on those statutory accounts 
and their report was unqualified, with no matters by way of emphasis, 
and did not contain any statements under Section 498(2) of the Companies 
Act 2006 ("the Act") regarding adequacy of accounting records and 
returns) or under Section 498(3) of the Act  (regarding provision of 
necessary information and explanations). 
 
   Appendix A - Risk Management 
 
   The external political and economic environment provided numerous 
challenges for risk management over the course of 2016. Not least among 
these was the relatively unexpected outcome of the UK's referendum on 
European Union membership during the summer, and the outcome of the US 
elections in November. In the case of the referendum, application of our 
Enterprise Risk Management framework allowed us to identify potential 
business opportunities and threats across a variety of scenarios to 
support business planning. 
 
   In the case of the US election, it is still too early to say 
definitively what the impact on global trade and the economy might be. 
Given the importance of the US as a source of business for Novae, this 
is something that we will work with Lloyd's and our key brokers to 
monitor closely throughout 2017. 
 
   Continued soft conditions remained a key driver of risk through 2016 and 
into 2017. It remains challenging to identify and exploit profitable 
opportunities - however our continued strategy of expert underwriting 
and dynamic capital management allows us to deploy capital in those 
areas with the best risk/reward balance as a way of navigating this 
market. 
 
   2016 was the first year of operating in the live Solvency II regime, 
although preparations within the Lloyd's market mean that many of the 
specific requirements for Novae have been 'business as usual' for some 
time. Our internal model has been approved by Lloyd's, and we continue 
to use it to calculate Solvency Capital Requirements, and also to 
support risk analysis and risk-based decision making within the Group. 
 
   Enterprise Risk Management ("ERM") Framework 
 
   Novae's ERM framework provides a consistent view of risk aligned and 
integrated with strategic decision making and reflects our defined risk 
appetite. A number of incremental developments have been made to the ERM 
Framework in 2016, to further enhance the risk management processes 
(including a refresh of the Group's granular "Tier 2" risk appetites). 
This section provides an overview of the core components of our ERM 
framework. 
 
   Novae adopts the three lines of defence model (see diagram on following 
page) to provide assurance to the Board that appropriate internal 
controls are in place to manage the company's risks. 
 
   Risk Strategy 
 
   Novae's risk strategy is an extension of our business strategy. As a 
specialty (re)insurer, it is central to our strategic goals that we seek 
to take on underwriting risks, and to a lesser extent investment risks, 
through the specialty (re)insurance products that we underwrite and the 
financial investments we make to support those products. Further to this, 
we recognise our business operation requires the assumption of other 
non-core risks and that seeking to eliminate these risks is 
uneconomical. 
 
   Our risk strategy guides our risk taking with the following principles: 
 
 
   --   We take risks that are in line with our strategy 
 
   --   We take risks that are rewarded, with returns commensurate to the level 
      of risk assumed 
 
   --   We take risks that we understand and can manage 
 
   --   We take risks within clearly defined limits 
 
   Risk Appetite 
 
   The risk appetite framework, which was refreshed in 2015, has now bedded 
in and the Risk Appetite Statements were reviewed and approved by Novae 
Group Board in October 2016 without significant change. 
 
   Novae's risk appetite follows a hierarchical structure: 
 
 
 
 
GECR              Group economic capital requirement: 
                   Defines the overall level of risk in reference to 
                   an economic capital requirement. 
Tier 1: Key       Tier 1 risk appetites: 
risks              Risk level statements of appetites and limits for 
                   major risk exposures. 
Tier 2:           Tier 2 risk appetites: 
Operational        Limits, thresholds and indicators applied at an operational 
level              level to individual risk and sub-risks. 
 
 
   Following the refresh of Tier 1 risk appetite in 2015, a key project for 
2016 was the update of the Tier 2 risk appetites. This has helped to 
ensure that operational level risk management aligns with the 
'bottom-up' business practices and 'top-down' risk appetite. 
 
   First line: Risk Ownership 
 
   The business is responsible for the identification and assessment of 
risks and the design and operation of effective internal controls. 
Reporting to the Executive Committee and its sub-Committees. 
 
   Second line: Risk Oversight 
 
   Risk Management and Compliance are responsible for the facilitation and 
monitoring of effective risk management processes in the First Line. 
Reporting to the Risk Committees and the Board. 
 
   Third line: Risk Assurance 
 
   Internal Audit provide independent assurance on the effectiveness of the 
internal control framework and Risk Management and Compliance. Reporting 
to the Audit Committee and the Board. 
 
   Risk Appetites are broadly classified using the following three 
definitions: 
 
 
   -- Positive Appetite signifies a strategic desire for a particular risk, 
      within defined limits 
 
   -- Neutral Appetite signifies a measured acceptance of a particular risk 
 
   -- Negative Appetite signifies a general intention to avoid a particular 
      risk, to the extent it is practical and commercial to do so 
 
 
   We group the principal risks to Novae into the following groups, and 
then further into "Tier 1" risks: 
 
 
 
 
Risk group 
Strategic risks                                          Core risks                                                  Non-core risks 
 Risks that changes to external circumstances impact      Risks where Novae has the expertise and experience          Risks that are not actively sought, but arise as a 
 Novae as a consequence of executing the strategy for     to price and manage risks to derive a profit.               consequence of executing the strategy for core risks. 
 core risks.                                              Our strategy focuses on selecting, pricing and managing     Our strategy does not seek to generate economic return 
                                                          these risks to deliver economic returns.                    from these risks but seeks to control exposure that 
                                                                                                                      arises in the normal course of business. 
Tier 1 Risk Category 
   Strategic                  Reputational                   Underwriting              Underwriting non-cat                   Credit                      Liquidity 
                                                              catastrophe 
                                                             Underwriting                   Investment                        Operational (inc regulatory and legal) 
                                                               reserving 
 
 
   Further detail of our appetite for, and exposure to, these risks is 
contained in the "Principal Risks" section on pages 32 to 33. 
 
   Risk Governance 
 
   In January 2016, the Group's risk management governance structure 
changed to clarify responsibility between Group governance and the 
governance of Syndicate 2007, as the key regulated insurance entity in 
the Group. The key change was the establishment of a dedicated Board 
Risk Committee for Novae Group plc and an Audit and Risk Committee for 
Novae Syndicates Limited (collectively, the "Risk Committees"). 
 
   The new Risk Committees continued to have oversight responsibility for

the ERM Framework of Novae Group plc and Novae Syndicates Limited under 
the three lines of defence model. Whilst the broad remit of the Risk 
Committees remained unchanged, the governance change has provided a 
sharper focus on strategic and Group-level risk issues and this 
clarification of responsibilities increased the robustness of the risk 
oversight and challenge process at both Group and Syndicate level. The 
role of monitoring risk exposures continued to be delegated by the 
respective Risk Committees to a number of functional sub-committees, 
which have responsibility for the management of specific risks. The Risk 
Committees are supported by the Group Risk Management Function in 
executing their risk oversight duties. 
 
   The following table summarises the roles of the Risk Committees, 
sub-committees and the Risk Management Function within the governance 
structure. It also describes at a high level the linkage with the third 
line of defence, Internal Audit: 
 
 
 
 
Risk Committee                                                 Sub-Committees 
> Provide oversight and have responsibility for the            > Have delegated responsibility for oversight of specific 
 Group Risk Management Framework                                risks 
 > Responsible for the continuous review of the risk            > Monitor risk exposures and controls for delegated 
 and control environment                                        risks 
 > Monitor position against risk appetite                       > Consider action where specific delegated risks are 
 > Review ongoing compliance with all regulatory requirements   outside of appetite or where controls are ineffective 
 > Review the effectiveness of the Risk Management              > Escalate material risk issues to the Executive Committee 
 Function on an ongoing basis                                   and Risk Committees 
Group Risk Management Function                                 Internal Audit 
> Headed by the Chief Risk Officer                             > Reviews the Enterprise Risk Management Framework 
 > Provides day to day support to the Risk Committees           and tests the extent of the reliance that can be placed 
 in its role of oversight, monitoring and reporting             on risk assessments performed by the risk management 
 on risks facing the Group                                      function 
 > Supports and challenges business risk owners in              > Assesses the effectiveness of specific operational 
 the first line of defence                                      controls in mitigating identified risks 
 > Provides oversight of all risks that could affect            > Identifies and escalates control weaknesses, including 
 Novae's ability to meet its strategic objectives               agreement of remedial action plans 
                                                                > Provides quarterly reporting and monthly action 
                                                                plan status updates to the Audit Committee 
                                                                > Assesses the effectiveness of the Risk Management 
                                                                Function on an annual basis 
 
 
   Internal audit review the effectiveness of the risk management framework 
on an annual basis. Throughout the year, individual audit engagements, 
as outlined in the audit plan, assess the design and application of 
internal controls for managing the principal risks faced by Novae. In 
addition, a separate review on the effectiveness of the risk management 
function is performed annually, providing an overall opinion on the 
effectiveness of all risk management processes throughout a 12 month 
period and consolidating any observations arising from individual audit 
engagements. All findings are reported to the Audit Committee. 
 
   Risk Culture 
 
   Risk management is at the heart of Novae's business culture and is 
considered a driver of competitive advantage. We therefore foster a risk 
aware culture so that risks are identified, assessed and managed 
throughout the business. The Risk Management Function works closely with 
the business to ensure there is appropriate knowledge and understanding 
of the ERM Framework throughout Novae, ensuring actions taken reflect 
Novae's risk culture. 
 
   The Board annually commissions the Internal Audit function to review the 
effectiveness of risk management at Novae. All internal audit reviews 
include cultural elements, such as the business awareness and execution 
of the appropriate risk management approach. 
 
   In 2016, the Risk Management function undertook a risk culture survey 
across all Group staff consisting of 50 questions across ten categories 
(aligning to various aspects of risk culture). The results of this 
survey helped to give further comfort in the robustness of Novae's risk 
culture, as respondents provided broadly favourable responses across the 
range of categories. The survey has also helped us to identify for 
potential drill-down to ensure our risk culture continues to support the 
execution of our strategy. 
 
   Risk Processes and Controls 
 
   The high level and strategic elements of the framework described above 
sit above a wide-ranging and robust set of Risk Management processes and 
controls. The most significant of these are highlighted below: 
 
   1. The Own Risk & Solvency Assessment ("ORSA") Process 
 
   The Quarterly ORSA ("Q-ORSA") process which brings together core risk 
assessment and response processes has bedded in during 2016. This has 
helped us to create focussed and effective Management Information for 
executives and the Board in the Q-ORSA report. 
 
   This is a focussed report that summarises key risk information, 
including: 
 
 
   --   the as-is and projected position against risk appetite 
 
   --   risk exposure and control performance 
 
   --   emerging risks 
 
   --   material risk events 
 
   --   stress and scenario testing, including reverse stress testing 
 
   --   available capital 
 
 
   This has enhanced risk assessment processes in some areas, and has 
brought together the output from other existing processes in a 
consistent fashion. 
 
   Continued development of internal risk reporting is planned for 2017 to 
reflect changes in the Risk Governance structure. This will enhance 
information received by the Group Risk Committee and the Group Board in 
respect of our principal risk exposures. 
 
   2. Risk response cycle 
 
   Risk owners are senior managers within the business responsible for the 
day to day managing, monitoring and reporting of their allocated 
risk(s). Similarly control owners are responsible for the operation, 
monitoring and reporting of their allocated controls. 
 
   The Risk Management Function facilitates a risk and control 
self-assessment ("RCSA") every quarter to monitor the ongoing exposure 
to risks and the effectiveness of controls. Risk owners confirm that 
risks are being managed within agreed tolerances, and identify any areas 
where remedial control action is required. The assessment includes 
consideration of risk indicators that are updated to monitor compliance 
with the risk appetite. Findings of the RCSA exercise are reported to 
the sub-committees via risk dashboards, and to the Risk Committees and 
Board through the ORSA Report. This is complemented, on a rolling annual 
basis, by detailed control reviews ("DCR"), which ensure that controls 
are appropriately designed and effective. 
 
   An Emerging Risks Working Group is charged with identifying, 
investigating and reporting new or developing insurance risks and trends 
Novae may be exposed to. Membership includes stakeholders across the 
business, and an annual meeting is conducted to identify emerging risks 
for escalation to the relevant sub-committees. Outputs from this process 
are reported throughout the year in the Q-ORSA. 
 
   3. Capital management and the internal model 
 
   The internal model is a set of processes and tools, including a 
stochastic risk model, used to quantify risk to calculate regulatory and 
economic capital requirements, and to provide insight to a wide range of 
other business decisions. 
 
   Incremental improvements were made in the Internal Model in 2016 as the 
use of the Internal Model was embedded in a number of decision making 
processes in the business. Our Internal Model was used to provide 
important insights in many areas, including the following: 
 
 
   --   Capital setting - assessment of the regulatory and economic capital 
      requirements of the Group and of subsidiary entities 
 
   --   Capital planning - forward-looking assessment of the capital required 
      to support our strategic growth plans 
 
   --   Risk profile measurement and risk appetite analysis - analysis of 
      material risk exposures and comparison to appetite 
 
   --   Reinsurance purchasing - analysis of the outwards reinsurance programme 
      to support an effective and efficient purchase 
 
   --   Strategic assessment - consideration of the impact of strategic 
      decisions on risk profile and capital requirements 
 
 
   Given the importance of the internal model both in terms of setting 
capital and the assessment of risk exposures, Novae has a robust, 
independent model validation process that reports into the NSL Audit & 
Risk Committee. This ensures that model outputs are fit for purpose, and 
that any assumptions and limitations in the modelling are discussed and 
understood by model users, management and the NSL Board. This validation 
process is overseen by the Risk Management function, led by the Head of 
ERM and involving specialist input from a variety of internal and 
external experts. 
 
   Analysis from the internal model is supported by stress and scenario 
testing, including reverse stress testing. Outcomes of this analysis 
provide further insight to the risks facing the business and assist in 
the development of mitigation strategies. Reverse stress testing, which

assumes a starting point of the business model being unviable, further
supports the formulation of recovery plans by identifying management
actions to be undertaken in stressed situations to return the Group to a
stable position.

Viability Statement

The Directors have completed a robust assessment of the risks facing the
Group, including those which threaten its viability over a three year
period.

A period of three future years has been selected as it is considered
long enough to reflect the key drivers of the Group's risk profile, but
short enough to be reasonably assessable given the nature of the
business. This period also aligns with the length of time over which
business at Lloyd's is managed and is consistent with the average
duration of the Group's assessment of its economic liabilities.

The Board annually reassesses the Group's strategy, which includes a
longer-term five year rolling forecast. The assessment of the three year
period has been made with reference to this.

Principal risks to the Group are summarised on pages 32 to 33. The
impact of these risks on the Group's viability has been assessed and in
doing so, a number of key assumptions have been made, principally that
market conditions will be in line with expectations and availability of
capital remains stable.

The Board has then examined the robustness of the Group's strategic plan
considering severe but plausible scenarios including changes to the
assumed level of growth, variations in market pricing, a change in
funding and the impact of a major catastrophic loss. The Directors have
concluded that there is reasonable expectation that the Group with be
able to continue in operation and meet its liabilities as they fall due
over the period of assessment.

Principal risks

The Board has made an assessment of the principal risks facing Novae,
including those that would threaten its business model, future
performance, solvency or liquidity. The table on the following page
defines our principal risks, sets out our appetite for these, provides
our view on observable trends and relevant risk mitigation strategies.

Group risk appetite

The overall level of risk that the Group is willing to take on is a
function of the amount of capital at our disposal. Novae expresses an
overall risk appetite as a target surplus above the Lloyd's regulatory
capital requirement for Syndicate 2007:

Novae seeks to maintain around 20% surplus capital over the regulatory
requirement on a prospective basis.

This allows efficient deployment of capital to optimise returns, whilst
maintaining sufficient balance sheet strength for flexibility in our
response to risk events and the changing risk and business environment.
The Group has remained within appetite throughout 2016, and we expect to
continue to do so going into 2017. Note that the Group's current
regulatory capital requirement is defined by the Lloyd's requirement for
Syndicate 2007. This is set to allow Lloyd's to maintain a target rating,
and therefore includes a material uplift relative to the Solvency II
minimum.

Risk category Description of risk Appetite Trend Key mitigations
Core risks - we have the expertise and experience
to price and manage core risks to derive a profit.
Our strategy therefore focuses on selecting, pricing
and managing these risks to deliver economic returns.
Underwriting risk
Catastrophe The potential for aggregated losses to arise from Novae has a positive appetite for catastrophe risk. Some continuing growth of exposures from underwriting Underlying strategy and geographical diversification.
catastrophic events. We seek to diversify our exposures across our core opportunities in niche areas is partially offset by Monitoring and controls of aggregate exposures and
(re)insurance book, but recognise the potential for reductions in business in other areas and the increased disaster scenarios across multiple return periods.
aggregate losses arising from natural or man-made use of reinsurance to cover peak exposures. Strategic reinsurance purchase.
catastrophic events.
Non-catastrophe The risk of adverse loss experience arising from small Novae has a positive appetite for non-catastrophe Broad pressure on premium rates continues to drive Niche book of specialist insurance business.
or large individual insurance claims (including the underwriting risk. an upwards trend in this risk. This is offset to a Focus on underwriting profitability, with regular
risk of mispricing underlying insurance contracts). Our residual appetite degree by strategic diversification and dynamic allocation monitoring of underwriting performance.
for underwriting risk - of capital away from underperforming units. Proprietary pricing models and regular rate adequacy
non-catastrophe is determined by our available capital monitoring including the effect of changes in terms
and the adequacy of returns available in the market. & conditions.
Underwriting protocols limit exposure to individual
large losses.
Strategic reinsurance purchase.
Reserving The risk that claims reserves will be materially different Novae has a neutral appetite for reserving risk. The margin held over the actuarial best estimate reserves Use of proprietary and standard reserving models.
from the ultimate cost of settlement. We recognise the uncertainty in estimating claim amounts remains stable in line with our target ranges. Internal and external reserve benchmarking.
in advance of final settlement. Claims development review.
Our appetite for reserving risk is set in our reserving
policy, which requires that reserves are set prudently,
with target margin ranges in excess of the actuarial
"best estimate".
Investment risk The risk of economic losses arising from fluctuations Novae has a positive appetite for investment risk. Investment risk exposure has remained broadly stable Asset-Liability modelling techniques to ensure all
in the value of our asset and liability portfolio A measured level of investment risk is sought as it over 2016, reflecting a long-term strategic asset sources of investment risk are considered.
driven by economic variables. offers the potential for enhanced returns, and diversifies allocation and our investment risk appetite. Strategic asset allocation process to optimise the
from core underwriting risk exposures. Short-term market volatility has increased, following risk and reward balance.
This risk is measured on an "asset - liability" basis. uncertainties in the political and economic environment. Investment modelling and stress testing to ensure
within appetite.
Investment guidelines monitoring.
Risk category Description of risk Appetite Trend Key mitigations

Non-core risks arise as a consequence of executing
the strategy for core risks. We do not actively seek
to generate economic return from these risks, but
to control exposure that arises in the course of business.
Credit The risk arising from the potential failure of business Novae has a neutral appetite towards credit risk. Increased exposure to some reinsurance counterparties Specific risk controls are operated at a counterparty
counterparties to fulfil financial obligations to Credit risk arises through Novae's normal commercial has risen as reinsurance usage has increased in some level, to ensure appropriate security for all reinsurance.
Novae Group. operations, the most material of which is ceded reinsurance. areas. Guidelines support careful selection and monitoring
Reinsurance protection is a key tool for managing We generally seek to reduce this risk via controls Exposures remain with well-rated counterparties. of counterparties, including limits to individual
our underwriting exposures, and this requires a measured over counterparty exposures. We do not seek to generate exposures.
acceptance of credit risk. economic returns through the assumption of counterparty Purchase of collateralised reinsurances.
This excludes investment counterparties, which are credit risks.
considered as investment risk.
Liquidity The risk of not being able to meet our liabilities Novae has a negative appetite for liquidity risk. We continue to maintain a high allocation to cash Strategic liquidity target.
as they fall due, or incurring excessive costs to We generally seek to reduce the potential that there and liquid assets, and monitor against minimum liquidity Stress testing of available liquidity against requirements
do so. might be insufficient funds available to meet claims. targets on a regular basis. in catastrophe situations.
Strategic asset allocation considers duration match
between assets and liabilities.
Limits on allocation to assets that may become illiquid
in times of stress.
Operational The risk arising from inadequate or failed processes/systems, Novae has a negative appetite towards operational Growth in the business and changes in structure over Operational controls that cover all material business
people, or external events. risk. recent years have increased operational complexity; processes keeping the likelihood and impact of operational
We seek to reduce exposures subject to cost and practical this has been offset by ongoing improvements in systems, failures within acceptable bounds.
considerations, recognising that operational risks processes and controls to enhance operational capabilities. Change management controls, including a project methodology.
arise in all business systems and processes, and to Detailed Business continuity planning.
eliminate these risks entirely would entail excessive Succession planning, talent management and effective
costs. remuneration controls.
Strategic risks arise from changes to external circumstances
and impact Novae's ability to generate adequate returns
from its strategy.
Strategic risk The risk that the strategy is not delivered against, Novae has a positive appetite for strategic risk. Long term strategies continue to deliver positive Annual review of strategy by Board.
not clearly communicated, or not appropriate for the We continually seek ways to build shareholder value outcomes, in an increasingly challenging external Major strategic opportunities assessed by reference
changing business environment. This includes reputational as an underwriter of specialty (re)insurance products, environment. to Group strategy.
risk. recognising that strategic risks arise from constant These strategies are subject to regular review Established policy for interacting with the media,
change in the business environment as well as risks and refresh to ensure ongoing relevance. analysts, shareholders
in the implementation of our strategy. and regulators.

Appendix B - Directors' Responsibility Statement pursuant to Disclosure
and Transparency Rule 4

The following statement is extracted from page 77 of the 2016 Annual
Report and is repeated here for the purposes of compliance with DTR
6.3.5. This statement relates solely to the 2016 Annual Report and is
not connected to the extracted information set out elsewhere in this
announcement or the Preliminary Announcement.

The Directors, whose names and functions are set out on pages 42 and 43
confirm that to the best of our knowledge:

> the financial statements, prepared in accordance with IFRSs as
adopted by the EU, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the company and the
undertakings included in the consolidation taken as a whole;

> the Strategic Report contained in this report (on pages 7 to 40)
includes a fair review of the development and performance of the
business and the position of the Group. In addition, the risk
disclosures (on pages 98 to 113) describe the principal risks and
uncertainties faced by the Group; and

> in addition, each of the Directors considers that the Annual Report
and accounts, taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess the
Group's position and performance, business model and strategy.

Appendix C - Related Party Transactions

Certain Directors of the Group are also directors of other companies, as
set out in the biographies of the Board of Directors in the Corporate
Governance report on pages 42 and 43. Some of these companies conduct
business with the Group, including Morgan Stanley International plc (of
which Mary Phibbs is a non-executive director). All transactions between
such companies and the Group are carried out at arms-length and on
normal commercial terms.

During the period 1 January 2017 to 31 March 2017, there were no
transactions, loans or proposed transactions between the Company and any
related parties which were material to either the Company or the related
party, or which were unusual in their nature or conditions (see also
Note 30 to the Annual Report on page 136).

Enquiries:

Alex Moon
Group Company Secretary
31 March 2017 020 7050 9500

This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.

Source: Novae Group plc via Globenewswire

http://www.novae.com/home.aspx

(END) Dow Jones Newswires

March 31, 2017 08:15 ET (12:15 GMT)

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