Aviva Plc · LSE:AV.
Aviva — Shareholder Meeting (2003)
27 slides from Aviva's shareholder meeting presentation, 2003
Slide 1: Richard Harvey, Group Chief Executive
Richard Harvey Group Chief Executive
Slide 2: Overview
Overview
Slide 3: Aviva overview
Aviva overview • No 1 in the UK • 7th largest insurer in the world • Leading life and pensions provider to Europe • Focused on a consistent strategy
Slide 4: 2002 premium income
2002 premium income Business Mix Geography UK General General 17% UK Life Europe 30% 35% 6% General RoW 7% General 70% 4% RoW Life Life 31% Europe Life Note: Figures quoted represent continued and discontinued operations, 2002.
Slide 5: 2002 results
2002 results B
Slide 6: Tough economic environment
Tough economic environment • Slowdown in global economy • Equity markets have fallen • Confidence has been hit
Slide 7: Robust 2002 results
Robust 2002 results 2002 2001 Premium income1 £28.6bn £29.4bn Operating profit before tax2 £1.80bn £1.98bn Post-tax return on capital2 10.1% 9.7% Dividend 23p 38p Assets under management £208bn £209bn Notes: 1 From continued and discontinued operations. 2 From continued and discontinued operations,
Slide 8: Aviva relative to the market
Aviva relative to the market 120 100 80 FTSE Eurotop 300 60 Aviva 40 FTSE Eurotop 300 Life 20 May May Mar Sep Feb Jan ‘02 Nov Dec Mar Feb Jun Jul Oct Jan ‘03 Apr Apr Aug Notes: All trendlines rebased to 100. Source: ABM AMRO.
Slide 9: Worldwide long-term savings
Worldwide long-term savings
Slide 10: UK long-term savings
UK long-term savings • Serving 6 million customers • The group’s largest long-term savings operation • Producing 50% of worldwide new business
Slide 11: A tough UK market
A tough UK market • Strong competition and weak consumer confidence • Uncertain investment returns • Regulatory change
Slide 12: With-profits continues to be an important investment choice for consumers
With-profits continues to be an important investment choice for consumers Asset mix of Norwich Union With Profits Fund As at 31 December 2002 Other 4% (2001: 1%) Property 17% (2001: 14%) Fixed Interest 44% (2001: 31%) Equity 35% (2001: 54%)
Slide 13: Aviva in the European market
Aviva in the European market Multi-distribution Bancassurance Direct Worldwide bancassurance sales up 50% Source: Aviva plc
Slide 14: Worldwide long-term savings results
Worldwide long-term savings results 2002 2001 New business sales £14.6bn £15.0bn Life achieved operating profit £1.52bn £1.66bn 70% Note: “New business sales” includes Life & Pensions and Retail Investment sales.
Slide 15: Long-term potential remains
Long-term potential remains • Ageing population is pushing demand for savings products • Government reforms are encouraging private provision • European Union is expanding in 2004 • New markets are developing in India and China
Slide 16: Worldwide general insurance
Worldwide general insurance
Slide 17: General insurance objectives
General insurance objectives • Targeting consistent and sustainable performance • Promoting high-quality products and services • Ensuring disciplined underwriting and claims handling • Using innovation to meet customer needs
Slide 18: UK digital mapping
UK digital mapping
Slide 19: Worldwide general insurance results
Worldwide general insurance results 2002 2001 Net premiums written1 £8.49bn £9.53bn Operating profit before tax1 £0.96bn £0.92bn Combined operating ratio2 102% 103% 30% Note: 1 Figures quoted represent continuing and discontinued operations. 2 COR calculated on a continuing basis only.
Slide 20: A focused strategy, delivering results
A focused strategy, delivering results • Focused on personal and selected commercial business • Building a lower-risk business, delivering a steadier stream of profits • Generating cash and funding growth
Slide 21: Brand
Brand
Slide 22: Aviva is now live in continental Europe, North America, and Asia
Aviva is now live in continental Europe, North America, and Asia Aviva-branded Markets
Slide 23: Our brand is being built within existing marketing budgets
Our brand is being built within existing marketing budgets
Slide 24: Focus in 2003
Focus in 2003
Slide 25: Focus in 2003
Focus in 2003 • Improving customer service • Managing capital and returns • Sizing costs to revenues • Generating cash to fund growth
Slide 26: In summary
In summary • Tough economic environment • Industry facing significant change • Robust 2002 trading results • Capital generation is supporting future growth • Longer-term prospects remain strong
Slide 27: Aviva