Glossary
Book value per share
This measure is calculated by dividing common shareholders’ equity by the number of shares issued less the number of treasury shares.
Business operating profit (BOP)
is a measure that is the basis on which the Group manages all its business units. It indicates the underlying performance of the Group’s business units by eliminating the impact of financial market volatility and other non-operational variables. BOP reflects adjustments for shareholders’ taxes, net capital gains on investments and impairments (except for the capital markets and banking operations included in Non-Core Businesses and investments in hedge funds and certain securities held for specific economic hedging purposes), policyholders’ share of investment results for the life businesses, non-operational foreign exchange movements, and significant items arising from special circumstances, including restructuring charges for litigation outside the ordinary course of business and gains and losses on divestments of businesses. Business operating profit before interest, depreciation and amortization (BOPBIDA) is BOP before interest expense on debt, depreciation of property and equipment and amortization and impairment of goodwill and other intangibles, but inlcuding amortization of DAC and DOC. Adjusted business operating profit is adjusted for notional investment income on the difference between the average actual International Financial Reporting Standards (IFRS) equity and the average allocated IFRS equity using one global swap rate. Allocated IFRS equity is equal to a segment’s pro rata share of the Group’s total IFRS equity allocated based on the segment’s proportion of the Group’s risk-based capital (RBC) at the respective period end.
Business operating profit (after-tax) return on common shareholders’ equity
indicates the level of business operating profit or loss relative to resources provided by common shareholders. It is calculated as business operating profit or loss, annualized on a linear basis and adjusted for preferred shareholder dividends and taxes, divided by the average value of common shareholders’ equity on a simple basis using the value at the beginning and end of the period.