FINANCIAL STATEMENTS
STRATEGIC REPORT
GOVERNANCE
ADJUSTED OPERATING PROFIT BEFORE TAX 1 – £238M
UNDERLYING OPERATING PROFIT 1 – £210M Underlying operating profit is calculated in the same way as adjusted operating profit before tax but excludes operating experience and assumption changes.
Adjusted operating profit before tax is the sum of the new business operating profit and in-force operating profit together with the impact of one-off assumption changes, experience variances, results of the other Group companies and financing costs. The Board believes that adjusted operating profit, which excludes effects of short-term economic and investment changes, provides a better view of the longer-term performance and development of the business and aligns with the longer-term nature of the products. Adjusted operating profit is reconciled to IFRS profit before tax on page 52.
238
2021
2021
210
2020
2020
193
239
219
2019
2019
176
LINK TO STRATEGIC PRIORITIES:
LINK TO STRATEGIC PRIORITIES:
2. 3. 4. 5. 1.
2. 3. 4. 5. 1.
IFRS (LOSS)/PROFIT BEFORE TAX – £(21)M IFRS (loss)/profit before tax represents the (loss)/profit before tax attributable to equity holders.
MANAGEMENT EXPENSES 1 – £147M Management expenses are the business as usual costs incurred and include all operational overheads. They are calculated as other operating expenses excluding investment expenses and charges and reassurance management fees, which are largely driven by strategic decisions, and amortisation of acquired intangible assets as these relate to merger and acquisition activity. The use of this metric provides the Board with a better view of the Group’s cost base and how they support both development and transformation and business as usual activities, ensuring that they are able to be carefully monitored and controlled. Other operating expenses continue to be a useful measure alongside management expenses. Management expenses are reconciled to IFRS other operating expenses in note 4 on page 136.
147
2021
(21)
2021
2020
237
2020
159
169
2019
2019
369
LINK TO STRATEGIC PRIORITIES:
LINK TO STRATEGIC PRIORITIES:
2. 3. 4. 5. 1.
2. 3. 4. 5. 1.
IFRS NET ASSETS – £2,440M IFRS net assets represents the net assets attributable to equity holders.
SOLVENCY II CAPITAL COVERAGE RATIO 2 – 164% (ESTIMATED)
Solvency II capital is the regulatory capital measure and is focused on by the Board in capital planning and business planning. It expresses the regulatory view of the available capital as a percentage of the required capital.
164
2021
2021
2,440
156
2020
2020
2,490
2,321
2019
2019
141
LINK TO STRATEGIC PRIORITIES:
LINK TO STRATEGIC PRIORITIES:
2. 3. 4. 5. 1.
2. 3. 4. 5. 1.
47
Powered by FlippingBook