STRATEGIC REPORT
25
Measured against our strategic objectives
1.
2.
3.
4.
5. Be Proud To Work At Just
Improve our capital position
Transform How We Work
Get Closer To Our Customers & Partners
Generate Growth In New Markets
1 Alternative performance measure. See glossary on page 169 for definition. 2 These figures allow for a notional recalculation of TMTP as at 31 December 2018.
SEE PAGE 16 FOR OUR STRATEGIC OBJECTIVES
IN-FORCE OPERATING PROFIT 1 In-force operating profit captures the expected margin to emerge from the in-force book of business and free surplus, and results from the gradual release of prudent reserving margins over the lifetime of the policies. Prudent reserving margins exist for future expectations of mortality, expenses and asset yield deductions for defaults. In-force profit provides a view of the contribution to profits from the business written by the Group during prior periods and aligns with the longer-term nature of these products. In-force operating profit is reconciled to IFRS profit before tax on pages 29 and 30.
IFRS PROFIT BEFORE TAX IFRS profit before tax represents the profit before tax attributable to equity holders.
84.4 m
368.6 m
£
£
2019
2019
84.4
368.6
71.7
(85.5)
2018
2018
71.3
181.3
2017
2017
0
20
40
60
80
100
-100
0
100
200
300
400
Link to strategic objective 1. 2. 3. 4. 5.
Link to strategic objective 1. 2. 3. 4. 5.
ADJUSTED OPERATING PROFIT BEFORE TAX 1 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 30.
IFRS NET ASSETS IFRS net assets represents the net assets attributable to equity holders.
218.6 m
2,321.0 m
£
£
2019
2,321.0
2019
218.6
1,663.8
2018
210.3
2018
1,740.5
2017
220.6
2017
0
50
100
150
200
250
0
500
1,000
1,500
2,000
2,500
Link to strategic objective 1. 2. 3. 4. 5.
Link to strategic objective 1. 2. 3. 4. 5.
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