Aviva Plc · LSE:AV.
Aviva — Investor Day (July 2014)
13 slides from Aviva's investor day presentation, Jul 9, 2014
Slide 1: Aviva Capital Markets Day 9th July 2014
Aviva Capital Markets Day 9th July 2014 Mark Wilson Group Chief Executive Officer 1
Slide 2: Cautionary statements
Cautionary statements: This should be read in conjunction with the documents filed by Aviva plc (the “Company” or “Aviva”) with the United States Securities and Exchange Commission (“SEC”). This announcement contains, and we may make other verbal or written “forward-looking statements” with respect
Slide 3: Agenda
Agenda Aviva Reloaded Mark Wilson Still more to do Tom Stoddard Break 9.30 – 9.45 Aviva Investors – Making asset management core Euan Munro Aviva UK Life – Cash flow and growing the franchise David Barral Break 11.15 – 11.30 Aviva GI – digital, analytics and opportunities to grow underwriting profit
Slide 4: Some progress since 2011
Some progress since 2011 Economic Capital Remittances Operating expenses 182% £1,269m £3,366m 11% £3,006m £778m 63% 130% 52ppt 2011 2013 2011 2013 2011 2013 Countries Cells Management layers 28 58 42 9 11 17 16 4 5 countries cells layers 2011 Current 2012 2013 2011 2013 4
Slide 5: Trends shaping the insurance industry
Trends shaping the insurance industry Winning Through Data My Life, My Way Customers will be much more in Those who interpret data quickly control, expecting to self-serve and and intuitively to inform the self-solve. They will want to be able development of products and to access data and insight,
Slide 6: Our strategic anchor
Our strategic anchor Our strategic anchor True customer composite Digital first Not everywhere Serving all customer needs across Customer experience driven by Life, GI, Health and Asset Only in markets where we can win digital Management @ Supported by: MULTI CONVENIENT EXPERT BRITISH COLLABORATION
Slide 7: True customer composite
True customer composite Numbers of IFAs in the UK has dropped 38% UK personal lines insurance has steadily since 2011 become disintermediated Source: Money 90% Source: ABI -38% Marketing 80% 70% 60% 50% 40% 40,000 30% 30,000 20% 25,000 10% 0% 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 20
Slide 8: Digital first
Digital first Life MyAviva Digital first vision General Insurance • One customer view • One place for all products and services Health • One statement • One premium • No paper • MyAviva Asset Management Digital is a key enabler to true customer composite 8
Slide 9: Not everywhere
Not everywhere Despite a reduction in the number of countries ROCE and ROE has increased* 20% 15% 10% 28 28 28 5% 23 0% 17 -5% 2009 2010 2011 2012 2013 ROCE ROE Number of countries We will continue to reshape our portfolio to drive returns higher • Only operate in markets where we have scale and def
Slide 10: Our local business strategies
Our local business strategies UK Life: Focus on customer and cash • Move to solutions based business • Leverage composite capability “MyAviva” Aviva Investors: • Unlock value from back book UK GI: Re-defined AI proposition Growth through digital and analytics • Execute AI proposition • Increase cros
Slide 11: Key issues – Cash flow
Key issues – Cash flow Issue Plan Timing 1 Operating expense ratio is too high Below 50% YE 2016 2 Excess cash flow is inadequate More than double annual considering our earnings power run-rate to £0.8bn YE 2016 Cash flow 3 Life back books are inefficient and Increase cash flow, Ongoing capital inte
Slide 12: Key issues – Growth
Key issues – Growth Issue Plan Timing 5 Growth is necessary but not at the Reallocate resources to Ongoing cost of dividends growth businesses 6 Third party flows are weak Positive external fund flows From 2015 at Aviva Investors Growth 7 Current cross-sell rate is Increase average product Ongoing u
Slide 13: A strengthened management team
A strengthened management team 13