✨ Financial Performance Measures
NEW ZEALAND GAZETTE
22 AUGUST
2923
SCHEDULE – PART 7
FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM 2017/18 FINANCIAL STATEMENTS
ROF
| Derivation Table | Input and Calculations | Symbol (in formula) |
|---|---|---|
| Operating surplus before interest and income tax from re-examined perspective (ST) | 2,636,000 | a |
| Gross written premiums (GWP) | 2,893,000 | |
| Less: Reinsurance premiums paid (RP) | 388,000 | c |
| Net earned premiums (NEP) | 2,505,000 | |
| Net claims incurred (claims paid plus change in outstanding claims) (NCI) | 1,996,000 | |
| Net acquisition and administration of other expenses (NAAE) | 266,219 | |
| Subvention payment | 0 | |
| Amortisation of goodwill and amortisation of other intangibles | 161,694 | |
| Depreciation of SF & A at BV (D) | 426,915 | |
| DOV depreciation adjustment | 0 | |
| Subvention payment called | 0 | |
| Interest tax shield | 0 | |
| Revaluations | 0 | |
| Numerator | ||
| Fixed assets at end of previous financial year (FA) | 161,694 | |
| Adjusted net working capital at end of previous financial year (ANWC) | -198,380 | |
| Average total assets employed (ATE) | 2,597,000 | |
| Total equity at end of previous financial year (TE) | 72,474,288 | c |
| Total debt at end of current financial year (TD) | 1,822,500 | k |
| NWC at end of current financial year (NWC) | 3,045,000 | o |
| Average total assets (ATA) | 1,482,500 | g |
| Revaluations | 0 | |
| Intangible assets at end of previous financial year (IAO) | -444,780 | |
| Intangible assets at end of current financial year (IA) | 222,385 | |
| Denominator | ||
| Financial Performance Measure: | ||
| 1. Maximum permitted increase may also reflect capital adjustments, a return on capital employed, or a prescribed capital valuation. By a book value, ROE = (profit before tax/net operating assets) × (net operating assets/equity) × (1 – tax rate). |
ROE
| OSBITA/ADJ = a + c + d + e - f | NSAT/ADJ = g - h | ROE = i/j | |
|---|---|---|---|
| 2,597,000 | 2,157,604 | 2.1% | |
| add | 0 | ||
| add | 1,996,000 | ||
| add | 0 | ||
| deduct | 0 | ||
| deduct | 161,694 | ||
| 466,730 | |||
| add | |||
| 72,474,288 | |||
| 64,636,500 | |||
| deduct | 1,522,500 | ||
| deduct | 222,385 | ||
| 72,975,000 | |||
| 73,286,000 |
ROF
| OSBITA/ADJ = a + c + d + e - f | ATE/ADJ = g | ROF = h/j | |
|---|---|---|---|
| 2,597,000 | 1,482,500 | 2.08% | |
| add | 0 | ||
| add | 1,996,000 | ||
| add | 0 | ||
| deduct | 161,694 | ||
| deduct | |||
| 446,730 |
Additional Calculations
| Regulation 33 time-weighted average (or as per regulation) | ||
|---|---|---|
| a | 78,126,000 | |
| c | 4,185,000 | |
| f | 3,245,000 | |
| g | 73,057,000 | |
| h | 72,873,000 | |
| i | 73,286,000 | |
| j | 73,057,000 |
Notes:
- OSBITA = Operating Surplus Before Interest Tax Adjustment.
- NSAT = Net Surplus After Tax.
- ROE = Return on Funds.
- ROF = Return on Investment.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 110
Gazette.govt.nz —
NZ Gazette 2003, No 110
✨ LLM interpretation of page content
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Derivation of Financial Performance Measures
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Performance Measures, ROF, ROE, Operating Surplus, Depreciation, Net Surplus, Equity, Assets, Intangible Assets, System Fixed Assets, Return on Equity, Return on Funds, Return on Investment