Aviva Plc · LSE:AV.
Aviva — Investor Day (July 2014)
15 slides from Aviva's investor day presentation, Jul 9, 2014
Slide 1: Aviva General Insurance: Digital, analytics and opportunities to grow underwriting profits
Aviva General Insurance Digital, analytics and opportunities to grow underwriting profits Maurice Tulloch Chairman Global, General Insurance and CEO, UK&I GI 49
Slide 2: Aviva General Insurance – at a glance
Aviva General Insurance – at a glance Cash generator Turnaround Growth Underwriting profits (2013: £225m) 90 % 9% 1% 15 million customers Net cash remittance £8.1bn GI gross written premiums (2013: £538m) 1% Top 3 GI position UK, Canada & Ireland 11% 24% 97% COR, operating profit £763m 64% £17.5bn a
Slide 3: Financial progress – total general insurance
Financial progress – total general insurance Net Cash Remittance Underwriting result Operating profit -17% +42% +1% £538m £920m £223m £225m [1] £763m [1] £378m 2011 2013 2011 2013 2011 2013 COR Operating expenses Gross written premium +0.5pp -11% -5% 97.0% [1] £8,530m 96.5% £1,317m £1,171m £8,075m (
Slide 4: Our strategic agenda
Our strategic agenda Growth Cash Analytics Grow UK Direct and leverage Improving cost efficiency Broaden underwriting appetite composite opportunity Focus on retention & average Accelerating automation Risk analytics product holding Grow commercial lines Reducing internal leverage Customer analytics
Slide 5: Digital first: Winning in a commoditised world
Digital first: Winning in a commoditised world Low cost direct – UK retail personal lines Net Written Premium Customer Policies UKDI* Broker £689m 15% 2,634k £635m 8.5% 2,281k Motor – retention 70% 50% £14m 44k 348k £132m Home – retention 85% 75% Average product £621m £557m 2,237k 2,286k 2.0 1.5 hol
Slide 6: Digital first: Proof points
Digital first: Proof points General Insurance Life • 1,025,000 logins • 100% increase in cross-sell • 15x more travel insurance • Mobile/ tablet motor quotes to overtake desktop in 12 months • Increased customer interaction Asset Health Management 54
Slide 7: Grow commercial: A capability led business
Grow commercial: A capability led business Underwriting actions taken to improve profitability; expertise being exported across our Global model Spotlight on Canada Commercial Net Written Premium COR 8% -0.6pp £854m £790m 97.4% 96.8% Principles & benefits Spotlight on UK Large Commercial • Single op
Slide 8: Improving cost efficiency
Improving cost efficiency Global GI – Lower expenses in 2013 … £1,317m £38m £1,171m £96m £114m -9% £343m £580m £1,194m -2% £1,171m UK Canada France T/round Growth Total & other Lower operating expense ratios … • Global GI expenses down 11%. 2011 2013 Trend • Continued focus on distribution ratio UK
Slide 9: Automation in claims: Continually improving customer service and efficiency
Automation in claims: Continually improving customer service and efficiency Improving our process through automation, systems thinking & analytics working together Old processes New processes £ Pay Claimants 20% of personal lines claims settled in a single call £ Investing in Guidewire Developments
Slide 10: Analytics: Continually evolving to win the data arms race
Analytics: Continually evolving to win the data arms race Analytics: a major contributor to COR improvement and competitive advantage 99% Fraud Price Telematics Telematics Multicar analytics optimisation 98% Full cost launch Actions in UK model & rate refresh UKDI cost Claims 97% model refresh analy
Slide 11: Risk Analytics: Demonstrating outperformance
Risk Analytics: Demonstrating outperformance Canada – Leveraging predictive analytics to be an industry leader across Personal Lines 80% 85% Auto Loss Ratios Industry Aviva Personal Property Loss Ratios Industry Aviva 80% 75% 75% 70% 70% 65% 65% 60% 60% 55% 55% 50% 2006 2007 2008 2009 2010 2011 2012
Slide 12: Behavioural analytics: Combatting claims fraud
Behavioural analytics: Combatting claims fraud Aviva UK & Ireland GI repudiated 15,000 fraud claims at £110m in 2013; Fraud costs each household an extra £50 per year through increased premiums Organised Fraud Defending injury claims • 6,000+ claims under investigation • Aviva UK & Ireland GI ‘nil-s
Slide 13: Summary: Global exploitation of expertise through the operating model
Summary Growth Cash Analytics Grow UK Direct and leverage Improving cost efficiency Broaden underwriting appetite composite opportunity Focus on retention & average Accelerating automation Risk analytics product holding Grow commercial lines Reducing internal leverage Customer analytics Not Everywhe
Slide 14: Q&A
Q&A Maurice Tulloch Chairman, Global General Insurance Chief Executive Officer, UK & I GI
Slide 15: Cautionary statements
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 other verbal or written “forward-looking statements” with respect