Aviva Plc · LSE:AV.
Aviva — CGU — Q1 2000 Earnings Presentation
16 slides from Aviva's earnings presentation, May 10, 2000
Slide 1: Results: 3 months 2000
R esults: 3 months 2000 Bob Scott G roup Chief Executive 10 M ay 2000
Slide 2: Results highlights
R esults highlights Strong first quarter s Pre-tax operating profit significantly higher at £396m (including achieved operating life profits) s O perating EPS +59% s Profitable growth in life and savings s A sset management profit £25m +91% s G eneral insurance profit £165m +46%
Slide 3: Strong growth in life profits
Strong grow th in life profits s A chieved life operating profit £289m (1999 £181m) – strong new business profit – higher longer term investment return assumptions s Statutory profits £127m (1999 £116m) £289m A chieved life operating profit £181m 1999 2000
Slide 4: Life & savings new business
Life & savings new business s W orldwide sales £1.9bn – life & pensions sales up 19% (A PE +43%) s Strong growth in the UK , France and Poland s New business value +40% – U K m argins maintained – volume growth in France – strong contribution from Polish pensions
Slide 5: Growth in distribution power
G row th in distribution pow er RBS/NatWest RBS/NatWest Customer Customer Base Base s Joint venture to provide life, pensions and investment Current Account Customers 9.2m products to the RBS Credit Card Customers 7.2m s A cquiring 50% stakes in Royal Scottish A ssurance and Internet banking Custome
Slide 6: General insurance
G eneral insurance s G eneral insurance profit £165m +46% — good improvement in the UK & US — w orse in France & N etherlands s W eather claims costs £60m (1999 £74m)* s Longer term investment return £362m (1999 £300m) — higher investment returns — acquisitions s U K administration expense ratio 11%
Slide 7: General insurance rates firming in most markets
G eneral insurance rates firming in most markets s U K rates – private motor + 20% – commercial motor + 20% – liability classes + 8% s US rates – workers’ comp +8.5% – agri +5.5% – total commercial lines +6% s A ustralia rates – motor + 6% – liability classes + 14%
Slide 8: CGNU merger update
C G N U merger update s Strong support from shareholders s EU clearance for merger - most regulatory approvals received s “Bottom up” exercise on cost savings - announce with interim results (A ug 2000) s A ppointments of BU heads completed and good progress on other senior positions s Completion of
Slide 9: Summary
Summary s Pre-tax operating profit £396m (1999 £255m) s A chieved operating life profit +68% s L ife and pensions new business +19% s New business value +40% s A sset management +91% s G eneral insurance profit +46% s G rowth in distribution power s M erger on schedule for completion around end of M
Slide 10: The "online game"
The “online game” s The established players to win the “online game” for financial services s Competitive advantages over new-comers: – Financial muscle – Distribution expertise – Brand advantage/ Consumer credibility – Product manufacturing skills Several initiatives underway in B2C & B2B
Slide 11: Wealth management project
W ealth management project s Both CGU and Norwich Union have significant wealth management projects s Projects undergoing executive review s Choose best from both s M ore details with the CGNU half-year results s First initiative launched today: “asserta home”
Slide 12: Results: 3 months 2000
R esults: 3 months 2000 Bob Scott G roup Chief Executive 10 M ay 2000
Slide 13: Appendix
APPENDIX CGU
Slide 14: Adverse weather / catastrophe claims costs
A dv erse w eather / catastrophe claims costs 3 months £m 2000 1999 UK 41 42 France 9 - USA 10 22 C anada - 4 A ust & N Z , O ther - 6 60 74
Slide 15: Total premium and investment sales
T otal premium and investment sales* L ife & savings G eneral insurance Other Europe Rest of Rest of W orld North America Italy 11% W orld 3% 12% 40% 8% UK 30% Netherlands 12% France UK 44% Continental Europe 22% 18% *12 months to 31.3.2000
Slide 16: General insurance investment mix
G eneral insurance inv estment mix (economic exposure 31.3.2000) Properties 5% M ortgages & L o ans 2% Cash & D eposits 5% Equities 31% Fixed Interest 57%