Our primary performance target for measuring shareholder value creation is RoGEV, which reflects our success in growing the value of Sanlam’s operations over the long term. Given the direct relationship over the long term between shareholder and other stakeholder value creation, RoGEV indirectly reflects how successfully we create value for our other material stakeholders. Sanlam’s RoGEV target is to outperform its cost of capital of i+4%, with i being the South African nine-year risk-free rate. We have outperformed this hurdle on a cumulative basis since listing in 1998.
Understanding RoGEV: Our key financial measure of success