Aviva Plc · LSE:AV.
Aviva — Investor Presentation (2004)
22 slides from Aviva's investor presentation, 2004
Slide 1: Product and Distribution Strategy
Peter Hales Sales and Marketing Director Product and Distribution Strategy
Slide 2: 3 key areas at the heart of our current success
3 key areas at the heart of our current success... Brand • Market Leading • Highest Awareness • Most Trusted Products Products • Broad Range • Customer Orientated • Value Focus Distribution Distribution • Broad Access • Strong Relationships • Well positioned for the future ...and our confidence for
Slide 3: Brand Strength
Brand Strength We will continue to leverage our brand strength and use it as a source of competitive advantage
Slide 4: Brand Recognition
Brand Recognition 100 90 80 70 60 50 92 90 87 40 85 84 80 80 79 78 71 70 30 64 48 20 41 10 0 h y e ric s ine SB x l be ion ay Lif tia e lifa l le Zu ws ra Lif e tL en sT rcl Ab ab Un un Ha nc ne ido rd rec Ba ud uit yd /S lia Ge da ich W Pr Eq Di Llo nA an rw ish l& a ish Ax St Su No ga ott ott Sc l
Slide 5: Advocacy
Highest levels of trust and advocacy in Life and Pensions market… % 50 45 40 Advocacy % 5 10 20 25 30 25 Trust Source: TRBI Brand Tracking Study Q2 2004 • Trust in the Norwich Union brand continues to build • Norwich Union has made further advances in levels of advocacy for the brand …a source of co
Slide 6: Growing Customer Confidence – A Market Leader
Growing Customer Confidence – A Market Leader • Raising Standards accreditation • Treating Customers Fairly • Financial Capability • Providing sustainable guarantees through financial strength • Transparency on with-profits Customer Focus • Implementing the benefits of researching the customer over
Slide 7: Product Strategy
Product Strategy We will use our broad product mix and strong market positions to: • deliver value for customers and shareholders, and • continue to increase our influence with distributors
Slide 8: We have a broad product mix
We have a broad product mix... Total Market Norwich Union H1 2004 = £5.0bn APE and H1 2004 = £605m APE and £28.7bn total premiums £3,465m total premiums 12% 8% 9% 16% Annuities 19% Bonds & Savings 16% 16% Group Personal 10% Pensions Individual Pensions Corporate Pensions Investment Funds 13% 17% 14%
Slide 9: Strong market share in the main product areas
We have consistently maintained strong market share in the main product areas... 20% 40% 15% 16.9% 14.5% 14.6% 13.5% 10% 10.7% 10.2% 5% 6.9% 0% Annuities Bonds & Group Individual Corporate Investment Protection Equity Savings Personal Pensions Pensions Funds Release Pensions Source: ABI / MSE H1 200
Slide 10: Stability during volatility
Stability during volatility... Total Market Share - Discrete Quarters £bn APE 2.7 14% 12% 2.6 10% 2.5 NUL L&P Market Share 8% 2.4 6% Market Size 2.3 4% 2% 2.2 0% 2.1 Source: ABI / MSE H1 2004 & Aviva results Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Total IFA Market Share - Dis
Slide 11: Life, Pensions & Investments market expected to grow
We expect the Life, Pensions & Investments market to grow across all products; being a broad based product provider we should do well... APE £bn £13 £12.6 bn £10 £10.1 bn Market £8 Growth 25% £5 NU Growth 31% £3 £0 2004 2007 Source: Norwich Union Life Market APE £bn …giving us the opportunity to foc
Slide 12: Market Growth - £bn APE
Market Growth - £bn APE Pensions Market Growth Pensions: £6 - low point of margin cycle £5 £5.2 bn £4.7 bn - market activity before and after Pensions £4 £3 11% Simplification Growth £2 - distributors and providers able to profitably £1 focus on mainstream market sectors £0 2004 2007 Protection Mark
Slide 13: Market Growth - £bn APE
Market Growth - £bn APE Investments Market Growth Investments: £6 - low point in the savings cycle (savings £5 £5.2 bn ratio back at late 1980’s levels) £4 - stabilising equity markets £3 £3.5 bn 49% Growth - returning consumer confidence £2 £1 - housing market slowing £0 2004 2007 Annuity Market Gr
Slide 14: Norwich Union is well placed to take advantage of growth opportunities
Norwich Union is well placed to take advantage of further growth opportunities • Strength of our brand ensures customer pull in an intermediated market • Flight to quality will continue, benefiting providers with real financial strength • Strong distribution partnerships give access to all key custo
Slide 15: Distribution Strategy
Distribution Strategy Multi-channel offering with distributors prioritised on customer access and value
Slide 16: Maximise access to customers through the optimum number of distributors
Maximise access to customers through the optimum number of distributors Leading IFA market share: - 90% of IFA firms placed new business with Norwich Union within the last 6 months - Leading provider to the top 3 IFA networks: Bankhall, Sesame and Tenet; with a combined salesforce of over 16,000 RIs
Slide 17: Depolarisation expected to change the face of distribution
Depolarisation expected to change the face of distribution... Market Distribution Mix Market Distribution Mix 2004 2007 Direct Direct DSF DSF IFA - 9% 5% Whole of Commission 5% 14% Market & Multi-tie Distribution Banc- 42% 49% Groups Banc- assurance 24% 16% assurance 16% 20% EBC / IFA EBC / IFA Fee
Slide 18: Multi-tie: We are well placed for the future
Multi-tie: We are well placed for the future • Multi-tie agreements secured with: - UK’s largest network - Bankhall - Sesame - Portman Building Society - Discussions in progress with many major distributors • Top choice for IFA Life & Pensions Multi-ties - 65% of IFAs questioned would include Norwic
Slide 19: RBSG Joint Venture (Bancassurance)
RBSG Joint Venture (Bancassurance) SUCCESSES ISSUES OPPORTUNITIES • Development of • Recent volume growth • Significant growth partnership and strength has been below potential - customer of relationship expectations penetration about half of • NUL and RBSG have • Impact of limited product market le
Slide 20: A strong partnership committed to future growth
A strong partnership committed to future growth “ With our JV partner Norwich Union we have created strong foundations on which I am confident we will achieve substantial long term growth in our bancassurance business. We enjoy excellent working relationships with Norwich Union and are committed to
Slide 21: The Lifetime Portfolio will lead and grow the UK wrap market
The Lifetime Portfolio will lead and grow the UK wrap market... • £150bn will be invested through wraps by 2008 (Source: Datamonitor) • The Lifetime Portfolio launches in Q4 2004 Benefits: • Customer: Transparent charges, wide range of product wrappers, choice from 50 fund managers and 700 funds, an
Slide 22: We are confident about the future
We are confident about the future... • Market leader through a period of market turbulence • Top 3 positions in Life, Pensions and Investments markets • Successful broadly based distributor relationships focusing on shared value • Continued use of our strong brand awareness, customer focus and finan