Investor Relations

Investing in Xchanging

Corporate Profile

Xchanging provides technology-enabled business solutions to the global commercial insurance industry. Listed on the London Stock Exchange (LSE:XCH) we have 7,000+ employees in 48 countries including over 2,500 insurance specialists.

We specialise in bringing deep domain expertise and technology-enablement to complex business processing. By deploying technology and innovation, we perform our customers’ non-core and back office functions better, faster and more cost-effectively, in ways that allow our customers to focus on their strategic activities, and that add value to their businesses.

We enable customers to unlock value in their businesses by carrying out business processes on their behalf. Our approach is to combine innovative technology with best-in-class process excellence methodologies to address customers’ complex back and middle office needs. Offering a flexible base of on, near and offshore centres, we work across a wide range of industries building on our domain strengths – particularly in insurance.

Commercially relevant innovation continues to drive our technology operation. This has delivered tangible successes in the past year, with significant investment making possible the launch and enhancement of new products such as the Xuber suite of insurance software, Netsett and X-presso.

Key Performance Indicators

Adjusted operating profit* margin (%)

Adjusted operating profit expressed as a percentage of net revenue.

*Adjusted operating profit excludes exceptional items, amortisation of intangible assets previously unrecognised by acquired entities and acquisition-related expenses.


  • Places focus on increasing the proportion of net revenue from technology and technology-enabled services where higher returns can be made
  • Measures ongoing performance in managing the efficiency and cost-effectiveness of the business

Economic Profit (£m)

Adjusted operating profit less a tax charge at the Group’s effective rate, less a charge for invested capital.


  • Measures the value generated for shareholders
  • Performance condition of the Group’s Long Term Incentive Plan in 2014

Return on invested capital (%)

Adjusted operating profit less a tax charge at the Group’s effective rate, divided by invested capital.


  • Measures the efficiency of the use of the Group’s assets
  • Measures shareholder value over the long term

Adjusted cash conversion (%)

Percentage of adjusted operating profit converted to adjusted operating cash flow*.

*Adjusted operating cash flow is defined as operating cash flow after adding back the cash impact of exceptional items, acquisition-related expenses and movements on customer cash accounts held by FdB. divided by adjusted operating profit. See previous KPI for definition of adjusted operating profit.


  • Ensures the Group has the financial strength to reinvest in the development of the business
  • Effective measure of the quality of earnings

Equity free cash flow (£m)

Operating cash flow* less cash tax and net interest paid including dividends received.

*Operating cash flow is calculated as cash generated from operations less net capital expenditure (including pre-contract costs) and dividends to non-controlling interests.


  • Provides an assessment of how much cash is generated by the Group, which is available to invest in acquisitions, return to shareholders and pay down outstanding debt
  • Indicates cash available to the Group’s shareholders, which includes movements on customer cash accounts held by Fondsdepot Bank (‘FdB’)

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