Aviva Plc · LSE:AV.
Aviva — Investor Presentation (March 2009)
100 slides from Aviva's investor presentation, March 2009
Slide 1: Investor Presentation March 2009
Investor Presentation March 2009 Investor presentation March 2009 1
Slide 2: Dee Caffari's double world first
Picture overleaf Dee Caffari’s double world first: First woman to sail solo, non-stop both ways around the world British yachtswoman Dee Caffari, succeeded in the face of adversity to achieve her ultimate goal of becoming the first woman to sail solo, non-stop both ways around the world, by crossing
Slide 3: Disclaimer
Disclaimer This presentation may include oral and written “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. These forward-looking statements sometimes use words such as ‘an
Slide 4: Contents
Contents Page 1 Overview 5 2 Aviva’s businesses 13 3 Executive management 19 4 Financial strength 21 5 MCEV 34 6 UK and Europe 41 7 North America, Asia Pacific and Aviva Investors 72 8 Contacts 99 Investor presentation March 2009 4
Slide 5: Overview
Overview Investor presentation March 2009
Slide 6: An increasingly global company
An increasingly global company £60 billion FY 2008 sales £51.4bn (1) Asia Pacific 7% 22% 10%General North America 14% Insurance UK GI 11% £30 UK Life 26% billion 78% Long 3% 5% Term Savings 24% Europe 42% 34% 40% 34% (1) FY 2000 FY 2008 2008 total long-term savings new business sales and G.I. and he
Slide 7: FY 2008 Key messages
FY 2008 Key messages • Strong operating results • IFRS operating profits up 4% to £2,297 million • MCEV operating profits up 10% to £3,358 million • Total profits impacted by adverse investment variances • Strong balance sheet • Strengthened reserves and provisions • IGD surplus of £2.0 billion at 3
Slide 8: 2008 results
2008 results • Life and pensions new business sales up 11% to £36.3bn • Global GI COR of 98% • IFRS operating profit up 4% to £2,297m, with operating EPS of 62.9p per share • MCEV operating profit up 10% to £3,358m • IFRS loss after tax of £885m, with total return EPS of (36.8)p per share • Net asse
Slide 9: Dividend
Dividend • 2008 dividend of 33.0p - 1.9 x covered, • Maintained in spite of large investment variances in 2008 • Our dividend policy states: “Our intention is to increase the dividend on a basis judged prudent using a dividend cover in the 1.5 to 2.0 times range as a guide, while retaining capital t
Slide 10: Aviva is well positioned
Aviva is well positioned £m Profit flows are less susceptible to a downturn 5000 2008 MCEV operating • Over 50 million customers globally profit • 80% of profits from in-force book and GI 4000 Diversity in the composite model GI • Strong multinational GI business with disciplined 3000 underwriting 2
Slide 11: Strong presence in our home market
Strong presence in our home market 2008 IFRS operating Competitive strength from market leadership £m profit by region in the UK 3000 • Half of IFRS regional operating profits derived from UK businesses UK Life 2000 UK Life & GI • Highest ever sales in 2008 • UK Life market share jumped 3% to 14% in
Slide 12: The right strategy
The right strategy Purpose • Focus on target to double IFRS EPS Prosperity & peace of mind by 2012 Vision • Increasing emphasis on capital One Aviva, twice the value efficiency Strategic priorities Targets • Decreasing emphasis on sales • Manage composite • 98% meet or beat COR targets portfolio • £
Slide 13: Aviva's businesses
Aviva’s businesses Investor presentation March 2009
Slide 14: Manage the composite portfolio
Manage the composite portfolio Diversity, cash flow, resilient product range Long Term savings General Insurance Composite Investor presentation March 2009 14
Slide 15: Aviva Investors: a powerful global asset management business
Aviva Investors A powerful global asset management business • Globally integrated asset management business – The third pillar of our composite model, rebranded Aviva Investors – £236 billion funds*, 1,298 staff in 15 countries across North America, the UK, Europe and Asia Pacific • Accelerate the t
Slide 16: Increase customer reach
Increase customer reach Access to customers through preferred channels Multi-distribution Direct Sales Bancassurance Independent Agents Investor presentation March 2009 16
Slide 17: Over 90 bancassurance agreements
Increase customer reach Over 90 bancassurance agreements Investor presentation March 2009 17
Slide 18: Growth in Life and Pensions assets by region
Growth In Life and Pensions assets by region Area of bubble = Projected increase Aviva’s presence Life & Pensions Assets CAGR (2007 - 2017) in Life & Pensions assets to 2017 Strong Latin America Growing Asia-Pacific (ex. Japan) None Africa & Middle East North America Europe Japan Life & Pensions Ass
Slide 19: Executive management
Executive management Investor presentation March 2009
Slide 20: A highly capable and experienced executive team
A highly capable and experienced executive team Andrew Moss Chief Executive Philip Scott Tom Godlasky Chief Financial Officer North America Andrea Moneta Mark Hodges UK Life Europe Igal Mayer Simon Machell UK GI Asia Pacific Amanda Mackenzie Alain Dromer Marketing Anupam Sahay John Ainley Aviva Inve
Slide 21: Financial strength
Financial strength Investor presentation March 2009
Slide 22: IGD solvency surplus
IGD solvency surplus £bn • IGD surplus is margin over Capital Resource Requirement Actual IGD solvency surplus 2.9 31 December 2007 • Solvency cover 1.3 times* Operating profits and other income 0.9 • Downside protection increased Hybrid debt 1.0 • Sensitivity to equities: UK life non-profit surplus
Slide 23: Managing IGD solvency surplus
Managing IGD solvency surplus • IGD solvency surplus position remains strong at £2.0bn at 31 December 2008 • Maintaining this capital strength continues to be a priority • The IGD solvency surplus can be managed through: • Earnings flow • Disposals e.g.: Dutch health business sale completed on 1 Jan
Slide 24: Assets prudently valued
Assets prudently valued Estimated IGD surplus of £2.0bn Total capital £19.3bn Net assets not in Regulatory IGD £3.8bn (1) capital resources £15.5bn Estimated IGD surplus £2.0bn IFRS net assets £14.4bn IGD net assets £9.0bn 26% Capital resource requirement (2) £13.5bn Other qualifying 40% Tier 1 and
Slide 25: Aviva Capital Generation
Aviva Capital Generation Capital Generation 2008* 2.5 2.0 1.5 £bn 1.0 0.5 0.0 Life in-force Non-Life Increase in Free Interest Costs External Capital profits less Profits capital operational dividends net generated new business requirements capital of scrip credit after financing strain generated co
Slide 26: Analysis of IFRS balance sheet assets
Analysis of IFRS balance sheet assets Policyholder Participating Shareholder Total assets Assets fund assets assets analysed £m £m £m £m Goodwill - - 3,578 3,578 Investment Property 4,126 7,555 2,745 14,426 Loans 1,799 8,702 31,736 42,237 Debt Securities 19,588 79,566 51,437 150,591 Equity Securitie
Slide 27: A strong balance sheet
A strong balance sheet • Equities marked to market and additional hedging provides significant shareholder protection • A high quality debt portfolio, valued at fair value • 94% investment grade or insurance rated • Unrealised losses of £13.1bn on total debt securities of £150.6bn or 8% of total por
Slide 28: Provisions increased
Provisions increased • Provisions increased in the current environment • UK annuity business: £1.13bn default provision against £14bn of assets – Consisting of • UK corporate debt provision increased by £300m to £460m • UK mortgage loss provisions increased by £250m to £670m – Equivalent to • 86 bps
Slide 29: Group mortgage loans
Group mortgage loans Summary of shareholder assets Group £27.0bn Other £1.5bn • UK commercial mortgage portfolio developed over a period of 30 years to back annuity liabilities, with no material losses incurred since 1992 • 25% effectively government backed • Well diversified across the UK and secto
Slide 30: UK Commercial mortgages
UK Commercial mortgages Loan and interest service cover remains strong Dec Jun 2008 2008 Remaining UK Commercial commercial Total UK loans property Loan Service Cover 1.17 1.16 commercial £8.2bn finance mortgage (CPF) Interest Service Cover 1.30 1.28 portfolio portfolio £11.8bn Gov’t tenants £0.3bn
Slide 31: Corporate debt - a high quality, diverse portfolio
Corporate debt - a high quality, diverse portfolio Shareholder debt Direct shareholder exposure to corporate debt of £26.3bn securities £51.4bn £m AAA/ AA / A Insurance BBB Less Un Total rated than rated BBB UK 4,449 - 1,023 39 15 5,524 Corporate debt Netherlands 2,237 - 330 2 233 2,802 securities £
Slide 32: US asset portfolio
US asset portfolio High quality and prudently stated Financial investments £23.6bn • Quality of financial investments is strong • 93% of corporate bonds are investment grade or insurance rated • 98% of CMBS / RMBS are AAA rated - 99% of RMBS is agency guaranteed • A well diversified portfolio with l
Slide 33: Participating business
Participating business • Minimal burnthrough risk in UK with-profit funds • Participating business in Aviva Europe is mainly a "deposit admin" type, with business backed in the main by fixed interest securities • Guarantees are relatively low • Most European countries use book value accounting, ther
Slide 34: MCEV
MCEV Investor presentation March 2009
Slide 35: Market consistent embedded value
Market consistent embedded value MCEV is a conservative reporting methodology which is impacted by volatile investment markets • Risk free rates calculated with reference to the market • Spread returns are booked only when they are earned • Widening credit spreads reduce assets without a correspondi
Slide 36: Objectives of MCEV reporting
Objectives of MCEV reporting Embedded value in context • More than one lens needed to view the performance of long-term business: – MCEV – A perspective on value generation - the present value of future cash flows available to the shareholder, adjusted for the risks of those cash flows – Includes th
Slide 37: Next step in evolving embedded value reporting
Objectives of MCEV reporting Next step in evolving embedded value reporting EEV added MCEV adds Explicit allowance for the time value of Market consistent option & guarantee options & guarantees valuation Less subjective – economic Look through to actual expenses within assumptions tied to risk free
Slide 38: MCEV - key changes
Impact on Aviva’s embedded value results MCEV - key changes • Economic assumptions are now market consistent – Values asset cash flows consistent with current market prices – MCEV uses actual market yield curves and volatilities – New business profits valued on start of quarter economic assumptions,
Slide 39: Market consistency in the current market
Market consistency in the current market • In stable markets, swap rates Indicative European corporate bond spreads are a suitable proxy for risk-free 500 returns 450 • In the current market, risk free 400 returns in excess of swaps can 350 be earned 300 • EV risk free rates adjusted by 150bps for U
Slide 40: MCEV key performance indicators
MCEV key performance indicators Key performance indicators: 2008 2007 • PVNBP up 11% with record sales in the UK and US PVNBP £36,283m £32,722m • Value of new business and margins lower due to greater Value of new business* £780m £897m mix of spread business in the UK and the Netherlands Margins* 2.
Slide 41: UK and Europe
UK and Europe Investor presentation March 2009
Slide 42: UK Life
UK Life Investor presentation March 2009
Slide 43: UK Life – competitive advantage emerging
UK Life – competitive advantage emerging Consistent strategy to transform business • Broad product range and diverse distribution: highest ever sales in Market 2008 Leadership • 4 star financial advisor awards rating • Simplification of systems infrastructure nearing completion: over 200 ● Address l
Slide 44: UK Life competitive advantage
UK Life Competitive advantage Strong Financial brand strength Product Multi reach distribution Investor presentation March 2009 44
Slide 45: Competitive advantage: product reach
UK Life Competitive advantage: product reach A broad product portfolio 15% • Top three position in all markets • 11.3% life & pensions market share 10% • Value from: 15% 14% • Scale 5% 9% 9% • Insight • Flexibility 0% Pensions Protection Annuities Bonds = High quality earnings Market share based on
Slide 46: Creating value: sustainable low cost base
Creating value: sustainable low cost base Progress to date Sustainable cost model by 2009, underpinning future business development. Swiss Re partnership Outsourced nearly three million life and pension policies £136m adverse expense Simplification Simplification of systems and processes, variance v
Slide 47: UK Life
UK Life Current position FY 2008 Performance • A leading UK Life company, with 11.3% life and pensions • Life and pensions sales, up 1% to £11,858m, with growth market share full year 2008 (2007: 10.4%) maintained for 3rd consecutive year • Broad Product reach, top three position in key markets • Ne
Slide 48: UK General Insurance
UK General Insurance Investor presentation March 2009
Slide 49: UK General Insurance – delivering transformational change
UK General Insurance – delivering transformational change A clear strategy focused around a number of key themes • Reshaping our book to maximise our access to customers whilst Market delivering a sustainable distribution ratio Leadership • Transforming the operating model to deliver insurance excel
Slide 50: Summary – our business
Insurance Excellence in UK GI: 'Focus on Profit' Summary – our business Personal Lines Revenue • Marketplace £5.0bn NWP - On-line growing, in particular aggregators have grown significantly - Panel operators becoming potential adversaries Commercial 37% • We have a clear strategy - Repositioning Dir
Slide 51: The UK market leader
Insurance Excellence in UK GI: 'Focus on Profit' The UK market leader Aviva Rest of Market 13.9% • Consolidated market – top 6 insurers 37.3% have over 50% market share RBSI • Aviva is the largest GI insurer in UK (including Direct Line) 11.7% • Top 1 or 2 position in all our major RSA 8.9% classes
Slide 52: Unparalleled customer reach
Insurance Excellence in UK GI: 'Focus on Profit' Unparalleled customer reach DIRECT BROKERS PARTNERS Banking Retail Affinity 3,000 brokers Powerful brands #1 in the SME market … over 100 others RAC - Best roadside Insurer of the year assistance provider 2006 to 2003 to 2008 2008 Investor presentatio
Slide 53: NUI's strategic priorities
Insurance Excellence in UK GI: 'Focus on Profit' NUI’s 7 strategic priorities Win the Customer Win the Broker • NUD fightback • War for distribution • RAC membership • Partnerships moments of truth Building Core Insurance Capability Claims Inflation Busting • Sophisticated pricing • Sustainable bene
Slide 54: Reshaping the book
Insurance Excellence in UK GI: 'Focus on Profit' Reshaping the book We are leveraging our unparalleled access to customers and reshaping the front end of our business Direct Fightback Panel Proposition Leverage Reshaping the Membership book.. Consolidators Reduce premium Sustainable commission Stron
Slide 55: Reshaping the book
Insurance Excellence in UK GI: 'Focus on Profit' Reshaping the book By 2011 our personal lines book will have changed… By channel: By class: • Direct grows • Motor grows • Brokers grow • Home grows • Partnerships fall • Creditor falls • RAC steady in Rescue but doubles in size for insurance Resultin
Slide 56: Building core insurance capability
Insurance Excellence in UK GI: 'Focus on Profit' Building core insurance capability Personal Lines - Transforming Pricing 0.12 0.1 Buildings & Contents Gold Cover Silver Cover Bronze Cover Old Rating 0.08 Sums Insured 3 3 3 Make Percentage of Policies Blanket Blanket Blanket Specified Inner Limits 3
Slide 57: Delivering the promise of scale
Insurance Excellence in UK GI: 'Focus on Profit' Delivering the promise of scale Self Service Centres of Excellence Operational & IT excellence to deliver sub 11% expense ratio 2007 2010 c900 Applications <300 Applications Mass Customisation & Lean Manufacturing IT Roadmap Sustainable service excell
Slide 58: Delivering the promise of scale
Insurance Excellence in UK GI: 'Focus on Profit' Delivering the promise of scale • Progress ahead of what was promised in October 2008 Phase 1 Target : £200m One- C&E • Sales & Marketing offs £38m • IT Inflati • Support Services on Phas • Change e1 Cost Reduction Phase 2 Target : £150m One- • Operat
Slide 59: Summary
Insurance Excellence in UK GI: 'Focus on Profit' Summary Reshaping the book • Focus on profit • Sustainable distribution ratio Building core insurance capability • Sophisticated pricing • Focus on transactional excellence • Cleanse the book of poor performing business • Inflation busting • Expect ra
Slide 60: UK General insurance
UK General insurance Current position 2008 Performance (NUI only) • Market leading position, with a 14% market share • General insurance operating profit of £566m • Multi product and multi channel distribution • General insurance COR of 99% (2007: 106%) • Pricing and underwriting discipline • Genera
Slide 61: Aviva Europe
Aviva Europe Investor presentation March 2009
Slide 62: Europe – a profitable market leader
Europe – a profitable market leader Scale, growth, • Significant European franchises and the strong euro has capital delivered real benefits • New senior management team and a new pan European structure • Seize unique • Delta Lloyd and Ireland cost savings on track growth opportunities • Leverage sc
Slide 63: A strong life business and a focussed GI presence
A strong life business and a focussed GI presence Spain Italy Czech 3rd (L&P) 6th (L&P), 13th (GI) 13th (Life) Poland Romania Russia* 2nd (Life), 1st (Pen), 15th (GI) 4th Pillar II Pensions, 5th Life 4th (L&P) Turkey** France 3rd (Life), 1st (Pen),13th (GI) 8th (L&P), 14th (GI) Ireland 3rd (L&P), 1s
Slide 64: Platform for growth
Platform for growth • A unique platform for growth – Life and pensions FY08 sales up 8% to £16,990m and General Insurance and Health sales up 27% to £4,090m – A balanced portfolio; 40% bancassurance and 60% through our retail channels. • Driving profitability – IFRS life operating profits in 2008 up
Slide 65: France
France Current position FY 2008 Performance • Life: top 10 position in the market (5% UL market share) • Total PVNBP sales of £3.9bn (2007: £3.8bn) • Award winning fund performance with 81% of managed • New business contribution of £135m funds in the top half for returns over 5 years • New business
Slide 66: Netherlands
Netherlands Current position FY 2008 Performance • Top 5 position in the Netherlands and Belgium for new • PVNBP life and pensions sales higher at £4.1bn (2007: business; also operations in Germany £3.1bn) including 5 group pension contracts totalling • Multi-channel, multi-label distribution sellin
Slide 67: Ireland
Ireland Current position FY 2008 Performance • Largest composite insurer in Ireland • Sales (PVNBP basis) down 27% to £1.3bn due to reduced • Combined Hibernian/Ark business ranks 3rd in life and demand for unit-linked products, as customers deterred by pensions market with 17% market share, and 1st
Slide 68: Italy
Italy Current position FY 2008 Performance • PVNBP sales down 22% to £2.3bn reflecting difficult • 6th position in the market with a strong bancassurance market conditions and timing of marketing campaigns presence • New business margin of 3.0% (2007: 2.6%) reflecting a • Market leading expense rati
Slide 69: Spain
Spain Current position FY 2008 Performance • 4th position in the market with a strong bancassurance • PVNBP sales of £2.5bn (2007: £2.4bn) presence • New business contribution (g/g) increased to £236m, with • 7% market share a margin (g/n) of 9.3% (2007: 7.4%) reflecting contribution of Cajamurcia r
Slide 70: Poland
Poland Current position FY 2008 Performance • Leading long-term savings business following greenfield • Strong life and pensions sales growth to £1.8bn (2007: launch in 1992 £1.1bn) reflecting bancassurance sales and new • Currently 2nd in the life market and 1st in the pension regular premium produ
Slide 71: Central & Eastern Europe
Central & Eastern Europe Current position FY 2008 Performance • In Turkey ranked 1st in pensions market with a market • Total PVNBP (MCEV) sales increased 124% to £1,014m share of 23%, 3rd in life with a market share of 9% and 13th (2007: £453m) mainly due to £545m of mandatory in the general insura
Slide 72: North America, Asia Pacific and Aviva Investors
North America, Asia Pacific and Aviva Investors Investor presentation March 2009
Slide 73: Aviva North America
Aviva North America Investor presentation March 2009
Slide 74: North America - USA doubling scale target achieved
North America - USA doubling scale target achieved; focus on capital and IFRS earnings in 2009 Focused on achieving growth agenda in 2008 • US: Doubled scale 1 year ahead of target Double scale • Meeting US customer needs with increased annuity guarantees and unique wellness features • Focus: top 5
Slide 75: North America 2008 Performance
North America 2008 Performance US Life Volume – PVNBP Canadian GI Volume - NWP IFRS Operating Profit 6,000 250 1,600 CAGR 7% CAGR 42% 200 £ millions 4,000 1,500 £ millions £ millions 150 1,400 100 2,000 1,300 50 - 1,200 - * 2006 2007 2008 2006 2007 2008 2007 2008 US Life *2006 is presented on an EEV
Slide 76: North America 2009 Priorities
North America 2009 Priorities North • Optimise business mix and margins America • Heightened focus on capital efficiency Region • Explore long term strategic opportunities • Enhance margins Aviva • Focus on capital efficiency USA • Leverage product and distribution strengths to capture life insuranc
Slide 77: USA
USA Current position 2008 Performance • Doubled sales within two years of acquisition of former • Financial performance affected by economic turmoil AmerUs business and one year ahead of target • Record sales reflect consumer demand for products with • Aviva USA became the first provider ever to gua
Slide 78: Canada
Canada Current position 2008 Performance • Canada’s 2nd largest GI provider, with 9% market share • Strong financial performance in 2008 • Balanced portfolio of personal, commercial and specialty • NWP growth of 4% on constant currency basis to £1,601m lines • COR 99% • Top 5 position in all major p
Slide 79: Aviva Asia Pacific
Aviva Asia Pacific Investor presentation March 2009
Slide 80: Asia Pacific – a growing presence
Asia Pacific – a growing presence Remains an attractive growth region • Life & Pension sales increased by 8% in 2008 • 66% growth in China in 2008, Aviva now 2nd largest foreign Scale, growth insurer in long term savings* • Successful launch of bancassurance in Malaysia, Taiwan and • Prioritised Sou
Slide 81: Aviva Asia Pacific Footprint at a glance
Aviva Asia Pacific Footprint at a glance China Taiwan JV: 50:50 JV: 49:51 with Cofco with First Group Aviva Cofco,100% Life First-Aviva, 100% Life India South Korea JV: 26:74 with JV: 47:53 with Woori Dabur Group Woori Aviva 100% Life 100% Life High Potential Business Units Malaysia JV: 49:51 with C
Slide 82: Background
Background • Highly attractive region • Low insurance penetration in most countries • Massive demographic potential • Regional markets not homogenous • Rapid speed of change in the developing markets • Bancassurance becoming key distribution channel in most markets • Current market turmoil adversely
Slide 83: Building success in Asia Pacific
Building success in Asia Pacific Strategic focus Competitive advantage Prioritised portfolio Bancassurance expertise • Established Businesses: build on success and • 56 bancassurance partners in Asia Pacific diversify distribution in Australia and Singapore • Share best practice across region and bu
Slide 84: Australia
Established Business Units Australia Current position 2008 Performance • Ranked 1st for retail standalone new business in the IFA • Total life and pensions sales down by 19% against a strong 2007 with prior individual protection market for four consecutive quarters year included a one-off group pens
Slide 85: Singapore Hong Kong
Established Business Units Singapore Hong Kong Current position 2008 performance • Ranked 6th in Singapore on APE basis for year to date Q3 • Singapore – life and pensions sales grew by 2%. Underlying 2008 * sales down by 12% to £316m reflecting change in pension legislation. Investment sales were d
Slide 86: China
High Potential Business Units China Current position 2008 performance • Aviva-COFCO Life Insurance (50% Aviva share) launched 1 • Life and pension sales in China grew by 66% to 2008 to January 2003 £296m arising from our expanded distribution network. • Presence in 9 provinces/municipal cities with
Slide 87: India
High Potential Business Units India Current position 2008 performance • JV partnership (26% Aviva share) with Dabur Group • Life and pension sales in India down 7% to £141m reflecting launched June in 2002. lapse assumption changes from current market conditions and merger activity in bancassurance
Slide 88: Malaysia, Sri Lanka, Taiwan, South Korea
New Start Business Units Malaysia Sri Lanka Taiwan South Korea Current position 2008 performance • Ranked 6th in Malaysia with 8% market share in terms of total • First time contributions from new joint ventures in new premiums for year to date Q3 2008* South Korea (£149m) and Taiwan (£133m) • Succe
Slide 89: Aviva Investors
Aviva Investors Investor presentation March 2009
Slide 90: Aviva Investors – executing the strategy
Aviva Investors – executing the strategy Aviva Investors Significant progress towards developing a global asset management business • Globally • Global credit research built and being used by over 130 integrated investment professionals business • UK Income fund placed in the top decile over one and
Slide 91: Aviva Investors today
Aviva Investors today AUM by geography AUM by asset class AUM by client Poland 1.2% Australia 1.5% Spain 0.4% Other 4.6% Fixed income Intermediary 3.7% Ireland 3.7% Cash 10.8% North America 54.7% Institutional 12.4% Real estate 9.6% 10.6% France 27.6% UK 53.2% Equities 19.3% Internal 86.6% £236 bill
Slide 92: Aviva Investors today: profits
Aviva Investors today Proportion of Aviva Investors to Group IFRS operating profits 3,000 FY H1 FY Operating profit £m 2007 2008 2008 4.9% Aviva Investors 2,500 6.6% UK 70 28 64 Profits in £ millions Europe 43 19 35 2,000 North America 27 13 14 Asia 7 1 1 1,500 4.9% Total 147 61 114 1,000 Cost: inco
Slide 93: One Aviva Investors, doubling contribution to the group
One Aviva Investors, doubling contribution to the group Single, global, integrated asset manager Aspiration to increase operating ‘One Aviva, profit four times by twice the value’ 2012 Investing for growth Investor presentation March 2009 93
Slide 94: Unbundling our portfolios to exploit market trends
Unbundling our portfolios to exploit market trends Creating more externally marketable products by unbundling Aligning capabilities to the evolving market traditional core mandates for our clients AUM by Product Type Single Market Impact to 2011E AUM by Product Type Aviva Aviva Investors vs Current
Slide 95: Flexible component toolkit to meet client requirements
Flexible component toolkit to meet client requirements RealEstate Real Estate HighAlpha High Alpha–– Indexing Indexing Asia Asia HighAlpha High Alpha–– London London Asset Asset Solutions Building allocation allocation Capability HighAlpha High Alpha–– NorthAmerica North America Structured Structure
Slide 96: Deeper penetration in mature markets; entry in high growth markets
Deeper penetration in mature markets; entry in high growth markets 2012 market portfolio Romania Bubble size High represents Aviva Investors forecast Poland revenues in China Market growth 2007-2012 (%) 2012 (£m). Middle East India Singapore Italy Ireland Nordic Australia North America UK Spain Fran
Slide 97: Investment administration
Rationalised systems, streamlined operational model Research Decision support Portfolio risk Client services and construction management Full portfolio view Client reporting Portfolio Performance Fund performance Query management Rebalancing Pre - trade Attribution Relationship management Order plac
Slide 98: Positioned for growth
Positioned for growth Achieved to date: 9 Built the executive team 9 Re-branded globally 9 Reshaped the investment portfolios 9 Have developed some global capabilities Work in progress: 9 Continuing to improve investment performance 9 Recruiting investment professionals 9 Strengthening our solutions
Slide 99: Contacts
Contacts Investor presentation March 2009
Slide 100: Further contacts
Further contacts Aviva Investor Relations Aviva Media Relations www.aviva.com/investors www.aviva.com/media Charles Barrows Hayley Stimpson External Affairs Director Investor Relations Director hayley.stimpson@aviva.com charles.barrows@aviva.com Sue Winston Jessie Burrows Head of Group Media Relatio