Aviva Plc · LSE:AV.
Aviva — Investor Day (July 2014)
15 slides from Aviva's investor day presentation, Jul 9, 2014
Slide 1: Aviva Europe: Cash, Turnaround & Growth
Aviva Europe Cash, Turnaround & Growth David McMillan Chairman, Global Health Chief Executive Officer, Aviva Europe 66
Slide 2: Aviva Europe – In a nutshell
Aviva Europe – In a nutshell c£100bn assets under Cash remittance Value of new business (2013) (2013) management Other Other Europe 13 million customers 13% 31% 11% Europe 36% Top 5 Life provider in UK & I 57% UK & I 53% Poland & Turkey £1.6bn GI and Health net written premiums Composite player in 3
Slide 3: Our European portfolio – cash, turnaround & growth
Our European portfolio – cash, turnaround & growth Our business Owned channels Key partners Generator #1 direct funeral provider Cash #2 direct GI player #9 insurer* Largest FA network 900 tied-agents France #10 life insurer #4 protection Turnaround provider Italy #6 life insurer
Slide 4: Financial progress
Financial progress Dividend to Group Value of new business Operating profit +15% +26% +5% £388m £319m £894m £854m £336m £253m 2012 2013 2012 2013 2012 2013 COR (GI only) Operating expenses -1.3ppts +1% 99.4% 98.1% £619m £627m 2012 2013 2012 2013 Over the last year we have focussed on tackling underl
Slide 5: Our strategic agenda: Cash + Growth
Our strategic agenda Cash + Growth Reducing structural overhead Improving returns from savings Becoming a leading protection Improving cost efficiency player Leveraging composite Simplifying legal vehicle structure opportunity Growing operating earnings Investing in Poland & Turkey Completed Not sta
Slide 6: Cash: Reducing structural overhead
Cash: Reducing structural overhead Operating expenses Actions taken £836m -11%pa £151m £729m Exited sub-scale, c£40m £110m £657m unprofitable businesses savings £30m Removed the regional c£80m £685m office savings £619m £627m Improved efficiencies in c£60m markets savings 2011 2012 2013 Region
Slide 7: Cash: Improving cost efficiency
Cash: Improving cost efficiency Expense ratio 2013 expenses Expense ratio 33% 27% 24% 23% 75% 30% £24m £363m £50m £48m £52m Life £189m 35% 30% 2011 2013 Plan France Italy Spain Poland Turkey Total Expense 13% 9% 30% 13%` ratio £21m £168m £33m £114m GI 15% 13% France Italy Poland Total 2011 2013 Plan
Slide 8: Cash: Simplifying legal vehicle structures
Cash: Simplifying legal vehicle structures An Italian example Transforming the structure Simplifying legal vehicle structures to remove cash traps and increase remittances to Group 73
Slide 9: Growth: VNB and capital efficiency
Growth: VNB and capital efficiency Value of new business (£m) VNB / Capital strain FY12 FY13 France 119 39% 39% 166 Poland 35 46% 46% 51 69% 73% Turkey 30 23% 23% 37 52% 57% 57% Italy 31 13% 13% 35 Spain 37 20% 19% 30 2010 2011 2012 2013 1Q2014 Total Europe 253 26% 319 VNB and strain net of taxation
Slide 10: Growth: Optimising Life product mix
Growth: Optimising Life product mix Improving returns from savings Becoming a leading protection player VNB - Savings VNB - Protection +55% +2% £30m £135m £138m With Profit & Other £19m £151m Unit Linked £98m 2012 2013 2012 2013 France Italy Spain* Poland Turkey Progress so far Market €19bn €1.2bn €
Slide 11: Growth: Leveraging composite opportunity
Growth: Leveraging composite opportunity A French example Customers 1.2m 0.5m 0.2m 0.2m 0.4m 0.3m 0.2m Our ambition is to move from fragmented operating models towards true customer composite across all our markets 76
Slide 12: Growth: Investing in Poland & Turkey
Growth: Investing in Poland & Turkey Life penetration in Europe* Value of new Net cash business remittance UK 9.0% +35% +23% Denmark 6.8% £88m £90m £5m Ireland 6.0% £73m France 5.6% £65m £37m £3m Switzerland 5.3% £30m £85m Italy 4.5% £70m £51m Germany 3.1% £35m Spain 2.6% Poland 1.9% 2012 2013 2012
Slide 13: Delivering dividends to Group
Delivering dividends to Group Remittance ratio by market Dividends to Group* 100% 87% 80% 70% 61% 63% 60% 56% £550m 14% 0% France Italy Spain Poland Total Europe 2012 2013 £37m Areas of focus £388m £336m Remove cash traps £161m Improve operating performance 2011 2012 2013 Manage back book Disp
Slide 14: Aviva Europe in summary
Aviva Europe in summary Good franchise in selected key European markets Priorities 1 Sustainable cash growth from France 4 Invest in Poland & Turkey 2 Complete turnaround in Italy & Spain 5 Double protection and build GI scale 3 Target best of breed efficiency Our ambition True composite D
Slide 15: Cautionary statements
Cautionary statements: This 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 announcement contains, and we may make other verbal or written “forward-looking statements” with respect