Aviva plc corporate profile - October 2011

We are one Aviva...Company Overview Regional View UK ▪▪Aviva is the world’s sixth largest insurance company providingcustomers with insurance, savings and investment products. Aviva is the leading insurance brand in the UK. We are the UK’s largest insurer and are ranked as one of the UK’s top ten most valuable brands.We are the UK’s largest insurer and one of Europe’s leading Interim Results 2011providers of life and general insurance. Trevor Matthews ▪ IFRS operating profit up to £709 million (£691 million HY 2010). Chief executive IFRS operating profit up 17% on an underlying basis with the UK * exclusion of 2010’s special distribution benefit of £84 million.We combine strong life and general insurance businesses under a ▪ Strong general insurance results. UK general insurance operatingsingle, strong brand, focused on providing customers with profit has increased to £242 million, up 6%. Sales up 14% toprosperity and peace of mind. £2,222 million, General insurance COR improved to 96%. Life IRR increased to 16%.This model gives us reliable revenues from diverse sources, and ▪ We now have over two million personal motor customers, and have attracted an additional 670,000 new customers since thehelps us fund and grow our business more efficiently. start of 2010. ▪ The business is well-positioned to become the undisputed leader in the UK market. As a diversified player with a strong brand we stand to benefit from growth within the market and regulatory changes such as the Retail Distribution Review and pensions auto enrolment.. Europe We provide 18 million customers across Europe with life, general and Andrew Moss health insurance products through our multi-channel distribution Pat Regan Group chief executive network. Our chosen presence in Europe combines large, developed Chief financial officer Igal Mayer economies (France, Spain, Ireland, Italy, and Poland,) with the emerging Chief executive ▪ Single, strong brand ▪ Market capitalisation £10.73 Europe markets of Turkey and Russia. billion (as of 3 August 2011) Interim Results 2011 ▪ 44.5 million customers ▪ 2010 full year dividend 25.5p, ▪ A 21% increase in IFRS operating profit to £525 million due to changes to ▪ 36,100 employees yield of 6.5% the business mix and growth in funds under management. ▪ We are a clear and undisputed leader in bancassurance with more than ▪ Strong market positions across ▪ £352 billion of funds under 50 agreements across the region. Insurance sold though banks is the the UK and Europe management (HY 2011) primary route to market across the region. ▪ Over 300 years of heritage ▪ 12.8% IFRS return on equity ▪ General insurance sales up by 5% to £1,123 million with COR improving to (HY 2011) 97% (HY10: 102%.) North AmericaIFRS Group Operting profit FY10 Sales FY10 The North America region is home to two of the world’s largest and richest economies. We are focusing on building our position and competitiveness to capitalise on Aviva’s financial strength and leverage our strong, high quality relationships with our distribution Richard Hoskins partners. Chief executive North America Interim Results 2011 ▪ IFRS operating profit grew 5% to £219 million. ▪ Life insurance operating profits increased 27% due to a growth in the business and disciplined pricing. In general insurance underwriting ▪ UK 42 % ▪ UK 35 % profits increased offset by lower long term investment returns. ▪ Europe 43 % ▪ Europe 46 % ▪ North America 11 % ▪ North America 14 % Asia Pacific ▪ Asia Pacific 1% ▪ Asia Pacific 5% ▪ Aviva Investors 3% We continue to progress against our strategic priorities across nine Asian markets, pursuing franchise growth through organic investment and improved margins. We have further sharpened our Interim Results – August 2011 focus on markets where we have strength and scale such as China and India where we expect to generate a significant proportion of our Total operating profit up to £1,337 million Simon Machell new business growth. Chief executive“This has been a successful six months. We are beating all our Asia Pacific Interim Results 2011 ▪ IRFS operatin g profit up 21% to £17 million. operational targets. Operating profits rose in the UK and have ▪ 17% growth in long-term savings sales to £1,180 million. Life and increased by 21% in Europe despite tough economic pensions sales increased 14% to £902 million. conditions. Aviva Investors“After recent disposals, Aviva is fitter, stronger and well Aviva Investors is the integrated asset management business positioned to be the undisputed leader in the UK market and of the Aviva Group, managing funds for Aviva as well as a growing to build on our strong European franchises. range of third party clients. Interim Results 2011“Markets may well continue to be volatile, but our strong ▪ Strong investment performance with 75% of institutional funds balance sheet and capital position underpins our confidence in Alain Dromer performed above benchmark where a benchmark is specified. our continued momentum and our plans for growth.” Chief executive ▪ Good growth in external sales. Net external sales (excluding liquidity Aviva Investors funds) in the first half of the year were £2.5 billion, greater than the £2.4 billion achieved in the whole of 2010. Andrew Moss, Group chief executive, Aviva plc *As announced in June , Trevor Matthews has been appointed chief executive of Aviva UK, subject to FSA approval.

...fitter and strongerWe combine excellence in both life and general Our strategyinsurance for the benefit of our customers and our 1. We’re increasing our geographic focus on our priority marketsshareholders alike. where we have strength and scale. ▪ 44.5 million customers worldwide. One of the UK’s top ten most valuable ▪ We are focusing our effort and capital on our leading market positions brands. in the UK and Europe which together comprise the world’s largest life ▪ UK and Europe: we have strength and scale in two of the largest and most and pensions market. In Europe our focus is on the eight markets of attractive insurance markets in the world. UK, France, Ireland, Italy, Poland, Spain, Russia and Turkey. ▪ One of the world’s largest bancassurance franchises with over 100 ▪ North America will continue to be a net capital contributor for the partnerships worldwide. group and we will continue to focus on profitable and organic growth. ▪ We continue to generate significant value from our combination of ▪ In Asia we will continue to pursue franchise growth though organic excellent life and general insurance businesses. investment, focusing on our priority markets such as China and India. ▪ Supported by a strong global asset manager. 2. We are benefitting from the combination of life and general insurance. ▪ Our life and general insurance operations are excellent businesses inWe are delivering on a clear and focused strategy... their own right but in addition to their inherent strengths there areIn the first half of 2011: significant advantages to running these businesses under one brand in one group.These include: ▪ Total operating profit up 5% to £1,337 million (HY10: £1,270 million); up ▪ Capital: The combination of our businesses provides capital benefits 13% excluding impact of £84 million special distribution benefit in 2010. by diversifying risks. ▪ Operating profits in Europe up 21% to £525 million despite financial and ▪ Cash flow: The diversity of our business drives more resilient cash economic difficulties in the eurozone. flows and earnings than single-line insurers through the cycle. Half of ▪ 14% life insurance new business internal rate of return (IRR) against a Aviva’s net cashflow is generated from the general insurance business. target of 12% *. ▪ Cost and efficiency: We gain clear scale benefits and cost synergies from ▪ 96% group combined operating ratio (COR), against a target of 97%*. having life, general insurance and asset management in one group. It ▪ £0.8 billion net operational capital generation in H1 towards the £1.5 allows us to transfer key skills and capabilites across the organisation, as billion FY11 target. Now targeting between £1.5 billion and £1.8 billion in well as share back-office functions, IT and finance resources. FY11. ▪ Customer distribution: The power of Aviva’s brand differentiates our life, ▪ On track to deliver £400 million cost and efficiency savings by FY12. general insurance and asset management businesses. This combination makes Aviva an attractive business partner and has allowed us to develop global leadership in bancassaurance. We create cross-selling opportunities with our single trusted brand which is able to meet our ▪ ...which has made us financially stronger, providing us with customers’ complete insurance, pension and investment needs. a great platform for further profitable growth. 3. We are building on our core strengths ▪ Sale of RAC at 17x earnings for £1 billion will release significant ▪ We will succeed by focusing on our strengths in marketing and shareholder value. distribution expertise, technical excellence, operational effectiveness ▪ Delta Lloyd: by reducing our shareholding we’ve raised £0.4 billon and and financial discipline. removed risk from our balance sheet. ▪ We already perform well in those areas, but by focusing our efforts ▪ We have eliminated the deficit in the Group’s pension scheme. As of and resource we aim to excel at each of them, and enhance Aviva’s HY2011 it was marginally in surplus. position as a leading insurer. ▪ Pro forma economic capital surplus, including the impact of the sale of the RAC, up 23% at £6.9 billion (FY10: £5.6 billion). ...and play a positive and dynamic role in society We’re delivering on our strategy... to deliver prosperity and peace of mind. ▪ We are now a more focused business: For us, insurance is about people and not policies. Our business ▪ The sale of the RAC at 17x earning for £1 billion will release significant helps our customers to manage the risks of everyday life and shareholder value. protects them long into the future. We must be there for them ▪ The reduced shareholding and deconsolidation of Delta Lloyd raised throughout their lives and beyond, so it’s crucial we are a £0.4 billion and further de-risked our balance sheet. sustainable and profitable business, for the mutual benefit of ▪ ...and our targets our customers, our shareholders, and future generations. We ▪ Success in the first half of 2011 owes much to the benefits of the want to encourage as many people as possible to secure their management actions we have taken over the past few years. As a financial futures. We’re committed to working with our customers, result of those actions we have: governments, regulators, charity partners and business partners to ▪ Reduced our cost base from £5.8 billion in 2008 to £4.0 billion find solutions that increase the financial wellbeing of individuals (annualised HY11, excluding the RAC and Delta Lloyd.) and society. It is our duty as an industry leader to campaign and ▪ Improved profitability – life IRR of 14% and COR or 96% ahead of targets. encourage governments to properly address the challenge of ▪ Grown the value of our in-force book from £4.2 billion in 2008 to £6.6 billion.* long-term savings and pensions. It’s one of the most important We’ve built a strong platform for growth financial issues of our time, and we are all in it together. We are confident about Aviva’s prospects and ability to deliver our financial targets while growing the business. In life insurance we are poised to extend our profitable growth as we benefit from our diverse product range, excellent distribution and the need for people to save more for retirement. We expect the momentum we have built in our general insurance business to continue. We take One of Aviva’s mobile learning strength from the long term nature of our business, the actions we centres, bringing education to have taken to restructure the Group and our focus on meeting children in India. customer needs. We have the right platform to deliver profitable growth.*Excluding Delta Lloyd Last updated 18.10.2011

Aviva plc corporate profile - October 2011

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Aviva plc corporate profile - October 2011 Document Transcript