Aviva Plc · LSE:AV.
Aviva — Société Générale The Premium Review 2008
17 slides from Aviva's conference presentation, Dec 4, 2008
Slide 1: One Aviva, twice the value
One Aviva, twice the value Tim Harris Chief Financial Officer, Europe Société Générale The Premium Review, 4 December 2008
Slide 2: Disclaimer
Disclaimer This presentation may include oral and written “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. These forward-looking statements sometimes use words such as ‘an
Slide 3: An increasingly global company
An increasingly global company £30 billion HY 2008 sales £25.5bn (1) Asia Pacific 7% 23% 10%General North America 12% Insurance UK GI 11% £15 UK Life 26% billion 77% 9% Long 21% Term Savings 36% Europe 44% 40% 33% HY 2000 HY 2008 (1) 2008 total long-term savings new business sales and G.I. and healt
Slide 4: Remaining strong through tough economic times
Remaining strong through tough economic times • Proactive management through the banking and economic crisis – Aviva has a diversified and strong asset base – Taking action to safeguard our solvency – Confident position with regard to capital and cash flow • Achieving good new business results in sp
Slide 5: A sound capital position
A sound capital position IGD Solvency surplus of £1.3 billion on 24 October 2008 Equity movement 30 June 2008 IGD 30 Sept 2008 IGD surplus of £1.8bn surplus of £1.9bn £bn £bn -10% (0.4) (0.2) -20% (0.7) (0.4) -30% (1.0) (0.5) -40% (1.3) (0.7) • Equities reflect lower market values, mitigated by furt
Slide 6: Aviva's debt securities are prudently valued
Aviva’s debt securities are prudently valued • 94% of debt securities at 30 June 2008 are investment grade, with 1% below and 5% not rated • Debt securities held to back insurance liabilities. Short duration bonds backing GI business • On the IFRS balance sheet, all financial investments marked to m
Slide 7: High quality loan book with good track record
High quality loan book with good track record LTV LTV LTV LTV LTV LTV >100% 95- 95-100% 90- 90-95% 80- 80-90% 70- 70-80% <70% Total 30 June 2008 Non- Non-securitised mortgage loans £m 890 1,688 2,741 5,365 2,839 4,641 18,164 Total mortgage loans £m 890 1,823 4,827 8,435 3,090 6,903 25,968 3.4% 7.0%
Slide 8: A clear strategy to deliver growth
A clear strategy to deliver growth Purpose Prosperity & peace of mind Purpose Vision One Aviva, twice the value Vision Strategic Targets priorities • Manage composite • 98% meet or beat COR portfolio • Long Term Savings • Build global Asset growth targets Management • £500m cost savings by • Allocat
Slide 9: Q3 2008 Life and pensions: sales up 12% and margin maintained
Q3 2008 Life and pensions: sales up 12% and margin maintained New business PVNBP 1 margin2 9 months 9 months 2008 2007 Growth 9 months 6 months £m £m % 2008 2008 % % UK 8,628 8,750 (1)% 3.1% France 2,824 2,684 5% 4.2% Ireland 949 1,303 (27)% 0.8% Italy 1,752 2,362 (26)% 2.9% Netherlands 3,017 1,692
Slide 10: Europe – capitalising on a market leading position
Europe – capitalising on a market leading position NBC growth post cost of capital EEV operating profit growth HY1 CAGR 13% HY1 CAGR 19% 500 Scale, growth, 400 1500 capital £ million 1250 300 1000 £ million 200 750 • Seize unique 500 growth 100 250 opportunities 0 0 2005 2006 2007 2008 2005 2006 200
Slide 11: North America - USA on track to double scale
North America - USA on track to double scale Pro-Forma PVNBP growth EEV operating profit growth 8000 1000 HY1 CAGR 28% HY1 CAGR 52% Double scale 6000 750 US$ million US$ million 4000 • Focus: top 5 in 500 chosen 2000 250 segments 0 0 2005 2006 2007 H1 08 2006 2007 2008 • Expand products, distributio
Slide 12: Asia Pacific – a growing presence
Asia Pacific – a growing presence Growth in Asia Pacific PVNBP EEV operating profit growth 1500 HY1 CAGR 14% Scale, growth HY1 CAGR 33% 100 75 £ million 1000 £ million • Prioritised 50 portfolio 500 25 • Regional 0 0 2005 2006 2007 2008 2005 2006 2007 2008 operating model • Investment • Second large
Slide 13: Aviva Investors – executing the strategy
Aviva Investors – executing the strategy IFRS operating profit 125 Aviva Investors 100 £million 75 • Globally 50 integrated 25 business 0 2005 2006 2007 2008 • Transform the investment model • Successful re-branding of “Aviva Investors” • UK investment portfolios restructured into alpha/beta portfol
Slide 14: UK Life – continuing operational improvement
UK Life – continuing operational improvement EEV operating profit growth IFRS operating profit growth 1000 1000 HY1 CAGR 13 % HY1 CAGR 39 % Market 750 750 Leadership £ million £ million 500 500 ● Address legacy 250 250 ● Transform 0 0 business 2005 2006 2007 2008 2005 2006 2007 2008 model • Will rem
Slide 15: UK General Insurance – delivering transformational change
UK General Insurance – delivering transformational change The external environment remains competitive • Rating environment will improve in the current economic Market environment Leadership • Commercial rates now in positive territory • Inflationary pressures receding ● Address legacy ● Transform b
Slide 16: Outlook in the current economic environment
Outlook in the current economic environment • Maintaining our focus to deliver Aviva’s objectives and targets – Continuing to invest in order to achieve the benefits of One Aviva, twice the value – Keeping a clear focus on delivering against the plans • Responding to the current economic environment
Slide 17: Questions and answers
AVIVA Questions and answers