Professional Documents
Culture Documents
General Insurance
• Strong profits in a tough economic environment Composite
Page 3 Long-term savings sales (present value of new business premiums and investment sales), GI and health sales (net written premiums) and MCEV operating profit
(regional split shown before group debt and interest costs)
Clear strategic delivery
Manage composite portfolio • Delta Lloyd: 1 billion cash raised; IGD up £0.5
• Transformational deal with Delta Lloyd billion, new governance driving better performance
• Sold sub-scale Australian business • Australian sale: 16 x IFRS profits realised; IGD up
£0.5 billion
Allocate capital rigorously • Inherited estate: Access to £650 million capital over
5 years
• Inherited estate reattribution
• Product mix: Margin up to 2.9% from 2.5%
• Product mix changes
excluding Delta Lloyd
Multi channel customer reach • Bank distribution: 2009 sales £9.3 billion at
• Bank distribution power 3.8% margin – 30% of L&P sales
• Successful rebranding • Rebranding: Aviva is rated as one of the
UK‟s top ten most valuable brands*
Analysis of Operational Cost Base (by Region) Movement in Headcount (by Region)
2.5 1.5
2.5
Key drivers for growth
2.0 • Higher in-force profits
• Lower new business strain
1.5
• Increased capital generation
1.0
in general insurance
1.0
0.5
0.0
Operational capital Investment in Underlying capital Increase in underlying
generated new business generated 2009 capital generated 2010
Page 6
Materially improved £2.2 billion central liquidity
£bn
Financial leverage of 31.8% (2008: 34.0%) Net of £2.2 billion central liquidity would be 19.0%
Page 7
A high return on equity and further NAV upside potential
18%
Return on equity - %
16%
12%
8%
Estimated present value of future credit 90p
spread earnings
6%
4%
2%
0%
Life GI Group
2008 2009
Page 8
Strong today, with a clear vision for the future
European L&P
A single global brand assets expected
1.7 to grow by
• 53 million customers
$1.7 trillion over
• A unique bancassurance the next 5 years
franchise
• Top 4 in Europe and a
market leader in the UK
2009–14 Expected
Increase in Assets
A 16% return on equity
• Delivering 13% minimum Life 1.3
2009 Assets
$62tr personal
financial assets, to 40% of the
grow by $12tr by world‟s personal
2014 wealth
800m+
population and
growing 13% of wealth „Baby boomers‟
invested in L&P approaching
retirement
General insurance
Composite
Aviva’s
presence
Life & pensions
Source: Oliver Wyman
General insurance
Page
Aviva10Europe – Making a Quantum Leap
22 October 2009 Composite
Source: UN (2009), CEA (2009), Aviva PFA Model (2008)
Specific plans to drive value, earnings
& dividend growth – Plans for 2010
Asia Pacific ► Expand market share in chosen markets and re-enter GI in selected countries
Value &
Aviva Investors ► Significantly increase third party mandates and investment outperformance earnings
IFRS EPS growth eg: Quantum Leap at least 13p; eliminate restructuring costs 10p
Page 11
Q&A