Aviva Plc · LSE:AV.
Aviva — Merrill Lynch Conference (2007)
28 slides from Aviva's conference presentation, 2007
Slide 1: One Aviva
One Aviva Andrew Moss, Group Chief Executive “Our priority is to realise the full potential of Aviva’s existing businesses” Andrew Moss Group Chief Executive Merrill Lynch Conference
Slide 2: Disclaimer
Disclaimer This presentation may contain “forward-looking statements” with respect to certain of Aviva’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty beca
Slide 3: An increasingly global company
An increasingly global company £30 billion HY 2007 sales £24.7bn(1) Asia Pacific 8% 25% Sales General North America 10% Insurance £15 40% billion Europe 9% 33% 75% Long Term Savings UK 42% 58% HY 2000 HY 2007
Slide 4: H1 2007 key highlights
H1 2007 key highlights • Long term new business sales up 25% to £19.3bn • Life new business contribution up 21% to £550m at stable margin • GI COR 97% • EEV operating profit down 8% to £1,541m • IFRS operating profit up 1% to £1,375m • Net asset value per share up 8% to 737p • Interim dividend per s
Slide 5: One Aviva
One Aviva Purpose Purpose Vision Vision Strategic Group strategy and targets Targets priorities UK Europe N.America Asia Regional / BU strategies Pacific
Slide 6: One Aviva
One Aviva Purpose Purpose Vision Vision Purpose Prosperity & peace of mind Strategic Group strategy and targets Targets priorities UK Europe N.America Asia Regional / BU strategies Pacific
Slide 7: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision Vision One AvivaTargets Strategic Group strategy and targets priorities UK Europe N.America Asia Regional / BU strategies Pacific
Slide 8: A highly capable and experienced executive team appointed
A highly capable and experienced executive team appointed Andrew Moss Chief Executive Philip Scott Tom Godlasky Finance Director North America Mark Hodges Simon Machell UK Life Asia Pacific Igal Mayer John Ainley UK GI Anupam Sahay Human Alain Dromer Strategy Resources Aviva Global Investors
Slide 9: Regional structure
Regional structure UK Europe N. America Asia Pacific
Slide 10: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic priorities ● Manage composite portfolio ● BuildStrategic global Asset Management Group strategy and targets Targets ● Allocate capital priorities rigorously ● Increase customer reach ● Boost productivity UK Europe
Slide 11: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic priorities ● Manage composite portfolio ● BuildStrategic global Asset Group strategy and targets Management Targets priorities ● Allocate capital rigorously ● Increase customer reach ● Boost productivity UK Europe
Slide 12: Manage the composite portfolio
Manage the composite portfolio Long Term savings General Insurance Composite
Slide 13: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic priorities ● Manage composite portfolio ● Build global Asset Strategic Group strategy and targets Management Targets priorities ● Allocate capital rigorously ● Increase customer reach ● Boost productivity UK Europ
Slide 14: Build Aviva global asset management
Build Aviva global asset management Morley Delta Lloyd Fund Management Investment Mgt Morley Hibernian Investment Managers CUIM Polska Aviva Capital Mgt Morley Morley AFS – Luxembourg Aviva Gestion d’Actif Portfolio Partners Benefits Morley • Manufacturing Aviva Gestion Spain • Distribution Aviva In
Slide 15: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic priorities ● Manage composite portfolio ● BuildStrategic global Asset Management Group strategy and targets Targets ● Allocate priorities capital rigorously ● Increase customer reach ● Boost productivity UK Europe
Slide 16: Allocate capital rigorously
Allocate capital rigorously • Risk appetite Using capital to maximise value for shareholders • Realising Inorganic more capital from existing businesses Organic – New focus on securitisation – Inherited estate reattribution – Maximising diversification benefits in the Solvency II world Russia • Prog
Slide 17: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic priorities ● Manage composite portfolio ● BuildStrategic global Asset Management Group strategy and targets Targets ● Allocate capital priorities rigorously ● Increase customer reach ● Boost productivity UK Europe
Slide 18: Access to customers
Access to customers Multi-distribution Direct Sales Bancassurance Independent Agents
Slide 19: The strategic advantage of bancassurance
The strategic advantage of bancassurance • Six new bancassurance JV’s in H1 2007 • Giving access to over 30m potential customers – Confirming we are partner of choice – Demonstrating further European growth opportunities – Increasing the geographical footprint in Asia Pacific
Slide 20: The strategic advantage of bancassurance
The strategic advantage of bancassurance
Slide 21: The strategic advantage of bancassurance
The strategic advantage of bancassurance Bancassurance sales CAGR of 20%* Margin of 4.5% compared to 3.5% for the group* Access to c.200 million potential customers across c.48,000 branches * From principal bancassurance deals
Slide 22: Customers – unlocking the potential
Customers – unlocking the potential • Products - continued development and simplification – Sharing ideas – e.g. Australian wrap platform used in Singapore – Rapid development – e.g. Polish on-line GI – Innovation – e.g. digital flood mapping • Service - vital to continue improving standards – World
Slide 23: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic priorities ● Manage composite portfolio ● BuildStrategic global Asset Management Group strategy and targets Targets ● Allocate capital priorities rigorously ● Increase customer reach ● Boost productivity UK Europe
Slide 24: Costs savings – making it happen
Costs savings – making it happen Cost Initiatives Underway £m 500 The “One Aviva” approach 23 403 • Working across borders 400 130 and boundaries (shared 300 services, IT) 250 • Simplify (Swiss Re 200 agreement, removing 220 IT systems) 100 • More cost savings to come 0 UK Cost & RAC US Total Effici
Slide 25: One Aviva
One Aviva Purpose Purpose Prosperity & peace of mind Vision Vision One Aviva Strategic Targets priorities ● Manage composite ● 98% meet or beat COR portfolio ● 5 year 10% international Group strategy and targets ● Build global Asset Targets life growth Management ● Allocate capital ● 1.5 – 2 x divid
Slide 26: One Aviva
One Aviva Purpose Prosperity & Purpose peace of mind Vision Vision One Aviva Strategic Targets priorities ● Manage composite ● 98% meet or beat COR portfolio ● 5 year 10% international life Group strategy and targets ● Build global Asset growth Management ● 1.5 – 2 x dividend cover ● Allocate capita
Slide 27: One Aviva
One Aviva Purpose Prosperity & Purpose peace of mind Vision Vision One Aviva Strategic Targets priorities ● Manage composite ● 98% meet or beat COR portfolio ● 5 year 10% international life Group strategy and targets ● Build global Asset growth Management ● 1.5 – 2 x dividend cover ● Allocate capita
Slide 28: Q&A
Q&A B AVIVA Forward thinking