Just group PLC | Annual Report and accounts 2022
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”).
The Board keeps KPIs under review to ensure they continue to reflect the Group’s priorities and strategic objectives. The balance of KPIs across capital, sales, expenses, profit and net assets. reflect the Group’s focus on monitoring and controlling its costs and growing capital.
MEASURED AGAINST OUR STRATEGIC PRIORITIES
1. Grow sustainably 2. Transform how we work 3. Grow through innovation 4. Get closer to our customers and partners 5. Be proud to work at Just
SEE PAGE 16 FOR OUR STRATEGIC PRIORITIES
1 Alternative performance measure. See glossary on page 196 for definition. 2 Solvency II capital coverage ratios as at 31 December 2021 and 31 December 2022 include a recalculation of transitional measures on technical provisions (“TMTP”) as at the respective dates.
UNDERLYING OPERATING PROFIT 1 – £249M Underlying operating profit is calculated in the same way as adjusted operating profit before tax but excludes operating experience and assumption changes.
RETURN ON EQUIT Y 1 – 10.7% Return on equity is underlying operating profit after attributed tax for the period expressed as a percentage of the average tangible net asset value over the period, where tangible net asset value is IFRS total equity excluding goodwill and other intangibles, net of tax, and excluding equity attributable to tier 1 noteholders.
10.7
249
2022
2022
2021
2021
8.3
210
7.9
2020
2020
193
LINK TO STRATEGIC PRIORITIES 1,3
LINK TO STRATEGIC PRIORITIES 1,3
UNDERLYING ORGANIC CAPITAL GENERATION/ (CONSUMPTION) 1,2 – £29M Underlying organic capital generation/(consumption) is the net increase/ (decrease) in Solvency II excess own funds over the year, generated from ongoing business activities, and includes surplus from in-force, net of new business strain, cost overruns and other expenses and debt interest. It excludes 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.
RETIREMENT INCOME SALES 1 – £3,131M Retirement Income sales include DB, GIfL and Care premiums written and are a key measure of the Group’s performance in these core product areas. Retirement Income sales are reconciled to IFRS gross premiums in note 6 to the consolidated financial statements.
29
2022
3,131
2022
2021
51
2,674
2021
2020
18
2,145
2020
LINK TO STRATEGIC PRIORITIES 3,4
LINK TO STRATEGIC PRIORITIES 1,3
20
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