Aviva Plc · LSE:AV.
Aviva — Investor Presentation (June 2019)
20 slides from Aviva's investor presentation, Jun 6, 2019
Slide 1: Investor update
BIAVIVA a | = ——— —_ —_ Investor update Maurice.tulloch, CEO Aviva plc
Slide 2: Disclaimer
Disclaimer Cautionary statements: This should be read in conjunction with the documents distributed by Aviva plc (the “Company” or “Aviva”) through The Regulatory News Service (RNS). This presentation contains, and we may make other verbal or written “forward- looking statements” with respect to cer
Slide 3: Plan of action
Plan of action For 20th November * Complexity * Strategic direction * Efficiency * Execution plan ¢ Financials * Targets
Slide 4: My first days
My first 90 days Feedback from our stakeholders * Customers - mostly a positive experience but some journeys Investor Employees can be difficult community * Investors - clarify strategy, address leverage, dividend outlook and earnings quality Bietibutors * Employees - great people, but bureaucracy a
Slide 5: Aviva has attractive foundations
Aviva has attractive foundations Robust capital, cash We have focused Improving and asset quality and strengthened performance De Solvency Il cover ratio Operating earnings per share 198% 204% 58.4p 180% 189% 54.8p 49.7p 21-1P Our markets 2011 2019 28 14 2015 2016 2017 2018 2015 2016 2017 2018
Slide 6: Strong franchises with great potential
Strong franchises with great potential UK Life General Insurance Europe * Leading insurer with 17% share * Expand SME and commercial lines * Growing multi-channel distribution * #1in workplace pensions * Canada recovery on track * Pension reform in France * Capturing DB assets in motion * Consistent
Slide 7: What can we improve to capture opportunities?
What can we improve to capture opportunities? Complexity Efficiency Financials + Management structure * Lack expense discipline * Leverage versus peers * Organisational design * Return on investment focus * Capital generation + Business and portfolio * Resourcing model * Growth and margins
Slide 8: Fundamentals
fundamentals
Slide 9: Effective as of 1 July 2019, subject to regulatory approval
*Effective as of 1st of July 2019, subject to regulatory approval
Slide 10: Simpler structure with clear accountability
Simpler structure with clear accountability Lean corporate centre Accountable business units What does this mean in practice? Group strategy, brand Local strategy Clear definition of roles Capital allocation Results * Remove duplication Steering Operational efficiency * Empower business leaders Grou
Slide 11: UK Life and GI under separate leadership
UK Life and GI under separate leadership UKI structure - what worked and what didn’t? Why are we returning to separate UK leadership? ¥ Improved co-ordination of customer teams across products Improved focus on competitiveness and performance leading to strong new business wins, particularly in corp
Slide 12: Digital - a change in emphasis, not commitment
Digital - a change in emphasis, not commitment 2015-2018 2019 onwards Developing UK direct to consumer digital business, Deepening digitisation across and core digital and data infrastructure channels and markets * Grown UK digital direct business from 3.2m to 5.3m customers * Integrate digital dire
Slide 13: Digital - how we serve customers in the UK
B Digital - how we serve customers in the UK Maintaining our holistic approach to customer service Customers: 4.0m UK digital direct and 1.3m QMH + MyAviva remains a single point of service, providing customers with convenience and a great user experience + MyAviva “skins” to be rolled out in D2B2C
Slide 14: Targeted run rate reduction in total expense base
• • • • • • *Targeted run rate reduction in total expense base net of inflation and at constant perimeter & FX
Slide 15: Financial messages
financial messages
Slide 16: Capital generation supports dividend sustainability
Capital generation supports dividend sustainability | Operating capital generation Growth in OCG enables growth in the dividend * Group SII OCG comfortably covered a growing dividend over 2016-18 while also fbn 35 enabling £2.3bn capital returns in 2017-18 * The dividend remains paramount, with grow
Slide 17: Cash inflows to Centre fund dividends and deleveraging
Cash inflows to Centre fund dividends and deleveraging | £7.9bn cash inflows to Centre over 2016-18 2019-21 outlook for cash inflows to Centre comparable to 2016-18 Funding: fbn * Progressive dividend policy: maintain or grow the dividend over time 33 * Debt deleveraging: plan to reduce debt by at l
Slide 18: 2019 operating trends
2019 operating trends | YTD underlying trends broadly consistent with 2018 Continued growth momentum in Europe and Asia Canada recovery progressing, on track to achieve underwriting profitability in 2019 Lower BPA sales to date compared to 1H18 record levels, with pipeline giving confidence for FY g
Slide 19: Today's key messages
Today’s key messages Aviva has strong foundations Well positioned franchises with profitable growth potential Strong underwriting, distribution and investment fundamentals Robust capital, cash and asset quality 19 With opportunities to improve performance Asimpler, more effective operating structure
Slide 20: Q&A