Aviva Plc · LSE:AV.
Aviva — BofA Merrill Lynch Conference 2015
13 slides from Aviva's conference presentation, Sep 30, 2015
Slide 1: BofA Merrill Lynch Conference
BofA Merrill Lynch Conference 30 September, 2015 Mark Wilson Group CEO 1
Slide 2: Disclaimer
Disclaimer 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 presentation contains, and we may make other verbal or written “forward-looking statements” wi
Slide 3: The macro view
The macro view • Leading G7 economic growth • Largest deficit reduction of major economies • Political / regulatory dynamic improved • Pensions market to treble in 10yrs • Slowing growth • Well recognised growth • Increased volatility • Regulatory uncertainty • Polarised economic • Maturing regulato
Slide 4: Aviva strategy
Aviva strategy We have a clear strategy to deliver sustainable and progressive cash flows underpinned by good potential for growth, by always putting the customer first True Customer Composite Digital First Not Everywhere Meeting all our customer needs across Emphasising customer experience driven F
Slide 5: Aviva – a simple story
Aviva – a simple story 34 million customers Relative Market Share (Cash generation) Largest UK Insurer - True customer composite High Low Growth option in developed AND emerging markets Aviva Investors Robust balance sheet - predictable cash High Canada China Poland Indonesia flows Turkey UK Digital
Slide 6: Improved financial flexibility
Improved financial flexibility Economic capital surplus1 - £bn Holding company liquidity² - £bn 1.6 10.8 1.2 8.3 8.0 5.3 3.6 0.2 2011 2012 2013 2014 HY 2015 Jan-13 HY 2014 HY 2015 Intercompany loan - £bn S&P leverage ratio - % 5.8 31% 3.6 28% Plan 27%³ 2.8 2.7 2.2 Feb-13 Jul-14 Feb-15 Jul-15 Dec-15
Slide 7: Well positioned for increased market volatility
Well positioned for increased market volatility HY economic capital ratio sensitivity Protecting dividend trajectory HY15 Economic Solvency • Capital coverage ratio largely insensitive Ratio to market movements 176% • Extensive hedging program Risk-Free -25bps 175% 177% Risk-Free +25bps • Portfolio
Slide 8: 2015 Interim Results – key areas
2015 Interim Results – 3 key areas Results Friends Life Integration Solvency II Operating profit up 9% Ahead of schedule Internal model submitted June 2015 VNB growth up 25%1 Run-rate savings £63m Internal model approval expected December 2015 Combined operating £23bn Assets transferred ratio 93.1%,
Slide 9: Digital advantage as a composite insurer
Digital advantage as a composite insurer Improved customer experience • Composite product offering creates competitive advantage • Separate UK digital entity based in our digital garage in Hoxton • £100m per annum reallocated to digital • Ambition to increase average product holding from 1.7 to 3 •
Slide 10: Attractive valuation on a number of metrics
Attractive valuation on a number of metrics¹ P/TBV² P/EV² 294% 223% 240% 230% 223% 148% 138% 177% 129% 148% 115% 93% Pru L&G SL DLG Aviva RSA DLG RSA L&G Pru SL Aviva P/E - 2016E Dividend Yield – 2015E 5.6% 5.4% 15.2x 4.8% 4.7% 12.9x 12.6x 11.9x 11.8x 8.5x 2.9% 2.8% SL DLG RSA L&G Pru Aviva L&G DLG
Slide 11: Appendix
AVIVA Appendix
Slide 12: Cost advantage following Friends Life acquisition
Cost advantage following Friends Life acquisition Largest UK life back book Driving Improvement Evidence of Delivery UK Life AuA (2013, £bn)1 UK Life Cost / AuA (bps)2,3 Friends Life’s cost reduction achieved (£m) 55 160 140 220 105 31 50 c.10bps 54 170 45 60 Delivered { 129 86 120 40 Secured { 45 7
Slide 13: Friends Life Integration – ahead of schedule
Friends Life Integration – ahead of schedule Progress towards £225m synergy target Integration update • 869,000 sqft. of property reductions. £6m £63m £10m – Total footprint reduced by 33% by end 2016 £47m • £22.3bn Assets transferred • Agreement for additional £24bn • FTE plans communicated UK Life