Aviva Plc · LSE:AV.
Aviva — Investor Presentation (June 2010)
19 slides from Aviva's investor presentation, June 2010
Slide 1: Investor Presentation
Investor Presentation June 2010
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: Overview
Overview Long Term savings General Insurance • Strong profits in a tough economic environment Composite • Encouraging sales outlook supported by our unique and growing bancassurance franchise • Structural changes and cost savings now delivering benefits for shareholders Long-term savings sales GI an
Slide 4: Strong today, with a clear vision for the future
Strong today, with a clear vision for the future Strong today Well positioned for growth European L&P A single global brand assets expected 1.7 to grow by • 53 million customers $1.7 trillion over • A unique bancassurance the next 5 years franchise • Top 4 in Europe and a market leader in the UK 200
Slide 5: A huge market with significant growth potential
A huge market with significant growth potential $62tr personal financial assets, to 40% of the grow by $12tr by world‟s personal 2014 wealth 800m+ population and growing 13% of wealth „Baby boomers‟ invested in L&P approaching retirement Emerging markets with Large mature markets significant potenti
Slide 6: Clear strategic delivery
Clear strategic delivery Manage composite portfolio • Delta Lloyd: 1 billion cash raised; IGD up £0.5 • Transformational deal with Delta Lloyd billion, new governance driving better performance • Sold sub-scale Australian business • Australian sale: 16 x IFRS profits realised; IGD up £0.5 billion Al
Slide 7: Transformed cost base demonstrates strategic change
Transformed cost base demonstrates strategic change Analysis of Operational Cost Base (by Region) Movement in Headcount (by Region) 13% reduction in 2009 15% reduction in 2009 (19% since 2007) £500m cost reduction target exceeded one year ahead of schedule Page 7
Slide 8: Continuing return to growth, further actions to drive value
Continuing return to growth, further actions to drive value Continuing return to growth Actions to drive value • 15% quarterly improvement in • Looking to generate 30% improvement in L&P sales operating capital in 2010 • Margins in line with 2009 • £300 million more than 2009 • 44% quarterly improve
Slide 9: 15% increase in sales Q4 2009 – Q1 2010
15% increase in sales Q4 2009 – Q1 2010 39% increase Q3 2009 – Q1 2010 Life & Pensions PVNBP £m 9,131 Asia Pacific • Growth of 13-14% in core markets of UK and Europe 7,943 North America • Margins in line with 2009 6,587 • Bancassurance sales up 44% Europe UK Life Evidence of continuing recovery in
Slide 10: 16% increase in GI & Health sales Q4 2009 – Q1 2010
16% increase in GI & Health sales Q4 2009 – Q1 2010 GI & Health (NWP) £m Asia Pacific • Positive impacts from 2,465 marketing campaign “get the Aviva deal” 2,120 2,126 North America • Success with the RAC panel Europe • Continued improvement in underlying current year performance UK Life Remaining f
Slide 11: Aiming to generate £300 million (30%) growth in underlying capital in 2010
Aiming to generate £300 million (30%) growth in underlying capital in 2010 £bn Capital Generation 2.5 2.5bn 1.5bn Key drivers for capital growth 2.0 • Higher in-force profits • Increased non-life capital generation 1.5 1.3bn • Lower new business strain • Disciplined cost management 1.0bn 1.0 0.5 0.0
Slide 12: Specific plans to drive value, earnings & dividend growth – Plans for 2010
Specific plans to drive value, earnings & dividend growth – Plans for 2010 ► Increase penetration of bancassurance protection business ► Targeting a further shift towards higher margin unit linked products Europe ► Centralise asset & liability management and reinsurance in Dublin ► Further GI market
Slide 13: Marketing leading positions across the regions
Marketing leading positions across the regions Life & pensions GI UK UK Top 3 #1 Europe Ireland Top 3 #1 Largest insurance services provider Poland #2 in the UK Spain Top 5 Turkey Top 5 One of the leading providers of life France Top 10 and pension products in Europe Italy Top 10 Russia Top 10 Hunga
Slide 14: Aviva Europe's Quantum Leap
Aviva Europe‟s Quantum Leap From To Twelve federated businesses One Pan European Business One Head Office Pan European distribution organisation Customer centric product catalogue Multiple, complex products and shorter time to market Multiple systems Shared systems and processes and processes Simpli
Slide 15: Progress on Quantum Leap
Progress on Quantum Leap Business managed by channel and function with clear One Pan European Business accountability alongside local market knowledge One Head Office Work underway to create one head office in Ireland Pan European distribution Pan-European Product Centres created in Poland and Irela
Slide 16: AVIVA
AVIVA
Slide 17: Appendix
Appendix NINES
Slide 18: Non-GAAP financial measures
Non-GAAP financial measures Financial measures In this presentation, management has included and discussed certain “non-GAAP financial measures”, as such term is defined in Regulation G, pertaining to the Company‟s results. These measures are ““PVNBP” (Present Value of New Business Premiums), “Sales
Slide 19: Reconciliations of non-GAAP financial measures
Reconciliations of non-GAAP financial measures Reconciliation of IFRS operating profit to MCEV operating profit £ million 2009 2008 IFRS operating profit1 2,022 2,297 New business impact 962 1,175 Existing business earnings2 671 (72) Expected return on shareholders' net worth/funds (27) 186 Other it