Aviva Plc · LSE:AV.
Aviva — Investor Day (2006)
95 slides from Aviva's investor day presentation, 2006
Slide 1: Aviva International – Analyst & Investor Day: Welcome
Aviva International – Analyst & Investor Day Philip Scott Group Executive Director Welcome © Aviva plc
Slide 2: Disclaimer
Disclaimer This presentation may contain certain 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. By their nature, all forward looking statements involve risk and uncertaint
Slide 3: Today's programme
Today’s programme Formal presentations 14h00 to 17h30 Growth and value creation Philip Scott The Group context Andrew Moss A track record of delivery Mark Dearsley Break Strong, balanced and profitable growth Tidjane Thiam Entering emerging markets - India Stuart Purdy Leveraging general insurance c
Slide 4: Aviva International – growth and value creation
Aviva International – growth and value creation Philip Scott Group Executive Director © Aviva plc
Slide 5: Aviva International – almost 50,000 people worldwide, £1.8bn EEVOP in 2005
Aviva International – almost 50,000* people worldwide, generating £1.8bn EEVOP in 2005 North America 3,600 Europe (ex UK) 24,000 Asia-Pacific 20,000 Country with Aviva presence *Ongoing operations, March 2006. Including c. 21,000 self-employed direct sales force staff © Aviva plc
Slide 6: Aviva International – over half of Aviva's business
Aviva International – over half of Aviva’s business Sales EEV Operating Profits £35bn(1) £3.5bn(2) 41% International Life Aviva International 54% 12% International General Insurance 18% UK General Insurance Aviva UK 46% 29% UK Life (1) 2005 total long-term savings new business sales and GI and healt
Slide 7: How Aviva International creates growth and value
How Aviva International creates growth and value • Competing in the right markets – where we can build strong competitive positions in attractive market segments • The right people - strong leadership teams in each market, empowered to meet customer and distributor expectations • Performance require
Slide 8: Portfolio of businesses at different stages of development
Portfolio of businesses at different stages of development • Large multi channel businesses in developed markets – Netherlands, France, Ireland, Canada - Growth opportunities e.g. Crédit du Nord, ABN AMRO and AIB joint ventures; acquisition opportunities from consolidation • Growing further strong b
Slide 9: Aviva International's ambitions
Aviva International’s ambitions • Achieve average annual organic sales growth* of at least 10% a year across its international Life businesses over the next 5 years, while growing new business profit** at least as quickly as sales • Additional Life growth from new joint ventures and other distributi
Slide 10: The Group context and capital disciplines
The Group context and capital disciplines Andrew Moss Group Finance Director © Aviva plc
Slide 11: Aviva Group – the composite model
Aviva Group – the composite model A balanced portfolio of growing businesses • The increased momentum of International Life • Return to growth of UK Life through competitive advantage • Growing sustainable profits from General Insurance © Aviva plc
Slide 12: UK Life – growth from competitive advantage
UK Life – growth from competitive advantage UK life, pension and investment sales £m 3,500 UK Life: 3,000 PVNBP • Return to growth: Q1 2006 total sales up 34% to £3,207m 2,500 • Q1 2006 new business 2,000 contribution up 13% to £77m • Ongoing strategic initiatives 1,500 - Product development - A day
Slide 13: UK General Insurance – sustainable profits
UK General Insurance – sustainable profits UK GI Operating Profit & COR UK General Insurance 1000 110 • Confidence in our ability to meet or 800 beat 98% COR Operating Profit (£m) 105 600 • Underwriting discipline and pricing COR (%) 100 400 • Breadth of distribution 200 95 • Operational efficiency
Slide 14: Capital disciplines are applied to organic and inorganic growth alike
Capital disciplines are applied to organic and inorganic growth alike Inorganic Organic RAC Direct Insurance © Aviva plc
Slide 15: Focus on shareholder value
Focus on shareholder value • Delivering returns over the cost of capital - Cost of capital and timeframe are target specific - Cost, revenue, capital benefits - Consistent with group ROCE target • Efficient group capital structure • Rigorous business and risk assessment • Strong governance framework
Slide 16: Aviva International – a significant bancassurance presence
Aviva International – a significant bancassurance presence… Goodwill* 2005 NBC P/E 2000-2005 Net/Net/Net £715m £83m 8.6x …and growth at a reasonable price *Relates to Aviva International businesses only and includes unpaid earn outs. © Aviva plc
Slide 17: Aviva International is helping to improve Group capital efficiency
Aviva International is helping to improve Group capital efficiency International growth increases Group diversification* • Diversification benefits the Group through: BU - Stability of operating profits diversification - Strong credit ratings Required Economic Capital - Capital efficiencies which lo
Slide 18: Aviva International is a strong contributor to Group results
Aviva International is a strong contributor to Group results 2003 2004 2005 £m £m £m Total PVNBP sales £10,754 £12,259 £14,432 Net* Life and pensions NBC £262 £301 £399 Net* Life and pensions margin 2.5% 2.9% 3.0% Life operating return £899 £1,060 £1,229 General Insurance operating profit £283 £462
Slide 19: Aviva International – a track record of delivery
Aviva International – a track record of delivery Mark Dearsley Finance Director, Aviva International © Aviva plc
Slide 20: Aviva International transformation
Aviva International transformation 2000 Life NWP GI NWP Discontinued GI2 £6,300m £2,512m £4,562m Health £483m 2005 Life NWP1 GI NWP £11,920m £3,460m Health £724m 1 Includes non-participating investment contracts 2 Includes US, Australia & New Zealand, Belgium, Germany, Asia, Spain and CGU Courtage (
Slide 21: What we set out to do
What we set out to do • Build strong Life and Pensions businesses • Diversify distribution • Prioritise major European markets - Large markets - Attractive growth rates - Limited ‘window’ to seize opportunities • Build capability in other selected growth markets • Focus on profitable General Insuran
Slide 22: What we did
What we did • Europe - Transformed Spain from subscale composite to a Life market leader - Extended and diversified distribution in Italy - Added important bank partnerships in Netherlands, France & Ireland - Maintained strong positions in Poland and Turkey - Further potential in Czech Rep, Hungary,
Slide 23: Disciplined approach in turbulent markets
Disciplined approach in turbulent markets • Strong financial disciplines (including expense reduction) • Excellence in operational and M&A execution • Investment in infrastructure: finance and risk management • Focus on business as usual Whilst: • Navigating substantial uncertainty and difficult mar
Slide 24: What we have achieved – top line Life sales growth
What we have achieved – top line Life sales growth PVNBP Growth 2000-2005 12000 CAGR 10% 10000 8000 Asia US & Australia £m 6000 Other Europe Western Europe 4000 2000 0 2000 2001 2002 2003 2004 2005 PVNBP increased by over 60% Note: CAGR calculated using constant currency, net of minorities and exclu
Slide 25: What we have achieved – diversified distribution
What we have achieved – diversified distribution AI Life & Pensions AI Life & Pensions distribution by channel 2000 distribution by channel 2005 7% 26% 34% 55% 38% 40% Independent Agents/Brokers Tied Agents/Direct Bancassurance Basis 2000 APE Basis 2005 PVNBP Broad access to customers Net of minorit
Slide 26: What we have achieved – bottom line out-performance
What we have achieved – bottom line out-performance CAGR1 28% NBC Net/Net/Net 250 2 NBC 200 1.5 • 250% increase in new £m 150 business contribution from 100 1 NB Margin £54m to £192m 0.5 50 0 0 • 117% improvement in new business margin from 0.9% CAGR 10% Profits (Life and pensions only) to 1.9% 800
Slide 27: What we have achieved – significant bancassurance presence
What we have achieved – a significant bancassurance presence… Goodwill* 2005 NBC P/E 2000-2005 Net/Net/Net £715m £83m 8.6x …and growth at a reasonable price *Relates to Aviva International businesses only and includes unpaid earn outs. © Aviva plc
Slide 28: What we have achieved – real progress with partners
What we have achieved – real progress with partners Aseval Embedded Value Build Up Singapore Embedded Value Build Up 160 120 140 100 120 80 100 £m £m 80 60 60 40 40 20 20 0 0 ABN Amro Embedded Value Build Up Crédit du Nord Embedded Value Build Up 80 90 70 80 60 70 60 50 50 £m 40 £m 40 30 30 20 20 10
Slide 29: What we have achieved – focused GI
What we have achieved – focused GI 2000 GI NWP by country 2005 GI NWP by country £7,074m £3,460m 8% 10% 5% 16% 5% France 36% Ireland 11% Netherlands 14% Canada US 39% Rest of world 21% 35% • Over 30 country operations • 4 major GI businesses • Exposure to heavy commercial lines • Other businesses su
Slide 30: Total General Insurance – growing profitably in competitive markets
Total General Insurance – growing profitably in competitive markets AI NWP 2000-2005 4500 4000 3500 3000 £m 2500 2000 1500 1000 Acquired operations 500 0 Discontinued operations* AI Operating Profit/COR 2000-2005 Continuing operations 600 115 500 110 400 105 £m 300 100 COR % 200 95 100 0 90 -100 200
Slide 31: Aviva International has generated growth in sales and profits
Aviva International has generated growth in sales and profits… 2003 2004 2005 £m £m £m New business strain (199) (183) (175) Life In-Force profits 493 546 626 Operating return – Non Life 228 352 460 Operational Capital Generation 522 715 911 Dividends paid to Centre (121) (273) (497) Capital injecti
Slide 32: Aviva International: a strong track record of profitable growth
Aviva International: a strong track record of profitable growth © Aviva plc
Slide 33: Aviva International - strong, balanced and profitable growth
Aviva International - strong, balanced and profitable growth Tidjane Thiam Managing Director, Aviva International © Aviva plc
Slide 34: We aim for sustainable and profitable growth
We aim for sustainable and profitable growth • The right markets • The right capabilities - Provider of choice for customers - Partner of choice for distributors • The right people © Aviva plc
Slide 35: We start from a good place: good spread of positions across markets
We start from a good place: good spread of positions across markets Top 5 positions Within top 10 Market presence • Netherlands (LTS & GI) • France (LTS) • USA (LTS) • Spain (LTS) • Italy (LTS) • France (GI) • Ireland (LTS & GI) • Australia (LTS) • Italy (GI) • Canada (GI) • India (LTS) • Turkey (GI
Slide 36: Managed asset classes are a significant opportunity
Managed asset classes are a significant opportunity Global Personal Financial Assets 2004 100% = $102tn Home Equity Cash & Deposits 21% 32% 16% Direct Investments 12% 11% 8% Life and Pensions Mutual Occupational Funds Pensions Managed asset classes © Aviva plc
Slide 37: …across the three major economic zones
…across the three major economic zones Growth In Life and Pensions assets by region Aviva’s presence Life & Pensions Assets CAGR (2004-2015) Strong Latin America Area of bubble = Projected increase Growing in Life & Pensions assets to 2015 None Asia excl. Japan North America ROW Europe Japan Life &
Slide 38: We will continue to invest in growing our GI presence
We will continue to invest in growing our GI presence Strong positions to start from… …and many opportunities Leading positions in the UK, Ireland, Canada and • Leverage strengths in key the Netherlands capabilities to gain market share and increase profitability • Add new distribution channels (e.g
Slide 39: We aim for sustainable and profitable growth
We aim for sustainable and profitable growth • The right markets • The right capabilities - Provider of choice for customers - Partner of choice for distributors • The right people © Aviva plc
Slide 40: Creating value through customer satisfaction – Aviva France
Creating value through customer satisfaction – Aviva France Satisfied customers are the ones that create lasting value 100% • They bring in new customers by referring your company to their families and friends 50% • They are prepared to buy other products from you as they trust you 0% Moderately sat
Slide 41: Creating value through customer insights – Aviva India
Creating value through customer insights – Aviva India Product development using continuous research into customer needs © Aviva plc
Slide 42: You only improve what you measure
You only improve what you measure 2005 2007 Customer • Measured by 50% • Measured by 100% of of our businesses Advocacy our businesses (customers are ready to recommend to others) • Measured by 87% Customer Satisfaction • Measured by 100% of our businesses of our businesses (customers are pleased ab
Slide 43: We aim for sustainable and profitable growth
We aim for sustainable and profitable growth • The right markets • The right capabilities - Provider of choice for customers - Partner of choice for distributors • The right people © Aviva plc
Slide 44: To win, we need to excel at reaching customers through preferred channels
To win, we need to excel at reaching customers through their preferred distribution channels IFAs / Brokers IFAs / Brokers Bancassurance IFAs / Brokers including JVs Tied Agents Bancassurance including JVs Bancassurance Tied Agents including JVs Tied Agents Tied Agents Others Others Others Others Em
Slide 45: What we have achieved – diversified distribution
What we have achieved – diversified distribution AI Life & Pensions AI Life & Pensions distribution by channel 2000 distribution by channel 2005 7% 26% 34% 55% 38% 40% Independent Agents/Brokers Tied Agents/Direct Bancassurance Basis 2000 APE Basis 2005 PVNBP Broad access to customers Net of minorit
Slide 46: Building proprietary distribution
Building proprietary distribution Aviva operates the Direct Sales Force model in markets with differing degrees of maturity 10% 9% UK Life Premiums as a % of GDP 8% 7% France 6% Netherlands 5% 4% 3% 2% China, India 1% C&EE 0% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Life Premiums per Capita ($) Sou
Slide 47: Bancassurance: a strategy for the long term
Bancassurance: a strategy for the long term Bancassurance Bancassurance 2000 2005 UniCredit BdM BPI BPU Crédit du Nord ABN AMRO DBS Singapore DBS Hong Kong Caixa Galicia Unicaja PVNBP £373m Caja Espana Caja de Granada PVNBP £2,602m Bancaja Net of minorities, 2000 PVNBP calculated using 2003 capitali
Slide 48: Bancassurance growth from customer base penetration
Bancassurance growth from customer base penetration Insurance penetration of Spanish partner customer bases 25% Bancaja 20% Unicaja 15% Caixa Galicia Caja Espana 10% Caja Granada 5% 0% 2000 2001 2002 2003 2004 2005 Basis: Different customers in each Business Unit divided by the number of active cust
Slide 49: Bancassurance growth from extended distribution reach
Bancassurance growth from extended distribution reach Partners’ network has grown fourfold in five years 4,500 4,000 3,500 No. of branches 3,000 Caja España 2,500 Caja Granada Unicaja 2,000 Caixa Galicia Bancaja 1,500 1,000 500 0 2000 2001 2002 2003 2004 2005 © Aviva plc
Slide 50: Working with independent agents
Working with independent agents • Aviva actively supporting the development of the independent financial planning channel • Strong experience dealing with independent agents: - Aviva Singapore ranked 1st in the IFA sector - Aviva Australia positioned as ‘the home of the independents’ - Aviva USA gro
Slide 51: We aim for sustainable and profitable growth
We aim for sustainable and profitable growth • The right markets • The right capabilities - Provider of choice for customers - Partner of choice for distributors • The right people © Aviva plc
Slide 52: The right people: the importance of our teams
The right people: the importance of our teams • Aviva’s decentralised model empowers local management teams • Employee engagement is critical to delivering Aviva’s values • Senior management bonuses partly linked to Business Unit scores for leadership and employee engagement © Aviva plc
Slide 53: We aim for sustainable and profitable growth
We aim for sustainable and profitable growth • The right markets • The right capabilities - Provider of choice for customers - Partner of choice for distributors • The right people © Aviva plc
Slide 54: This strategy has produced excellent results: among the fastest growing of our peers
This strategy has produced excellent results: among the fastest growing of our peers in Europe Growth in Life premiums - Aviva vs. Peers in Europe excluding UK (CAGR 2000-2005, in %) 10 10 3 2 1 Aviva Allianz Axa Generali ING Source: Annual Reports; Total Life and Pensions GWP © Aviva plc
Slide 55: High growth can be achieved in large developed markets
High growth can be achieved in large developed markets… Aviva Businesses’ performance relative to national markets (CAGR 2000-2005) 34.2 15.2 11.2 0.5 Aviva Italy Aviva France Delta Lloyd Aviva Spain 2000-05 market +13.1% +5.9% +1.3%1 - 3.0% CAGR Note: Total PVNBP Growth net of minorities, constant
Slide 56: …and we are adept at successfully entering new markets
…and we are adept at successfully entering new markets China India Aviva PVNBP Aviva PVNBP 35 +112% p.a. +197% p.a. 31 15 7 7 4 2003 2004 2005 2003 2004 2005 Market position • 22 bancassurance deals giving 2003 2004 2005 access to more than 41m customers Generali - 5 1 • Extending presence into Sri
Slide 57: Spotlight: Entering emerging markets - India
Spotlight: Entering emerging markets - India Stuart Purdy Managing Director, Aviva India © Aviva plc
Slide 58: Aviva India
Aviva India • Launched 2002 – Aviva has management control and the right to increase ownership beyond 26% when legislation permits Year by year performance Quarter by quarter performance 140 120 PVNBP in £ Million PVNBP in £ Million 120 100 Q404 100 80 Q105 80 2003 60 Q205 60 2004 40 Q305 40 2005 Q4
Slide 59: Brand building initiatives
Brand building initiatives © Aviva plc
Slide 60: Using developed market concepts – needs based selling
Using developed market concepts – needs based selling Needs based selling proposition Make clients understand Diagnostic tool for their risk profile financial profile examination Win trust and respect of Based on ‘best Financial health check customers advice’ philosophy To generate “How come I never
Slide 61: Using developed market concepts - bancassurance
Using developed market concepts - bancassurance Quality customer Potential to spread Southern region and rural access through a pan India through penetration through a leading foreign bank India’s 2nd largest bank leading private regional with 2506 branches bank Punjab and Newly merged bank Sind Ban
Slide 62: Spotlight: Leveraging our general insurance capabilities
Spotlight: Leveraging our general insurance capabilities Igal Mayer President & CEO, Aviva Canada © Aviva plc
Slide 63: Canada – a good place to do business
Canada – a good place to do business • Stable market - 2003 product reforms working Aviva Canada’s position 2005 Gross Written Premium – all lines - Less litigious than US - Historically modest impact of natural catastrophes vs. US • Aviva is Canada’s 2nd largest PEI #3 insurer North West Territorie
Slide 64: Leveraging new approaches across 'mature markets'
Leveraging new approaches across 'mature markets' • Better risk assessment based on - Ignition programme (Ireland) - Telematics • Autograph (Canada) • Pay As You Drive (UK) • Better marketing proposition - Best risks not efficiently identified today by traditional rating methods - Young drivers toda
Slide 65: Leveraging proven capabilities across businesses
Leveraging proven capabilities across businesses • Claims supply chain - Rolling out UK model, leveraging scale - In Canada a 3 year program, 30+ projects, C$60m gross annualised reduction in claims cost over 3 years • Data mining / analytics - Generating range of pricing insights - Beginning to tra
Slide 66: Conclusion
Conclusion • GI businesses contributing strong profits • Real measurable knowledge sharing across the GI businesses • Innovation in mature markets - Real opportunities for growth - Capturing further scale economies © Aviva plc
Slide 67: Spotlight: Operational excellence in Delta Lloyd
Spotlight: Operational excellence in Delta Lloyd Niek Hoek CEO, Delta Lloyd Group © Aviva plc
Slide 68: Overview key figures Delta Lloyd Group 2005 vs. 2004
Overview key figures Delta Lloyd Group 2005 vs. 2004 • IFRS result before tax 568 + 30% • Gross written premium 5,717 + 6% • Shareholders’ funds 3,789 + 36% • European embedded value 4,634 + 25% • Life EEV Operating return 349 + 12% • PVNBP life and pensions 4,000 + 9% • New business contribution (N
Slide 69: Delta Lloyd Group's GWP showed solid 16% growth in a mature market
Through the last decade Delta Lloyd Group’s GWP showed a solid 16% growth in a mature market Total CAGR 16% Health 5,717 5,405 GI 4,982 811 Health CAGR 3% 834 4,341 851 4,146 1,135 GI CAGR 9% Life 3,742 787 1,133 708 978 685 752 810 2,659 2,234 774 579 1,557 529 3,772 Life CAGR 16% 1,294 1,401 3,437
Slide 70: The Dutch Life business demands a special equity capital structure
The Dutch Life business demands a special Equity Capital structure • The Dutch life market requires higher equity capital due to the fact that: - The Netherlands has less products for risk of policy-owners and more for risk of company; NL 25:75 versus other countries 90:10 - The Netherlands has no '
Slide 71: Delta Lloyd Group's total return outperformed MSCI total return index
Delta Lloyd Group’s total return outperformed MSCI total return index Total Return Development (1994 = 100) 400 350 300 250 200 150 100 50 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 MSCI index Delta Lloyd Group Total return is defined as capital gain and dividend yield: For Delta
Slide 72: Financial risk managed through state of the art Asset Liability Management
Financial risk managed through state of the art Asset Liability Management • State of the Art ALM - Projection of balance sheet under (1,000) economic scenarios - Determines optimal asset mix (bonds, equity, property) under risk/return constraints; risk is measured in terms of risk of ruin - Contain
Slide 73: Delta Lloyd's profitability improved significantly after 2002 stock crash
Delta Lloyd’s profitability improved significantly after 2002 stock crash Return on Capital vs. Interest rate NL Performance 5% - Portfolio 13.5% 80 150% 160% 12.7% 11.0% 11.4% 70 140% 120% 115% 60 109% 120% 8.1% 100% 50 88% 100% 108% 40 80% 85% 30 73% 60% 5.1% 60% 60% 4.2% 4.3% 20 54% 40% 3.5% 3.3%
Slide 74: Continuous EEV growth in a difficult market environment
Continuous EEV growth in a difficult market environment 5.1% 4.2% 4.3% Interest rates 3.5% 3.3% Dutch 10-yr bonds 4,634 3,569 3,700 1,447 3,113 2,942 1,487 1,617 1,395 1,472 3,187 1,952 2,213 1,718 1,470 2001 2002 2003 EEV 2004 EEV 2005 EEV Shareholders funds Life divisions Value in force EUR Millio
Slide 75: Solvency - Delta Lloyd Group's Life business in line with Dutch peers
Solvency - Delta Lloyd Group’s Life business in line with its Dutch peers Solvency Top 10 Dutch Life Insurance 2004 YE (% of minimum required solvency) 364% 265% 241% 241% 246% 210% 194% 201% Not published Delta Lloyd Achmea Aegon Allianz NL Fortis ING Interpolis SNS Reaal Zwitserleven Group Source:
Slide 76: Sales organisation - Netherlands: multi label - multi channel
Sales organisation - Netherlands: multi label - multi channel Distribution Brand / Partner Products + Business Areas Channel Life & Mutual Pension GI Health Bank Funds Intermediary 9 9 9 9 Direct 9 9 9 9 Bank 9 9 9 ABN AMRO Bank, ING, Bank 3rd party Rabobank; other Banks 9 • Distribution channel lin
Slide 77: Delta Lloyd's Dutch market position 2005
Delta Lloyd’s Dutch market position 2005 EEV Growth 2005; NL only COR General Insurance; NEP Basis 103% Delta Lloyd 4,259 4,259 (EEV; ( EEV;EUR EURmillion) million ) 27% 98% ING 11,300 11,300 23% 97% 97% 97% 95% 95% 95% 94% SNS Reaal 1,661 1,661 17% 91% Achmea 3,053 3,053 11% Aegon 6,449 6,449 9% De
Slide 78: Delta Lloyd Group on its way to become No. 3
Delta Lloyd Group on its way to become No. 3 showing the strongest relative growth of the Dutch Top 5 since 2002 Gross Written Premium Development 2002 –2005 Top 5 Insurers Netherlands (EUR million) 10,000 9,000 Achmea / Interpolis 8,000 7,000 ING 6,000 Delta Lloyd 5,000 Group Fortis 4,000 Aegon 3,0
Slide 79: Delta Lloyd Group became No. 1 in Life new business Netherlands in 2005
Delta Lloyd Group became No. 1 in Life new business Netherlands in 2005 APE Development 2002 –2005 Top 5 Insurers Netherlands (EUR million) 400 Delta Lloyd Group 350 300 ING 250 Fortis 200 Aegon 150 Achmea 100 50 0 2002 2003 2004 2005 Source: Public company information (press releases); Interpolis n
Slide 80: Update - joint venture ABN AMRO Insurance
Update - joint venture ABN AMRO Insurance Products, sales & synergies • Conversion brokered GI business to own risk finished • Successful start of ABN AMRO Bank selling Delta Lloyd mutual funds • Internet applications launched for sale of GI products and claimshandling • Joint marketing ABN AMRO Ban
Slide 81: Conclusions
Conclusions • Delta Lloyd Group business model: - Is more sensitive for interest rates and investment returns and requires a higher solvency - Is fully in line with its Dutch peers and is mitigated by on average higher long term returns • Delta Lloyd Group has: - A distribution model with a proven t
Slide 82: Spotlight: Update on Hibernian
Spotlight: Update on Hibernian Bryan Jenkins Group Chief Executive, Hibernian Group © Aviva plc
Slide 83: Irish economy and market trends
Irish economy and market trends • Fastest economic growth in EU at 5.5% [2006], with inflation 3.8% • General Insurance market - High levels of profit encouraging more competition - Claims experience continues to improve - Government reforms further reducing claims • Life & Pensions market - Consoli
Slide 84: Developing partnerships
Developing partnerships © Aviva plc
Slide 85: AIB Partnership
AIB Partnership Transformational deal for Hibernian – broader distribution capability and a platform to achieve market leadership • Bancassurance is 50% of the Irish Life market Market • AIB is the No 1 bank in Ireland with 37% share and position 300 branches • Strong potential – AIB Life share in 2
Slide 86: Hibernian Group 2005 awards
Hibernian Group 2005 awards • Broker Support - Winners of the IBA Service Excellence Award and the Commercial Insurer of the Year Award 2005 • All Ireland Staff Survey - Voted one of Top 50 companies to work for in Ireland • Customer Advocacy - In a recent survey, 95% of our customers said they woul
Slide 87: Operational improvements
Operational improvements Electronic trading • Full service trading with brokers was launched in July 2005 • Today 93% of HOME new business and 75% of COMMERCIAL VAN business are transacted through this portal. Private Motor to be launched in June 2006 • This portal will also be used to launch GI in
Slide 88: Spotlight: Update on Aviva France
Spotlight: Update on Aviva France Bruno Rostain Chief Executive, Aviva France © Aviva plc
Slide 89: Aviva France: position & strategy in the Life market
Aviva France: position & strategy in the Life market • Chosen market is personal savings and wealth transmission • Focus on developing unit-linked business, with market share of 8% (FY 2005), compared to 5% share of total market Unit-linked share of Individual savings 50% 44% Aviva 40% Unit linked %
Slide 90: Sustained performance in fund management is a powerful tool
Sustained performance in fund management is a powerful tool for Life sales and communications Aviva Gestion d’Actifs Fund Management performance breakdown by quartile to 31 March 2006 Over 3 years Over 5 years Number of funds 37 36 Top quartile 32% 61% Quartiles 1 & 2 70% 94% Quartiles 1, 2 & 3 100%
Slide 91: Life market & strategy: Aviva France distribution
Life market & strategy: Aviva France distribution AFER Breakdown of PVNBP: 2005 ANTARIUS • Pioneer and market reference savings association €5,155m (bancassurance partnership • Successful for over 30 years with Crédit du Nord) ANTARIUS • Represents funds of over €35bn and over Details of this partne
Slide 92: Life market & strategy: Close-up of ANTARIUS
Life market & strategy: Close-up of ANTARIUS Overview of partnership • Crédit du Nord, part of Société Générale Group since 1997 and composed of 7 regional banks, is serving 1.47m customers through 684 branches • Collaboration in Life follows successful distribution arrangements between the two part
Slide 93: Greater efficiency has enabled tight control over expenses
Greater efficiency has enabled us to maintain tight control over expenses while growing the business Some examples of recent / current efficiency projects: 5-year trend in expenses vs GI premiums, • Segmentation as a key driver Life sales & Life reserves of both sales efficiency and 150 customer ser
Slide 94: Questions & Answers
Aviva International – Analyst & Investor Day Questions & Answers © Aviva plc
Slide 95: Spotlight on: General Insurance Capability
Aviva International – growth and value creation Spotlight on: General Insurance Capability Philip Scott Igal Mayer, Group President Executive Director& CEO, Aviva Canada © Aviva plc