Definition:Target range

Target range
Category	concepts
Aliases	target ranges; guidance range
Related terms	Underlying earnings per share, Underlying earnings
Definition	The band management commits to for a metric in its published guidance.

🎯 Target range is the band, floor to ceiling, within which management commits to landing a metric in its published guidance — also called a guidance range. Insurers set such bands for measures like growth in underlying earnings per share, cash remitted from subsidiaries, dividend payout ratios, and the corridor in which they intend to operate their solvency ratio.

🧭 A band says two things at once: the midpoint carries the ambition, the width concedes the uncertainty of a business exposed to catastrophes, financial markets, and interest rates. Conventions vary by market — the US quarterly-guidance culture leans toward near-term point estimates, while European and Asian groups more often state multi-year ranges tied to strategic plans — and in every regime the numbers travel with forward-looking-statement disclaimers. Progress is marked publicly against the range at each results date.

⚖️ Once stated, the range becomes the yardstick for every subsequent result. Delivery near the top builds credibility and invites raised targets; slipping below the floor demands explanation and can reprice expectations for the whole plan. Phrases such as tracking at the upper end, or pressure toward the low end, rank among the most market-sensitive language an insurer can print — which is why they are drafted with care.