Professional Documents
Culture Documents
page 1
Disclaimer
This presentation is for information purposes only. It should be read in conjunction with the documents filed by Aviva plc (the “Company” or
“Aviva”) with the United States Securities and Exchange Commission (“SEC”).
This presentation contains certain “forward-looking statements” with respect to certain of Aviva’s plans and current goals and expectations
relating to future financial condition, performance, results, strategic initiatives and objectives. Statements containing the words “believes”,
“intends”, “expects”, “plans”, “seeks”, “aims”, “may”, “could”, “outlook”, “estimates” and “anticipates”, and words of similar meaning, are forward-
looking. By their nature, all forward-looking statements involve risk and uncertainty. Accordingly, there are or will be important factors that could
cause actual results to differ materially from those indicated in these statements. Aviva believes these factors include, but are not limited to: the
impact of difficult conditions in the global capital markets and the economy generally; the impact of new government initiatives related to the
financial crisis; defaults in our bond, mortgage and structured credit portfolios; the impact of volatility in the equity, capital and credit markets on
our profitability and ability to access capital and credit; changes in general economic conditions, including foreign currency exchange rates,
interest rates and other factors that could affect our profitability; risks associated with arrangements with third parties, including joint ventures;
inability of reinsurers to meet obligations or inavailability of reinsurance coverage; a decline in our ratings with Standard & Poor’s, Moody’s, Fitch
and A.M. Best; increased competition in the U.K. and in other countries where we have significant operations; changes in assumptions in pricing
and reserving for insurance business (particularly with regard to mortality and morbidity trends, lapse rates and policy renewal rates), longevity
and endowments; a cyclical downturn of the insurance industry; changes in local political, regulatory and economic conditions, business risks
and challenges which may impact demand for our products, our investment portfolio and credit quality of counterparties; the impact of actual
experience differing from estimates on amortisation of deferred acquisition costs and acquired value of in-force business; the impact of
recognising an impairment of our goodwill or intangibles with indefinite lives; changes in valuation methodologies, estimates and assumptions
used in the valuation of investment securities; the effect of various legal proceedings and regulatory investigations; the impact of operational
risks; the loss of key personnel; the impact of catastrophic events on our results; changes in government regulations or tax laws in jurisdictions
where we conduct business; funding risks associated with our pension schemes; the effect of undisclosed liabilities, integration issues and other
risks associated with our acquisitions; and the timing impact and other uncertainties relating to acquisitions and disposals and relating to other
future acquisitions, combinations or disposals within relevant industries.
For a more detailed description of these risks, uncertainties and other factors, please see Item 3, “Risk Factors”, and Item 5, “Operating and
Financial Review and Prospects” in Aviva’s registration statement on Form 20-F as filed with the SEC on 7 October 2009. Aviva undertakes no
obligation to update the forward-looking statements in this presentation or any other forward-looking statements we may make. Forward-looking
statements in this presentation are current only as of the date on which such statements are made.
Aviva Europe – Making a Quantum Leap 2
22 October 2009 Page 2
Andrew Moss
Aviva Group CEO
Purpose
Vision
One Aviva,
• We have communicated plans and progress in UK Life, UK GI, North
twice the value
Strategic Targets
America and Aviva Investors
priorities
Aviva Investors
Asset Management
• Globally integrated business • Transform the investment model • Increase third party business
HY1 2009 for long-term savings sales (present value of new business premiums and investment sales), GI and health sales (net written
premiums) and IFRS operating profit (before group debt and interest costs)
€40tr personal
financial assets €4tr premiums in
800m+ population next five years
Composite
Aviva’s
presence
Life & pensions
Source: CEA, AXCO
Aviva Analysis 2009
Aviva Europe – Making a Quantum Leap
22 October 2009 Page 9
Source: UN (2009), CEA (2009), Aviva PFA Model (2008)
Leadership is there to be grasped
4.8%
5%
4% • Macro, micro and industry
3.0%
3% 2.4% 2.4% trends
1.7% 1.7% 1.6%
2%
1%
0%
• Opportunity in adversity
a
N
a
nz
s
P
go
i
iv
al
Ax
ric
rti
ol
O
N
lia
Av
er
Er
ic
Fo
C
Zu
Al
gr
en
AE
tA
G
di
ré
C
Notes:
• Market size, taken from 2007 CEA data, deflated to account for business written outside of Europe and other non-primary insurance
income
• Source: CEA, ABI, AEGON Reports and Accounts
• Includes UK
Our Our Making money Conclusions
Aviva Europe – Making a Quantum Leap Focus
opportunity in Quantum and creating and
22 October 2009 sessions Page 10
Europe Leap value Q&A
Aviva is uniquely positioned
Region Aviva
Strengths in 15 markets Share of GDP L&P PVNBP GI NWP
H1 09 €m H1 09 €m
France 14.5% Top 10 2,733 631
Covering 80% of GDP and premium
Ireland 1.4% Top 5 478 Top 5 294
Italy 11.7% Top 10 2,461 190
Lithuania 0.2% Top 5 49 -
Poland 2.7% Top 5 572 20
Russia 8.5% Top 5 14 -
Spain 8.1% Top 5 1,394 -
Turkey 3.7% Top 5 134 53
Czech Rep 1.1% 17 -
Hungary 0.8% Top 10 26 -
Slovakia 0.5% 1 -
Romania 1.0% Top 5 41 -
Belgium 2.6% Top 10 465 -
Germany 18.6% 177 -
Netherlands 4.4% Top 5 1,351 Top 5 758
79.8% 9,913 1,946
Source: IMF
Our Our Making money Conclusions
Aviva Europe – Making a Quantum Leap Focus
opportunity in Quantum and creating and
22 October 2009 sessions Page 11
Europe Leap value Q&A
Aviva is uniquely positioned
Strengths in 15 markets
Belgium
6
Netherlands
Italy
High potential
4
markets
Spain Germany
Poland Hungary
2
Slovakia Czech Rep
Romania Lithuania
Market bubble size proportionate
0
Turkey Russia to premiums
- 10,000 20,000 30,000 40,000 50,000
GDP per Capita (PPP) (€)
Source: AXCO
Strengths in 15 markets
80%
In different stages of development
70%
Regionalisation*
40%
Zurich
30% ING
Credit AEGON
20% Agricole
CNP
10% Groupama
Bubble size proportionate
to premiums
0%
0 5 10 15 20 25
Number of markets
* Regionalisation (Continental Europe) defined as premium generated outside
home market and UK as a percentage of total premium generated in Europe
Source: CEA, Aviva
Analysis2009
Our Our Making money Conclusions
Aviva Europe – Making a Quantum Leap Focus
opportunity in Quantum and creating and
22 October 2009 sessions Page 13
Europe Leap value Q&A
Aviva is uniquely positioned
Strengths in 15 markets
Strengths in 15 markets
Aviva Europe
Delta Lloyd
All data in the following sections refers to Aviva Europe excluding Delta Lloyd
Aviva Europe – Making a Quantum Leap
22 October 2009 Page 17
Our Quantum Leap is transforming our business
From twelve
businesses to one
Customer
IT and Human
Bancassurance Retail Management Products Finance
Operations Resources
and Marketing
Markets
7
Markets
Markets
Jean Pierre Ignacio Stuart Andrea Maciej Asta Andrey Janos Karel Shah GI Life*
Menanteau Izquierdo Purdy Battista Jankowski Ungulaitiene Dubinin Bartok Vesely Rouf Ertan Firat Meral Egemen
Pan-European governance
• A winning team united by one bold vision and very clear accountability
• 377 years of experience
• Pan European leadership… local market knowledge
*Joint venture with Sabanci Holding
GI Claims Management
Leverage Aviva best practice to reduce claims unit costs
Shared Services
Centres of excellence and shared processes to reduce costs and support our vision
Data
Single database to facilitate CRM and provide insightful real time MI
Governance
Single legal entity – state of the art capital and risk management
From To
continued …
continued …
Cost base falls 7% in real terms after absorbing wage cost inflation
€m 650
16 44
15
600
550 7% reduction
500
350
300
HY 2008 Inflation Cost savings BaU cost base Rebranding Published cost
HY 2009 and base HY 2009
restructuring
costs
- Life NB €(36)m
€(36)m Life NB €(42)m Life NB Total retail profit €140 m
(50) at 4.3% margin at 3.0% margin
Notes:
(100) • EB & NB denote net IFRS operating profit or loss on Life existing business and new business respectively
• Return on assets bps calculated as annualised Life EB IFRS Operating Profit divided by average assets under management, expressed as basis points
70%
10%
60% 10.2%
50% 8%
Spain
7.9%
40%
7.1% 7.3%
6%
30% 6.1%
20% 4%
10%
Italy
Italy
n.a. n.a.
2%
0% 2.10%
1.6% 1.7% 1.8%
2000
2008
2000
2001
2002
2003
2004
2005
2006
2007
2008
2001
2003
2005
2006
2005
2006
2007
2008
2002
2004
2007
2000
2001
2004
2002
2003
0% 1.1%
2004 2005 2006 2007 2008
50
30
• Increasing number of high quality
25 partners
20
15
10
• 46 agreements
• Over 20,000 branches
• Access to over 30m bank customers
Undisputed leading
partner of choice
Total Life
• €620bn market
€105bn €58bn €35bn €15bn €10bn €23bn €246bn
and GI GWP
100%
(€260bn Life, €360bn GI)
90% 2.5% 1.0% 0% 20.0% 0.4% 0.8% 1.8% Aviva GI
Retail
80% Market
Share • Aviva Retail share 4.3%*
70%
Share of Market
– Life 7.8%
60%
50%
– GI 1.8%
40%
30%
• Retail market growth (2005–08)
Aviva Life 3.5% p.a.
20% 10.1% 0.7% 2.7% 11.1% 8.4% 6.0% 7.8% Retail
Market
10% Share
0%
France Italy Spain Ireland Poland CEE Aviva
Europe
Retail Life Retail GI Markets
Improve performance
2009-2012