Aviva Plc · LSE:AV.
Aviva — Investor Presentation (December 2007)
27 slides from Aviva's investor presentation, Dec 6, 2007
Slide 1: One Aviva Twice the Value
One Aviva Twice the Value Philip Scott, Group Finance Director “Our priority is to realise the full potential of Aviva’s existing businesses” Andrew Moss Group Chief Executive page 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: Agenda
Agenda Overview and financial performance The Executive team One Aviva Twice the Value page 3
Slide 4: Overview and financial performance
Overview and financial performance page 4
Slide 5: An increasingly global company
An increasingly global company £30 billion HY 2007 sales £24.7bn(1) Asia Pacific 8% 25% Sales General North America 10% Insurance £15 Europe 40% billion 9% 33% 75% Long Term Savings UK 42% 58% (1) 2007 HY total long-term savings new business sales and G.I. and health net written premiums page 5 HY 2
Slide 6: Key highlights
Key highlights 9M 2007 • Long term savings new business sales up 26% to £28.3bn • Life new business contribution up 24% to £818m with margin increasing to 3.6% from 3.5%. H1 2007 • GI COR 97% • EEV operating profit down 8% to £1,541m • IFRS operating profit up 1% to £1,375m • Net asset value per sha
Slide 7: H1 2007 - regional analysis
H1 2007 - regional analysis Total Sales EEVOR Asia Asia North Pacific Pacific America 3% North 8% 10% America UK 10% UK 38% 42% Europe Europe 40% 49% page 7
Slide 8: Worldwide LNB results
Worldwide LNB results PVNBP1 New Business Margin Contribution 9m Local 9m Local 9m 9m 2007 currency 2007 currency 2007 2006 LIFE & PENSIONS (PVNBP1) £m growth2 £m growth2 UK 8,750 - 270 6% 3.1% 2.9% Europe 10,442 14% 400 9% 3.8% 4.0% North America 2,705 625% 96 1,100% 3.5% 2.2% Asia Pacific 1,038 61
Slide 9: The Executive team
The Executive team | i AVIVA Forward thinking
Slide 10: 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 Mark Hodges Simon Machell UK Life Asia Pacific Igal Mayer John Ainley UK GI Anupam Sahay Human Alain Dromer Strategy Resources Asset Management page 10
Slide 11: One Aviva Twice the Value
One Aviva Twice the Value page 11
Slide 12: One Aviva Twice the value
One Aviva Twice the value Purpose Prosperity & Purpose peace of mind Vision One Aviva Vision Twice the value Strategic Targets priorities • 1.5 – 2 x dividend cover ● Manage composite • 98% meet or beat COR portfolio • 10% p.a. average growth in ● Build global Asset European region ● Management Allo
Slide 13: What it means financially
One Aviva Twice the value What it means financially • Setting ambitious regional and group targets • More effective deployment of capital and resources • Focusing on EPS as a key measure of success and driver of dividends • Further investment in new future growth through new markets and new distribu
Slide 14: What it means organisationally
One Aviva Twice the value What it means organisationally • Building Aviva as a global group • A period of business transformation at Aviva • A regional structure that gets us closer to our customers • Drawing on our collective knowledge and resources to accelerate the pace of growth • Responding to
Slide 15: What it means operationally
One Aviva Twice the value What it means operationally • Clarity of purpose and a shared understanding of who does what • Thinking and acting differently – helping each other to achieve common goals of growth and efficiency • Eliminating complexity and duplication by doing things once • Increasing th
Slide 16: One Aviva Twice the value
One Aviva Twice the value Purpose Prosperity & Purpose peace of mind Vision One Aviva Vision Twice the value Strategic Targets priorities • 1.5 – 2 x dividend cover ● Manage composite • 98% meet or beat COR portfolio • 10% p.a. average growth in ● Build global Asset European region ● Management Allo
Slide 17: Focus on earnings per share
Focus on earnings per share New ventures Capital Grow existing Management businesses EPS Operational Investment efficiency return Time page 17
Slide 18: Strength through diversity
Strength through diversity Long Term savings General Insurance Composite page 18
Slide 19: Build Aviva global asset management
Build Aviva global asset management Morley Delta Lloyd Fund Management Investment Mgt Morley Hibernian Investment Managers CUIM Polska Aviva Capital Mgt Morley Morley AFS – Luxembourg Aviva Gestion d’Actif Portfolio Partners Benefits Benefits • Manufacturing Morley •• Manufacturing Distribution Aviv
Slide 20: Allocate capital rigorously
Allocate capital rigorously Using capital to maximise value for shareholders Inorganic Organic Russia History of disciplined use of equity to fund acquisitions page 20
Slide 21: Allocate capital rigorously
Allocate capital rigorously • Risk appetite • Realising more capital from existing businesses – New focus on securitisation – Inherited estate reattribution – Maximising diversification benefits in the Solvency II world • Progressive dividend policy • No tolerance of underperformance page 21
Slide 22: Capital Position
Capital Position Capital Position 2006 • Capital Position is in target range S&P * • Rating agency capital is the biting capital constraint Economic capital • but there is room for flexibility IGD • Capital buffer required for: 0 2 4 6 8 10 12 14 16 18 20 22 £bn • working capital Requirements Capita
Slide 23: Access to customers through preferred channels
Access to customers through preferred channels Multi-distribution Direct Sales Bancassurance Independent Agents page 23
Slide 24: Over 90 bancassurance agreements
Over 90 bancassurance agreements page 24
Slide 25: The strategic advantage of bancassurance
The strategic advantage of bancassurance Bancassurance sales CAGR of 20% Margin of 4.5% compared to 3.8% for the group Access to c.212 million potential customers across c.48,000 branches page 25 * From principal bancassurance deals
Slide 26: One Aviva Twice the value
One Aviva Twice the value Purpose Prosperity & Purpose peace of mind Vision One Aviva Vision Twice the value Strategic Targets priorities • 1.5 – 2 x dividend cover ● Manage composite • 98% meet or beat COR portfolio • 10% p.a. average growth in ● Build global Asset European region ● Management Allo
Slide 27: Q&A
Q&A “Our priority is to realise the full potential of Aviva’s existing businesses” Andrew Moss Group Chief Executive