Aviva Plc · LSE:AV.
Aviva — Q3 2020 Earnings Presentation
19 slides from Aviva's earnings presentation, Nov 26, 2020
Slide 1: Q3 market update
Ic Q3 market update Aviva p 26 November 2020
Slide 2: Cautionary statements
Cautionary statements. This should be read in conjunction with the documents distributed by Aviva plc (the “Company” or “Aviva”) through the Regulatory News Service (RNS). This announcement contains, and we may make other verbal or written “forward-looking statements” with respect to certain of Aviv
Slide 3: Amanda Blanc, Chief Executive Officer
Officer le e Amanda Blanc Chief Executive
Slide 4: Today's agenda
Today’s agenda Update on strategic priorities Dividend and capital framework 9M20 trading update
Slide 5: Delivering on our priorities
Delivering on our priorities Focus the Transform Financial portfolio performance Strength Y £2bn of announced disposals Y Strong growth in key segments Y Solvency II surplus £11.8br* . where we hold leading market . be v¥ Singapore positions Y Sil cover ratio of 195% v Italy - Aviva Vita Y Cost savi
Slide 6: Good progress on the portfolio
Good progress on the portfolio Singapore * Sale of majority shareholding for SGD2.7bn (c£1.6bn) * Attractive multiples: P/E 18.7, P/Own-funds 2.0x * Accretive to cash and capital, with minimal impact on group operating profit and cash remittances * Completion targeted for 30 November 2020 Progress a
Slide 7: Dividend aligned to core businesses
Dividend aligned to core businesses 2020 dividend Future dividend growth driven by core businesses * 7.0p per share interim 2020 dividend * Sustainable and resilient dividend covered by capital generation and cash remittances from the UK, Ireland and Canada * Tobe paid on 21 January 2021 * Expect to
Slide 8: Capital framework
Capital framework Financial Strength Excess Capital deployment * Targeting <30% SII debt leverage: likely Sil cover ratio’ to exceed £1.5bn debt reduction target 195% by end of 2022 r | * Target Solvency to remain aboverange _ Target working range: 160-180% as portfolio is reshaped and debt reduced
Slide 9: Jason Windsor, Chief Financial Officer
indsor Jason W Icer ial Off ief Financ Ch
Slide 10: Strong YTD growth in the UK, Ireland and Canada
Strong YTD growth in the UK, Ireland and Canada General insurance UK & Ireland Life ji A A | UK Savings & Retirement | Aviva Investors UKGI, Ireland & Canada excl. S&R iD «cba 9.2 PUNBP®(¢bn) Net flows bn) 6.0 Net flows bn) NwP(ém) 5,780 5,781 12 414% 5.0 cD Commercial 6.6 => Sad Ireland & other ll
Slide 11: Resilient Q3 performance in UK, Ireland and Canada
Resilient Q3 performance in UK, Ireland and Canada UK & Ireland Life excl. S&R PVNBP®(¢bn) Ireland & other Health & Protection Ind, annuities & Equity release BPAS 1Q20 2Q20 3Q20 * BPAsales: +43% vs. 2Q20 * Temporarily lower NB margin pending target reinsurance and asset mix on BPAs | UK Savings & R
Slide 12: Manage-for-value businesses
Manage-for-value businesses | Europe & Asia Life YTD PVNBP* (bn) Discrete PVNBP (bn) 1L7 3.6 18 os 3.2 9.3 05 16 25 05 9M19 9M20 1Q20 2Q20 3Q20 * YTD sales down 21% from active reduction of with-profit volumes in France & Italy, and impact from COVID-19 related confinement measures in 2Q20 Poland &
Slide 13: Financial strength
Financial strength SII cover ratio” * Sllratio +1pp vs. HY: Q3 OCG partly offset by payment of 2" 2019 interim 5 7 dividend and French modelling 206% 194%] Not included in 9M20 position: announced disposals of Singapore & Italy, and T2 CAD$450m debt issued in October FY19 HY20 Shareholder corporate
Slide 14: Our sustainable dividend policy is anchored to our core cash generation
Our sustainable dividend policy is anchored to our core cash generation £bn 2019- 2019 2020-22 Average Remittances 22 Actual Classen. Excess cash flow and Targets . , headroom will benefit from: UK Life & Al (excl. specials) 45 (1.0) 3.5 1.1 * Transformed performance Core Gl (UK, Ireland & Canada) 1
Slide 15: Remittances are supported by strong solvency positions
Remittances are supported by strong solvency positions Key cash remitting entities solvency positions % UK Life & Pensions AIL (Gl) Canada (local basis) Reinsurance mixer (Shareholder view) (Shareholder view) 162 167 169 150 a | ; : ; : FY19 Q320 Fy19** Q320 FY19 Q320 FY19 Q320 + Key sensitivities*:
Slide 16: FY20 outlook
FY20 outlook * Management actions & Other is expected to be above previous guidance of £0.2bn - Further benefits from UK longevity expected, albeit lower than 2019 * Trading impact from Q4 lockdowns remain uncertain but no significant increase in net BI claims expected * Growth trends in Savings & R
Slide 17: Strong foundations from which to succeed
Strong foundations from which to succeed * The leading insurer for all insurance, protection, savings and retirement needs in our home market * Strong financial position from which to drive profitable growth * Plans well developed to transform performance - will update on progress as we deliver * Si
Slide 18: Q&A session
Q&A session Laie ; , = Amanda Blanc, Chief Executive Officer \ 4 | ol q Jason Windsor, Chief Financial Officer
Slide 19: Footnotes
Footnotes 1. Denotes Alternative Performance Measures (APMs), which are key performance indicators of the Group used to measure our performance and financial strength. Further details are included in the ‘Other information’ section of the HY20 Analyst Pack. 2. The estimated Solvency II position repr