Aviva Plc · LSE:AV.
Aviva — Investor Presentation (2017)
12 slides from Aviva's investor presentation, 2017
Slide 1: 2016 Solvency and Financial Condition Report (SFCR)
AVIVA 2016 Solvency and Financial Condition Report (‘SFCR’)
Slide 2: Disclaimer
Disclaimer Cautionary statements: This should be read in conjunction with the documents distributed by Aviva plc (the “Company” or “Aviva”) through The Regulatory News Service (RNS). This presentation contains, and we may make other verbal or written “forward-looking statements” with respect to cert
Slide 3: FY16 Solvency II capital position
FY16 Solvency II capital position Shareholder view: 189% Regulatory position: 172% £bn £bn 28.5bn 12.0bn 4.0bn 0.5bn 11.3bn 11.3bn 16.5bn 0.7bn 4.0bn 24.0bn 24.0bn (0.2)bn 12.7bn 12.7bn Eligible Own Funds Solvency Capital Surplus Eligible Own Funds SCR Surplus Requirement (’SCR’) Including fully rin
Slide 4: Solvency II eligible own funds by tier
Solvency II eligible own funds by tier Regulatory view • Group diversified SCR fully supported by FY16 £bn % of SCR % of own funds T1 unrestricted capital (113% coverage) Tier 1 21.8 131% 77% T1 unrestricted 18.8 113% 66% T1 restricted 3.0 18% 11% • Headroom across all tiers - RT1 = 14% of T1 Own Fu
Slide 5: Reconciliation of IFRS total equity to SII own funds
Reconciliation of IFRS total equity to SII own funds Includes: • Elimination of UDS* 10.2 • Valuation differences 12.2 Best estimate liability 18.3 Reinsurance recoverable (4.1) Other (2.0) FY16 (4.5) (0.7) (4.0) 8.0 £bn (1.4) (0.9) 22.4 (10.0) 28.5 25.2 19.6 IFRS Total Excl. Liability Risk Net Reva
Slide 6: Group Solvency II as at 31/12/16 – scope and snapshot of measures used
Group Solvency II as at 31/12/16 – scope and snapshot of measures used RISK APPETITE & SCOPE TRANSITIONALS • Capital risk appetite based on shareholder cover ratio as • Requires regulatory approval and only applies to considered to be more representative of shareholders’ business written prior to SI
Slide 7: Impacts from transitional measure on technical provisions
Impacts from transitional measure on technical provisions SII cover ratio: 33pp benefit from transitional FY16 £bn • Good capital approved by regulators 28.5bn 12.0bn 4.8bn 5.3bn • Only applies to existing business written prior to SII implementation 6.7bn - All new business post 01/01/16 written 16
Slide 8: Impacts from permanent measures
Impacts from permanent measures Volatility adjustment* Matching adjustment* FY16 FY16 £bn £bn • Permanent, non-amortising capital: reflects illiquid nature of certain 6.5bn portfolios of liabilities (0.6)bn 0.2bn • Applies to in-force and new business (9.5)bn • Matching adjustment impact is broadly
Slide 9: Group SCR benefits from a well-balanced portfolio
Group SCR benefits from a well-balanced portfolio Divisional view Risk module view FY16 FY16 £bn £bn 10.0bn 5.4bn 26.5bn 21.9bn 16.5bn 16.5bn SCR allowing for Diversification Diversified SCR SCR allowing for Diversification Diversified SCR diversification between divisions* diversification between r
Slide 10: FY16 Group SCR by risk modules
FY16 Group SCR by risk modules £bn Market 14.0 85% Counterparty default 1.2 7% • Main capital requirements: market and life risks Life underwriting 8.9 54% - Market mainly driven by credit and equity risks Health underwriting 0.5 3% • £10bn diversification benefit: 38% ratio Non-life underwriting 1.
Slide 11: Regulatory view sensitivities – SII capital resilient to stresses
Regulatory view sensitivities – SII capital resilient to stresses Impact on Solvency Cover Ratio: 172% as at 31/12/2016 172% Interest rate increase of 25bps 3% 175% 100bps 13% 185% decrease of 25bps (4)% 168% 50bps (8)% 164% Market value of equity increase of 10% 2% 174% decrease of 10% (1)% 171% 25
Slide 12: FY16 local solvency capital positions
FY16 local solvency capital positions UK Life* • SCR fully supported by UT1 capital: 137% coverage 153%** cover ratio • c120% cover ratio excluding transitional measures • Strong capital position: 209% cover ratio, £1.3bn surplus (post Ogden) AIL • Includes non-life businesses in UK & Ireland, and o