Aviva plc · LSE:AV.
Aviva — Morgan Stanley European Financials Conference 2010
12 slides from Aviva's conference presentation, Mar 25, 2010
Slide 1: Aviva plc – Morgan Stanley Conference
Aviva plc Morgan Stanley Conference 25 March 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: 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 5: 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 5
Slide 6: £1 billion underlying capital generated with plans for further improvement in 2010
£1 billion underlying capital generated with plans for further improvement in 2010 £bn 3.0 Capital generation 2.5 1.5 2.5 Key drivers for growth 2.0 • Higher in-force profits • Lower new business strain 1.5 • Increased capital generation 1.0 in general insurance 1.0 0.5 0.0 Operational capital Inves
Slide 7: Materially improved £2.2 billion central liquidity
Materially improved £2.2 billion central liquidity £bn Financial leverage of 31.8% (2008: 34.0%) Net of £2.2 billion central liquidity would be 19.0% Page 7
Slide 8: A high return on equity and further NAV upside potential
A high return on equity and further NAV upside potential 18% Return on equity - % 16% 14% MCEV NAV - Pence per share FY 2009 12% Closing MCEV NAV as at 31 December 471p 10% 2009 8% Estimated present value of future credit 90p spread earnings 6% 4% 2% 0% Life GI Group 2008 2009 Page 8
Slide 9: 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 10: 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 11: 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 12: AVIVA
AVIVA
Aviva — Morgan Stanley European Financials Conference 2010 on 6ix