Basis of preparation
The results are prepared on two bases: The results prepared under International Financial Reporting Standards (IFRS) form the basis of the Group’s statutory financial statements. In addition, 性爱视频 has, from the first quarter of 2025, chosen to prepare a set of supplementary results on a Traditional Embedded Value (TEV) basis. The results have been determined in accordance with the methodology and assumptions set out in notes 6 and 7 of the TEV Basis results. The Group’s TEV basis results are stated net of tax.
The Group provides supplementary analysis of IFRS profit before tax attributable to shareholders in order to distinguish operating profit based on longer-term investment returns from the other elements of total profit or loss for the period. This measure is called Adjusted operating profit and as well as excluding the effect of short-term interest rate and other market related movements, it also excludes any gain or loss arising on corporate transactions.
Similarly TEV operating profit excludes economic assumption and other market-related movements, the mark-to-market value movement on core borrowings for shareholder-financed operations and the gain or loss arising on corporate transactions.
Adjusted total comprehensive equity represents IFRS shareholders’ equity plus shareholders’ contractual service margin net of reinsurance and related tax adjustments. See note C3.1 in the IFRS financial results for further information.
Operating free surplus generation is the financial metric we use to measure the internal cash generation of our business operations and for our life operations is generally based on the capital regimes that apply locally in the various jurisdictions in which the Group operates (with adjustments so that the free surplus better reflects resources potentially available for distribution to the Group). It represents amounts emerging from the in-force business during the year, net of amounts reinvested in writing new business (where applicable). For asset management businesses, it equates to post-tax adjusted operating profit for the year.
Segment results and Group KPIs such as operating profit, APE and new business are attributable to the shareholders of the Group before deducting the amount attributable to the non-controlling interests.
The definitions of the key metrics we use to discuss our performance are set out in the "Definition of performance metrics" section in our Half Year Report, including, where relevant, references to where these metrics are reconciled to the most directly comparable IFRS measure.
Exchange translation
The IFRS and TEV results are presented in US dollars. The comparative results have been prepared using previously reported actual exchange rates.