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We will do this by ensuring that we: |
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Apply superior financial management |
We aim to act with integrity and honesty as good stewards of our customers’ and shareholders’ capital. Capital is a key component for our business and effective capital management is an important objective. We aim to ensure that we have the right amount of the right type of capital to meet our business requirements. We aim to deliver attractive returns on our shareholders capital. | |
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Key performance indicators | |
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25% |
£1,002m |
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Total shareholder return (TSR) |
IFRS operating profit before tax |
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18.2% |
£1,224m |
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Return on equity (ROE) |
EEV operating profit before tax |
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£3.7bn |
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IGD Capital Surplus |
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Deliver sustainable growth in cash flows in order to reward our shareholders |
We firmly believe that we exist to generate cash to pay returns to our shareholders. Over the last three years we have refocused the business on delivering cash based returns to fund dividends. | |
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Other performance measures and key themes | |
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£728m |
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Net cash generation against a target of £600m | |
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Build a diversified business |
We have established key themes for each of our four businesses. We seek to ensure that we remain a balanced business, not becoming over reliant on any one product or business area. | |
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Other performance measures and key themes | |
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• Risk – maintain our leadership position | |
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• Savings – transformation to a lower cost capital light model | |
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• Investment management – diversify and internationalise the business | |
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• International – measured growth, bancassurance lead | |
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Provide high quality products and broad distribution |
Central to our business model is the maintenance of diversified distribution capability. The benefits of this strategy are that we are able to build scale in diversified markets and maintain growth as distribution patterns shift. Together with this, we aim to produce products which offer demonstrable value to customers, distributors and us, maintaining quality and ensuring a stable stream of high quality new business. | |
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Other performance measures and key themes | |
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We have a diverse distribution strategy with relationships with all major UK high street banks and most leading building societies. (For further details see the What we do section) | |
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Deliver a positive customer experience |
We recognise our customers are at the heart of our business and consequently work hard to develop relationships with our key customer segments and distributors on mutually acceptable terms. We aim to deliver a positive experience for our existing customer base; treating our customers fairly and meeting, or beating, the performance assumptions made in terms of persistency, cost, claims and mortality. | |
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Other performance measures and key themes | |
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74% |
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Percentage of our customers who agree we really care about them | |
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Rating scale change in 2010 survey from all answering ‘strongly agree’ and ‘agree‘ with statement to all answering ‘very good’ or ‘good’ | |
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Build a high expectation culture |
Our people are key to our continued long term success. We aim to maintain a strong management team and continually grow the breadth and depth of our management capability. Our organisational culture already yields benefits in terms of behaviour, low turnover and cost, but we recognise the need to evolve in the current marketplace, injecting greater energy into the business to build further on our successes. | |
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Other performance measures and key themes | |
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74% |
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Employee engagement index (employee survey 2010) | |
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