Aviva Plc · LSE:AV.
Aviva — Investor Presentation (September 2008)
97 slides from Aviva's investor presentation, September 2008
Slide 1: Investor Presentation
Investor Presentation September 2008 Andrew Moss Group Chief Executive “Accelerating transformational change to deliver a unified and more profitable company” Investor presentation September 2008 1
Slide 2: 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 3: Contents
Contents Page 1 Overview 4 2 Financial strength and targets 22 3 Reattribution of the inherited estate 32 4 Strategy – One Aviva, twice the value 36 5 Appendix: countries of operation 44 6 Further information 96 Investor presentation September 2008 3
Slide 4: Overview
Overview Investor presentation September 2008 4
Slide 5: An increasingly global company
An increasingly global company £30 billion HY 2008 sales £25.5bn (1) Asia Pacific 7% 23% 10%General North America 12% Insurance UK GI 11% £15 UK Life 26% billion 77% 9% Long 21% Term Savings 36% Europe 44% 40% 33% HY 2000 HY 2008 (1) 2008 total long-term savings new business sales and G.I. and healt
Slide 6: A strong financial base - H1 2008 highlights
A strong financial base - H1 2008 highlights • Operating profits and dividend well ahead of last year – EEV operating profit up 12% to £1,719m – IFRS operating profit up 7% to £1,233m – Interim dividend up 10% to 13.09p • High quality assets and sound capital position – EEV net asset value per share
Slide 7: A strong financial base - H1 2008 highlights
A strong financial base - H1 2008 highlights EEV basis IFRS basis 6 mths 6 mths Growth 6 mths 6 mths Growth 2008 2007 % 2008 2007 % £m £m £m £m Life operating return 1,480 1,251 18% 970 834 16% Fund management 30 45 (33)% 63 76 (17)% General insurance 538 560 (4%) 538 560 (4%) Other Other operations
Slide 8: Life and pensions: sales up 11% at better margins
Life and pensions: sales up 11% at better margins New business PVNBP1 margin2 6 mths 6 mths 6 mths 6 mths 2008 2007 Growth 2008 2007 £m £m % % % UK 5,863 5,820 1% 3.1% 3.1% France 2,010 1,832 10% 4.2% 4.4% Ireland 648 889 (27)% 0.8% 1.6% Italy 1,275 1,818 (30)% 2.9% 2.7% Netherlands 1,991 1,146 74%
Slide 9: Asia Pacific: life and pensions sales up 20% with China nearly doubling
Asia Pacific: life and pensions sales up 20% with China nearly doubling PVNBP1 6 mths 6 mths 2008 2007 Growth £m £m % LIFE & PENSIONS Asia Pacific Australia 204 240 (15)% China 126 48 163% Hong Kong 138 162 (15)% India 95 57 67% Singapore 149 138 8% Other Asia 72 9 700% Total Life & Pensions – Asia
Slide 10: Regional life and general insurance results at a glance
Regional life and general insurance results at a glance United Kingdom Europe • Life and pension sales up 1% to £5,863 million • Life and pension sales up 15% to £8,431 million • Life EEV operating profit up 14% to £471 million • Life EEV operating profit up 21% to £823 million • Life new business g
Slide 11: Outlook in the current economic environment
Outlook in the current economic environment • Maintaining our focus to deliver Aviva’s objectives and targets – Continuing to invest in order to achieve the benefits of One Aviva, twice the value • Responding to the current economic environment – Actively managing investments • Successfully held UK
Slide 12: Significant change is taking place: uniting under a single brand
Significant change is taking place Uniting under a single brand – Developing the brand proposition for our customers and our employees Investor presentation September 2008 12
Slide 13: Accelerating transformational change in 2008
Accelerating transformational change in 2008 • Range of senior management appointments (European CEO, Spain, Italy, Poland) • A key priority: Our customers – Introducing a single measure of customer advocacy to track progress – Over 1 million customers benefiting from the reattribution and special b
Slide 14: Accelerating transformational change in 2008
Accelerating transformational change in 2008 • Tackling the operational cost base – Increasing the cost savings target to £500m • Of which £211m has been delivered – Business unit initiatives: e.g. Spain: introducing “One Aviva” operationally, 10% minimum cost saving • Sharing expertise – Asia Pacif
Slide 15: UK Life – continuing operational improvement
UK Life – continuing operational improvement EEV operating profit growth IFRS operating profit growth 1000 1000 HY1 CAGR 13 % HY1 CAGR 39 % Market 750 750 Leadership £ million £ million 500 500 ● Address legacy 250 250 ● Transform 0 0 business 2005 2006 2007 2008 2005 2006 2007 2008 model HY 2008 up
Slide 16: UK General Insurance – delivering transformational change
UK General Insurance – delivering transformational change The external environment remains competitive • Personal lines rates improving Market • Commercial rate increases averaging 2% Leadership • Broker consolidation putting upward pressure on commission rates ● Address legacy • Short term inflatio
Slide 17: UK General Insurance - expense management
UK General Insurance - expense management Inflation and (38) one-off Costs11 (125+) (200) Market Leadership Expense ratio 13.9% ● Address legacy Expense ratio ● Transform 12.4% Aiming for an business expense ratio of model less than 11% 3 Starting RAC 2 2006 C&E Prog. 1 2008 point integration saving
Slide 18: Europe – a market leading position
Europe – a market leading position NBC post cost of capital growth EEV Operating profit HY1 CAGR 13% HY1 CAGR 19% 500 Scale, growth, 400 1500 capital £ million 1250 300 1000 £ million 200 750 • Seize unique 500 growth 100 250 opportunities 0 0 2005 2006 2007 2008 2005 2006 2007 2008 • Leverage scale
Slide 19: North America - USA on track to double scale
North America - USA on track to double scale Pro-Forma PVNBP Growth EEV operating profit 8000 1000 HY1 CAGR 28% HY1 CAGR 52% Double scale 6000 750 US$ million US$ million 4000 • Focus: top 5 in 500 chosen 2000 250 segments 0 0 2005 2006 2007 H1 08 2006 2007 2008 • Expand products, HY 2008 update dis
Slide 20: Asia Pacific – a growing presence
Asia Pacific – a growing presence Growth in Asia Pacific PVNBP EEV Operating Profit 1500 HY1 CAGR 14% Scale, growth HY1 CAGR 33% 100 75 £ million 1000 £ million • Prioritised 50 portfolio 500 25 • Regional 0 0 2005 2006 2007 2008 2005 2006 2007 2008 operating model HY 2008 update • Investment requir
Slide 21: Accelerating the delivery in China
Accelerating the delivery in China Foreign Life Insurers Market Share for period from China PVNBP Jan-May 2008 (by total premium)1 AIA 19% 200 Others HY1 CAGR 99% 34% AVIVA-COFCO £ million 11% 100 CITIC-Prudential Allianz 9% 6% CIGNA-CMC 0 ING-Capital 7% 2005 2006 2007 2008 7% Generali China 7% Rece
Slide 22: Financial strength and targets
Financial strength and targets Investor presentation September 2008 22
Slide 23: HY 2008 key highlights
HY 2008 key highlights • Life and pensions new business sales up 11% to £17.3bn • Life new business contribution up 19% to £656m at increased margin • GI COR 97% • EEV operating profit up 12% to £1,719m • IFRS operating profit up 7% to £1,233m • Profit before tax impacted by adverse investment varia
Slide 24: IGD Solvency surplus
IGD Solvency surplus £bn Actual IGD solvency surplus – 2.9 FY07 • Solvency cover 1.3 times Total recognised income (ex 0.5 investment variances) • Downside protection increased Fair value losses on investments (0.7) Hybrid debt 0.8 • Sensitivity to equities: External dividend (0.4) Equity £bn Nether
Slide 25: Analysis of Assets
Analysis of Assets • Aviva’s balance sheet remains strong and of high quality • Equities are principally held to back policyholder liabilities • The largest single asset class is Debt Securities, of which 94% are investment grade (with 1% below investment grade, and 5% not rated). • The Group contin
Slide 26: Analysis of Assets - Loans
Analysis of Assets - Loans • Falling property prices have increased the number of loans to value over 100% but the Group’s loan portfolio is of a very high standard, with over 99% of loans neither past due nor impaired • Mortgage loans of £890m have LTV> 100%. The amount not covered by property valu
Slide 27: Investment variances
Investment market movements 25 20% • Total profit impacted by 10% significant investment variances Investment variances % 20 • Market movements in 2008 Net assets (£bn) 0% 15 -10% • Equity markets down between 10 -20% 13% and 20% -30% 5 • Bond yields rising 60bps in UK -40% and 40bps in Eurozone 0 -
Slide 28: Innovative financial management: 2008 update on progress
Innovative financial management 2008 update on progress • Reattribution of UK inherited estate announced • £800m hybrid debt raised in May 2008 • Downside protection for further market deterioration • Global Finance Strategy aims to deliver: – MCEV for end 2008 reporting – Economic capital for Solve
Slide 29: A balanced set of targets
A balanced set of targets • A challenging set of operational targets – 98% meet or beat COR – Regional sales and EV new business contribution targets – Cost saving targets - £500 million by 2010 • Combined with disciplined financial targets – 12.5% ROCE (to be re-set as return on economic capital by
Slide 30: EPS performance historic and planned
EPS performance historic and planned 5 year 100 target • Fully committed to double IFRS EPS 80 total return over 5 years 15 % GR CA 60 EPS pence 40 Gap • Straight line was not anticipated to glide 20 path 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 • 2008 operating earnings on trac
Slide 31: Regional long-term savings growth targets
Regional long-term savings growth targets Europe • Minimum of 10% p.a. average growth in new business sales and profits to 2010 North America • USA to double volume of new business sales within 3 years of AmerUs acquisition, whilst maintaining margins Asia Pacific • Minimum of 20% p.a. average growt
Slide 32: Reattribution of the inherited estate
Reattribution of the inherited estate Investor presentation September 2008 32
Slide 33: Reattribution of the inherited estate
Reattribution of the inherited estate • Timeline November 2006 Policyholder Advocate appointed February 2008 £2.1bn special distribution announced July 2008 Up to £1bn policyholder incentive payment agreed in principle Q4 2008 Election mailing Summer 2009 Cash paid to electing policyholders • Policy
Slide 34: Reattribution of the inherited estate
Reattribution of the inherited estate Element set aside for CGNU Life / CULAC special distribution Value of Allocation Policyholder Shareholder Remaining estate basis share share estate £bn % £bn £bn £bn Value of estate @ 31 Dec 07 (FTSE 6456) 5.0 90:10 2.1 0.25 2.65 Market value and other movements
Slide 35: Shareholder benefits assuming 100% election
Shareholder benefits assuming 100% election • Post tax financial reporting impacts – IFRS: • £220m profit from special distribution (over 3 years, starting 2008) • £390m one-off reattribution profit in 2009 (£800m at 31 December 2007 market levels) – MCEV: • £25m profit from special distribution in
Slide 36: Strategy - One Aviva, twice the value
Strategy - One Aviva, twice the value Investor presentation September 2008 36
Slide 37: A clear strategy to deliver growth
A clear strategy to deliver growth Purpose Prosperity & peace of mind Purpose Vision One Aviva, twice the value Vision Strategic Targets priorities • Manage composite • 98% meet or beat COR portfolio • Long Term Savings • Build global Asset growth targets Management • £500m cost savings by • Allocat
Slide 38: A highly capable and experienced executive team
A highly capable and experienced executive team Andrew Moss Chief Executive Philip Scott Tom Godlasky Finance Director 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 Investors S
Slide 39: Manage the composite portfolio
Manage the composite portfolio Diversity, cash flow, resilient product range Long Term savings General Insurance Composite Investor presentation September 2008 39
Slide 40: Introducing Aviva Investors
Introducing Aviva Investors A powerful new global asset management business • Globally integrated asset management business – The third pillar of our composite model, rebranded Aviva Investors – £307 billion funds*, over 1,300 staff in 15 countries around the world • Accelerate the transformation of
Slide 41: Allocate capital rigorously to drive growth
Allocate capital rigorously to drive growth Capital utilisation for dividends and profitable growth Dividends Net capital generation Asia UK Europe N.America Pacific Operational Double Dividend ROCE targets IFRS EPS GI COR 98% meet or beat 9 9 9 Life growth targets 9 9 9 Cost savings 9 9 9 Aviva Inv
Slide 42: Increase customer reach
Increase customer reach Access to customers through preferred channels Multi-distribution Direct Sales Bancassurance Independent Agents Investor presentation September 2008 42
Slide 43: Increase customer reach: over 90 bancassurance agreements
Increase customer reach Over 90 bancassurance agreements New bancassurance partnerships in 2007 - access to over 50 million potential new customers Investor presentation September 2008 43
Slide 44: Appendix: countries of operation
Appendix: countries of operation Investor presentation September 2008 44
Slide 45: 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 (2006 - 2015) in Life & Pensions assets to 2015 Strong Asia-Pacific (ex. Japan) Growing Latin None America North America Africa & Middle East Europe Japan - Life & Pensions A
Slide 46: UK Life
UK Life Investor presentation September 2008 46
Slide 47: UK Life – continuing operational improvement
UK Life – continuing operational improvement Mark Hodges Chief Executive Market Leadership ● Address legacy ● Transform business model ● Exploit UK synergies ● Generate capital Investor presentation September 2008 47
Slide 48: Competitive advantage: strong brand
Competitive advantage Strong Financial brand strength Product Multi reach distribution Investor presentation September 2008 48
Slide 49: Competitive advantage: product reach
Competitive advantage: product reach A broad product portfolio 20% • Top three position in all markets 15% • 11.4% overall market share 10% • Value from: 17% 5% 13% • Scale 10% 10% • Insight 0% Norwich Norwich Norwich Norwich Pensions Protection Annuities Savings Union Union Union Union • Flexibilit
Slide 50: Norwich Union Life net flows
Norwich Union Life net flows Half Year 2008: £(0.3) bn Bonds and £(0.3)bn savings £0.3bn £0.3bn Pensions £(0.3)bn £0.5bn Risk Non profit £(0.2)bn With profit £0.0bn Business no longer sold (endowments) £(0.6)bn Net flows HY 2008 Non With Profit Profit Total % of £bn £bn £bn funds Bonds and savings (
Slide 51: UK Life – new business profitability
UK Life – new business profitability 5,000 7% WACC 4,500 Bonds & 4,000 Savings 2007 results: 3,500 • Composite IRR of 13% 3,000 (unleveraged) PVNBP £m 2,500 Individual • Equity shareholders IRR 2,000 Pensions Annuities of 15% (leveraged) 1,500 Group 1,000 Personal Pensions Protection Corporate 500 P
Slide 52: Creating value: sustainable low cost base
Creating value: sustainable low cost base 2006 starting point Sustainable cost model by 2009, underpinning future business development. Swiss Re partnership Outsourced nearly three million Operational review life and pension policies Previously announced benefits. Existing business impact £72m Simpl
Slide 53: Creating value: sustainable low cost base
Creating value: sustainable low cost base 2007 progress Sustainable cost model by 2009, underpinning future business development. Swiss Re partnership Outsourced nearly three million Operational review life and pension policies Previously announced benefits Simplification Existing business impact Si
Slide 54: UK Life
UK Life Current position HY 2008 Performance • A leading UK Life company, with 11.4% market share at • Record life and pensions sales, up 1% to £5,863m consolidating Q1 2008 (YE: 10.5%) cumulative 39% growth in last two financial years • Broad Product reach, top three position in key markets • New b
Slide 55: UK General Insurance
UK General Insurance Investor presentation September 2008 55
Slide 56: UK General Insurance – delivering transformational change
UK General Insurance – delivering transformational change Igal Mayer Chief Executive Market Leadership ● Address legacy ● Transform business model ● Exploit UK synergies ● Generate capital Investor presentation September 2008 56
Slide 57: The UK market leader
The UK market leader Aviva • Consolidated market – top 6 insurers 14.4% Rest of Market have over 50% market share 37.6% • Aviva is the largest P&C insurer in UK RBSI (including Direct Line) • Top 1 or 2 position in all our major 12.3% classes • Unique business model RSA 8.5% - Balanced mix of person
Slide 58: Unparalleled distribution reach
Unparalleled distribution reach DIRECT BROKERS PARTNERS Banking Retail Affinity 3,000 brokers #1 in the SME market Powerful brands … over 100 others Insurer of the year 2003 to 2007 Leading shares in each channel Investor presentation September 2008 58
Slide 59: Focus on insurance excellence
Focus on insurance excellence Insurance excellence Building core insurance capability Expense management & scale benefits Operational excellence & customer service Retailer Pride and passion for insurance Insurer Focus on the fundamentals Investor presentation September 2008 59
Slide 60: A New Operating Model
A New Operating Model Sales and Operations Marketing Underwriting, Pricing and Product Support Functions Simplified structure Investor presentation September 2008 60
Slide 61: Expense management
Expense management 1 UK best of breed expense ratio applied to NUI • Investment over last 5 years channel / product mix has laid the ground for making a NUI UK Best of Best of 2 Breed Co. step change on expenses Expenses Breed Personal Lines Motor 16.1% 12.3% Direct Line, Fortis • Scale, process exc
Slide 62: Insurance Excellence
Insurance Excellence Expense management - the promise of scale • Further activity planned to realise ambition Inflation and (38) • Programme 2: Re-engineering service and one-off Costs11 (125+) processing centres • Dealing with inherited legacy • Fewer products from over 70 to under 20 (200) • Incre
Slide 63: Re-engineering service & processing centres
Re-engineering service & processing centres Operations Today 2010 End State Vision Personal Personal Mixed Mixed Commercial Commercial Dundee Glasgow Noida Perth Noida Perth Bishopbriggs Bishopbriggs Leeds Bradford Belfast Sheffield Pune Pune Liverpool Manchester Manchester Manchester Cheadle Stretf
Slide 64: Insurance Excellence
Insurance Excellence Building core insurance capability Premium rating leadership • Motor rates: 16% Q4 2006 • Household rates: 10% Q3 2007 • Commercial rates: 5% November 2008 10.0% 8.0% 6.0% Commercial Lines Trends 4.0% 3.1% 2.0% 1.6% 0.0% Progress being made but market 1.1% -2.0% conditions are s
Slide 65: Flattening impact of claims inflation
Flattening impact of claims inflation Impact of claims initiatives on inflation (Major Classes) • Track record of delivering significant cost reduction • 2007: Delivered >£75m benefit 0 • 2008 plans in train to deliver £100m+ Personal Motor Household Commercial Motor Commercial Property Commercial L
Slide 66: UK General insurance
UK General insurance Current position Performance HY 2008 • Market leading position, with a 14% market share • General insurance & health operating profit of £305m • Multi product and multi channel distribution • General insurance COR of 98% (2007: 102%) • Strong and trusted Norwich Union & RAC bran
Slide 67: Aviva Europe
Aviva Europe Investor presentation September 2008 67
Slide 68: Europe – a market leading position
Europe – a market leading position Andrea Moneta Chief Executive Scale, growth, capital • Seize unique growth opportunities • Leverage scale • Generate capital Investor presentation September 2008 68
Slide 69: 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), 20th (GI) 5th Pillar II Pensions, 5th Life 20th (L&P) Turkey** France 3rd (Life), 1st (Pen),14th (GI) 9th (L&P), 15th (GI) Ireland 3rd (L&P), 1
Slide 70: Strong top line growth
Strong top line growth….. PVNBP (Life & Pensions)* Total sales £m £m CAGR 20,000 20,000 1% £19,719 A GR +1 20% C £17,018 2% £14,914 £15,581 3% R +1 15,000 15,000 C A G £13,613 £12,840 £11,801 £12,095 12% £10,355 £10,358 £10,332 +15% 10,000 £9,021 10,000 £7,778 +9% £7,405 +14% +15% 5,000 5,000 +16% +
Slide 71: Platform for growth
Platform for growth • A unique platform for growth – Life and pensions HY08 sales up 15% – New business margin after the effect of required capital improved to 2.9% – IFRS life operating profits up 23% to £486 million in first half of 2008 • A CEE portfolio positioned for growth Czech 13th (Life) Ru
Slide 72: Diversified distribution in Europe
Diversified distribution in Europe Evolution of Sales through Bancassurance 2007 L&P sales by channel Percentage of total L&P sales 50% Distribution 51% 25% network 45% 48% 51% 44% 24% aligned to 40% the customer 39% Independent Agents/Brokers 35% Tied Agents/Direct 2004 2005 2006 2007 2004 percenta
Slide 73: France
France Current position HY 2008 Performance • Life: top 10 position in the market (5% UL market share) • Total PVNBP sales of £2.0bn (2007: £1.8bn) in a • Award winning fund performance with 81% of managed declining market funds in the top half for returns over 5 years • New business contribution (g
Slide 74: Netherlands
Netherlands Current position HY 2008 Performance • Top 5 position in the Netherlands for new business; also • PVNBP life and pensions sales were higher at £2.0bn operations in Belgium and Germany (2007: £1.1bn) including 3 group pension contracts • Multi-channel, multi-label distribution selling tot
Slide 75: Ireland
Ireland Current position HY 2008 Performance • Largest composite insurer in Ireland • Sales (PVNBP basis) down 27% to £648m as stock market • Combined Hibernian/Ark business ranks 3rd in life and volatility, economic uncertainty and slowdown in property pensions market with 17% market share, and 1st
Slide 76: Italy
Italy Current position HY 2008 Performance • PVNBP sales down 30% to £1.3bn reflecting difficult • 6th position in the market with a strong bancassurance market conditions and timing of marketing campaigns presence • New business margin of 2.9% (2007: 2.7%) • Market leading expense ratio through eff
Slide 77: Spain
Spain Current position HY 2008 Performance • 3rd position in the market with a strong bancassurance • PVNBP sales of £1.3bn (2007: £1.1bn) presence • New business contribution (g/g) increased to £133m, with a margin of 10.6% (2007: 7.9%) reflecting contribution of • 7% market share Cajamurcia risk p
Slide 78: Poland
Poland Current position HY 2008 Performance • Leading long-term savings group following greenfield • Strong life and pensions sales growth to £739m (2007: launch in 1992 £379m) reflecting bancassurance sales and new • Currently 2nd in the life market and 1st in the pension regular premium product ma
Slide 79: Central & Eastern Europe
Central & Eastern Europe Current position HY 2008 Performance • Merger with Turkish life and pensions business AK • Total PVNBP sales increased 191% to £509m (2007: Emeklilik completed in November 2007 and concluded £175m) mainly due to pensions business in Romania and long term bancassurance agreem
Slide 80: Aviva North America
Aviva North America Investor presentation September 2008 80
Slide 81: North America - USA on track to double scale
North America - USA on track to double scale Tom Godlasky Chief Executive Double scale • Focus: top 5 in chosen segments • Expand products, distribution ’08+ Investor presentation September 2008 81
Slide 82: US Life business - on track to double in size within years
US Life business - on track to double in size within 3 years, while maintaining margins Pro-Forma Half Yearly PVNBP Growth 4,000 H108: 28% growth in 3,000 sales for Aviva USA, $ millions building upon 2,000 impressive 2007 growth 1,000 0 H106 H206 H107 H207 H108 NBC reflects value proposition to the
Slide 83: Product innovation from multiple angles
Product innovation from multiple angles Customer Value Customer Protection • Growth • Guarantees potential • Liquidity • New services Product Innovation Marketing Shareholder • Agent recruiting • Profitability management • Brand enhancement • Risk controls • Product differentiation • Business model
Slide 84: Distribution management
Distribution management 2007 Combined Life and Annuity Sales* By channel Bank Structures 10% 1% Opportunities: CMO & PPGA 5% • Expand existing distribution platform • Develop new channels • Banks • Brokerages • Independent broker dealers IMO IMO – Independent Marketing Organizations 84% CMO – Career
Slide 85: USA
USA Current position H1 2008 Performance • During 2007, Aviva USA’s first full year after completion of • Total PVNBP sales up 28% to £2.2bn (2007: £1.7bn) the AmerUs acquisition in November 2006, integration • Total new business contribution (g/g) £92m (2007: £57m), was completed and sales growth o
Slide 86: Canada
Canada • Ranked 2, with 9% market share • Seeking to increase market share by organic growth and the creation of alternative distribution channels • Leveraging scale economies through common infrastructure and centralised core functions • Delivering innovative value added propositions via distributi
Slide 87: Aviva Asia Pacific
Aviva Asia Pacific Investor presentation September 2008 87
Slide 88: Asia Pacific – a growing presence
Asia Pacific – a growing presence Simon Machell Chief Executive Scale, growth • Prioritised portfolio • Regional operating model • Investment required Investor presentation September 2008 88
Slide 89: Aviva Asia Pacific: Footprint at a glance
Aviva Asia Pacific Footprint at a glance China Joint venture: 50:50 Aviva Cofco,100% Life India Hong Kong Joint venture: 26:74 with Life Dabur Group 100% Aviva owned 100% Life Singapore Life, Navigator 100% Aviva owned Korea Australia Sri Lanka Joint venture: 47:53 with Life, Navigator & Portfolio J
Slide 90: Background
Background • Regional markets not homogenous • Rapid speed of change in the developing markets • Current market turmoil adversely impact investor confidence • Massive demographic potential • Bancassurance increasing in importance in most markets • General move to transparency in developed markets •
Slide 91: Building success in Asia Pacific
Building success in Asia Pacific Strategic focus Competitive advantage Prioritised portfolio Bancassurance is a key differentiator • Existing markets: Key to long-term success: • Continue to optimise existing relationships China and India • Follow partners’ growth • Developing businesses in Taiwan,
Slide 92: Australia
Australia Current position H1 2008 Performance • Ranked 7th for new business in the individual protection • Total life and pensions sales down by 15%, underlying market with a growing market share. sales* grew by 16%. • Navigator, one of Australia’s largest wealth management • New business contribut
Slide 93: Singapore, Hong Kong, Taiwan, Malaysia
Singapore Hong Kong Taiwan Malaysia Current position H1 2008 performance • Ranked 4th in Singapore1 and 16th in Hong Kong • Singapore – life and pensions sales grew by 8%. Underlying • Distribution deal with DBS - leading bank in South East sales down by 1% Asia with almost 5 million customers - com
Slide 94: China
China Current position • Aviva-COFCO Life Insurance (50% Aviva share) launched 1 January 2003 • Presence in 32 cities, with branches in 8 provinces/municipal cities and sales offices in a further 24 cities • Ranked 2nd among foreign insurers in terms of total premium income Beijing • Half year 2008
Slide 95: India and Sri Lanka
India and Sri Lanka Current position H1 2008 performance • JV partnership (26% Aviva share) with Dabur Group • PVNBP in India up 67% to £95m (Aviva’s 26% share) launched June 2002 • PVNBP in Sri Lanka of £7m • Private companies’ market share has increased from PVNBP £m Sri Lanka 130 2% in 2001/2 to
Slide 96: Further information
Further information Investor presentation September 2008 96
Slide 97: Further contacts
Further contacts Aviva Investor Relations Aviva Media Relations www.aviva.com/investors www.aviva.com/media Charles Barrows Hayley Stimpson Director of External Affairs Investor Relations Director hayley.stimpson@aviva.com charles.barrows@aviva.com Sue Winston Jessie Burrows Head of Group Media Rela