Strategic Report Governance Financial Statements
221
Peppercorn rent
A very low or nominal rent.
PrognoSys™
The Group’s proprietary underwriting engine, which is based on individual mortality curves derived from Just Group’s own data collected since its launch in 2004. Personalised financial advice for retail customers by qualified advisers who are regulated by the Financial Conduct Authority. A Real Estate Investment Trust is a company that owns, operates, or finances income-generating real estate.
Regulated financial advice
REITs Retail
The Group’s collective term for GIfL and Care Plan.
Retirement income sales (shareholder funded)
An APM and one of the Group’s KPIs and a collective term for GIfL, DB and Care Plan new business sales “Sales” and excludes DB partner premium. Premiums are reported gross of commission paid. Retirement income sales (shareholder funded) are reconciled in note 2 to premiums included in the analysis of movement in insurance liabilities within note 22. An APM and one of the Group’s KPIs. Return on equity is calculated by dividing underlying operating profit after attributed tax for the period by the average tangible net asset value for the period and is expressed as an annualised percentage. Underlying operating profit and tangible net asset value are reconciled respectively to IFRS profit before tax and IFRS total equity in the Business Review. Allowance for longevity, expense, and insurance specific operational risks representing the compensation required by the business when managing existing and pricing new business. A tax efficient solution for individuals who want the security of knowing they will receive a guaranteed income for life and the flexibility to make changes in the early years of the plan. Sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure. Covers the reforms to the Solvency II requirements for the UK and implemented by the PRA. One of the Group’s KPIs. Solvency II capital is the regulatory capital measure and is focused on by the Board in capital planning and business planning alongside the economic capital measure. It expresses the regulatory view of the available capital as a percentage of the required capital. Are costs that deliver major regulatory change, the implementation of major strategic investment, new product and business lines and other restructuring costs. An APM that comprises IFRS total equity attributable to ordinary shareholders, excluding goodwill and other intangible assets, and after adding back contractual service margin, net of tax. An APM and one of the Group’s KPIs, representing tangible net asset value divided by the closing number of issued ordinary shares excluding shares held in trust. Individuals with the legal powers to hold, control and administer the property of a trust such as a pension scheme for the purposes specified in the trust deed. Pension scheme trustees are obliged to act in the best interests of the scheme’s members. An APM that is calculated by dividing underlying operating profit after attributed tax by the weighted average number of shares in issue by the Group for the period. An APM and one of the Group’s KPIs representing new business profit, in-force operating profit, other Group companies’ operating results, development costs and other, and finance costs. Underlying operating profit is reported prior to deferring new business profit to the CSM as the Board considers the value of new business is significant in assessing business performance. The Board believes the combination of both future profit generated from new business written in the year and additional profit from the in-force book of business, provides a view of the development of the business aligned to growth and future cash release. Underlying operating profit is reconciled to adjusted operating profit before tax, which is reconciled to IFRS profit before tax in the Business Review. An APM and one of the Group’s KPIs. Underlying organic capital generation is the net movement in Solvency II excess own funds over the year, generated from in-force surplus, net of new business strain, cost overruns and other expenses and debt interest. It excludes strategic expenditure, economic variances, regulatory adjustments, capital raising or repayment and impact of management actions and other operating items. The Board believes that this measure provides good insight into the ongoing capital sustainability of the business. Underlying organic capital generation is reconciled to Solvency II excess own funds, which is reconciled to shareholders’ net equity on an IFRS basis in the Business Review.
Return on equity
Risk adjustment for non-financial risk (“RA”)
Secure Lifetime Income (“SLI”)
Solvency II
Solvency UK
Solvency capital coverage ratio
Strategic expenditure
Tangible net asset value (“TNAV”) Tangible net asset value per share
Trustees
Underlying earnings per share
Underlying operating profit
Underlying organic capital generation
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