GEV is the aggregate of:

• The value of Sanlam’s in-force book of life insurance business;
• The value of our non-life operations based on longer term assumptions; and
• The fair value of discretionary and other capital not allocated to Sanlam operations.

The following valuation methodologies are applied:

• Our stake in Santam is valued at its listed market value, which represents the market’s valuation of Santam’s future profits (14,9% of GEV at 31 December 2017).
• 94% of our other non-life operations and the in-force book of life insurance business is valued at the present/discounted value of future profits (net result financial services and net investment return) we expect to earn from these operations, with allowance for the cost of capital allocated to these businesses (76,6% of GEV at 31 December 2017).
• Some small and/or newly acquired businesses are valued at net asset value (2% of GEV at 31 December 2017).
• Discretionary and other capital not allocated to Group operations is valued at fair value (6,5% of GEV at 31 December 2017).

RoGEV is equal to:

• The change in GEV, after adding back dividends paid and movements in share capital, as a percentage of GEV at the beginning of the year.
• RoGEV is therefore a measure of growth in the value of Sanlam, excluding future new life insurance business and any allowance for prudence in our valuation assumptions for Group operations.