Aviva Plc · LSE:AV.
Aviva — Investor Presentation (December 2006)
14 slides from Aviva's investor presentation, Dec 7, 2006
Slide 1: Aviva: Growth and value
Aviva: Growth and value 7 December 2006 Andrew Moss, Group Finance Director © Aviva plc
Slide 2: Disclaimer
Disclaimer This presentation may contain “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. By their nature, all forward-looking statements involve risk and uncertainty beca
Slide 3: Aviva – a diversified business
Aviva – a diversified business HY 2006 HY 2006 EEV Operating Profits Sales £21.3bn (1) £1.9bn (2) International Aviva • The largest insurance provider Life International in the UK 41% 52% • 70 / 30 split of long term savings / general insurance maximises diversification International benefits GI 12%
Slide 4: The Aviva world
The Aviva world North America Europe Asia Pacific • Largest market with largest • Mature, stable markets • High growth market projected growth • Access to distribution is key • Accelerate growth in India • Well established • Superior understanding of and China competition customer as differentiator
Slide 5: UK life: Customer confidence returning
UK life: Customer confidence returning UK life total sales growth 4,000 3,500 £m 3,000 2,500 2,000 1,500 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 • Leading brand, products range and distribution • Record 9 months, with total sales up 39% to £10,464 million • Market leadership position with 12.1% ma
Slide 6: UK £250 million cost savings
Aviva UK £250 million cost savings £40m Property £10m Other £65m • UK cost base to be reduced by 10% £135m - UK headcount of 36,000 reduced by 4,000 Procurement Staff - Cost of £250m • Strong strategic and financial rationale: - Remaining competitive and efficient Cost Savings Split - Growing demand
Slide 7: Simplifying the legacy
Simplifying the legacy Current products and systems Scale 60% Value Develop target systems and processes 80% value c900 products 8.5 million policies 550 systems Migration 40% Value Ring-fence and rationalise Heritage 20% value Decommission © Aviva plc
Slide 8: International: 10% growth target on track
Aviva International: 10% growth target on track NBC £m NBC Net/Net/Net growth 2000 – 2005 Growth: 250 2 • PVNBP Growth of over 60% and 250% 1.8 increase in NBC 200 1.6 1.4 150 1.2 1 Ambition: 100 0.8 • Average organic 0.6 growth of at least 10% 50 0.4 p.a. over the next 5 years, while growing 0.2 ne
Slide 9: Aviva and AmerUs: the US growth platform
Aviva and AmerUs: the US growth platform AmerUs quarterly sales growth 800 700 • Equity indexed annuities – 45% CAGR in sales 600 between 2000 – 2005 $m 500 400 300 • Equity indexed life – 68% CAGR in sales between 200 2000 - 2005 100 0 Q4'05 Q1'06 Q2'06 Q3'06 • Leading position in equity indexed li
Slide 10: Asia: success in chosen markets
Aviva Asia: success in chosen markets • Significant life and pensions £m PVNBP Growth1 PVNBP growth 500 CAGR – 32% • In addition, investment sales 400 doubled in Q3 2006 v Q3 2005 • Aggressive development in 300 China and India and multi- distribution approach 200 • effective bancassurance 100 relat
Slide 11: General insurance: 98% target firmly on track
General insurance: 98% target firmly on track COR % Operating Profit £ bn • GI COR reduced from 109% to 110 2.0 92% between 2000 and HY 2006 105 1.5 • Underwriting discipline and 100 1.0 pricing 95 0.5 • Motor rating improved 90 0 • Household and 2000 2001 2002 2003 2004 2005 HY 2006 commercial line
Slide 12: “Pay As You Drive”™ insurance
“Pay As You Drive”™ insurance • PAYD is a new approach to motor insurance using telematics technology • The method of charging for car insurance is based on when, where & how often a vehicle is used Benefits to the Customer: Benefits to Norwich Union: • Fairer Premiums • Data capture • More for thei
Slide 13: Profitable growth and increasing dividends
Profitable growth and increasing dividends £ billion 3.5 • Best ever results in H1 2006 Operating Profit* 3 - Strong growth across UK 2.5 Life, General Insurance 2 and International Life 1.5 businesses 1 0.5 - 10% increase in dividend 0 2000 2001 2002 2003 2004 2005 2006 - Return on equity of 14% Ha
Slide 14: Questions and discussion
Questions and discussion 7 December 2006 Andrew Moss, Group Finance Director © Aviva plc