JUST GROUP PLC Annual Report and Accounts 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
6 SEGMENTAL REPORTING continued Adjusted operating profit excludes the impairment and amortisation of goodwill and other intangible assets arising on consolidation, non-recurring and project expenditure and implementation costs for cost saving initiatives, since these items arise outside the normal course of business in the year. Adjusted operating profit also excludes exceptional items. Exceptional items are those items that, in the Directors’ view, are required to be separately disclosed by virtue of their nature or incidence to enable a full understanding of the Group’s financial performance. Variances between actual and expected investment returns due to economic and market changes, including on surplus assets and on assets assumed to back new business, and gains and losses on the revaluation of land and buildings, are also disclosed outside adjusted operating profit. Segmental reporting and reconciliation to financial information Year ended 31 December 2021 Year ended 31 December 2020 Insurance £m Other £m Total £m Insurance £m Other £m Total £m New business operating profit 224.7 – 224.7 199.2 – 199.2 In-force operating profit 87.3 2.7 90.0 96.8 1.0 97.8 Other Group companies’ operating results – (15.1) (15.1) – (17.1) (17.1) Development expenditure (4.2) (2.6) (6.8) (5.9) (1.4) (7.3) Reinsurance and financing costs (89.1) 6.0 (83.1) (79.5) – (79.5) Underlying operating profit 218.7 (9.0) 209.7 210.6 (17.5) 193.1 Operating experience and assumption changes 28.0 – 28.0 46.2 – 46.2 Adjusted operating profit/(loss) before tax 246.7 (9.0) 237.7 256.8 (17.5) 239.3 Non-recurring and project expenditure (14.8) (0.2) (15.0) (7.1) (5.6) (12.7) Implementation of cost saving initiatives – – – (7.8) (0.7) (8.5) Investment and economic profit/(loss) (248.6) (2.6) (251.2) 9.4 (0.9) 8.5 Interest adjustment to reflect IFRS accounting for Tier 1 notes as equity 28.1 (3.0) 25.1 28.1 – 28.1 Profit/(loss) before amortisation costs and tax 11.4 (14.8) (3.4) 279.4 (24.7) 254.7 Amortisation of acquired intangibles – (18.0) (18.0) – (18.0) (18.0) Profit/(loss) before tax 11.4 (32.8) (21.4) 279.4 (42.7) 236.7 Additional analysis of segmental profit or loss Revenue (other than fee and commission income presented in the disaggregation of fee and commission income below), depreciation of property, plant and equipment, and amortisation of intangible assets (other than amortisation of acquired intangibles presented in the table above) are materially all allocated to the insurance segment. The interest adjustment in respect of Tier 1 notes in the other segment represents the difference between interest charged to the insurance segment in respect of Tier 1 notes and interest incurred by the Group in respect of Tier 1 notes. Product information analysis Additional analysis relating to the Group’s products is presented below. The Group’s gross premiums written, as shown in the Consolidated statement of comprehensive income, is analysed by product below: Year ended 31 December 2021 £m Year ended 31 December 2020 £m Defined Benefit De-risking Solutions (“DB”) 1,934.6 1,507.9 Guaranteed Income for Life contracts (“GIfL”) 688.2 585.9 Care Plans (“CP”) 51.1 51.5 Protection 2.2 2.5 Gross premiums written 2,676.1 2,147.8
138
Powered by FlippingBook