Aviva Plc · LSE:AV.
Aviva — Morgan Stanley 11th Annual European Financials Conference (March 2015)
10 slides from Aviva's conference presentation, March 2015
Slide 1: Morgan Stanley 11th Annual European Financials Conference
Morgan Stanley 11th Annual European Financials Conference Mark Wilson Group CEO March 2015 1
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 other verbal or written “forward-looking statements” wi
Slide 3: Significant progress
Significant progress Cash Remittances Operating profit Operating expenses £1,412m £2,173m £3,234m £1,926m 13% 14% £2,795m 56% £904m 2012 2012 2014 2012 2014 2014 Value of new business Combined operating ratio Final dividend 12.25p £1,009m 97.0% £904m 15%1 1.3 95.7% 36% ppt 9.0p 2013 2014 2012 2014 2
Slide 4: Balance sheet transformed
Balance sheet transformed Economic capital surplus1 External leverage ratio £bn 10 % TNAV S&P 8.3 8.4 50 48% 8 45 41% 6 5.3 40 4 35 31% 30 28% 2 25 0 20 2012 2013 2014 2013 2014 Inter-company loan £bn 5.8 6 • Economic capital surplus basis strengthened considerably since 2012 4.1 4 2.8 • External le
Slide 5: Holding company excess cash flow has increased
Holding company excess cash flow has increased Business £0.9bn unit remittances £1.4bn £0.2bn Central spend 1 £0.1bn £0.3bn Internal debt costs £0.2bn £0.4bn External debt costs £0.4bn £0 2012 Excess cash flow £0.7bn 2014 Progress towards £0.8 billion target by 2016 1. Includes other operating cash
Slide 6: Acquisition of Friends Life – Financial and strategic rationale
Acquisition of Friends Life – Financial and strategic rationale Financial Strategic • Secures leading position in our home market • c.£0.6bn incremental cash flow. • Brings c.5 million2 Friends Life customers to • Leverage consistent with S&P AA rating Aviva – no further need to de-lever • Adds sign
Slide 7: Our strategic anchor
Our strategic anchor Our strategic anchor True customer composite Digital first Not everywhere Serving all customer needs across Customer experience driven by Life, GI, Health and Asset Only in markets where we can win digital Management @ Supported by: MULTI CONVENIENT EXPERT BRITISH COLLABORATION
Slide 8: Some digital expertise, acceleration needed
Some digital expertise, acceleration needed Market leading digital offer in the UK Growing digital internationally £1.3bn UK Market recognition Digital Direct Social media targeting sales1 young life customers Turkey 1.3 million MyAviva registrations Launched telematics Personal motor new business I
Slide 9: It would be wrong to assume our turnaround is nearing completion
The next phase • Integrate Friends Life • Drive True Customer Composite throughout our business • Grow digital and direct business • Continue to improve efficiency • Reallocate capital towards higher return or higher growth businesses • Implement Solvency II It would be wrong to assume our turnaroun
Slide 10: Q&A
AVIVA Q&A
Aviva — Morgan Stanley 11th Annual European Financials Conference (March 2015) on 6ix