Aviva Plc · LSE:AV.
Aviva — Sanford C Bernstein Conference 2009
14 slides from Aviva's conference presentation, Dec 21, 2009
Slide 1: Sanford C Bernstein Conference 2009
2009 Sanford C Bernstein Conference 1
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, strategic initiatives and results. These forward-looking statements sometime
Slide 3: Building a Position of Strength in a Tough Market
Building a Position of Strength in a Tough Market • Tackling the market downturn • Benefitting from the market recovery • Capitalising on the current environment 3
Slide 4: Building a Position of Strength
Building a Position of Strength Taking decisive action Purpose Open to the recovery Prosperity & Delivering peace of mind the Strategy Vision One Aviva, twice the value Creating financial flexibility Strategic Targets priorities Capitalising • Manage composite onmeetthe • 98% or beat COR • £500m cos
Slide 5: Action on Earnings: Life and Pensions margins maintained
Action on Earnings Life and Pensions margins maintained Sales Life General and Pensions insurance Margins £18.2bn £17.5bn COR2 12 months 6 months NA/Asia 2008 % 2009 % NA/Asia £3.1bn £15 bn UK 1.7% 2.1% £3.9bn Europe Europe 2.8% 2.6% Life Europe North America 1.0% 0.5% 36% Europe Asia Pacific 2.5% 2
Slide 6: Action on Earnings: General Insurance COR improved
Action on Earnings General Insurance COR improved NWP £5.1bn General General Insurance insurance CORs COR2 £5 bn £4.9bn NA/Asia 6 months 12 months £0.8bn 2008 % 2009 % NA/Asia £0.9bn UK 99% 99% Europe Europe 97% 96% £1.0bn Europe Life Europe North America 99% 97% 36% DL £1.1bn £3 bn £ 0.5bn 33% Tota
Slide 7: Focussed on long term value generation
Focussed on long term value generation Strong Cost Management £2,700m (£38m) £72m (£80m) £2,622m (£118m) • Ahead of run rate £500 £148m £2,493m million cost saving targets (£75m) £2,500m (£38m) • Eliminating cost over runs and reducing operational complexity in UK Life £2,300m • Closing 13 operation
Slide 8: UK Life
UK Life Significant improvement through operational excellence • Market share increased to 12% HY1 08 HY1 09 +/- from 11% whilst also increasing margins • Management action taken on product mix, Life and Pension sales £6,010m £4,735m -21% increased pricing sophistication, reduced commissions and exp
Slide 9: UK General Insurance
UK General Insurance Transforming the business • Execution of strategy is improving the HY1 08 HY1 09 +/- quality of earnings • Actively exiting poor performing business Net written premium £2,589m £2,049m -21% • Rating increases above inflation on all COR 98% 99% +1pps major classes • Improving cur
Slide 10: Europe Excluding Delta Lloyd
Europe Excluding Delta Lloyd Strength from diversity • Strong bancassurance performance limits Local fall in life and pension sales HY1 08 HY1 09 Currency • Margins: Growth • Customer preference for lower margin products with guarantees Life and pension sales £6,979m £7,071m -9% (With Profits sales
Slide 11: Investing in Customers and Brand
Focussed on long term value generation Investing in Customers and Brand
Slide 12: Creating financial flexibility
Creating financial flexibility Progress with Strategic Allocation of Capital Reattribution of the inherited estate • Up to 1 million customers will benefit • Provides £600 million of new business capital in the first 5 years with significant potential upside • More than 85% response so far with 96%
Slide 13: Building a Position of Strength in a Tough Market
Building a Position of Strength in a Tough Market • Tackling the market downturn • Benefitting from the market recovery • Capitalising on the current environment 13
Slide 14: Questions
Questions