Aviva International - strong, balanced and profitable growth Tidjane Thiam Managing Director, Aviva International
We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people
We start from a good place: good spread of positions across markets Top 5 positions Within top 10 Market presence Netherlands (LTS & GI) Spain (LTS) Ireland (LTS & GI) Canada (GI) Poland (LTS) Singapore (LTS) China* (LTS) Turkey (LTS) Lithuania (LTS) Sri Lanka (LTS &GI) * Among foreign players France (LTS) Italy (LTS) Australia (LTS) India (LTS) Hungary (LTS) Romania (LTS) LTS Long Term Savings GI General Insurance USA (LTS) France (GI) Italy (GI) Turkey (GI) Poland (GI) Hong Kong (LTS) Czech Republic (LTS) Russia (LTS)
Managed asset classes are a significant opportunity Global Personal Financial Assets 2004 100% = $102tn Home Equity 32% 21% Cash & Deposits Life and Pensions 12% 11% Occupational Pensions 8% 16% Mutual Funds Direct Investments Managed asset classes
across the three major economic zones Growth In Life and Pensions assets by region Life & Pensions Assets CAGR (2004-2015) ROW Latin America Asia excl. Japan Area of bubble = Projected increase in Life & Pensions assets to 2015 Japan North America Aviva s presence Strong Growing None Europe Life & Pensions Assets 2004 ($bn) Source: Mercer Oliver Wyman
We will continue to invest in growing our GI presence Strong positions to start from and many opportunities Leading positions in the UK, Ireland, Canada and the Netherlands Leverage strengths in key capabilities to gain market share and increase profitability Add new distribution channels (e.g. banks, direct distribution) Well-established businesses supporting our LTS strategy in France, Italy, Poland and Turkey Acquire selectively to build scale
We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people
Creating value through customer satisfaction Aviva France Satisfied customers are the ones that create lasting value They bring in new customers by referring your company to their families and friends 100% They are prepared to buy other products from you as they trust you 50% 0% Moderately satisfied * Very satisfied ** Recommending Aviva Wish to buy again * Client satisfaction rating equal to 5/10 ** Client satisfaction equal to 8/10
Creating value through customer insights Aviva India Product development using continuous research into customer needs
You only improve what you measure 2005 2007 Measured by 50% of our businesses Customer Advocacy (customers are ready to recommend to others) Measured by 100% of our businesses Measured by 87% of our businesses Customer Satisfaction (customers are pleased about how company suits their needs) Measured by 100% of our businesses We aim at being the provider of choice for our customers
We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people
To win, we need to excel at reaching customers through their preferred distribution channels IFAs / Brokers IFAs / Brokers Bancassurance including JVs IFAs / Brokers Tied Agents Tied Agents Bancassurance including JVs Bancassurance including JVs Tied Agents Tied Agents Others Others Others Others Emerging Developing Mature Type A Mature Type B xamples: India Poland China France Spain, Italy Netherlands Australia, USA
What we have achieved diversified distribution AI Life & Pensions distribution by channel 2000 AI Life & Pensions distribution by channel 2005 7% 26% 34% 55% 38% 40% Independent Agents/Brokers Tied Agents/Direct Bancassurance Basis 2000 APE Basis 2005 PVNBP Broad access to customers Net of minorities
Building proprietary distribution Aviva operates the Direct Sales Force model in markets with differing degrees of maturity Life Premiums as a % of GDP 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% China, India C&EE France Netherlands 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Life Premiums per Capita ($) UK Source: Sigma
Bancassurance: a strategy for the long term Bancassurance 2000 Bancassurance 2005 PVNBP 373m PVNBP 2,602m UniCredit BdM BPI BPU Crédit du Nord ABN AMRO DBS Singapore DBS Hong Kong Caixa Galicia Unicaja Caja Espana Caja de Granada Bancaja Net of minorities, 2000 PVNBP calculated using 2003 capitalisation factor. Excludes distribution agreements, other than DBS
Bancassurance growth from customer base penetration Insurance penetration of Spanish partner customer bases 25% Bancaja 20% 15% 10% 5% Unicaja Caixa Galicia Caja Espana Caja Granada 0% 2000 2001 2002 2003 2004 2005 Basis: Different customers in each Business Unit divided by the number of active customers in each Savings Bank.
Bancassurance growth from extended distribution reach Partners network has grown fourfold in five years 4,500 4,000 No. of branches 3,500 3,000 2,500 2,000 1,500 1,000 500 Caja España Caja Granada Unicaja Caixa Galicia Bancaja 0 2000 2001 2002 2003 2004 2005
Working with independent agents Aviva actively supporting the development of the independent financial planning channel Strong experience dealing with independent agents: - Aviva Singapore ranked 1st in the IFA sector - Aviva Australia positioned as the home of the independents - Aviva USA growing strongly through independent agent distribution
We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people
The right people: the importance of our teams Aviva s decentralised model empowers local management teams Employee engagement is critical to delivering Aviva s values Senior management bonuses partly linked to Business Unit scores for leadership and employee engagement
We aim for sustainable and profitable growth The right markets The right capabilities - Provider of choice for customers - Partner of choice for distributors The right people
This strategy has produced excellent results: among the fastest growing of our peers in Europe Growth in Life premiums - Aviva vs. Peers in Europe excluding UK (CAGR 2000-2005, in %) 10 10 1 3 2 Aviva Allianz Axa Generali ING Source: Annual Reports; Total Life and Pensions GWP
High growth can be achieved in large developed markets Aviva Businesses performance relative to national markets (CAGR 2000-2005) 34.2 15.2 11.2 0.5 Aviva Italy Aviva France Delta Lloyd Aviva Spain 2000-05 market CAGR +13.1% +5.9% +1.3% 1-3.0% Note: Total PVNBP Growth net of minorities, constant currency (Source Aviva) - Life & Pensions Market Premium Growth (Source: Axco, Aviva) 1 2005 market premiums based on Delta Lloyd estimate of 1% growth
and we are adept at successfully entering new markets China India Aviva PVNBP Aviva PVNBP +197% p.a. 35 +112% p.a. 31 4 7 7 15 2003 2004 2005 2003 2004 2005 Market position Generali AIA Prudential Aviva 2003 2004 2005-5 1 1 1 2 4 2 3 13 12 4 22 bancassurance deals giving access to more than 41m customers Extending presence into Sri Lanka Basis foreign JVs