Aviva Plc · LSE:AV.
Aviva — Investor Presentation (January 2022)
29 slides from Aviva's investor presentation, Jan 18, 2022
Slide 1: In Focus: UKGI Commercial Lines
In Focus: UKGI Commercial Lines 18th January 2022
Slide 2: Disclaimer: Cautionary statements
Disclaimer Cautionary statements This document should be read in conjunction with the documents distributed by Aviva plc (the ‘Company’ or ‘Aviva’) through The Regulatory News Service (RNS). This announcement contains, and we may make other verbal or written ‘forward-looking, statements’ with respec
Slide 3: Agenda
Agenda Welcome and UKGI Commercial Lines update introduction pry 8A Adam Winslow Nick Major CEO MD UKGI Amanda Blanc UK General Insurance Commercial Lines Group CEO WAVIVA 3
Slide 4: UKGI
UKGI 17% Canada GI, and Health 34% & Protection Rest of Group 49% Aviva: Confidential 4
Slide 5: Today's session
Today’s session 1 Overview of the Commercial Lines market 2. Acloser look at our business 3 > Winning now and in the future
Slide 6: Key highlights
Key highlights The UK’s leading Commercial insurer Strong financial, distribution and underwriting performance Vv No.1 for UK broker sentiment? 2020 COR 95.4%’: aiming for <94% Key growth area and growing source of cash Consistently providing cash, operating profit and GWP growth Vv +12% underwritin
Slide 7: Aviva: Confidential
• • • • • • • • Aviva: Confidential 7
Slide 8: Q1 Q2 Q3
• • • • • • • Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 • • • +17% +7% Aviva: Confidential 8
Slide 9: Peer 1 Peer 2 Peer 3
Peer 1 Peer 2 Peer 3 Peer 4 Aviva: Confidential 9
Slide 10: Leveraging One Aviva
Leveraging One Aviva Broker relationships Shared broker relationships and insight Improved distribution bargaining power Digital & data MyAviva customer portal Aviva Connect intermediary self-service platform Development of MyAviva for Broker Quantum - Global data science practice Financial strength
Slide 11: Enhanced customer solutions through innovation
Enhanced customer solutions through innovation @ Claims prevention through technology Commercial property telematics Suite of internet of things devices and sensors to protect client properties , YL = 7 L fe Ww QvANTYM Water Temperature simplicam Motion . sensors sensor HD camera sensor Use of open
Slide 12: ESG is at the heart of our corporate agenda
Cladding Leading the way by offering renewals to all existing customers impacted New customers now given access to sustainable cover for blocks of flats with combustible cladding Ee Renewables Portfolio Exited the London Market for insurance of standalone operational fossil fuel power generation in
Slide 13: A closer look at our Commercial Lines business
A closer look at our Commercial Lines business
Slide 14: Success built upon first class capability
Success built upon first class capability Small & Micro (Digital) Relentless focus on core strengths we Distribution Unrivalled regional distribution, #1 for UK broker sentiment Note: Market ranks are Aviva estimates % Underwriting Deep cross-sector expertise supported by automated Commercial Intell
Slide 15: Targeted Commercial Lines growth
Targeted Commercial Lines growth Growing a balanced product mix GWP (£bn) 2017-21e .2.6 —SWPCAGR 11% 23 15% 21 10% 1% 42% 1.9 10% 17 10% T% | 8% 9% 4% 40% 10% 41% 42% 27% 24% 22% 6% 2017 2018 2019 2020 2021e Specialty Financial Lines {) Liability [J Property Il Motor Optimised portfolio exposure Lon
Slide 16: Digitisation, Automation, Bespoke underwriting
• • Digitisation • • • Automation • • Bespoke underwriting • Aviva: Confidential 16
Slide 17: Accelerating growth in SME
Accelerating growth in SME Established SME insurer Regional leadership I) small & Micro HB Mid-market fo ional trading footprint Regional brokers are critical to aera soon SME GWP (£bn) and CAGR 7 Aviva’s SME success # 8%) i 8% 1.6 7 Leading broker sentiment is the ; 7 springboard to accelerate grow
Slide 18: A winning small & micro digital strategy
A winning small & micro digital strategy Leading digital capability Digital next generation * Awinning strategy that meets the needs of our brokers * —>70% of small & micro business transacted Commecit digitally today #H1@ #1@ UK Digital SME Insurer Fast Trade extranet "insane Winner 2021 Excellence
Slide 19: Transformed performance in UK Corporate and GCS
Transformed performance in UK Corporate and GCS Strengthening our UK leadership posi Sustaining growth in UK Corporate and GCS — 56% -7% UK Corp. & GCS GWP (£bn) and CAGR 6.1.6 of growth achieved since start 2018-20 CAGR expense of 2020 through rate increase ratio improvement? ¢.1.3 La 44% 89% 0.7 o
Slide 20: What's driving our competitive advantage?
What’s driving our competitive advantage?
Slide 21: Unrivalled domestic distribution and sentiment
| Unrivalled domestic distribution and sentiment v Single Aviva relationship contact building robust and effective trading partnerships Clear partner of choice for new and start-up brokers, supported digital solutions ‘= Invested in specialist distribution capability No.1 ranking by commercial bro d
Slide 22: Aviva: Confidential
• • • • • Aviva: Confidential 22
Slide 23: Supporting customers when they need us most
customers when they need us most Claims management Suppo! 9 ire 100% onshore, customer facing claims pandemic- £1.3bn claims team in 2020 Highly skilled and dedicated in-house claims . team delivering great customer outcomes Wd Leading technical expertise driving superior indemnity management across
Slide 24: Aviva: Confidential
• • • • • • • • • • • Aviva: Confidential 24
Slide 25: Summary messages to leave you with
Summary messages to leave you with
Slide 26: Continuing profitable growth in UK Commercial
Continuing profitable growth in UK Commercial IFRS Op. profit! (Strong proxy for cash generation) COR (%) GWP growth (%) Expense ratio‘ (%) Growth 2024 UK Leader Leverage hard market tailwind 2020 Underwriting and digital growth Increasing distribution reach Market leader in SME and UK Corporate Unr
Slide 27: Key takeaways
Key takeaways , providing cash, operating profit with strong , due and GWP growth underwriting capability to continuing hard- delivering market and W) Vv) new risks Ww) to deliver growth across througha 5 Small & Micro (Digital) focused, underwriter- underpinned by best in and Mid-market / led tradi
Slide 28: Q&A session
Q&A session Amanda Blanc Adam Winslow Nick Major Group CEO CEO MD UKGI UK General Insurance Commercial Lines WMAVIVA 28
Slide 29: Aviva: Confidential
Aviva: Confidential