Aviva Plc · LSE:AV.
Aviva — Investor Day (2004)
12 slides from Aviva's investor day presentation, 2004
Slide 1: Gary Withers, Chief Executive
Gary Withers Chief Executive
Slide 2: Agenda
Agenda Norwich Union Life Strategy Gary Withers Product and Distribution Strategy Peter Hales Achieving Operational Excellence Mike Kirsch Q&A Driving for Value Mike Urmston Jim Newman Confident about continued success Gary Withers Q&A 1230 Lunch
Slide 3: Our Ambition: Clear market leader in savings and insurance
Our Ambition: Clear market leader in savings and insurance • Top 3 positions in Life, Pensions and Investments • Value based management – increase new business IRR to 15% in 2007 (12% 1H 2004) – gross annualised cost savings of £130m pa by 2007 (based on 2003 cost base) – FTE reduction of 20% (2002-
Slide 4: The world has changed… Old World
The world has changed… Old World • The industry was focused on APE, NBAV growth and access to customers • Capital was freely available: leveraged our with-profits advantage • NBAV was the key product and sales metric • High investment returns meant good value for customers and limited focus on costs
Slide 5: … New World
… New World • No ‘easy wins’ for customer or shareholder: value management is now key • Focus on maximising new business IRR and returns on existing book: cost management is critical for both • Capital model has changed and moving to more of a banking model • Service demands are high and will remain
Slide 6: Well positioned for the New World
Well positioned for the New World • Multi-product, multi-channel, brand strength • Scale to drive cost economies and innovate • Financial strength and market position to take the tough decisions • Experienced management team
Slide 7: Making Progress towards our goal
Making Progress towards our goal Market Position Scale & Innovation Financial Flexibility •Market leader for •Achieved cost •With profit realistic new business with savings of £140m in position of £4.2bn 12.1% market 2003 share •Securitisation of •Established equity release •Most trusted and operati
Slide 8: But much remains to be done
But much remains to be done Market Position Scale & Innovation Financial Strength •Strengthen •Further £130m •Develop and investment and annualised savings broaden group pensions by 2007 through cost securitisation to position efficiency create a flexible financing model •Develop Lifetime •Business
Slide 9: The Market has still not taken off
The Market has still not taken off Half yearly market APE progression (Total Life, Pensions and Investments APE) 6,000 5,500 5,000 4,500 4,000 3,500 3,000 1H 99 2H 99 1H 00 2H 00 1H 01 2H 01 1H 02 2H 02 1H 03 2H 03 1H 04 Source: ABI data
Slide 10: The Market has still not taken off
The Market has still not taken off 5 year Total Market APE Moving Annual Growth Rate (Total Life, Pensions and Investments APE) 15.0% Stakeholder Surge Dot com 10.0% bubble bursting Market 5.0% recovery? Market Market growth growth 0.0% 2000 2001 2002 2003 2004 -5.0% Market decline Decline in -10.0%
Slide 11: The Market has still not taken off
The Market has still not taken off Half yearly market APE progression 5 year Total Market APE Moving Annual Growth Rate (Total Life, Pensions and Investments APE) (Total Life, Pensions and Investments APE) 6,000 15.0% Stakeholder Surge Dot com 5,500 10.0% bubble bursting Market 5,000 recovery? 5.0%
Slide 12: ...and we will achieve growth on our terms
When the market turns…we will be ready • Strong competitive position: product and distribution • Efficient and scaleable operating platform • Financial strength and metrics ...and we will achieve growth on our terms