Aviva Plc · LSE:AV.
Aviva — Investor Presentation (October 2006)
16 slides from Aviva's investor presentation, Oct 4, 2006
Slide 1: Risk, Return & Growth: Getting the Balance Right
Risk, Return & Growth: Getting the Balance Right Richard Harvey, Group Chief Executive 4 October 2006
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: Profitable growth and increasing dividends
Profitable growth and increasing dividends £ billion • Best ever results in H1 3.5 Operating Profit* 2006 3 2.5 – Strong growth across UK 2 Life, General Insurance and International Life 1.5 businesses 1 – 10% increase in dividend 0.5 0 – Return on equity of 14% 2000 2001 2002 2003 2004 2005 2006 Ha
Slide 4: Strong focus on balancing risk & return
Strong focus on balancing risk & return International growth increases Group diversification* Competitive advantage through: BU diversification • Balanced portfolios within Required Economic Capital each business Global diversification • A global business, and Life/GI diversification Impact of furth
Slide 5: My view of the Aviva world
My view of the Aviva world North America Europe Asia Pacific • Largest market with largest • Mature, stable markets • High growth market projected growth • Access to distribution is key • Accelerate growth in India • Well established • Superior understanding of and China competition customer as diff
Slide 6: Background to UK Life
Background to UK Life UK Life Total Sales Growth £m • Distribution 4000 development 3500 • Product development 3000 • Bancassurance 2500 2000 1500 • Capital management Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Life & Pensions Investments 12.1% market share H1 2006 6 © Aviva plc
Slide 7: UK Life – latest developments
UK Life – latest developments • The effect of service improvements are becoming more visible: – Calls answered in 8 seconds – NB Bonds processed in 5 days – NB Individual Pensions processed in 5 days • Simplified life insurance proposition launched • 29 new fund choices for Portfolio Bond • NUL awar
Slide 8: UK Life – outlook and focus
UK Life – outlook and focus • Maintain a market leading position • Positive outlook with the return of customer confidence, supported by: – Growth in equity markets – A-day • Operational focus – New senior management team with a track record of success – £125m saving as part of the Aviva UK cost and
Slide 9: Background to UK General Insurance
Background to UK General Insurance Operating Profit £ bn COR % • Exited London Markets and 1200 110% large commercial business 1000 • Focus on motor, household 105% and SME 800 • Develop direct, broker and 600 100% partnership channels 400 • Underwriting, pricing and cost 95% disciplines 200 • RAC a
Slide 10: UK General Insurance – latest developments
UK General Insurance – latest developments • PAYD launch – Very successful pilot scheme – 100,000 boxes by end 2006 – Now available to all ages • RAC developing well – 400,000 new customers by 30 June 2006 – On track to deliver on external commitments • RAC breakdown winning new business – 3 year br
Slide 11: UK General Insurance – outlook and focus
UK General Insurance – outlook and focus • Worldwide COR target to meet or beat 98% • Pricing for risk – 16% average increase in motor premiums • Cost management – £125m saving as part of the Aviva UK cost and efficiency initiative • Knowledge sharing across GI internationally – PAYD, flood mapping,
Slide 12: Background to Aviva International
Background to Aviva International £m % • Exited US general 250 NBC Net/Net/Net 2 insurance and a range 1.8 of other countries 200 1.6 1.4 • Strong organic growth in 150 1.2 Europe 1 100 0.8 • Successful 50 0.6 bancassurance strategy 0.4 0.2 0 0 • Entry into China, India 2000 2001 2002 2003 2004 2005
Slide 13: Aviva International – examples of new developments
Aviva International – examples of new developments • China – Bank of China “partner of choice” – Licences in 6 major cities, with 7 further sales offices • India – Over 330,000 policies in-force, across more than 370 locations – Major bancassurance agreement with Centurion Bank of Punjab • Italy – D
Slide 14: Aviva International – outlook and focus
Aviva International – outlook and focus • Implement a balanced growth strategy, – Growth and value creation • Increase presence in chosen high growth markets – Accelerate development in India and China – Complete acquisition and focus on integration of AmerUs – Execute market entry in Taiwan and Rus
Slide 15: Objectives across Aviva: getting the balance right
Objectives across Aviva: getting the balance right • Listening and responding to customer needs • Organic growth • Developing multi-distribution channels • Sharing ideas across businesses to promote efficiency Managing Aviva as a global company 15 © Aviva plc
Slide 16: Questions & Discussion
Questions & Discussion 4 October 2006