Aviva Plc · LSE:AV.
Aviva — Investor Presentation (June 2006)
16 slides from Aviva's investor presentation, Jun 7, 2006
Slide 1: Sustaining performance through the non-life cycle
Sustaining performance through the non-life cycle Why will it be different to the past? Patrick Snowball Group Executive Director Barcelona 7 June 2006 © Aviva plc
Slide 2: Disclaimer
Disclaimer This presentation may contain “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 uncertainty beca
Slide 3: Agenda
Agenda • 2000 – weathering the storm • Actions taken by Aviva • Sustainable performance • Questions and Discussion © Aviva plc
Slide 4: Foundation for sustainable growth
Foundation for sustainable growth 2000-2003 2004-2005 2006 > Weathering Platform for Delivering growth the storm growth and value • Cost reduction • Capital structure • Continued international growth in • Operational • Expansion of bancassurance mature and new markets excellence model • Leverage ban
Slide 5: The Aviva portfolio
The Aviva portfolio EEV Operating Profits Sales £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). FY05 Total long-term savings new business sales and GI and health new business premiums © Avi
Slide 6: Aviva – our strategy
Aviva – our strategy To be a clear leader in helping our customers grow their wealth and protect their assets and their health… Long term savings and fund General insurance and related management services • by offering a superior range of • by providing a broad range of competitive • long-term savin
Slide 7: Reshaping the portfolio
Reshaping the portfolio 2000 GI NWP by Country 2005 GI NWP by Country £12,203m £9,292m EXITS 3% US 5% 6% 3% London Market 5% Brazil 8% 7% Spain Germany 38% Belgium 14% 22% 63% French broker commercial 22% 4% South Africa Pakistan • Over 30 country operations Portugal • 5 major GI businesses • Exposu
Slide 8: Few competitors and capital disciplines
Few competitors and capital disciplines 9% 7% Volume growth 5% 1% 0% -2% -5% FY 2005 -5% -5% -6% -6% Q1 2006 -7% -8% Allianz Zurich RSA Axa RBSI NUI 2005 94 96 93 96 94 96 COR % Source: Year end press releases © Aviva plc
Slide 9: UK: financial and underwriting discipline
UK: financial and underwriting discipline Large Claim Analysis (>£1m) • Continued focus on personal 160 900 lines and SMEs Commercial Property NEP (£m) Sum of Large Claim Cost (£m) 140 800 700 • Benefit to pricing from volume 120 of data 100 600 500 80 • 1,500 accredited commercial 400 underwriters
Slide 10: UK: changing pattern of distribution
UK: changing pattern distribution 70 % Personal Lines Distribution 60 % • Personal lines dominated by large 50 % brands 40 % 30 % 20 % • Changes slower in commercial: brokers 10 % will continue to dominate 0% 1999 2000 2001 2002 2003 1992 1993 1994 1995 1996 1997 1998 In s u r a n c e B ro k e r D i
Slide 11: UK: operational excellence
UK: operational excellence A successful offshoring strategy • Cost leadership is delivered through: • Operational efficiency • Offshoring cumul. P&L benefit • Leveraging supply chain across NUI and RAC £m P&L benefits 2003 2004 2005 2006 2007 2008 2009 2010 P&L costs Sustainable profits © Aviva plc
Slide 12: RAC delivers non-volatile earnings
RAC delivers non-volatile earnings Home Insurance Travel Insurance Motor Insurance Telematics NUI Vehicle History Checking Huge growth Car Sales potential RAC Direct Insure RAC Vehicle Inspection RAC Financial Services RAC RAC Windscreen Services RAC Driver training Rescue © Aviva plc
Slide 13: Knowledge sharing across borders
Knowledge sharing across borders • Canada & Ireland • Data mining / analytics • Generating range of pricing insights • Transfer across national boundaries • Off-shoring • Turnkey solution for Canada • Better risk assessment • Telematics • Ignition programme (Ireland) • Autograph (Canada) • Claims su
Slide 14: Producing sustainable results
Producing sustainable results World-wide COR target of 98% or below Growing premium income ... ... whilst increasing profitability £ bn COR % Operating Profit £ bn 10.4 110 2.0 10.0 105 1.5 9.6 9.2 100 1.0 8.8 95 0.5 8.4 8.0 90 0 2000* 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 COR Opera
Slide 15: Sustainable performance
Sustainable performance • Reshaping the portfolio 0 ! • Financial & underwriting disciplines 0 0 • Develop distribution model e 2 in c • Direct e s • Broker ag ss • Partnerships e t m • Scale & operational efficiency t e n is • Strategic developments s o n of RAC • Acquisition C • Cross border knowl
Slide 16: Questions and Discussion
Questions and Discussion © Aviva plc