Aviva Plc · LSE:AV.
Aviva — Investor Presentation (December 2009)
106 slides from Aviva's investor presentation, December 2009
Slide 1: Investor Presentation December 2009
Investor Presentation December 2009
Slide 2: Disclaimer
Disclaimer .This presentation is for information purposes only. It should be read in conjunction with the documents filed by Aviva plc (the “Company” or “Aviva”) with the United States Securities and Exchange Commission (“SEC”). This presentation contains, and we may make verbal statements containin
Slide 3: Contents
Contents Page 1 Overview 4 2 Aviva’s businesses 18 3 Executive management 24 4 Financial strength 26 5 UK life inherited estate reattribution 33 6 UK and Europe 37 7 North America, Asia Pacific and Aviva Investors 86 8 Contacts 105 Investor presentation December 2009 3
Slide 4: Overview
Overview | ft AVIVA
Slide 5: An increasingly global company
An increasingly global company £30 billion H1 2009 sales £24.4bn (1) Asia Pacific 6% 20% 10% General North America 17% Insurance UK GI 9% £15 billion UK Life 21% 80% Long 5% 5% Term 24% Savings Europe 47% 32% 40% 34% H1 2000 H1 2009 (1) Total long-term savings new business sales and G.I. and health
Slide 6: Our strategy
Our strategy Purpose Prosperity & peace of mind Vision One Aviva, twice the value Strategic Targets priorities • Manage composite • 98% meet or beat COR portfolio • £500m cost savings by 2010 • Build global Asset • Double IFRS EPS by 2012 at Management the latest • Allocate capital • 1.5 – 2 x divid
Slide 7: Focus on Margins vs Sales
Focus on Margins vs Sales Life and Pensions margins maintained Sales Life General and Pensions insurance Margins £18.2bn £17.5bn COR2 12 months 6 months NA/Asia 2008 % 2009 % NA/Asia £3.1bn £15 bn UK 1.7% 2.1% £3.9bn Europe Europe 2.8% 2.6% Life Europe North America 1.0% 0.5% 36% Europe Asia Pacific
Slide 8: Focus on Profit vs Premiums
Focus on Profit vs Premiums General Insurance COR improved NWP £5.1bn General General Insurance insurance CORs COR2 £5 bn £4.9bn NA/Asia 6 months 12 months £0.8bn 2008 % 2009 % NA/Asia £0.9bn UK 99% 99% Europe Europe 97% 96% £1.0bn Europe Life Europe North America 99% 97% 36% DL £1.1bn £3 bn £ 0.5bn
Slide 9: Strong Cost Management
Strong Cost Management £2,700m (£38m) £72m (£80m) £2,622m (£118m) • Ahead of run rate £500 £148m £2,493m million cost saving targets (£75m) £2,500m (£38m) • Eliminating cost over runs and reducing operational complexity in UK Life £2,300m • Closing 13 operational 9.0% - £239m centres and simplifying
Slide 10: UK Life: Driving up profitability
UK Life Driving up profitability 2005 2008 +/- Life & Pensions sales (PVNBP)(1) £9,185m £11,669m +27% Life & Pensions margin(1,2) 2.9% 3.5% +60bp Cost overrun £140m £40m 71% New business IRR 10.6% 14.0% +340bp Existing Business operating return £372m £679m +83% EV operating profit £589m £883m +50% I
Slide 11: UK Life: Generating capital
UK Life Generating capital 2005 2008 +/- New business capital strain(1) £488m £293m -40% Strain % of L&P sales (PVNBP)(2) 5.3% 2.5% -2.8pps Free surplus generation £365m £704m +93% £500m dividend paid over the last three years Delivering value to group (1) New business strain includes initial capita
Slide 12: UK General Insurance: Transforming the business
UK General Insurance Transforming the business • Execution of strategy is improving the HY1 08 HY1 09 +/- quality of earnings • Actively exiting poor performing business Net written premium £2,589m £2,049m -21% • Rating increases above inflation on all COR 98% 99% +1pps major classes • Improving cur
Slide 13: Aviva is uniquely positioned in Europe
Aviva is uniquely positioned in Europe Region Aviva Strengths in 15 markets Share of GDP L&P PVNBP GI NWP H1 09 €m H1 09 €m France 14.5% Top 10 2,733 631 Covering 80% of GDP and premium Ireland 1.4% Top 5 478 Top 5 294 Italy 11.7% Top 10 2,461 190 Lithuania 0.2% Top 5 49 - Poland 2.7% Top 5 572 20 R
Slide 14: A clear strategy to exploit the European opportunity
A clear strategy to exploit the European opportunity Quantum Leap – ‘game changing’ for the industry Aviva Europe Delta Lloyd Composite Aviva’s presence Life & pensions IPO – ‘strategic management’ Investor presentation December 2009 14
Slide 15: Aviva Europe's Quantum Leap
Aviva Europe’s Quantum Leap From To Twelve federated businesses One Pan European Business One Head Office Pan European distribution organisation Customer centric product catalogue Multiple, complex products and shorter time to market Multiple systems Shared systems and processes and processes Simpli
Slide 16: Key milestones in ongoing transformation
Key milestones in ongoing transformation Increasing financial flexibility Sale of Australian business completed • Realises value from a business where Aviva had limited organic growth opportunities • £452 million selling price at 16 x IFRS earnings Reattribution of the inherited estate • Over 800,00
Slide 17: Q3 2009 IMS update
Q3 2009 IMS update Managing for profit • Worldwide long-term savings sales and life and pension sales1 both reduced by 11% due to lower consumer demand and strategic actions to optimise profitability • Group margin in line with full year 2008 at 2.1% • General insurance COR of 98%, in line with ‘mee
Slide 18: Aviva's businesses
Aviva’s businesses El AVIVA
Slide 19: Manage the composite portfolio
Manage the composite portfolio Diversity, cash flow, resilient product range Long Term savings General Insurance Composite Investor presentation December 2009 19
Slide 20: Aviva Investors
Aviva Investors A powerful global asset management business • Globally integrated asset management business – The third pillar of our composite model, rebranded Aviva Investors – £222 billion funds*, in 15 countries across North America, the UK, Europe and Asia Pacific • Accelerate the transformatio
Slide 21: Increase customer reach
Increase customer reach Access to customers through preferred channels Multi-distribution Direct Sales Bancassurance Independent Agents Investor presentation December 2009 21
Slide 22: Increase customer reach: bancassurance agreements
Increase customer reach Over 90 bancassurance agreements Investor presentation December 2009 22
Slide 23: 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 (2007 - 2017) in Life & Pensions assets to 2017 Strong Growing Asia-Pacific (ex. Japan) North America Europe Life & Pensions Assets 2007($bn) Source: Aviva Research supported
Slide 24: Executive management
Executive management _ AVIVA
Slide 25: A highly capable and experienced executive team
A highly capable and experienced executive team Andrew Moss Chief Executive Philip Scott Tom Godlasky Chief Financial Officer 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 Inve
Slide 26: Financial strength
Financial strength B AVIVA
Slide 27: Action on the Balance Sheet
Action on the Balance Sheet IGD Solvency Surplus Significantly Strengthened £bn 4.0 (£0.1bn) £0.5bn (£0.3bn) £0.1bn £3.2bn £0.4bn 3.0 £0.2bn (£0.3bn) £0.2bn £0.5bn £2.0bn 2.0 1.0 0 IGD surplus Operating Market Dividends Issue of Issue Sale of DL Value of Increase Other IGD December profits and movem
Slide 28: Action on the Balance Sheet: UK Commercial Mortgages
Action on the Balance Sheet UK Commercial Mortgages 30 June 2009 31 Dec 30 June 2008 2009 Total UK Interest service cover 1.30 1.32 Remaining UK Commercial commercial commercial loans property Average loan to value 103% 106% mortgage £8.1bn portfolio portfolio Vacancy rates 4.1% 4.7% £8.5bn £11.1bn
Slide 29: Corporate Debt - Shareholder
Corporate Debt - Shareholder A high quality, diverse portfolio • Just over 94% of corporate debt is investment grade or NAIC rated • Minimal movement in rating grades Investor presentation December 2009 29
Slide 30: MCEV Operating Profit
MCEV Operating Profit New business and in force book both generate strong earnings £m • Operating earnings up 12% 2,000 £312m £17m £(34)m £(17)m to £1,685 million £(63)m £(54)m £1,685m • Life new business increase £15m reflects lower volumes, offset by £1,509m increased group margin 1,500 • Life in-
Slide 31: IFRS Operating Profit
IFRS Operating Profit A lower asset and earnings base £m 1,500 £1,223m £(18)m £17m £(40)m £(16)m £(63)m • Operating earnings of £1,049 1,250 million, down 14% on prior year £(54)m £1,049m • Impact of debt costs and pension 1,000 P&L costs • Investment return for operating 750 profit based on 10 year
Slide 32: IFRS Profit After Tax
IFRS Profit After Tax Material decrease in investment losses and provisions IFRS H1 2009 H1 2008 FY 2008 £m £m £m • Profit after tax of £747 million Operating profit 1,049 1,223 2,297 • No repeat of investment losses Investment variances – Long term business 155 (636) (1,631) experienced in 2008 Inv
Slide 33: UK life inherited estate reattribution
UK life inherited estate reattribution
Slide 34: Inherited estate reattribution – customer perspective
Inherited estate reattribution – customer perspective • Strong customer story – over 800,000 customers benefit • Just over 87% of eligible policyholders voted during election process, with 96% choosing to accept the offer • Incentive payment of £470 million • 90% of eligible customers will receive b
Slide 35: Inherited estate reattribution – shareholder perspective
Inherited estate reattribution – shareholder perspective • Incentive payment flexed with size of estate • Total estate value for reattribution of £1.25bn • Based on average valuation of the estate at the end of June, July and August • Policyholder incentive payment acquires: • Assets backing the est
Slide 36: Inherited estate reattribution – shareholder perspective
Inherited estate reattribution – shareholder perspective Significant capital and earnings benefits: • Provides £650m of new business capital strain funded from reattributed estate in first 5 years • 3 year cash payback • One off £180m MCEV profit • One off £80m IFRS profit • Ongoing earnings of c£30
Slide 37: UK and Europe
UK and Europe El AVIVA
Slide 38: UK Life
UK Life y AVIVA
Slide 39: UK Life
UK Life Current position H1 2009 Performance • A leading UK Life company, with 10.8% life and pensions • Life and pensions sales 21% lower at £4,735m as a result of market share at H1 2009 (H108: 10.4%) actions to manage product mix, pricing and costs, and the effect • Broad product reach, top four
Slide 40: We have delivered our promises
We have delivered our promises • Rationalise costs 9 • Develop the business 9 • Simplify the legacy 9 • Strong balance sheet 9 • Value out of service 9 • Capital efficiency 9 • Manage retention 9 Focussed on priorities, delivering the right things Investor presentation December 2009 40
Slide 41: Trading through the recession
Trading through the recession….. Quarterly Sales PVNBP £bn 3 • Lower sales in a significantly contracting market • Market share increase at higher margin 2 • Focus on profitability of new business while maintaining capital discipline 1 resulting in increased margin • Top 4 position in key markets Q1
Slide 42: … while enhancing returns …
… while enhancing returns … New Business Margin Improvement • Reduced individual pension, group 3.0% pension and bond commissions 2.5% • Growth of fee-based Employee Benefit 2.0% Consultant business 1.5% • Customer service efficiencies 1.0% • E-Commerce enhancements 0.5% 0.0% • Improved product mix
Slide 43: …and moving our mix towards higher margin risk products
…and moving our mix towards higher margin risk products Q3 2008 Q3 2009 • Increase in individual annuities through innovative Other, 4% Other, 3% rating factor pricing • Reduction in BPA proportion due to rigorous Bonds, 24% Bonds, 27% hurdle rate discipline: BPA, 2% ¾ Compelling proposition to 50 E
Slide 44: Widening the income and expense 'jaws'
Widening the income and expense ‘jaws’ Life & Pensions Sales and Operating Expenses 35% L&P Sales 25% • Increasing sales while growing margin 15% • Targeted cost reductions, driving 5% out inefficiencies and reducing operating expenses Growth 2005 2006 2007 2008 2009 -5% • Lower, more flexible and v
Slide 45: Our focus on annuities is delivering benefits
Our focus on annuities is delivering benefits New Business 2005 2008 +/- Margin 5.2% 9.1% +3.9pps IRR 9.5% 16.7% +7.2pps Payback (years) 12 8 4 yrs Capital strain £m 96 67 -30% Capital strain % 6.1% 2.8% -3.3pps • Extra rating factors (size/postcode/marital status & smoker status) delivering underwr
Slide 46: Our focus on protection is delivering benefits
Our focus on protection is delivering benefits New Business 2005 2008 +/- Margin 9.2% 7.8% -1.4pps IRR 16.5% 23.5% +7.0pps Payback (years) 6 4 2 yrs Capital strain £m 153 58 -62% Capital strain % 12.5% 5.1% -7.4pps • Highly competitive market with downward pressure on core mortgage and term products
Slide 47: Key actions to improve margins in pensions
Key actions to improve margins in pensions New Business 2005 2008 +/- Margin 1.2% 1.6% +0.4pps IRR 8.2% 12.4% +4.2pps Payback (years) 12 9 3 yrs Capital strain £m 148 146 -1% Capital strain % 4.9% 3.2% -1.7pps • Increased operational efficiency reducing new business costs • Commission levels reduced
Slide 48: Key action in place to improve margins in bonds
Key action in place to improve margins in bonds New Business 2005 2008 +/- Margin 0.8% 0.1% -0.7pps IRR 9.7% 7.7% -2.0pps Payback (years) 9 14 5 yrs Capital strain £m 77 26 66% Capital strain % 2.9% 0.8% 2.1pps • Persistency assumptions strengthened • IFA commission rates reduced by 1% Q4 08 • Alloc
Slide 49: Delivering operational excellence
Delivering operational excellence 2005 2009 Q1 +/- UK headcount 12,500 9,200 -26% Policies per headcount 1,032 1,485 +44% Core admin systems 20 4 -80% Value on scale platforms 60% 75% +15pps Distributor service rating 1 star 4 star +3 Customer recommendation score 38% 68% +30pps Employee morale scor
Slide 50: UK Life: an evolving distinctive position
UK Life: an evolving distinctive position 2008 – product positioning Pension 100% Savings 0% Risk 0% Aviva Savings 100% Pension 0% Risk 100% Consistent strategy & ruthless execution has delivered a distinctive position Investor presentation December 2009 50
Slide 51: Context for strategy: factors shaping the mid term
Context for strategy: factors shaping the mid term Industry past Forces for change Threats & opportunities • Growth funded by Recession • Capital conservation capital • Margin squeeze • Single premium driving RDR & TCF volume • Smaller IFA shop window • IFA channel pre- Distributor dominant consolid
Slide 52: Life Stage: positioning based on deep insight
Positioning based on deep insight Wealth e bl y lth rs ch By r ta a Ri fo e e r w Lo ers ng m W iev pe or tti Co ch Su Po rn Ge A Ea • Overweight for UK Retired • Strong growth predicted Life Stage Pre-retired • 8.6m unserved • Higher average value Family Non-Family Our heartland is not only distinc
Slide 53: Opportunity from our existing customer base
Opportunity from our existing customer base UK Life customers Existing by source, m(Millions) UK Life Customers 1.3m Direct customers • 40% have no active adviser • Scaling back direct acquisition 3.5m customers • Re-directing advisory resource have IFA 1.4m customers • Generating leads from existin
Slide 54: Opportunity from our unique risk capability
Opportunity from our unique risk capability Strong positions in key product sectors Market share H1 2009 Underlying market growth • Individual annuity Annuities • Life cover - underprovided UK Unrivalled capability WP Annuities • Mortality and morbidity Protection • Asset / liability expertise • Cut
Slide 55: Opportunity from our momentum in corporate sector
Opportunity from our momentum in corporate sector • Proposition innovation, for example the Pension Tracker e-commerce capability • Average scheme tender and secured case sizes up by at least 25% • 170 new GPP schemes secured in HY1 2009 • BPA foothold achieved, and solid relationships with 20-30 Em
Slide 56: Opportunity from our distribution reach post RDR
Opportunity from our distribution reach post RDR Advisers Today Advisers 2013 UK Life Strategy High net worth £500k + Independents Commercial focus c. 10,000 Mass affluent IFA £100k – £500k c. 21,000 Provision gap Grow in-house channel Middle market £30k – £100k General Advisors Tied / multi tied Le
Slide 57: Our strategic focus
Our strategic focus Scale of customer 1. Capitalise on untapped value from existing customers base opportunity Unrivalled data and 2. Drive significant profitable growth in our Risk business capability Focussing on our All round distinctive 3. Drive significant profitable growth in Corporate sector
Slide 58: UK General Insurance
UK General Insurance | ft AVIVA
Slide 59: UK General insurance
UK General insurance Current position H1 2009 Performance (UK GI only) • Operates in the mature UK market • General insurance operating profit of £247m • Aviva UKGI enjoys a 13% market share - the largest UK • General insurance COR of 99% (H1 2008: 98%) general insurer • General insurance net writte
Slide 60: UK General Insurance – delivering transformational change
UK General Insurance – delivering transformational change A clear strategy focused around a number of key themes • Reshaping our book to maximise our access to customers whilst delivering a Market sustainable distribution ratio Leadership • Transforming the operating model to deliver insurance excel
Slide 61: Summary – our business
Insurance Excellence in UK GI: 'Focus on Profit' Summary – our business Personal Lines • Marketplace - High unemployment levels and pressure on consumer finances drives price sensitivity and switching behaviour - Motor insurance purchase and research via aggregators now well established; beginning t
Slide 62: The UK market leader
Insurance Excellence in UK GI: 'Focus on Profit' The UK market leader UK GI Market Share 2008 • Consolidated market – top 7 insurers have over 50% market share Aviva 12.9% Rest of market • Aviva is the largest P&C insurer in UK 39.3% • Top 1 or 2 position in all our major classes RBSI 11.4% • Unique
Slide 63: Unparalleled customer reach
Insurance Excellence in UK GI: 'Focus on Profit' Unparalleled customer reach DIRECT BROKERS PARTNERS 3,000 brokers Powerful brands #1 in the SME market … over 100 others RAC - Best roadside Insurer of the year assistance provider 2006 to 2003 to 2008 2008 Investor presentation December 2009 63
Slide 64: UK GI's strategic priorities
Insurance Excellence in UK GI: 'Focus on Profit' UK GI’s 7 strategic priorities Win the Customer Win the Broker • UKDI fightback • War for distribution • RAC membership • Partnerships moments of truth Building Core Insurance Capability Claims Inflation Busting • Sophisticated pricing • Sustainable b
Slide 65: Reshaping the book
Insurance Excellence in UK GI: 'Focus on Profit' Reshaping the book Direct Fightback Moments of Truth • Profitable & growing • Profitable & growing medium sized brokers smaller brokers • Unique package • Unique package • Increase market • Increase market • Direct is direct share share • Sophisticate
Slide 66: Reshaping the book
Insurance Excellence in UK GI: 'Focus on Profit' Reshaping the book By 2011 our UKGI book will have changed… • Direct grows • Brokers grow • Partnerships fall • RAC steady in Rescue but RAC panel growing significantly • Motor grows • Home falls • Creditor falls • Commercial lines grow Right balance
Slide 67: Building core insurance capability
Insurance Excellence in UK GI: 'Focus on Profit' Building core insurance capability Personal Lines – transforming pricing Credit Make/Model Mass Customisation 3rd Party Data Price Optimisation 21% 120% 3rd PTY DAMAGE 19% 17% 110% Vogue 3rd PTYTotal INJURY 15% 100% Vogue SE Total Total ACC DAMAGE Pre
Slide 68: Delivering the promise of scale
Insurance Excellence in UK GI: 'Focus on Profit' Delivering the promise of scale Self Service Centres of Excellence 2007 2010 c900 Applications <300 Applications Mass Customisation & Lean Manufacturing IT Roadmap Sustainable service excellence & benefit of scale Investor presentation December 2009 6
Slide 69: Delivering the promise of scale: cost savings
Insurance Excellence in UK GI: 'Focus on Profit' Delivering the promise of scale • Progress ahead of what was promised in October 2008 Phase 1 Target : £200m One- C&E • Sales & Marketing offs £38m • IT • Support Services Inflation • Change Phase 1 Cost Reduction Phase 2 Target: £150m • Operations On
Slide 70: Summary
Insurance Excellence in UK GI: 'Focus on Profit' Summary Reshaping the book • Focus on profit • Sustainable distribution ratio Building core insurance capability • Sophisticated pricing • Focus on transactional excellence • Cleanse the book of poor performing business • Inflation busting • Expect ra
Slide 71: Europe
Europe El AVIVA
Slide 72: Europe in context
Europe in context Significant part of the Aviva group • Strong historic foundations • Unique opportunity to establish a leadership position • Clear execution strategies are already beginning to make a difference • Poised to make a ‘Quantum Leap’ Long-term savings GI and Health sales IFRS Operating s
Slide 73: Life Insurance Penetration (GWP/GDP)
Europe: Aviva is uniquely positioned Strengths in 15 markets Covering 80% of GDP and premium 10 Developed markets In different stages of development Life Insurance Penetration (GWP/GDP) % 8 France Ireland Belgium 6 Netherlands Italy High potential 4 markets Spain Germany Poland Hungary 2 Slovakia Cz
Slide 74: Europe: Aviva is uniquely positioned
Europe: Aviva is uniquely positioned Strengths in 15 markets Covering 80% of GDP and premium In different stages of development With an enviable competitive footprint Capabilities across all product lines and distribution channels Life Distribution Models Source: CEA, 2009 Investor presentation Dece
Slide 75: Aviva Europe: single operating model
Aviva Europe Single operating model • Markets focused on distribution with a Distribution strong centralised support IT, Operations & Shared Services In markets Customer management • Synergies in IT, operations, customer & Marketing service with pan European sharing of services Product Pooled • Cent
Slide 76: Aviva Europe: Bancassurance
Aviva Europe Bancassurance Yesterday Simplify & Innovate Tomorrow • No. 1 bancassurer in Europe Common channel approach 9Undisputed leading partner of choice with specific partner offerings • Strong and successful track record in bancassurance 9One single business model & governance across across Eu
Slide 77: Aviva Europe: Retail
Aviva Europe Retail Yesterday Simplify & Innovate Tomorrow • A significant platform to build from: One European distribution 9Integrated channel management (implemented): • 9 million customers organisation unit run as a profit 9Central retail function for Europe • 18,000 financial advisors centre… 9
Slide 78: Shared services – a lever of Operational Excellence
Aviva Europe Shared services – a lever of Operational Excellence Yesterday Simplify & Innovate Tomorrow • 12 IT, HR, Customer Services and Finance Simplify organisation, 9Shared services centres – single pan-European IT, HR, organisations processes & systems Customer Services and Finance functions:
Slide 79: Governance, Capital & Risk Management
Aviva Europe Governance, Capital & Risk Management Yesterday Simplify & Innovate Tomorrow • Organised on legally distinct subsidiary basis 9Single holding company • Reinforces separate nature of individual Simplify legal entity structure 9Legal and management structures aligned to ‘One Europe’ busin
Slide 80: France
France Current position HY 2009 Performance • Life: top 10 position in the market (5% market share) • Total PVNBP sales of £2.4bn (HY08: £2.1bn) • Life: multi-channel distribution selling comprehensive • Value of new business (Gross) of £72m range of savings, pensions, protection & investment • Valu
Slide 81: Ireland
Ireland Current position HY 2009 Performance • Largest composite insurer in Ireland • Sales (PVNBP basis) down 39% to £0.4bn consistent with • Combined Hibernian/Ark business ranks 4th in life & the market (down 40% on APE basis) due to reduced pensions market with 14% share, 1st in GI with 16% shar
Slide 82: Italy
Italy Current position HY 2009 Performance • Outperformed both Life and GI market, whilst improving margin and • Top 10 position in the market COR demonstrating value of bancassurance model • Strong bancassurance presence underpinned by Aviva • PVNBP sales up 68% to £2.2bn reflecting customer demand
Slide 83: Spain
Spain Current position HY 2009 Performance • Top 5 position in the market with 7% market share • HY09 performance negatively impacted by the current unfavourable economic climate • Market leading bancassurance distribution through a • HY08 included one-off impacts of the Caja Murcia risk unique and
Slide 84: Poland
Poland Current position HY 2009 Performance • Leading long-term savings business since 1992 • Life and pensions sales have declined to £0.6bn (HY08: • Largest pension provider in Poland representing a 25% £1.0bn) reflecting high bancassurance sales in 2008. market share • Value of new business (gros
Slide 85: Delta Lloyd
Delta Lloyd Current position HY 2009 Performance • Top 5 position in the Netherlands and Belgium for Life new • PVNBP life and pensions sales lower at £1.8bn (HY08: business; also operations in Germany £2.1bn which included substantial group pensions • Top 5 position in the Netherlands for GI contra
Slide 86: North America, Asia Pacific and Aviva Investors
North America, Asia Pacific and Aviva Investors
Slide 87: Aviva North America
Aviva North America | AVIVA
Slide 88: North America - focus on greater capital efficiency
North America - focus on greater capital efficiency • Sustainable footprint in the US having doubled scale in 2008, a year ahead of target Profitable growth • Meeting US customer needs with increased annuity guarantees and unique wellness features in Life products • Optimise • #1 in indexed life ins
Slide 89: North America H1 2009 Performance
North America H1 2009 Performance US Life Volume – PVNBP Canadian GI Volume - NWP IFRS Operating Profit 2,000 1,500 1,000 CAGR 4% * 100 £ millions £ millions 750 £ millions 1,000 500 50 500 250 * - - - Q1 Q2 Q3 Q4 Q1 Q2 H1 2007 H1 2008 H1 2009 H1 2008 H1 2009 2008 2008 2008 2008 2009 2009 A nnuities
Slide 90: North America 2009 Priorities
North America 2009 Priorities North • Focus on profitability, productivity and capital efficiency America • Optimise business mix and margins Region • Diversify distribution and products • Enhance margins and increase new business return on capital Aviva • Focus on capital efficiency USA • Leverage
Slide 91: USA
USA Current position H1 2009 Performance • Doubled sales within two years of acquisition of former • Financial performance affected by economic turmoil AmerUs business and one year ahead of target • Sales reflect consumer demand for products with • Aviva USA became the first provider ever to guarant
Slide 92: Canada
Canada Current position H1 2009 Performance • Canada’s 2nd largest GI provider, with 9% market share • Strong financial performance in H1 2009 • Balanced portfolio of personal, commercial and specialty • NWP increased by 15% to £889m (4% increase on a local lines currency basis) • Top 5 position in
Slide 93: Aviva Asia Pacific
Aviva Asia Pacific | AVIVA
Slide 94: Asia Pacific – Remains an attractive growth region
Asia Pacific – Remains an attractive growth region Asia-Pacific not immune to economic crisis Growth, Value • Life and pension sales down 22% as customers remained cautious about investing in unit-linked savings products Prioritised Portfolio • Lower investment sales reflected investor caution in vo
Slide 95: Aviva Asia Pacific Footprint at a glance
Aviva Asia Pacific Footprint at a glance Must Win markets South Korea Singapore JV: 47:53 with Woori 100% Aviva owned Woori Aviva 100% Life Life, Navigator, Health Hong Kong Taiwan 100% Aviva owned JV: 49:51 with First Group Life, Navigator (w.e.f 16 June 2009) First-Aviva, 100% Life Malaysia Sri La
Slide 96: Building success in Asia Pacific
Building success in Asia Pacific Strategic focus Competitive advantage Prioritised portfolio Bancassurance expertise • Must Win markets: Achieve leading position in • More than 50 bancassurance partners in region China & India. • Developing BUs: Bancassurance-led; balance • Share best practice acros
Slide 97: Must Win Markets: China and India
Must Win Markets • Aviva-COFCO Life Insurance (50% Aviva share) launched on 1 January 2003. • No.4 in terms of total premium income among foreign players (15th among all insurers) as at end of September 2009*. • Multi distribution strategy: direct sales force, agencies, brokers, telemarketing and ba
Slide 98: Developing BUs
Developing BUs Singapore • DBS partnership deal extended to 2015. Introducing Insurance Specialists model in DBS branches. • Sales significantly impacted mainly due to market issues with bank channel sales arising from bank sales of Lehman bonds. Ranked 5th in Singapore on APE basis as at Q2 20091 H
Slide 99: Aviva Investors
Aviva Investors ft AVIVA
Slide 100: Aviva Investors – executing the strategy
Aviva Investors – executing the strategy Significant progress towards developing a global asset Aviva Investors management business • Globally • Launched in September 2008, £222bn funds under management at integrated 30 June 2009 and ranked top 20 institutional investor globally business • Net new b
Slide 101: Aviva Investors today
Aviva Investors today AUM by geography AUM by asset class AUM by client Poland 1.1% Australia 1.7% Other 4.4% Spain 0.4% Intermediary 4.6% Ireland 3.4% Cash 10.7% Institutional North America 10.8% 12.8% Real estate 9.8% Equities France 19.9% 27.6% Fixed income UK 53.0% 55.2% Internal 84.6% £222 bill
Slide 102: Aviva Investors today: profits
Aviva Investors today Proportion of Aviva Investors to Group IFRS operating profits 2,500 FY H1 H1 Operating profit £m 2008 2008 2009 5.0% Aviva Investors 2,000 UK 64 28 14 Profits in £ millions Europe 35 20 15 North America 14 13 8 1,500 Asia 1 - (1) 5.0% Total 114 61 36 3.4% 1,000 Cost: income rat
Slide 103: Business structured to meet client needs
Business structured to meet client needs Investor presentation December 2009 103
Slide 104: Positioned for growth
Positioned for growth Achieved to date: • Third party and cross border sales – progress made in cross border sales • Investment performance - improving, with more work to do • Continuing to transform and integrate the global business • Attracting talent to lead a high performance organisation Invest
Slide 105: Contacts
Contacts B AVIVA
Slide 106: Further contacts
Further contacts Aviva Investor Relations Aviva Media Relations www.aviva.com/investor-relations www.aviva.com/media Charles Barrows Hayley Stimpson External Affairs Director Investor Relations Director hayley.stimpson@aviva.com charles.barrows@aviva.com Sue Winston Head of Group Media Relations Sus