JUST GROUP PLC Annual Report and Accounts 2020
22
Key Performance indicators
The Board has adopted the following metrics, which are considered to give an understanding of the Group’s underlying performance drivers. These measures are referred to as key performance indicators (“KPIs”)
MEASURED AGAINST OUR STRATEGIC OBJECTIVES
SEE PAGE 16 FOR OUR STRATEGIC OBJECTIVES
Improve our capital position 1.
1 Alternative performance measure. See glossary on page 167 for definition. 2 These figures allow for a notional recalculation of TMTP as at 31 December 2020.
2.
Transform How We Work
3. 4. 5. Be Proud To Work At Just
Get Closer To Our Customers & Partners
Generate Growth In New Markets
The Board keeps KPIs under review to ensure they continue to reflect the Group’s priorities and strategic objectives.
Organic capital generation/ (consumption) 1,2 – £221m Organic capital generation/(consumption) is the net increase/ (decrease) in Solvency II excess own funds over the year, and includes surplus from in-force, new business strain, cost overruns and other expenses, interest and other operating items. It excludes economic variances, regulatory adjustments, accelerated TMTP amortisation and capital raising or repayment. The Board believes that this measure provides good insight into our objective to improve our capital position.
During 2020 the Group introduced two new KPIs, management expenses, and underlying organic capital generation/(consumption). In-force operating profit has been discontinued as a KPI. These changes reflect the Group’s focus on monitoring and controlling its costs and growing capital, and provide a balance of KPIs across capital, sales, expenses, profit and net assets.
221
2020
36
2019
2018
(165)
-170
-90
-10
70
150
230
Link to strategic objective
2. 3. 4. 5. 1.
SOLVENCY II CAPITAL COVERAGE RATIO 2 – 156% (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.
underlying Organic capital generation/ (consumption) 1 – £18m Underlying organic capital generation/(consumption) is calculated in the same way as organic capital generation, but also excludes the impact of other operating items.
156
18
2020
2020
141
2019
(15)
2019
136
2018
(111)
2018
0
40
80
120
160
-120
-100
-80
-60
-40
-20
0
20
Link to strategic objective
Link to strategic objective
2. 3. 4. 5. 1.
2. 3. 4. 5. 1.
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