Aviva Plc · LSE:AV.
Aviva — Investor Presentation (October 2005)
24 slides from Aviva's investor presentation, Oct 6, 2005
Slide 1: Sustainable growth
Sustainable growth Richard Harvey Group Chief Executive 6 October 2005 © Aviva plc
Slide 2: Disclaimer
Disclaimer This presentation may contain certain “forward-looking statements” with respect to certain of Aviva’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertai
Slide 3: Agenda
Agenda • Aviva - the winning proposition - General Insurance – sustainable profits - International Life – the growth story - UK Life - competitive advantage • Conclusion © Aviva plc
Slide 4: The Aviva Proposition
The Aviva Proposition • A balanced portfolio - Flexibility - Strength - Resilience - Reliability • Generating £752m capital in H1 2005 to fund dividend and growth • 5% dividend growth target met © Aviva plc
Slide 5: The foundations for sustainable growth
The foundations for sustainable growth 2000-2003 2004-2005 2006 > Surviving Positioning Delivering growth the storm for growth and value • Cost reduction • Capital structure • Winning composite business • Operational • RAC acquisition model excellence • China / India • Benefits of scale • Major disp
Slide 6: General insurance
General insurance General Insurance – sustainable profits International Life – the growth story UK Life - competitive advantage © Aviva plc
Slide 7: The traditional cycle has changed
The traditional cycle has changed • A more predictable 110 20 market 18 16 105 • With fewer major 14 12 players 100 10 8 • Reduces amplitude of 95 6 4 the cycle 2 90 0 • Produces a steadier 2000 2001 2002 2003 2004 HY 2005 ROCE COR ROCE © Aviva plc
Slide 8: The customer proposition
The customer proposition Distribution channels Contact channels Direct Claims Management Internet Partners Call Centre • National Brokers - 9 iMarket/ • National Accounts - 28 Brokers EDI • Regional Brokers - 2500 On-site U/W • Telephone a/c Managers - 3900 Sustainable profits © Aviva plc
Slide 9: Operational excellence
Operational excellence A successful offshoring strategy cumul. P&L benefit £m P&L benefits 2003 2004 2005 2006 2007 2008 2009 2010 P&L costs Sustainable profits © Aviva plc
Slide 10: Innovation
Innovation Flood mapping delivery June 04 September 04 • Digital flood mapping December 04 March 05 In progress - Evidence of savings emerging • PAYD - Further expansion during 2006 - Significant penetration expected in the UK Sustainable profits © Aviva plc
Slide 11: The RAC opportunity
The RAC opportunity NUI • Strategically sound • Operationally compelling RAC Insure • A value driven transaction RAC More on this at the GI day on 18 October 2005 © Aviva plc
Slide 12: International life
International life General Insurance – sustainable profits International Life – the growth story UK Life - competitive advantage © Aviva plc
Slide 13: Aviva has a balanced portfolio in mature markets
Aviva has a balanced portfolio in mature markets New business life & pensions sales (APE) Europe (ex UK) 2004 Poland Ireland Rank: 2nd Rank: 3rd 3% France 7% Rank: Top 10 Other 9% 24% Italy Rank: 7th 16% 21% The Netherlands 20% Rank: Top 5 Spain Rank: 3rd © Aviva plc
Slide 14: Mature markets – a portfolio for growth
Mature markets – a portfolio for growth Delta Lloyd France Strong sales through JV partner ABN Strategic partnerships with Credit du AMRO Nord (Antarius) and AFER Strong expense control AFER product regarded as market leader New business margin reduction in 2005 driven by reduction in interest Incre
Slide 15: Mature markets – a portfolio for growth
Mature markets – a portfolio for growth 1200 APE (£m) Italy, France, Spain 1000 & The Netherlands 1014 800 905 905 1014 600 723 723 400 598 200 478 483 305 598 0 2002 2003 2004 HY 2005 New Business Contribution (£m) 400 350 300 327 366 366 250 327 200 150 215 215 223 100 176 158 50 93 223 0 2002 200
Slide 16: High growth markets
High growth markets • China - Aim to be in 10 major cities/provinces by 2010 - Aviva-COFCO operate in 9 cities - Most recent branch office opened in Fuzhou • Russia - August 2005 – opened representative office in Moscow - September 2005 – appointed CEO for Russia - Entry strategy being developed • E
Slide 17: UK Long-term savings
UK Long-term savings General Insurance – sustainable profits International Life – the growth story UK Life - competitive advantage © Aviva plc
Slide 18: The market opportunity
The market opportunity • Current growth approximately 5% before bulk transfers, but: - Stable equity markets - High employment - Pension reform – Turner report - Gradual return to savings expected to accelerate in 2006 © Aviva plc
Slide 19: Poised to benefit and grow when demand returns
Poised to benefit and grow when demand returns Distributor Panel Members Key Protection Only Relationships Key Single Tie Relationships (across Bancassurance, Retail, and Building Society Channels) © Aviva plc
Slide 20: Lifetime Wrap
Lifetime Wrap • Market forecast of £150bn assets under management by 2008 • Preferred platform for leading wealth management solutions • Over 1000 leading funds and 46 fund managers • Provides SIPP, ISA, PEP, Bond and General Investment Account • Deals in place with Millfield and Tenet Continued Ris
Slide 21: An excellent bancassurance proposition
An excellent bancassurance proposition • 20% new business increase in 2005 compared to 2004 • Products now integrated into the core RBS and NWB customer offering • Product range has been improved • £200m portfolio bond sales since product launch in February. • Over 100,000 stakeholder based Child Tr
Slide 22: Aviva: sustainable growth
Aviva: sustainable growth • A balanced portfolio that provides capital for both dividends and growth • Sustainable profits from general insurance • Continuing growth across our international portfolio • A positive outlook for UK long-term savings Aviva is financially fit and strongly positioned for
Slide 23: Questions and Discussion
Questions and Discussion © Aviva plc
Slide 24: Banking & Insurance CEO Conference
BANKING & INSURANCE CEO CONFERENCE THURSDAY 6 OCTOBER, 2005