Aviva Plc · LSE:AV.
Aviva — CGNU — Shareholder Meeting (April 2002)
81 slides from Aviva's shareholder meeting presentation, Apr 23, 2002
Slide 1: CGNU plc Annual General Meeting
CGNU plc Annual General Meeting 23 April 2002
Slide 2: Pehr Gyllenhammar, Chairman
CGNU plc Annual General Meeting Pehr Gyllenhammar Chairman
Slide 3: CGNU plc Annual General Meeting
CGNU plc Annual General Meeting 23 April 2002
Slide 4: Richard Harvey, Group Chief Executive
CGNU plc Annual General Meeting Richard Harvey Group Chief Executive
Slide 5: Overview
Overview
Slide 6: Overview
Overview 2001 premiums _ 7th largest worldwide insurer / sales* _ Top 5 European life assurer 70% 30% Life* _ UK’s largest insurer General _ Strongest platform in continental Europe of any UK financial Business Mix Mix International Life 4% services company Cont. Europe UK Life 30% General _ Over £2
Slide 7: Results 2001
Results 2001
Slide 8: 2001 results
2001 results _ Operating profit1 before tax £2,004m +41% _ Life achieved operating profit £1,674m +5% _ General insurance operating profit £945m +133% _ Post-tax return on capital 9.4% (continuing operations 10.8%) _ Dividend 38.0p (2000: 38.0p) _ Dividend re-based for 2002 23.0p 1 From continuing o
Slide 9: Life
Life
Slide 10: Strong growth in long-term new business sales
Strong growth in long-term new business sales Total sales £ billion 15 10 5 0 1998 1999 2000 2001 Life & pension sales Investment sales Compound growth of 24% per year
Slide 11: Sales outperformed in main markets
_ Sales outperformed in main markets _ Major bancassurance initiatives in UK, Spain, Italy and Singapore
Slide 12: Strong Continental European growth
Strong Continental European growth Total Life & Pensions sales +5% France Ireland +21% +291% Italy 2001 +34% 2000 Netherlands Spain +155% £m 0 500 1,000 1,500 2,000 European long-term savings is our main priority priority for for development development
Slide 13: General insurance
General insurance
Slide 14: General insurance more focused and more profitable
_ General insurance business more focused and more profitable _ Operating profit up £533 million to £945 million _ Combined operating ratio of 102% achieved
Slide 15: Focus on personal and small commercial
_ Focus on personal (motor, household) and small commercial _ Withdrawn from US and London Market _ Sold sub-scale or poorly performing businesses
Slide 16: Merger
Merger
Slide 17: Integration savings exceeded
Integration savings exceeded General £144m insurance £96m Life £77m Actual Other Target 0 50 100 150 £ million Annualised integration savings of £317 million Completed on time, to budget, cost savings exceeded
Slide 18: UK market leader
NORWICH UNION UK marketJeade
Slide 19: UK Life
UK Life
Slide 20: No.1 in the UK with 11% market share
_ No.1 in the UK, with 11% market share _ Record new business sales beating expectations _ Life and pensions up 10% to £7.3 billion _ Broad product offering
Slide 21: UK Life - gaining market share
UK Life - gaining market share _ Target market share of 15% by end 2005 _ Strong life funds 12 Market share % 10 8 6 11.5% 10.6% 4 2 5.2% 7.7% 8.1% 8.9% 0 1996 1997 1998 1999 2000 2001 CGU NU NU Post Merger
Slide 22: UK General Insurance
UK General Insurance
Slide 23: No.1 in the UK with 19% market share
_ No.1 in the UK, with 19% market share _ We insure _ 1 in 5 UK households _ 1 in 5 cars _ 700,000 businesses _ One of the lowest cost operators in the UK
Slide 24: Pay as you drive
Pay as you drive Daily Telegraph Independent 23 February 2002 21 February 2002 Eastern Daily Press 20 February 2002 Daily Express 20 February 2002 Guardian 23 February 2002
Slide 25: Growing your business
Growing your business
Slide 26: Move to private retirement savings underpins European growth
Move to private retirement savings underpins European growth State pension for average worker Worker to pensioner ratios (ii) as % of final salary (i) 2000 2040e Spain 2.7 1.4 Italy 2.4 1.1 France 2.7 1.5 Germany 2.5 1.2 UK 0 25 50 75 100% 2.6 1.5 Undeliverable state Sources : (I) Goldman Sachs : (i
Slide 27: Why a growing life company needs to invest
Why a growing life company needs to invest _ Every new policy we sell costs us – in selling and administration charges – much more than the customer pays us _ Over the life of the policy, we recoup these costs and the policy turns into a profit for the company _ The more policies we sell, the higher
Slide 28: Sustained growth requires investment
_ Sustained growth requires investment _ We need to invest some profit to take advantage of growth trends _ This will maximise the long term value of the Company
Slide 29: Brand
Brand
Slide 30: 47% of business now coming from outside UK
47% of business now coming from outside UK
Slide 31: Currently CGNU promotes over 50 trading names
Currently CGNU promotes over 50 trading names
Slide 32: New global brand requirements
_ No existing name suitable as global brand _ New name needed to: _ be fitting _ have impact _ be international _ be protectable
Slide 33: Slide 33
Slide 34: AVIVA tested very positively
AVIVA tested very positively _ Tested with 15,000 consumers in 15 countries _ Associated with life, growth and vitality _ Opportunity for an international brand “CGNU is not the most understandable nor easiest to pronounce ….… (AVIVA) reflects the group’s increasingly international position.”
Slide 35: A new international brand
a new international brand _ France rebranding example:
Slide 36: Benefits
Benefits _ Value for money in marketing spend _ New name for new markets _ Group name supports business units around the world _ Strong sense of belonging for 64,000 employees
Slide 37: Norwich Union, an AVIVA company
NORWICH UNION an AVIVA company
Slide 38: In summary
In summary _ Strong trading performance _ Successful integration _ Investing for future growth _ New international brand to improve marketing efficiency
Slide 39: CGNU plc Annual General Meeting
CGNU plc Annual General Meeting 23 April 2002
Slide 40: Resolutions
CGNU plc Annual General Meeting Resolutions
Slide 41: Resolution 1
Resolution 1 To receive and consider the Report and Accounts for the year ended 31 December 2001
Slide 42: Resolution 1 proxy votes
Resolution 1 Proxy Votes cast For (inc. discretionary) Against Abstained 98.60% 0.13% 1.27% Total votes cast represents 42% of issued share capital
Slide 43: Resolution 2
Resolution 2 To declare a final dividend on the ordinary shares of the Company for the year ended 31 December 2001
Slide 44: Resolution 2 proxy votes
Resolution 2 Proxy Votes cast For (inc. discretionary) Against Abstained 97.76% 0.87% 1.37% Total votes cast represents 42% of issued share capital
Slide 45: Resolutions 3-7
Resolutions 3- 3-7
Slide 46: Resolution 3
Resolution 3 To reappoint Wim Dik as a Director
Slide 47: Resolution 3 proxy votes
Resolution 3 Proxy Votes cast For (inc. discretionary) Against Abstained 98.82% 0.65% 0.53% Total votes cast represents 42% of issued share capital
Slide 48: Resolution 4
Resolution 4 To reappoint Derek Stevens as a Director
Slide 49: Resolution 4 proxy votes
Resolution 4 Proxy Votes cast For (inc. discretionary) Against Abstained 98.11% 1.35% 0.54% Total votes cast represents 42% of issued share capital
Slide 50: Resolution 5
Resolution 5 To reappoint Philip Twyman as a Director
Slide 51: Resolution 5 proxy votes
Resolution 5 Proxy Votes cast For (inc. discretionary) Against Abstained 91.94% 1.99% 6.07% Total votes cast represents 42% of issued share capital
Slide 52: Resolution 6
Resolution 6 To reappoint André Villeneuve as a Director
Slide 53: Resolution 6 proxy votes
Resolution 6 Proxy Votes cast For (inc. discretionary) Against Abstained 98.81% 0.66% 0.53% Total votes cast represents 42% of issued share capital
Slide 54: Resolution 7
Resolution 7 To reappoint Tony Wyand as a Director
Slide 55: Resolution 7 proxy votes
Resolution 7 Proxy Votes cast For (inc. discretionary) Against Abstained 92.02% 1.95% 6.03% Total votes cast represents 42% of issued share capital
Slide 56: Resolution 8
Resolution 8 To reappoint Ernst & Young LLP as auditor of the Company
Slide 57: Resolution 8 proxy votes
Resolution 8 Proxy Votes cast For (inc. discretionary) Against Abstained 96.04% 0.87% 3.09% Total votes cast represents 42% of issued share capital
Slide 58: Resolution 9
Resolution 9 To authorise the Directors to determine the auditor’s remuneration
Slide 59: Resolution 9 proxy votes
Resolution 9 Proxy Votes cast For (inc. discretionary) Against Abstained 99.24% 0.24% 0.52% Total votes cast represents 42% of issued share capital
Slide 60: Resolution 10
Resolution 10 To authorise the Directors to allot unissued shares
Slide 61: Resolution 10 proxy votes
Resolution 10 Proxy Votes cast For (inc. discretionary) Against Abstained 99.11% 0.37% 0.52% Total votes cast represents 42% of issued share capital
Slide 62: Special Resolution 11
Special Resolution 11 To authorise the Directors to make non pre- pre-emptive share allotments
Slide 63: Special Resolution 11 proxy votes
Special Resolution 11 Proxy Votes cast For (inc. discretionary) Against Abstained 98.89% 1.05% 0.06% Total votes cast represents 42% of issued share capital
Slide 64: Resolution 12
Resolution 12 To approve the Remuneration Report for the year ended 31 December 2001
Slide 65: Resolution 12 proxy votes
Resolution 12 Proxy Votes cast For (inc. discretionary) Against Abstained 89.50% 7.48% 3.02% Total votes cast represents 42% of issued share capital
Slide 66: Resolution 13
Resolution 13 To approve the increase of the aggregate amount of directors’ remuneration
Slide 67: Resolution 13 proxy votes
Resolution 13 Proxy Votes cast For (inc. discretionary) Against Abstained 96.07% 3.05% 0.88% Total votes cast represents 42% of issued share capital
Slide 68: Resolution 14
Resolution 14 To authorise the Company to make EU political donations up to specified limits
Slide 69: Resolution 14 proxy votes
Resolution 14 Proxy Votes cast For (inc. discretionary) Against Abstained 87.57% 5.22% 7.21% Total votes cast represents 42% of issued share capital
Slide 70: Special Resolution 15
Special Resolution 15 To authorise the change of the Company name to AVIVA plc
Slide 71: Special Resolution 15 proxy votes
Special Resolution 15 Proxy Votes cast For (inc. discretionary) Against Abstained 94.46% 3.74% 1.80% Total votes cast represents 42% of issued share capital
Slide 72: Special Resolution 16
Special Resolution 16 To approve the adoption of new articles of association of the Company
Slide 73: Special Resolution 16 proxy votes
Special Resolution 16 Proxy Votes cast For (inc. discretionary) Against Abstained 98.92% 0.55% 0.53% Total votes cast represents 42% of issued share capital
Slide 74: Special Resolution 17
Special Resolution 17 To authorise the Company to purchase its ordinary shares up to specified limits
Slide 75: Special Resolution 17 proxy votes
Special Resolution 17 Proxy Votes cast For (inc. discretionary) Against Abstained 98.90% 0.23% 0.87% Total votes cast represents 42% of issued share capital
Slide 76: Resolutions 18-19
Resolutions 18- 18-19
Slide 77: Special Resolution 18
Special Resolution 18 To authorise the Company to purchase its 8 3/4 % preference shares up to specified limits
Slide 78: Special Resolution 18 proxy votes
Special Resolution 18 Proxy Votes cast For (inc. discretionary) Against Abstained 98.90% 0.23% 0.87% Total votes cast represents 42% of issued share capital
Slide 79: Special Resolution 19
Special Resolution 19 To authorise the Company to purchase its 8 3/8 % preference shares up to specified limits
Slide 80: Special Resolution 19 proxy votes
Special Resolution 19 Proxy Votes cast For (inc. discretionary) Against Abstained 98.90% 0.23% 0.87% Total votes cast represents 42% of issued share capital
Slide 81: CGNU plc Annual General Meeting
CGNU plc Annual General Meeting 23 April 2002