Aviva Plc · LSE:AV.
Aviva — Investor Day (July 2014)
14 slides from Aviva's investor day presentation, Jul 9, 2014
Slide 1: Aviva UK Life: Cash flow and growing the franchise
Aviva UK Life: Cash flow and growing the franchise David Barral Chief Executive Officer, Aviva UK & Ireland Life
Slide 2: UK Life - At a glance
UK Life - At a glance 2013 Value of New Business By Channel By Product c£124bn assets under Direct management - 3rd largest Protection / Health Individual Annuities IFA Intermediaries 6.4 million customers Accumulation Direct Direct Bulk 2 Number 2 market share by Value of New Business* Partnerships
Slide 3: Progress in Performance
Progress in Performance Cash Remittance Operating Expenses* Operating Profit +1% +50% £300m -22% £930m £917m £729m £200m £569m 44% -6ppt 38% 2011 2013 2011 2013 2011 2013 Value of New Business Embedded Value Customer TNPS +14% £435m +18% +3 £380m £7.4bn +23 £6.3bn +20 2011 2013 2011 2013 2011 2013 (
Slide 4: Focussed Strategy
Focussed Strategy Cash flow Composite / Digital Growth GI Life Retirement Life SME Corporate Back Book Health GI benefits Asset Management Protection Health Asset Management True composite, digital first, not everywhere 39
Slide 5: Post Budget individual annuities experience
Post Budget individual annuities experience Individual Annuity Sales • Average weekly sales down 34% -34% • External sales down 50% -50% External Internal • Internal sales down 14% -14% • New business margins broadly unchanged Pre- Budget Post- Budget Pre Budget weekly Post Budget weekly sales sales
Slide 6: Delivering profitable growth from bulk purchase annuities
Delivering profitable growth from bulk purchase annuities Bulk Purchase Annuity Sales £1,075m • 2012 refocused on smaller, profitable schemes • 2013 60 schemes with an average size of £6m £379m • H1 2014 30 schemes £187m £111m • H2 2014 strong pipeline FY 2011 FY 2012 FY 2013 HY 2013 HY 2014 • Margi
Slide 7: Retirement Solutions
Retirement Solutions What our customers want The Opportunity • The budget creates a new paradigm for UK retirement savings • No longer a point in time but a transition • High concentration of UK assets in 50+ • 23m customers in UK - 6m Aviva • £0.7bn of sales came to us direct in 2013 for retirement
Slide 8: Enhancing Capabilities
Enhancing Capabilities Solution Components Platform Customer Interface Route To Market General Aviva for Advised Investment Annuity Drawdown Advisers IFA Account Equity Fund ISA Release choice Aviva Self-Directed Investors Pension ‘My Aviva’ Online / Phone Guidance Cash Leveraging existing strengths
Slide 9: Growing IFA Platform and Direct opportunity
Growing IFA Platform and Direct opportunity IFA Platform Launching D2C £2.8bn £0.7bn £1.3bn Aviva UK Life FY11 FY12 FY13 FY14 + est. • Simplicity and low cost • Simple, engaging digital experience • Efficient for advisers Aviva • Do it for me (easy ready-made solutions) • Digital and fully mobile In
Slide 10: SME Corporate Benefits
SME Corporate Benefits The Opportunity A Winning Proposition 1M companies Less those with pension schemes 880k companies Focussing on target Employers 660k companies • Auto-enrolment opportunity - SME’s staging from • Market leading Auto-enrolment tool (AME) now through to July 2017 • Proposition fo
Slide 11: Back Book value
Back Book value The Opportunity Driving Improvement Unit Cost Benchmarking Lapse Rate Benchmarking • Process simplification • Automation Costs • Digital documents • Commission actions Bonds IPP* GPP* Bonds IPP* GPP* • Customer engagement / My Aviva Aviva cost per policy Aviva lapse rates Median benc
Slide 12: Delivering cash flows and growing the franchise
Delivering cash flows and growing the franchise 2013 Near term Longer term • Retirement solutions • SME corporate benefits • Reduce Unit Costs • Protection • Improve Retention • True customer Cash • Capital actions Cash composite Cash We will grow cash flows over near and longer term 47
Slide 13: Q&A
Q&A Euan Munro Chief Executive Officer, Aviva Investors David Barral Chief Executive Officer, Aviva UK & Ireland Life
Slide 14: 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