Aviva Plc · LSE:AV.
Aviva — Morgan Stanley European Financials Conference 2012
15 slides from Aviva's conference presentation, 2012
Slide 1: Morgan Stanley European Financials Conference
Aviva Athletics pictures Morgan Stanley European Financials Conference
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: Objectives for 2011
Objectives for 2011 Improving operating performance Allocating capital to chosen markets where we can grow and earn the highest returns Simplifying the portfolio Balance sheet strength 3
Slide 4: Focus on value and increasing profitability
Focus on value and increasing profitability IFRS operating profit Life IRR GI COR £2,550m £2,503m 14.4% 97.1% 96.8% 13.3% 6% £2,026m £2,155m Target Target Target Ex DL Ex DL Target 12% 98% 97% 12% 2010 2011 2010 2011 2010 2011 Operating capital generation IFRS NAV Dividend £2.1bn 454p 26.0p 435p 25.
Slide 5: A fitter and stronger Aviva
A fitter and stronger Aviva 2009 2011 Life IRR 10.6% Life IRR 14.4% Profitability GI COR 99.4% GI COR 96.8% Operating capital Capital generated £1.0 billion Capital generated £2.1 billion generation Markets 30 countries 21 countries Cost base £5.1 billion Cost base £4.1* billion Efficiency Headcount
Slide 6: Track record of growth in Life
Track record of growth in Life Operating profit Net operating capital generation £1.3bn £2.1bn £0.8bn £2.0bn £305m £245m £0.4bn £1.6bn US & Asia £137m £898m £893m 2009 2010 2011 Europe £761m IRR 14.4% £920m 13.3% £850m UK £672m 10.6% 2009 2010 2011 2009 2010 2011 All numbers exclude Delta Lloyd. 200
Slide 7: Track record of growth in GI
Track record of growth in GI Operating profit COR 99.4% 97.1% £907m 96.8% £32m £849m £762m £87m £254m Aviva Re £97m & Other £222m Canada £144m 2009 2010 2011 £113m £64m £97m Europe Sales £8.3bn £508m £7.7bn £476m £424m £7.3bn UK 2009 2010 2011 2009 2010 2011 All numbers exclude Delta Lloyd 7
Slide 8: Progress in the UK
Progress in the UK Market leading brand recognition 400,000 new motor customers 25% market share individual annuities 15% market share in protection Unparalleled customer reach through intermediaries, corporate partners and direct 9,000 IFA firms UK General Insurer of the Year Best Pension Provider
Slide 9: Europe: resilience in a tough environment
Europe: resilience in a tough environment IFRS operating profits Resilient life result Tied agency network 13% growth in bancassurance sales France £467m AFER IRR up to 11.4% (2010: 9.4%) Bancassurance Strong GI result IRR of 23.3% (2010: 21.6%) £216m Bancassurance Spain Record operating profits IRR
Slide 10: Canada & USA: record profits
Canada & USA: record profits Canada IFRS operating profits NWP COR £2.1bn £254m 97% £2.0bn £222m 14% 95% 2010 2011 2010 2011 2010 2011 USA IFRS operating profits L&P sales IRR £4.7bn £197m 14.4% £3.9bn 14.1% £174m 13% Indexed £3.7bn annuities £2.8bn £1.0bn Life £1.1bn 2010 2011 2010 2011 2010 2011 1
Slide 11: Continuing profit growth in Asia Pacific
Continuing profit growth in Asia Pacific IRR Life sales 13% £1.8bn 11% £1.6bn 6% £1.1bn 2009 2010 2011 Underlying IFRS operating profit* £45m £4m £(31)m 2009 2010 2011 2009 excludes Australia. 2009 2010 2011 * Underlying operating profit excludes Singapore reserve release in FY09, FY10 excludes Chin
Slide 12: Looking ahead
Looking ahead: A changing world We’re well positioned Eurozone outlook improved, Sharply improved operational but still tough capital generation Competitive and profitable in Low interest rate environment our chosen markets Benefits of a Regulatory uncertainty diversified portfolio RDR & auto-enrolm
Slide 13: Objectives for 2012
Objectives for 2012 Improving operating performance Allocating capital to chosen markets where we can grow and earn the highest returns Simplifying the portfolio Balance sheet strength 13
Slide 14: Increasing the targets for 2012
Increasing the targets for 2012 13% Life new business IRR with a payback period of less than 10 years 97% Group COR £1.6 billion - £1.9 billion net operating capital generation £400 million cost and efficiency savings by end 2012 14
Slide 15: Q&A
Q&A AVIVA
Aviva — Morgan Stanley European Financials Conference 2012 on 6ix