Aviva Plc · LSE:AV.
Aviva — Investor Presentation (May 2006)
19 slides from Aviva's investor presentation, May 17, 2006
Slide 1: Growth through strength
Growth through strength Andrew Moss Group Finance Director New York 17 May 2006 © Avi va plc
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: Agenda
Agenda • Aviva strategy • Growth in Europe, Asia, US and the UK • Acquisition and capital disciplines 3 © Avi va plc
Slide 4: Aviva strategy
Aviva strategy 4 © Avi va plc
Slide 5: The Aviva portfolio
The Aviva portfolio EEV Operating Profits Sales £35bn (1) £3.5bn (2) 41% International Life Aviva International 54% 12% International General Insurance 18% UK General Insurance Aviva UK 46% 29% UK Life 5 (1). FY05 Total long-term savings new business sales and GI and health new business premiums © A
Slide 6: Aviva – our strategy
Aviva – our strategy To be a clear leader in helping our customers grow their wealth and protect their assets and their health… Long term savings and fund General insurance and related services management • by providing a broad range of • by offering a superior range of competitive • long-term savin
Slide 7: Aviva – our strategy
Aviva – our strategy Aviva focuses on … • understanding customers • building profitable market leading positions • developing efficient and effective distribution channels • using brands to widen leadership positions • delivering growth • using scale to deliver benefits • attracting, motivating and
Slide 8: Aviva / Prudential merger proposal
Aviva / Prudential merger proposal • Would have accelerated Aviva’s existing strategy • Strategic and financial logic broadly accepted – Broad portfolio across the UK, Europe, USA and Asia – Increased dividend for Prudential – Cost savings – Opportunity for increasing hybrid debt • Merger proposal w
Slide 9: Growth in Europe, Asia, USA and the UK
Growth in Europe, Asia, USA and the UK 9 © Avi va plc
Slide 10: Growth across the portfolio – Q1 2006 life new business results
Growth across the portfolio – Q1 2006 life new business results Total Sales 9 8 26% 7 6 5 £m PVNBP 4 3 2 1 0 Q1 2004 Q1 2005 Q1 2006 • Excellent worldwide total sales growth of 26% to £7.9 billion • UK sales growth of 34% to £3.2 billion • International total sales growth of 21% to £4.7 billion • Li
Slide 11: Europe - France
Europe - France • Total sales growth of 12% to £1,134m • New business contribution up 28% to £45m Distribution of 2005 Sales • Current focus on Bancassurance, – Growing through both intermediary 21% and bancassurance channels AFER, 30% – Growing more profitable unit-linked product sales – Building c
Slide 12: Europe - Italy
Europe - Italy • Total sales growth of 43% to £845m • New business contribution up 36% to £21m • Strategy – Expand bancassurance relationships – Continue product innovation to support sales growth – Continue to develop agent business 12 © Avi va plc
Slide 13: Asia and USA
Asia and USA • Asia – Total sales growth of 65% to £175m – Chinese operation growing with presence in 12 cities UK Life and Pensions Total Sales 100 80 60 Q1 2005 40 Q1 2006 20 0 China * Singapore Hong Kong India ** • USA – Total sales growth of 56% to £152m 13 *Of which Aviva’s share is 50% ** Of w
Slide 14: UK Life and Pensions Total Sales
UK UK Life and Pensions Total Sales 3,500 3,000 2,500 £m 2,000 PVNBP 1,500 1,000 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 • Total sales growth of 27% to £2,763m • New business contribution up 13% to £77m • RBSG sales growth of 92% to £414m • Ongoing strategic initiatives – Product development – A Day – Inherit
Slide 15: General insurance: sustainable results
General insurance: sustainable results Growing premium income ... ... whilst increasing profitability £ bn COR % Operating Profit £bn 10.4 110 2.0 10.0 105 1.5 9.6 9.2 100 1.0 8.8 95 0.5 8.4 8.0 90 0 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 COR Operating Profit 15 © Avi va plc
Slide 16: Acquisitions and capital disciplines
Acquisitions and capital disciplines 16 © Avi va plc
Slide 17: Acquisitions and capital disciplines
Acquisitions and capital disciplines • Acquisitions – Growth opportunities across UK, Europe, Asia and USA – Expertise in life and GI • Capital Disciplines – The RAC experience – Strong focus on shareholder value 17 © Avi va plc
Slide 18: Foundation for sustainable growth
Foundation for sustainable growth 2000-2003 2004-2005 2006 > Weathering Platform for Delivering growth the storm growth and value • Cost reduction • Capital structure • Continued international growth • Operational • Expansion of in mature and new markets excellence bancassurance model • Leverage ban
Slide 19: Questions and Discussion
Questions and Discussion 19 © Avi va plc