Aviva Plc · LSE:AV.
Aviva — KBW 2011 Financials Conference
15 slides from Aviva's conference presentation, Nov 26, 2011
Slide 1: KBW 2011 Financials Conference
KBW 2011 Financials Conference Fitter Stronger 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 verbal statements containing, “forward-looking statemen
Slide 3: A fitter, stronger Aviva
A fitter, stronger Aviva Operating performance Strong capital Strategic delivery to finance growth Competitive advantage 3
Slide 4: HY11: further success in all key areas
HY11: further success in all key areas IFRS operating profit Net operating Interim dividend capital generated £1,337m 10.0p £1,270m £0.9bn 5% £0.8bn 9.5p £84m special 5% distribution £0.2bn non- 13% recurring 14% underlying growth £0.7bn recurring HY10 HY11 HY10 HY11 HY10 HY11 Funds under management
Slide 5: UK: building a dominant UK franchise
UK: building a dominant UK franchise Life IFRS operating profits L&P sales New business IRR £5.5bn £463m £462m £5.2bn 5% 16% £84m special distribution 22% 15% 22% £379m £3.5bn GPP, £2.9bn annuities, protection HY10 HY11 HY10 HY11 HY10 HY11 GI GI operating profits* GI NWP* GI COR* £2,222m £242m £1,94
Slide 6: Europe: 21% increase in profits
Europe: 21% increase in profits Life IFRS operating profits L&P sales New business IRR £8.0bn £473m £6.3bn 14% Pensions, 12% £425m 11% WP £6.0bn savings £4.3bn £2.0bn Unit linked, £2.0bn Protection HY10 HY11 HY10 HY11 HY10 HY11 GI IFRS operating profits GI & Health NWP GI COR £1,123m £80m 102% £1,06
Slide 7: Beating targets
Beating targets 14% life insurance new business IRR against a target of 12% 96% group COR against a target of 97% £0.8 billion capital generation in H1 towards the £1.5 billion FY11 target Aiming to generate £1.5 billion - £1.8 billion in 2011 On track to deliver £400 million cost and efficiency sav
Slide 8: Increase in underlying capital generation
Increase in underlying capital generation £m 1200 Capital generation and allocation 800 400 Life HY10 allocation HY11 0 Life Non-life Non-life Life total Non-life Group generation generation allocation* total Total -400 * HY10 non-life allocation reduced by £0.2bn GI capital release -800 Capital gen
Slide 9: Reduced balance sheet asset risk after Delta Lloyd sell down
Reduced balance sheet asset risk after Delta Lloyd sell down £148bn £113bn Total shareholder assets Mortgages and loans Annualised include £8bn UK Dec Dec June mortgage book 2009 2010 2011 FY10 HY11 Annual interest income £641m £621m £631m £35bn £19bn Annual rental income £842m £822m £831m Mortgages
Slide 10: Asset and liability durations across the Group are well matched
Asset and liability durations across the Group are well matched Durations of assets and liability by region Duration in years (HY 2010) 12 Assets Liabilities • Assets and liabilities are duration matched at point of sale 10 • Regional in-force portfolios are 8 reviewed regularly to ensure continued
Slide 11: Good corporate and government debt track record
Good corporate and government debt track record Limited default experience UK Corporate bonds US debt securities 40bps 31bps 10bps < 5bps < 5bps zero 2009 2010 HY11 2009 2010 HY11 Limited exposure to higher risk European debt Direct Total Direct shareholder exposure to Greece, shareholder participat
Slide 12: Increased economic capital surplus
Increased economic capital surplus Economic capital surplus* 2010 increase primarily due to benefit of retained profits £6.9bn adjustment for RAC £6.6bn 2011 increase due to retained profits, issuance of subordinated debt, further sell down of Delta Lloyd and £5.6bn sale of RAC £4.8bn IGD solvency a
Slide 13: Drivers of growth in profit
Drivers of growth in profit Average life in-force reserves Admin cost ratio on life reserves £271bn 46bps £253bn 42bps £237bn 38bps FY09 FY10 HY11 FY09 FY10 HY11 GI & Health NWP GI COR £4,708m 97% 97% £4,337m £4,270m 96% HY09 HY10 HY11 HY09 HY10 HY11 All numbers based on continuing business – exclud
Slide 14: The new Aviva: fitter, stronger & positioned for growth
The new Aviva: fitter, stronger & positioned for growth FY 2008 HY 2011 Life IRR 11% Life IRR 14% Profitability GI COR 98% GI COR 96% In-force VIF £5.0 billion VIF £6.6 billion book Cost base £5.7 billion Cost base £3.9 billion2 Efficiency Headcount 54,700 Headcount 36,1002 Economic capital surplus
Slide 15: Q&A
Q&A AVIVA