Disclaimer. Aviva plc

Transcription

1 Sustainable growth Richard Harvey Group Chief Executive 6 October 2005

2 Disclaimer This presentation may contain certain 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 because they relate to future events and circumstances which are beyond Aviva s control including among other things, UK domestic and global economic business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Aviva and its affiliates operate. As a result, Aviva s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Aviva s forward-looking statements. Aviva undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward-looking statements we may make.

3 Agenda Aviva - the winning proposition - General Insurance sustainable profits - International Life the growth story - UK Life - competitive advantage Conclusion

4 The Aviva Proposition A balanced portfolio - Flexibility - Strength - Resilience - Reliability Generating 752m capital in H to fund dividend and growth 5% dividend growth target met

5 The foundations for sustainable growth > Surviving the storm Positioning for growth Delivering growth and value Cost reduction Operational excellence Major disposal programme Asia LTS entry Capital structure RAC acquisition China / India acceleration Russian office Renewed focus on customers Winning composite business model Benefits of scale Build on the foundations Capitalise on Financial Strength Leverage financial expertise

6 General insurance General Insurance sustainable profits International Life the growth story UK Life - competitive advantage

7 The traditional cycle has changed A more predictable market With fewer major players Reduces amplitude of the cycle Produces a steadier ROCE HY 2005 COR ROCE

8 The customer proposition Distribution channels Contact channels National Brokers - 9 National Accounts - 28 Regional Brokers Telephone a/c Managers Partners Direct Brokers Call Centre Internet imarket/ EDI On-site U/W Claims Management Sustainable profits

9 Operational excellence A successful offshoring strategy cumul. P&L benefit m P&L benefits P&L costs Sustainable profits

10 Innovation Digital flood mapping - Evidence of savings emerging Flood mapping delivery June 04 September 04 December 04 March 05 In progress PAYD - Further expansion during Significant penetration expected in the UK Sustainable profits

11 The RAC opportunity NUI Strategically sound Operationally compelling A value driven transaction RAC Insure RAC More on this at the GI day on 18 October 2005

12 International life General Insurance sustainable profits International Life the growth story UK Life - competitive advantage

13 Aviva has a balanced portfolio in mature markets New business life & pensions sales (APE) Europe (ex UK) 2004 Other Ireland Rank: 3 rd 9% Poland Rank: 2 nd 7% 3% 24% France Rank: Top 10 Italy Rank: 7 th Spain 16% Rank: 3 rd 20% 21% The Netherlands Rank: Top 5

14 Mature markets a portfolio for growth Delta Lloyd Strong sales through JV partner ABN AMRO Strong expense control New business margin reduction in 2005 driven by reduction in interest rates France Strategic partnerships with Credit du Nord (Antarius) and AFER AFER product regarded as market leader Increasing proportion of profitable unit linked business Spain Strong bancassurance partnerships Focus on higher margin protection and pension products Low expense base by using administration factory for all bancassurance partners Italy Multiple bancassurance partnerships Rapid product delivery, with reputation for innovation Low expense base through economies of scale

15 Mature markets a portfolio for growth APE ( m) HY 2005 Italy, France, Spain & The Netherlands 400 New Business Contribution ( m) HY 2005

16 High growth markets China - Aim to be in 10 major cities/provinces by Aviva-COFCO operate in 9 cities - Most recent branch office opened in Fuzhou Russia - August 2005 opened representative office in Moscow - September 2005 appointed CEO for Russia - Entry strategy being developed Eastern Europe - Established in Poland, Hungary, Czech Republic, Romania and Turkey - Well positioned for EU accession opportunities - Already number 3 in new Turkish Pension market - Fastest growing life insurance company in Czech Republic

17 UK Long-term savings General Insurance sustainable profits International Life the growth story UK Life - competitive advantage

18 The market opportunity Current growth approximately 5% before bulk transfers, but: - Stable equity markets - High employment - Pension reform Turner report - Gradual return to savings expected to accelerate in 2006

19 Poised to benefit and grow when demand returns Distributor Panel Members Key Protection Only Relationships Key Single Tie Relationships (across Bancassurance, Retail, and Building Society Channels)

20 Lifetime Wrap Market forecast of 150bn assets under management by 2008 Preferred platform for leading wealth management solutions Over 1000 leading funds and 46 fund managers Provides SIPP, ISA, PEP, Bond and General Investment Account Deals in place with Millfield and Tenet 6 Continued Rise of Fund "Supermarkets" BN H Supermarket sales Intermediary ISA sales

21 An excellent bancassurance proposition 20% new business increase in 2005 compared to 2004 Products now integrated into the core RBS and NWB customer offering Product range has been improved 200m portfolio bond sales since product launch in February. Over 100,000 stakeholder based Child Trust Fund accounts opened

22 Aviva: sustainable growth A balanced portfolio that provides capital for both dividends and growth Sustainable profits from general insurance Continuing growth across our international portfolio A positive outlook for UK long-term savings Aviva is financially fit and strongly positioned for profitable growth

23 Questions and Discussion

24 Slide 24