Aviva plc · LSE:AV.
Aviva — Morgan Stanley European Financials Conference 2011
17 slides from Aviva's conference presentation, Mar 31, 2011
Slide 1: Morgan Stanley European Financials Conference
Morgan Stanley European Financials Conference 31 March 2011
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 announcement contains, and we may make verbal statements containing, “forward-looking statemen
Slide 3: Resilient & diversified with growing earnings
Resilient & diversified with growing earnings A clear strategy • Increase focus and depth in 12 countries • Excelling in Life & GI, driving out composite value 1. A strong customer base, with a growing franchise 2. Tight cost control 3. A strong balance sheet Delivering against the targets • At leas
Slide 4: Significant growth in all key performance metrics
Significant growth in all key performance metrics IFRS Net operating IFRS Return on Equity operating profit capital generated £1.7bn 14.8% £2,550m 10.9% 26% £2,022m 70% £1.0bn FY09 FY10 FY09 FY10 FY09 FY10 Funds under management Dividend NAV 621p £402bn 25.5p 454p £23bn £379bn 24p 6% 80p 374p EEV IF
Slide 5: Strong growth in Life & GI
Strong growth in Life & GI Life operating profit Life sales (PVNBP) Life IRR £2,318m £33.4bn 12.5% 2.5 4% 10.0% ppt 23% £32.0bn £1,887m FY09 FY10 FY09 FY10 FY09 FY10 GI & Health operating profit GI & Health sales (NWP) GI COR £1,050m £9.7bn 99% 9% £9.2bn 6% 97% £960m FY09 FY10 FY09 FY10 FY09 FY10 5
Slide 6: Growing income whilst controlling expenses
Growing income whilst controlling expenses £m Income Expenses 6
Slide 7: Strong profit growth vs competitors
Strong profit growth vs competitors 2010 growth in IFRS operating profit* 66% 26% 24% 22% 17% 12% 7% 5% Aegon Aviva Prudential ING** Allianz Generali Standard Axa L&G Zurich RSA Life (10%) (13%) (18%) * Year on year growth in operating profit or underlying earnings before tax and minority interests
Slide 8: A clear strategy; Delivering against the targets
A clear strategy Delivering against the targets 8
Slide 9: Strategy: Increasing focus & depth in our chosen countries
Strategy: Increasing focus & depth in our chosen countries IFRS operating Gross capital FY 2010 (£bn) Strategic direction profit contribution generation UK 1.4 0.9 Invest and deepen presence Invest and deepen presence in Europe 0.9 0.8 priority markets “5 plus 2” Delta 0.5 0.4* Hold for value Lloyd
Slide 10: A strong life customer base with a growing franchise
A strong life customer base with a growing franchise Increased future life cash flows Increasing life IFRS operating profit £bn £36bn £33bn FY09 FY10 10
Slide 11: A strong GI customer base with a growing franchise
A strong GI customer base with a growing franchise Rolling 12 month GI & Health net written premiums GI & Health operating profit £m £1,050m £960m 9% FY09 FY10 11
Slide 12: Growing the franchise: Aviva brand awareness in the UK
Growing the franchise Aviva brand awareness in the UK 70% 63% 60% 55% Direct Line 53% 50% 40% 39% 33% 30% 29% 29% Scottish Widows 27% Prudential 26% More Than 20% 20% 17% Legal & General 16% Standard Lif e 11% 13% Esure 10% 10% 4% 0% Dec '08 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4
Slide 13: Tight cost control
Tight cost control £m 13% reduction in costs since 2008 £500 million cost savings achieved and more to come 13
Slide 14: A strong balance sheet: asset & liability matching
A strong balance sheet: asset & liability matching ensures predictable in-force earnings Assets and liabilities are well matched Clear benefits of asset and liability Duration in years (HY 2010) duration matching at point of sale • Assets held to maturity • Limited impact from interest rate movement
Slide 15: A strong balance sheet: reduction of the pension scheme deficit
A strong balance sheet: further progress in 2010 with the reduction of the pension scheme deficit Actions Result (£bn) Pension scheme accounting basis deficit (£bn) • Aviva and RAC schemes closed reducing liabilities 0.3 0.6 • Aviva scheme 1.7 – Long-term funding agreement in place 0.3 – £378 millio
Slide 16: Delivering against the targets: remaining fully focused on financial commitments
Delivering against the targets: remaining fully focused on financial commitments Target Track record £1.7 billion operational capital Deliver at least £1.5 billion operational generated in 2010, capital in 2011 a 70% increase on 2009 Deliver a Life IRR of at least 12% with Life IRR of 12.5% delivere
Slide 17: Resilient & diversified with growing earnings
Resilient & diversified with growing earnings A clear strategy • Increase focus and depth in 12 countries • Excelling in Life & GI, driving out composite value 1. A strong customer base, with a growing franchise 2. Tight cost control 3. A strong balance sheet Delivering against the targets • At leas
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