Finance and Capital Management
2020-22 mid-point capital generation target
Illustrative bridge from past underlying capital generation
£bn
0.5
0.9
Savings & Asset
Management
Heritage
FY 2018
underlying
cap. gen.1
1.4
2.8
0.8
0.3
1.6
H1 2019
underlying
cap. gen.1
18 months
equivalent
underlying
cap. gen.²
3-year pro rated
equivalent
underlying
Pro forma
Corporate Centre
costs 3
Assumed
tax 4
Resulting 3-year
net underlying
cap. gen.
cap. gen.
0.6
2.2
Additional
cap. gen. required
to meet target
2020-22
mid-point
cap. gen.
target5
1. Excludes Corporate Centre costs; 2. Set equal to the sum of FY 2018 and H1 2019 underlying capital generation; 3. Based on interest cost of £190m and the mid-point of the Head Office £80-100m cost expectation;
4. Assumed corporate tax at standard rate; 5. Provisional target subject to further consideration by the Remuneration Committee of appropriate 2020 incentive plan targets at year-end 2019; refers to total change in Solvency Il surplus before capital movements and dividends
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