TIDMAV.
RNS Number : 9065B
Aviva PLC
04 November 2009
?
News release
4 November 2009
Aviva plc third quarter 2009 interim management statement
+--------------------------+--------------------------------------------------------+
| AVIVA REPORTS GBP27 BILLION WORLDWIDE SALES, SIGNIFICANT BALANCE SHEET |
| IMPROVEMENT AND POSITIVE 2009 TOTAL PROFIT OUTLOOK |
+-----------------------------------------------------------------------------------+
| Managing for profit | * Worldwide total sales and life and pensions sales |
| | both reduced by 11% due to lower consumer demand and |
| | strategic actions* |
| | Group margin in line with full year 2008 at 2.1%* |
| | Outlook for 2009 total profitability remains good |
+--------------------------+--------------------------------------------------------+
| Strong uplift in capital | * Enhanced IGD solvency surplus of GBP3.7 billion * |
| and balance sheet | 25% increase in MCEV NAV per share at 520 pence from |
| | half year 2009 |
+--------------------------+--------------------------------------------------------+
| Increasing pace of | * Successful partial IPO of Delta Lloyd, completion |
| transformation | of sale of Australian life business, UK reattribution |
| | and US listing* |
| | Europe strategy to deliver synergies and improve |
| | distribution and customer focus* |
| | New executive team responsibilities announced and new |
| | CFO appointed |
+--------------------------+--------------------------------------------------------+
Andrew Moss, Aviva's group chief executive, commented:
"In recent months Aviva has completed a number of strategic initiatives which,
together with improving financial markets, significantly increased our capital
and balance sheet strength. The outlook for the group's total profitability in
2009 is good despite a reduction in sales driven by continuing customer caution
and active management of sales volumes to optimise profitability.
"In the past three months we've completed the sale of our Australian life
business, listed on the New York Stock Exchange, announced future management
changes and begun to send a total of GBP0.5 billion to 805,000 UK customers as a
result of our inherited estate reattribution.
"Yesterday's successful IPO of part of our holding in Delta Lloyd was another
significant milestone for Aviva, giving us further opportunity to reallocate
capital to other parts of the group. The changes we have made increase our
financial flexibility and position Aviva well for the future."
Key financial highlights
+-------------------------------------------+-----------+-----------+----------+----------+
| | 9 | Restated1 | Sterling | Local |
| | months | 9 months | change | currency |
| | 2009 | 2008 | % | change |
| | GBPm | GBPm | | % |
+-------------------------------------------+-----------+-----------+----------+----------+
| Total life and pensions sales (PVNBP)2 | 24,060 | 27,014 | (11)% | (19)% |
+-------------------------------------------+-----------+-----------+----------+----------+
| Total investment sales3 | 3,042 | 3,374 | (10)% | (16)% |
+-------------------------------------------+-----------+-----------+----------+----------+
| Total long-term savings | 27,102 | 30,388 | (11)% | (19)% |
+-------------------------------------------+-----------+-----------+----------+----------+
| New business margin | 2.1% | 2.0% | | |
+-------------------------------------------+-----------+-----------+----------+----------+
| | | | | |
+-------------------------------------------+-----------+-----------+----------+----------+
| | 30 | 30 June | Sterling | |
| | September | 2009 | change | |
| | 2009 | GBPm | % | |
| | GBPm | | | |
+-------------------------------------------+-----------+-----------+----------+----------+
| MCEV Net asset value per share | 520p | 416p | 25% | |
+-------------------------------------------+-----------+-----------+----------+----------+
| IFRS Net asset value per share | 409p | 349p | 17% | |
+-------------------------------------------+-----------+-----------+----------+----------+
| IGD solvency surplus | GBP3.7bn | GBP3.2bn | 16% | |
+-------------------------------------------+-----------+-----------+----------+----------+
1. Restated numbers reflect the move from European Embedded Value (EEV) to
Market Consistent Embedded Value (MCEV) basis.
2. All references to sales
in this announcement refer to the present value of new business premiums (PVNBP)
unless otherwise stated. PVNBP is the present value of new regular premiums plus
100% of single premiums.
3. Investment sales are calculated as new single
premium plus the annualised value of new regular premiums.
=------------------------------------------------------------------------------
=----------------------------------------------
Information
+-------------------+--------------------+-------------------+-------------------------+
| Investor contacts | Media contacts | Timings | Contents |
+-------------------+--------------------+-------------------+-------------------------+
| Andrew Moss | Hayley Stimpson | Real time media | News release |
| +44 (0)20 7662 | +44 (0)20 7662 | conference call | Overview............................1 |
| 2286 | 7544 | 07:30am (GMT) | Business review............ ...3 |
| Philip Scott | Sue Winston | Analyst | Capital management.........7 |
| +44 (0)20 7662 | +44 (0)20 7662 | conference call | Supplementary |
| 2264 | 8221 | 09:30am (GMT) | schedules.....11 |
| Charles Barrows | Andrew Reid | | |
| +44 (0)20 7662 | +44 (0)20 7662 | | |
| 8115 | 3131 | | |
| Susie Yeoh | James | | |
| +44 (0)20 7662 | Murgatroyd/Matthew | | |
| 2117 | Newton (Finsbury) | | |
| | +44 (0)20 7251 | | |
| | 3801 | | |
+-------------------+--------------------+-------------------+-------------------------+
Media
There will be a conference call today for real-time media at 0730 hrs (GMT). The
conference call will be hosted by Andrew Moss, group chief executive.
The Aviva media centre at www.aviva.com/media includes images, company
information and news release archive. Photographs are available on the Aviva
media centre at www.aviva.com/media.
Analysts
There will be a conference call today for analysts and investors at 0930 hrs
(GMT) on +44 (0)20 7162 0125 (quoting "Aviva, Andrew Moss", pass code 849792).
This conference call will be hosted by Andrew Moss, group chief executive.
Replay will be available until 18 November 2009 on +44 (0)20 7031 4064. The
pass code for the whole conference call, including the question and answer
session, is 849792 and for the question and answer session only the pass code is
2682077.
=------------------------------------------------------------------------------
=---------------------
Page 1
OVERVIEW
+------------------+----------------------------------------------------------+
| Key | The period since the half year has been marked by the |
| milestones | achievement of a number of milestones in the ongoing |
| delivered | transformation of Aviva. |
| | We announced yesterday the successful IPO of our Dutch |
| | business, Delta Lloyd, on Euronext Amsterdam, which will |
| | realise gross proceeds of GBP1.03 billion for a 42% |
| | stake. This is a significant strategic milestone which |
| | will provide Aviva with the flexibility to explore |
| | balance sheet restructuring and further growth |
| | opportunities while enhancing the value and liquidity of |
| | our retained stake in Delta Lloyd. It was the largest |
| | IPO to complete in Western Europe this year and we are |
| | delighted with the result. |
| | In September we received final approvals for the |
| | reattribution of the inherited estates of two of |
| | our with profit funds. This month UK policyholders |
| | participating in the reattribution will start receiving |
| | payments totalling GBP0.5 billion, in time for |
| | Christmas. |
| | In October Aviva established a secondary listing in the |
| | US and started trading on the New York Stock Exchange |
| | through its level two ADR programme. The US is a |
| | strategically important market from both a customer and |
| | shareholder perspective. For certain US investors this |
| | is a more convenient way to hold Aviva shares and we |
| | expect our US shareholder base to increase. It also |
| | brings significant additional visibility for the Group |
| | in the world's largest savings market. |
| | On 1 October we completed the sale of our Australian |
| | life business and wealth management platform realising |
| | proceeds of GBP0.45 billion. |
| | The financial benefits of Aviva's ongoing |
| | transformation, such as maintaining group margins and |
| | overall cost reductions, remain on track as we announced |
| | at the half year and these are key points of |
| | differentiation for Aviva as the economic outlook in the |
| | markets in which we operate remains uncertain. |
| | |
+------------------+----------------------------------------------------------+
| New executive | We have recently announced new responsibilities and |
| responsibilities | succession in our executive team. Pat Regan will join |
| | Aviva and succeed Philip Scott as chief financial |
| | officer in February next year. Mark Hodges, who joined |
| | the group board in 2008, will lead our combined UK life |
| | and general insurance businesses and Igal Mayer will |
| | move to head our operations in North America from 1 |
| | January to succeed Tom Godlasky. Andrea Moneta, CEO, |
| | Europe, has joined the group board and is leading |
| | the restructuring of our business in Europe. |
| | |
+------------------+----------------------------------------------------------+
| Sales | The sustained nature of the economic downturn continues |
| profitability | to impact customers' keenness and ability to save, with |
| maintained | many prioritising the repayment of debt over new |
| | long-term savings commitments. In this environment, |
| | Aviva has delivered long-term savings sales of GBP27,102 |
| | million (2008 restated: GBP30,388 million) a reduction |
| | of 11%1 reflecting our focus on profitability rather |
| | than volume of sales in the current economic climate. |
| | Our focus on improving the profitability of new business |
| | meant that our UK life and pension sales reduced by 25% |
| | but the margin for the year to date improved to 2.5% |
| | (HY09: 2.1%). In Europe (excluding Delta Lloyd) sales |
| | for the year to date were resilient at GBP9,770 million |
| | (2008: GBP9,830 million) and benefited from favourable |
| | movement in the euro. This was achieved whilst |
| | maintaining margins at 3.8% (HY09: 3.8%). Delta Lloyd |
| | sales were 11% lower at GBP2,835 million reflecting |
| | lower levels of corporate pension business in 2009. In |
| | North America, US sales for the first nine months were |
| | down at GBP3,742 million (2008: GBP3,810 million), |
| | reflecting a focus on the optimisation of capital |
| | through moderating annuity sales and growing our life |
| | insurance business. Finally, in Asia Pacific, economic |
| | conditions improved in the third quarter but sales were |
| | 22% lower as customers remained cautious about investing |
| | in unit-linked savings products. |
| | |
+------------------+----------------------------------------------------------+
| 1. All growth percentages quoted in this announcement are on a sterling |
| basis unless stated otherwise. |
| 2. Comparatives given are Q3 2008, unless stated otherwise |
+------------------+----------------------------------------------------------+
=------------------------------------------------------------------------------
=------------------------------
Page 2
+----------------+----------------------------------------------------------+
| | Our broad distribution capability continues to serve us |
| | well. Bancassurance life and pension sales were |
| | resilient, 5% higher than the prior year at GBP7,043 |
| | million (2008: GBP6,736 million), benefiting from the |
| | strength of the euro and demonstrating the value of this |
| | revenue stream both to Aviva and to our bank partners. |
| | Work to improve the quality and sustainability of |
| | earnings has also continued in the general insurance |
| | business, both in the UK and overseas, resulting in a |
| | combined operating ratio (COR) of 98% for the first nine |
| | months of this year. However, premium volumes have |
| | reduced, reflecting our stance on writing for value not |
| | volume. |
| | |
+----------------+----------------------------------------------------------+
| Increasing | Our capital position has been further strengthened |
| financial | following management actions and improved market |
| flexibility | conditions. Our IGD surplus stood at GBP3.7 billion as |
| and balance | at 30 September (HY09: GBP3.2 billion). This does not |
| sheet strength | yet include the GBP0.4 billion uplift from the sale of |
| Outlook | our Australian business, the additional GBP0.5 billion |
| | from the Delta Lloyd IPO or the deduction of |
| | GBP0.5 billion for policyholder payments as part of the |
| | reattribution exercise. |
| | The strength and quality of our balance sheet has been |
| | further underlined by the significant recovery reported |
| | today in our MCEV net asset value per share from 416p to |
| | 520p. On an IFRS basis net asset value per share has |
| | increased from 349 pence at 30 June 2009 to 409 pence at |
| | 30 September 2009. |
| | At the full year 2008 we established significant |
| | provisions against future asset default experience in |
| | our UK life business, taking the total default |
| | provisions in respect of this business to GBP1.1 |
| | billion. As at the end of the third quarter 2009, these |
| | remain unutilised, with no material default experience |
| | in either our commercial mortgage or corporate bond |
| | portfolio. |
| | Following the improvement in the US credit markets, |
| | unrealised losses on debt securities in our US |
| | business moved from a net unrealised loss of GBP2.4 |
| | billion at 31 December 2008 to a net unrealised gain of |
| | GBP0.4 billion at 30 September 2009. |
| | We are making significant progress against our five year |
| | strategy to transform Aviva. A number of key initiatives |
| | have been delivered in the last quarter which will allow |
| | us to consider opportunities created by the economic |
| | downturn from a position of considerable financial |
| | flexibility and strength. |
| | Our total profitability outlook for 2009 remains good. |
| | Management actions have been taken across the business |
| | to maintain and improve margins where possible and |
| | reduce costs. We have seen a strong rebound in financial |
| | markets which, if sustained to the end of the year, will |
| | have a positive effect on our overall profits. |
| | |
+----------------+----------------------------------------------------------+
------------------------------------------------------------------------------
=------------------------------------------------------------------------------
=-------
Page 3
BUSINESS REVIEW
Long-term savings
United Kingdom
In the UK, our focus remains on the successful delivery of our strategy of
product innovation, operational efficiency and disciplined financial management.
We believe this, combined with our broad product range, wide distribution reach
and potential for realising further value from our significant existing book of
business leaves us exceptionally well placed to continue to deliver value for
our shareholders and customers.
Market conditions remained challenging and consequently life and pensions sales
were 25% lower at GBP6,664 million (2008: GBP8,845 million), with collective
investments sales of GBP631 million (2008: GBP1,243 million). Despite this, our
life and pensions market share has increased to 10.8%1 (Half Year 2008: 10.4%).
As in the first half of 2009, we continued to focus on improving the
profitability of new business while maintaining rigorous capital discipline.
This has led to an improvement in margin to 2.5% up from 2.1% at the half year
and a reduction in capital strain2 as a percentage of PVNBP to 3.2% (2008:
3.6%).
Our joint venture with the Royal Bank of Scotland has continued to deliver a
strong performance particularly through the simplified pension proposition with
life and pension sales increasing by 7% to GBP972 million. The new business
margin improved to 2.3% (2008: 1.8%).
Total pension sales were lower at GBP2,893 million (2008: GBP3,498 million)
predominantly driven by economic conditions impacting both consumer and employer
behaviour. Rising unemployment coupled with reduced pay settlements have reduced
incremental payments to individual pension schemes. Group and corporate
pensions have continued to see a move towards defined contribution schemes and a
reduction in new members as a result of lower recruitment activity.
Protection sales (excluding creditor) were in line with 2008 at GBP684 million
supported by the success of our Simplified Life product which is generating
record levels of applications each week. Overall protection sales were lower at
GBP707 million (2008: GBP872 million) as a result of the regulatory changes
impacting creditor sales. During July we launched our free life cover for new
parents, an initiative which has been very well received by customers, advisers
and commentators as we seek to highlight the GBP2.3 trillion protection gap that
currently exists in the UK. More recently we have increased the scope of our
critical illness cover with the aim of improving consumer confidence in this
product by making the level of cover more comprehensive.
Total annuity sales were GBP1,249 million (2008: GBP1,920 million). Our
disciplined approach to writing bulk purchase annuity sales at or above our
hurdle rate has meant that sales have reduced to GBP147 million (2008: GBP642
million). Individual annuity sales of GBP1,102 million (2008: GBP1,278 million)
were 14% lower than the equivalent period last year, although we are now seeing
a significant increase in applications compared to earlier in the year.
Bond sales have reduced to GBP1,602 million (2008: GBP2,399 million) in a market
that has contracted by 53%1 since the first half of 2008. We remain committed to
writing business at acceptable levels of return in a market where consumers are
increasingly looking for guarantees. We will be launching a new with-profits
guaranteed product in November to address this need.
We remain the number one provider in the equity release market with sales
growing by 37% to GBP213 million (2008: GBP156 million), reflecting our
attractive proposition and financial strength.
Our brand campaign has seen a significant increase in spontaneous awareness,
from 4% to 55% since last year, as we continue to leverage our successful
re-branding, driving consumer demand and customer advocacy.
1Source: Half Year 2009 ABI data
2Initial capital and associated required
capital
=------------------------------------------------------------------------------
=------------------------------------------------------------------------------
=---
Page 4
Following High Court and FSA approval in September, the deal to complete the
reattribution of our inherited estate was concluded on 1 October with 87% of
policyholders voting and 96% of these voting in favour of the offer. Our
flexible offer meant that payments would automatically increase if the average
value of the inherited estate was higher than GBP1.2 billion over June, July and
August 2009. As the final value was GBP1.25 billion, reattribution payments to
those policyholders who voted "Yes" will be around 7% higher. We are now working
hard to deliver payments to the vast majority of policyholders by Christmas.
We have continued to invest in our e-commerce capability and following extensive
research with the financial adviser community we have launched our new Aviva for
Advisers website. This includes a number of system enhancements and provides a
platform for monitoring their business, saving them time and making it easier
for them to work with customers. Additionally, our innovative, market-leading
on-line pension tracker proposition is now available to over one million
customers. All of these innovations are designed to improve our customer service
while reducing costs.
Our business simplification programme continues to make great progress with the
completion of the outsourcing of the collective investments administration to
IFDS and the migration of legacy policies to Swiss Re nearing completion, with
the final migration due to complete early next year.
We believe that the outcome of our strategic initiatives, financial discipline
and completion of the inherited estate reattribution have put us in an excellent
position to continue to deliver profitable results during these uncertain times.
Europe
At our analyst and investor day on 22nd October we announced our new strategy
for our business in Europe. This strategy is two-fold: the strategic management
of our investment in Delta Lloyd, following the IPO, as Delta Lloyd builds on
its position of strength in its home market, and our new strategy to make a
'Quantum Leap' in the performance of our Aviva Europe businesses elsewhere in
Europe.
Within Aviva Europe we have created a single business operating through a strong
presence in 12 markets, through two pan-European distribution channels,
bancassurance and retail, supported by pan-European product development,
operations, and governance. This will enable Aviva Europe to take advantage of
the significant growth potential and opportunities in Europe, and contribute
fully to the 'One Aviva, twice the value' target. This includes a focus on
growing our profits rather than volumes.
Long term savings sales were GBP13,913 million (2008: GBP13,660 million). Life
and pensions sales were slightly below prior year at GBP12,605 million (2008:
GBP13,020 million) and on a local currency basis sales were 13% down on prior
year.
Aviva Europe
In the third quarter of 2009, we have again delivered a resilient sales
performance, supported by the continuing strength of the euro and the diversity
of our products and distribution channels. Life and pensions sales for Aviva
Europe were broadly in line with the prior year at GBP9,770 million, (2008:
GBP9,830 million). On a local currency basis sales were 10% lower. Excluding the
one-off items in 2008 relating to the transfer of the Caja Murcia risk portfolio
and the initial contributions from compulsory pensions in Romania, sales were
maintained on a local currency basis. This is a good performance in challenging
market conditions. This has been achieved through a strong bancassurance
performance, where we have addressed consumer sentiment for lower risk products
through innovative with-profit guarantee products, and a robust retail sales
performance where our partnership with AFER (a leading savings association in
France) has performed particularly well. Margin has been maintained at 3.8%
(HY09: 3.8%).
Bancassurance
The bancassurance channel dominates our business in Italy and Spain and we also
have a strong presence in France. As the leading bancassurer in Europe, we have
sustained our performance by leveraging our unique bancassurance model.
Overall bancassurance sales have risen by 9% to GBP5,384 million (2008: GBP4,923
million) but are down 3% on a local currency basis. However excluding the
one-off transfer of the Caja Murcia protection portfolio transfer of GBP170
million in 2008, bancassurance sales in local currency were in line with the
prior year as bank partners continue to recognise the value of this revenue
stream.
In Italy, bancassurance sales increased by 58% to GBP2,667 million (2008:
GBP1,683 million), up 40% on a local currency basis. This significant growth
reflects strong sales of protection and with-profit guaranteed products, with
the latter selling particularly strongly in response to active marketing
campaigns in the early part of the year.
=------------------------------------------------------------------------------
=---------------------------------------
Page 5
Bancassurance sales in Spain were 8% lower at GBP1,475 million (2008: GBP1,596
million) and 18% down on a local currency basis. Excluding the Caja Murcia
transfer in 2008, sales are 8% down on a local currency basis. Tough economic
conditions have resulted in consumers favouring short-term investment products;
this has resulted in reduced pension sales for us in this channel.
Bancassurance sales in France increased by 28% to GBP886 million (2008: GBP691
million) and by 13% on a local currency basis. The improvement in sales via
Credit du Nord is mainly due to customers transferring their savings into more
attractive insurance products, moving away from short-term banking products
which offer lower interest rate returns.
The recession in Ireland has led to a drop in bancassurance sales of 37% to
GBP302 million (2008: GBP482 million), a 45% decrease on a local currency basis,
reflecting trends in the Irish life insurance industry as a whole. These factors
have had a similar impact on retail sales.
The reduction in bancassurance sales in Poland is principally because 2008 sales
included significant volumes of short-term endowment policies sold through
Deutsche Bank before this special promotion closed in September 2008.
Retail
We have a significant retail franchise and are building a single retail
operating model with common tools and methods supported by centralised sales
support. The retail network is the predominant sales channel for our businesses
in France and Poland, and is also strong in Ireland.
Overall retail sales volumes were 11% down at GBP4,386 million (2008: GBP4,907
million) and 17% down on a local currency basis. In 2008, we benefited from
GBP506 million of one-off initial contributions from the launch of compulsory
pensions in Romania. Excluding these, retail sales were broadly in line with the
prior year.
Retail sales in France were up 20% to GBP2,654 million (2008: GBP2,204
million), an increase of 6% on a local currency basis. With a decline in
consumer appetite in unit-linked products, our range of simple, easy to
understand and customer orientated with-profit products is highly attractive.
This is particularly the case with our partnership with AFER where we have
increased our customer base to 700,000.
In Poland, retail life and pensions sales were down 32% to GBP727 million (2008:
GBP1,071 million), a reduction of 25% on a local currency basis. Within this,
pension volumes have reduced significantly as a result of new Polish pension
legislation announced in the first half of this year.
Delta Lloyd
Life and pension sales through Delta Lloyd are 11% lower than prior year at
GBP2,835 million (2008: GBP3,190 million), 22% lower in local currency. This
decrease mainly reflected lower levels of corporate pension business in 2009
compared with 2008 and was partly offset by the inclusion of sales from Swiss
Life Belgium which Delta Lloyd acquired in June 2008.
Investment product sales more than doubled to GBP684 million (2008: GBP272
million) reflecting strong sales of Delta Lloyd's Euro Credit fund.
North America
In the USA new business sales of GBP3,742 million (2008: GBP3,810 million) were
slightly lower on a sterling basis, but down 22% on a local currency basis. This
was due to our continued focus on greater capital efficiency by moderating the
pace of annuity sales and growing our life insurance business, coupled with no
funding agreement sales in 2009 (2008: GBP621 million). Excluding the impact of
funding agreement sales, annuity and life sales were down 7% over the same
period last year on a local currency basis, and up 17% on a sterling basis. New
business margin at 0.5% is in line with half year 2009 and above the same period
last year.
Sales of annuities for the year to date have increased by 16% to GBP3,167
million (2008: GBP2,736 million), but reduced by 9% on a local currency basis.
Customers continued to seek products with guarantees and recognise Aviva as one
of the stronger market participants. However, as reported in our half year
announcement, demand for annuities in the first half of the year exceeded our
desired production and we took actions to ensure that the overall business mix
for the year was consistent with our strategic goals. These actions, whilst
enhancing annuity profitability, resulted in a slowdown in sales in the third
quarter although we expect to see increased volumes in the last quarter of the
year.
=------------------------------------------------------------------------------
=-----------------------------------------------------------------------------
Page 6
Life product sales, which mainly include indexed universal life and term
assurance products, were 27% higher at GBP575 million (2008: GBP453 million),
and were level with the same period last year on a local currency basis. This is
a strong result when set in the context of a US market which experienced a
decline of 23% in the first six months of the year as a result of economic
conditions. We remain confident that recent steps we have taken, which include
expanding into the brokerage general agency market and leveraging the use of our
existing life and annuity channels, will position us for future growth.
Asia Pacific
Life and pension sales were 22% below the prior year at GBP1,049 million (2008:
GBP1,339 million), 30% down on a local currency basis, mainly reflecting the
uncertainty associated with the volatile economic environment across the region.
Although the economic conditions improved in the third quarter, customers
remained cautious about investing in unit-linked savings products. However, we
have benefitted from the inclusion of sales from the South Korea joint venture,
which now represent 20% of life and pension sales in the region and from
favourable exchange rate movements.
Within these totals, sales of life and pension products in Asia fell by 25% to
GBP788 million (2008: GBP1,053 million). This was mainly as a result of the
uncertain economic environment and the decision to scale back the sale of
capital intensive products in Hong Kong, Taiwan and Malaysia and the loss of two
bancassurance partners in India. This was partly offset by continued strong
performance from South Korea and improved sales in China in the third quarter.
The new business margin for the first nine months of the year was 2.6%, which
was an improvement on the first half of 2009 but below prior year.
In Australia, life and pension sales were down by 9% to GBP261 million (2008:
GBP286 million) due to the closure of a capital protection product at the end of
2008 and lower superannuation and group risk sales resulting from less movement
in the employment market. This was partly offset by an increase in higher margin
protection sales which improved the overall margin. The sale of the Australia
Life and Navigator business was completed on 1 October 2009.
Investment product sales in Australia and Singapore were lower than the prior
year at GBP1,103 million (2008: GBP1,491 million). This decrease mainly
reflected the economic climate with heightened investor caution and lower
disposable income.
General insurance
The third quarter combined operating ratio (COR) was 98%, in line with our 'meet
or beat' target and we remain committed to this target going forward. Our third
quarter COR has been impacted by higher than expected commercial claims in our
Canadian business.
United Kingdom
In the UK our focus is firmly on improving the quality of our earnings by
reshaping the book for sustainable profit, improving our core insurance
capability and controlling the costs of distribution. As a result, premium
volumes have reduced reflecting our stance on writing business for profit not
volume. The UK market remains very challenging with intense competition across
both personal and commercial classes and whilst this continues to place pressure
on business volumes, we have implemented a number of initiatives, such as our
'Get the Aviva Deal' advertising campaign, to attract and retain high quality
new business and existing customers.
Despite the difficult economic and market conditions, the improvements in our
core insurance capability and enhanced risk selection mean we are confident this
will translate into lower claims ratios in the future in addition to our already
proven management of the distribution ratio.
=------------------------------------------------------------------------------
=------------------------------------------------------------------------------
=-----
Page 7
Europe
Aviva Europe
In Europe, our general insurance and retail products are sold predominantly
through our retail channel. We have well established general insurance and
health operations in France and Ireland and developing businesses in Italy,
Poland and Turkey.
In France, premiums are holding up well in a mature and intensely competitive
market. In Ireland, where we lead the market, we continue to follow our strategy
of pricing for value in the face of aggressive competition. As a result premium
volumes have decreased on the prior year. In contrast, our Irish health business
is delivering the strongest growth in the market, outperforming our competitors
in terms of new members. In Italy our general insurance business is also
performing well, and is growing through the emerging bancassurance channel.
Delta Lloyd
Delta Lloyd general insurance premiums (excluding health) are ahead of 2008 due
to the acquisition of the general insurance portfolio of Swiss Life Belgium
which was acquired in June 2008.
North America
The Canadian GI business continues to grow despite highly competitive market
conditions and targeted rate increases on specific risks. Consistent with the
trend seen in the Canadian GI industry, the business has seen a higher level of
claims incidence including severe weather events and an increase in large
commercial property losses. In the highly competitive market in which we
operate, we have continued to drive key business initiatives including
standardisation, streamlining and automation of personal lines underwriting and
the growth of our commercial lines business. Our Claims Service Guarantee
introduced in 2008 which promises customers a refund of their full premium if
they are not happy with our service continues to be an innovative proposition to
the Canadian customer.
Fund management
Aviva Investors
Following a turbulent start to the year, market conditions have continued to
improve alongside increased risk appetite among investors. In this environment,
Aviva Investors has continued to develop its business focusing on third party
and cross border sales opportunities. We have developed a strong sales pipeline
across all asset classes and markets at a time when investors' risk appetite
appears to be growing.
Net inflows in the year to September 2009 totaled GBP0.7 billion, of which
GBP2.4 billion were sourced from third party clients, which offset outflows of
GBP1.7 billion from Aviva group companies. The overall total from group
companies included strong inflows on our non-profit businesses, which were more
than offset by significant maturities in our with-profit funds.
The business saw further interest in its liquidity fund with strong inflows in
France and the UK. Convertible and tactical asset allocation funds also
contributed meaningfully to sales performance with both generating strong sales
in Continental Europe.
Our absolute focus on our clients is bringing results. Aviva Investors was
ranked first quartile in the Greenwich Quality Index which measures both
investment quality and client service. Client service achieved a significant
improvement with first quartile ranking in the 2009 survey and investment
quality moved up to second quartile from fourth in 2007. In addition, we
continue to deliver improving investment performance globally, with particular
success in Australia, where over 90% of our funds outperformed their targets.
CAPITAL MANAGEMENT
IGD solvency
The estimated group regulatory capital surplus position based on the EU
Insurance Groups Directive increased to
GBP3.7 billion as at 30 September
2009 (GBP3.2 billion at 30 June 2009) after taking into account the 2009 interim
dividend net of scrip (at 46% uptake). This does not yet include the
GBP0.4 billion uplift from the sale of our Australian business, the additional
GBP0.5 billion from the Delta Lloyd IPO or the deduction of GBP0.5 billion for
policyholder incentive payments as part of the reattribution exercise. The
considerable increase in the surplus IGD position is a result of the positive
market movements and operating results offset by the interim dividend.
=------------------------------------------------------------------------------
=---------------------------------------------------------------------------
Page 8
The Group continues to actively manage its exposure to negative market
movements. As a result the Group Solvency surplus would reduce by GBP0.5 billion
as of 30 September 2009 if global equity markets should fall by 40%. A 40% rise
in markets would benefit the IGD by GBP1.3 billion.
Net asset value
Our estimated net asset value per share on an MCEV basis has increased from 416
pence at 30 June 2009 to 520 pence at 30 September 2009, benefitting from the
strong improvement in equity markets, the narrowing of credit spreads, foreign
exchange movements increasing the value of the Group's overseas businesses and
the benefit from a reduction in the staff pension scheme deficit. This does not
include the impact of the interim dividend which was declared in August. This
would decrease the MCEV and IFRS net asset values by 10 pence and 9 pence
respectively.
In contrast with EEV, MCEV does not include the value of any future credit
spread earnings. In the first half of 2009 these credit spread earnings (after
tax and minority interest) were around GBP200 million (excluding one-off
items). If a capitalisation factor of 5 times were applied to the annualised
amount, this would give an additional embedded value of GBP2 billion (73 pence
per share) in respect of these earnings.
On an IFRS basis estimated net asset value per share has increased from 349
pence at 30 June 2009 to 409 pence at 30 September 2009.
Our capital position remains strong, aligned with the position at half year. At
full year 2008 we established significant provisions against future asset
default experience in our UK Life business, taking the total default provision
in respect of this business to GBP1.1 billion. At the end of the third quarter
this remains unutilised, with no material deterioration in default experience in
either our commercial mortgage or corporate bond portfolio. In addition to this,
interest service cover on our commercial mortgage portfolio remains stable at
1.3 times and our commercial mortgage portfolio average LTV has reduced to 104%
(HY09: 106%).
In the US, at 31 December 2008, there were net unrealised losses on debt
securities of GBP2.4 billion. Following an improvement in US credit markets in
2009, this has moved to a net unrealised gain of GBP0.4 billion at 30 September
2009. This demonstrates the strength of the fixed income portfolio of which 94%
is investment grade or insurance rated. Default and impairment losses in the
first nine months of the year were GBP70 million (2008: GBP138 million).
Ratings
The Standard & Poor's (S&P) rating of the main operating subsidiaries are AA-
("very strong") with a Negative outlook. The group is rated Aa3 ("excellent") by
Moody's with a Negative outlook. AM Best's ratings of the main operating
subsidiaries are A ("excellent") with a Stable outlook.
SIGNIFICANT TRANSACTIONS POST 30 SEPTEMBER 2009
On 1 October 2009 Aviva announced the completion of the sale of its Australian
life business and wealth management platform. The total proceeds of the
Australian sale are expected to be GBP0.45 billion (A$0.9 billion), with the
majority received on completion. The sale of the business will uplift the group
IGD by GBP0.4 billion.
Aviva also announced yesterday the completion of the Delta Lloyd initial public
offering ("IPO") and the shares commenced trading on Euronext Amsterdam. The IPO
will raise gross proceeds of GBP1.03 billion (EUR1.12 billion), including the 10%
over-allotment option, and will generate a pro forma IGD benefit of GBP0.5
billion.
Following High Court and FSA approval in September, the deal to complete the
reattribution of our inherited estate was concluded on 1 October with 87% of
policyholders voting and 96% of these voting in favour of the offer. The total
value of the inherited estate for the reattribution is GBP1.25 billion, with
GBP0.5 billion to be paid from shareholder funds to policyholders, mostly before
the end of the year. This is estimated to reduce Group IGD by GBP0.5 billion.
=------------------------------------------------------------------------------
=-----------------------------------------------
Page 9
Notes to editors
- Aviva is the leading provider of life and pension products in Europe
(including the UK) with substantial positions in other markets around the world,
making it the world's fifth largest insurance group based on gross worldwide
premiums at 31 December 2008.
- Aviva's principal business activities are long-term savings, fund management
and general insurance, with worldwide total sales* of GBP51.4 billion and funds
under management of GBP381 billion at 31 December 2008.
* Based on 2008 published life and pensions PVNBP on an MCEV basis, total
investment sales and general insurance and health net written premiums,
including share of associates' premiums.
The Aviva media centre at www.aviva.com/media includes images, company and
product information and a news release archive.
- All figures have been translated at average exchange rates applying for the
period. The average rates employed in this announcement are 1 euro = GBP0. 88 (9
months to 30 September 2008: 1 euro = GBP0.78) and GBP1 = US$1.54 (9 months to
30 September 2008: GBP1 = US$1.95).
- Growth rates in the press release have been provided in sterling terms unless
stated otherwise. The supplements following present this information on both a
sterling and local currency basis.
- Definition: Present value of new business premiums (PVNBP)
PVNBP is
derived from the single and regular premiums of the products sold during the
financial period and is expressed at the point of sale. The PVNBP calculation is
equal to total single premium sales received in the period plus the discounted
value of regular premiums expected to be received over the term of the new
contracts. The discount rate used reflects the appropriate risk-free rate for
the country and duration of business. The projection assumptions used to
calculate PVNBP for each product are the same as those used to calculate new
business contribution. The discounted value of regular premiums is also
expressed as annualised regular premiums multiplied by a Weighted Average
Capitalisation Factor (WACF). The WACF will vary over time depending on the mix
of new products sold, the average outstanding term of the new contracts and the
projection assumptions.
- Cautionary statements:
This 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 announcement contains, and we may make verbal statements containing
"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 announcement or any other forward-looking
statements we may make. Forward-looking statements in this announcement are
current only as of the date on which such statements are made.
Aviva plc is a company registered in England No. 2468686.
Registered office
St Helen's
1 Undershaft
London
EC3P 3DQ
=------------------------------------------------------------------------------
=------------------------------------------------------------------------------
=------
Page 10
THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
=------------------------------------------------------------------------------
=--------------
Page 11
Statistical Supplement
Contents
Analyses
1. Geographical analysis of life, pension and investment sales
2. Analysis of sales via bancassurance channels
3.Analysis of regular and single premiums
4. Detailed worldwide investment sales analysis
5. Trend analysis of PVNBP - cumulative
6. Trend analysis of PVNBP - discrete
=------------------------------------------------------------------------------
=----------------------------------------------------
Page 12
1 - Geographical analysis of life, pension and investment sales
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | Present value of new business |
| | premiums1 |
+ +--------------------------------------------------------------------------------------------------------+
| | 9 months 2009 | Restated2 | % Growth |
| | GBPm | 9 months | |
| | | 2008 | |
| | | GBPm | |
+ + + +---------------------------------------------------+
| | | | Sterling | Local |
| | | | | currency |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Life and pensions business | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Individual pensions | 2,649 | 2,946 | (10)% | (10)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Group pensions | 244 | 552 | (56)% | (56)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Annuities | 1,249 | 1,920 | (35)% | (35)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Bonds | 1,602 | 2,399 | (33)% | (33)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Protection | 707 | 872 | (19)% | (19)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Equity release | 213 | 156 | 37 % | 37 % |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| United Kingdom | 6,664 | 8,845 | (25)% | (25)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Euro funds | 2,909 | 1,987 | 46 % | 29 % |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Unit-linked funds | 493 | 777 | (37)% | (44)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Protection business | 138 | 131 | 5 % | (7)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| France | 3,540 | 2,895 | 22 % | 8 % |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Life and savings | 255 | 427 | (40)% | (47)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Pensions | 435 | 551 | (21)% | (30)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Ireland | 690 | 978 | (29)% | (38)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Italy | 2,849 | 1,811 | 57 % | 39 % |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Life and savings | 228 | 703 | (68)% | (65)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Pensions | 515 | 801 | (36)% | (28)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Poland | 743 | 1,504 | (51)% | (45)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Life and savings | 1,316 | 1,221 | 8 % | (5)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Pensions | 326 | 562 | (42)% | (49)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Spain | 1,642 | 1,783 | (8)% | (19)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Other Europe | 306 | 859 | (64)% | (64)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Aviva Europe | 9,770 | 9,830 | (1)% | (10)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Life | 560 | 808 | (31)% | (39)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Pensions | 2,275 | 2,382 | (4)% | (16)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Netherlands (incl Belgium and | 2,835 | 3,190 | (11)% | (22)% |
| Germany)3 | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Europe | 12,605 | 13,020 | (3)% | (13)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Life | 575 | 453 | 27 % | 0 % |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Annuities | 3,167 | 2,736 | 16 % | (9)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Funding agreements | - | 621 | (100)% | (100)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| North America | 3,742 | 3,810 | (2)% | (22)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Australia | 261 | 286 | (9)% | (12)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| China | 251 | 220 | 14 % | (12)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Hong Kong | 74 | 226 | (67)% | (74)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| India | 61 | 147 | (59)% | (62)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Singapore | 123 | 247 | (50)% | (58)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| South Korea | 209 | 91 | 130 % | 133 % |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Other Asia | 70 | 122 | (43)% | (51)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| Asia Pacific | 1,049 | 1,339 | (22)% | (30)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
| TOTAL LIFE AND PENSIONS | 24,060 | 27,014 | (11)% | (19)% |
+----------------------------------------+----------------------------------------+-----------+----------------------------------------+----------+
1. All references to sales in this announcement refer to the present value of
new business premiums (PVNBP) unless otherwise stated. PVNBP is the present
value of new regular premiums plus 100% of single premiums
2. Restated on to MCEV basis
3.Our business in the Netherlands operates under the brand Delta Lloyd and is
managed independently from our other European businesses
=------------------------------------------------------------------------------
=------------------------------------------------------------------------------
=------
Page 13
1 - Geographical analysis of life, pension and investment sales continued
+--------------------------------------+--------+----------+--------------------------------------+----------+
| | 9 | Restated | % Growth |
| | months | 9 months | |
| | 2009 | 2008 | |
| | GBPm | GBPm | |
+ + + +-------------------------------------------------+
| | | | Sterling | Local |
| | | | | currency |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Investment sales4 | | | | |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| | | | | |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| United Kingdom5 | 631 | 1,243 | (49)% | (49)% |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| | | | | |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Poland | 51 | 54 | (6)% | 6 % |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Other Europe5 | 573 | 314 | 82 % | 61 % |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Aviva Europe | 624 | 368 | 70 % | 53% |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Netherlands 3 | 684 | 272 | 151 % | 122 % |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Europe | 1,308 | 640 | 104 % | 82 % |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| | | | | |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Australia5 | 781 | 1,227 | (36)% | (39)% |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Singapore | 322 | 264 | 22 % | 2 % |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Asia Pacific | 1,103 | 1,491 | (26)% | (31)% |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| | | | | |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| Total investment sales | 3,042 | 3,374 | (10)% | (16)% |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| | | | | |
+--------------------------------------+--------+----------+--------------------------------------+----------+
| TOTAL LONG-TERM SAVINGS SALES | 27,102 | 30,388 | (11)% | (19)% |
+--------------------------------------+--------+----------+--------------------------------------+----------+
3. Our business in the Netherlands operates under the brand Delta Lloyd and
is managed independently from our other European businesses
4. Investment sales are calculated as new single premium plus the annualised
value of new regular premiums
5. Investment sales include sales from the retail operations of Aviva
Investors
=------------------------------------------------------------------------------
=------------------------------
Page 14
2 - Analysis of sales via bancassurance channels
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | Present value of new business |
| | premiums1 |
+ +------------------------------------------------------------------------------+
| | 9 months | Restated | Sterling | Local |
| | 2009 | 9 months | growth | currency |
| | GBPm | 2008 | | growth2 |
| | | GBPm | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Life and pensions | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| United Kingdom | 972 | 906 | 7 % | 7 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| France | 886 | 691 | 28 % | 13 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Ireland | 302 | 482 | (37)% | (45)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| UniCredit Group | 1,283 | 682 | 88 % | 66 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Banca Popolare | 78 | 51 | 53 % | 35 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Banca delle Marche | 8 | 17 | (53)% | (58)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Eurovita | 412 | 117 | 252 % | 211 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Unione di Banche | 886 | 816 | 9 % | (4)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Italy | 2,667 | 1,683 | 58 % | 40 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Poland | 16 | 433 | (96)% | (96)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Bancaja | 354 | 426 | (17)% | (27)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Caixa Galicia | 146 | 216 | (32)% | (40)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Unicaja | 617 | 480 | 29 % | 13 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Caja España | 213 | 155 | 37 % | 21 % |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Caja de Granada | 66 | 84 | (21)% | (31)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Cajamurcia | 79 | 235 | (66)% | (70)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Spain | 1,475 | 1,596 | (8)% | (18)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Other Europe | 38 | 38 | - | - |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Aviva Europe | 5,384 | 4,923 | 9 % | (3)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Netherlands 3 | 330 | 376 | (12)% | (23)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Europe | 5,714 | 5,299 | 8 % | (5)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| North America | - | 9 | (100)% | (100)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Asia Pacific | 357 | 522 | (32)% | (41)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Total life and pensions | 7,043 | 6,736 | 5 % | (6)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| Investment sales4 | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| United Kingdom | 128 | 341 | (62)% | (62)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| | | | | |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
| TOTAL BANCASSURANCE SALES | 7,171 | 7,077 | 1 % | (9)% |
+---------------------------------------------+---------------------------------------------+----------+----------+----------+
1. Present value of new business premiums (PVNBP) is the present value of new
regular premiums plus 100% of single premiums, calculated using assumptions
consistent with those used to determine new business contribution.
2. Growth rates are calculated based on constant rates of exchange.
3. Our business in the Netherlands operates under the brand Delta Lloyd and
is managed independently from our other European businesses
4. Investment sales are calculated as new single premium plus annualised
value of new regular premiums.
=------------------------------------------------------------------------------
=------------------------------
Page 15
3 - Analysis of regular and single premiums
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | Regular premiums | | Single premiums |
+-------------------+----------------------------------------------------------------+--+----------------------------+
| | 9 | Local | WACF | Present | 9 | WACF | Present | | 9 | 9 | Local |
| | months | currency | | value | months | | value | | months | months | currency |
| | 2009 | growth | | | 2008 | | | | 2009 | 2008 | growth |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | GBPm | | | GBPm | GBPm | | GBPm | | GBPm | GBPm | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Individual | 287 | (7)% | 4.8 | 1,387 | 310 | 4.5 | 1,382 | | 1,262 | 1,564 | (19)% |
| pensions | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Group | 18 | (69)% | 5.2 | 94 | 59 | 4.2 | 246 | | 150 | 306 | (51)% |
| pensions | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Annuities | - | - | - | - | - | - | - | | 1,249 | 1,920 | (35)% |
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Bonds | - | - | - | - | - | - | - | | 1,602 | 2,399 | (33)% |
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Protection | 114 | - | 6.1 | 698 | 114 | 6.9 | 792 | | 9 | 80 | (89)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Equity | - | - | - | - | | | - | | 213 | 156 | 37 % |
| release | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| United | 419 | (13)% | 5.2 | 2,179 | 483 | 5.0 | 2,420 | | 4,485 | 6,425 | (30)% |
| Kingdom | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Euro funds | 24 | 12 % | 6.5 | 157 | 19 | 6.5 | 123 | | 2,752 | 1,864 | 30 % |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Unit-linked | 23 | (38)% | 6.0 | 137 | 33 | 6.5 | 213 | | 356 | 564 | (44)% |
| funds | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Protection | 16 | (22)% | 8.4 | 134 | 18 | 7.1 | 128 | | 4 | 3 | 33 % |
| business | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| France | 63 | (21)% | 6.8 | 428 | 70 | 6.6 | 464 | | 3,112 | 2,431 | 13 % |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Life and | 20 | (29)% | 5.3 | 106 | 25 | 5.2 | 131 | | 149 | 296 | (56)% |
| savings | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Pensions | 32 | (58)% | 3.9 | 126 | 67 | 4.1 | 273 | | 309 | 278 | (2)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Ireland | 52 | (50)% | 4.5 | 232 | 92 | 4.4 | 404 | | 458 | 574 | (30)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Italy | 92 | (15)% | 6.6 | 610 | 95 | 6.0 | 573 | | 2,239 | 1,238 | 60 % |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Life and | 27 | (14)% | 7.1 | 192 | 35 | 6.4 | 225 | | 36 | 478 | (92)% |
| savings | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Pensions | 29 | (28)% | 14.8 | 430 | 45 | 15.0 | 677 | | 85 | 124 | (23)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Poland | 56 | (22)% | 11.1 | 622 | 80 | 11.3 | 902 | | 121 | 602 | (78)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Life and | 65 | (31)% | 6.2 | 406 | 83 | 5.9 | 488 | | 910 | 733 | 10 % |
| savings | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Pensions | 20 | (63)% | 5.3 | 106 | 48 | 6.3 | 301 | | 220 | 261 | (26)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Spain | 85 | (43)% | 6.0 | 512 | 131 | 6.0 | 789 | | 1,130 | 994 | - |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Other Europe | 61 | (35)% | 4.5 | 273 | 95 | 8.1 | 770 | | 33 | 89 | (63)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Aviva Europe | 409 | (32)% | 6.5 | 2,677 | 563 | 6.9 | 3,902 | | 7,093 | 5,928 | 6 % |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Life | 35 | (43)% | 7.9 | 275 | 54 | 8.5 | 459 | | 285 | 349 | (28)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Pensions | 118 | 29 % | 10.2 | 1,206 | 81 | 9.1 | 737 | | 1,069 | 1,645 | (43)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Netherlands (incl | 153 | - | 9.7 | 1,481 | 135 | 8.9 | 1,196 | | 1,354 | 1,994 | (40)% |
| Belgium and | | | | | | | | | | | |
| Germany) 2 | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Europe | 562 | (26)% | 7.4 | 4,158 | 698 | 7.3 | 5,098 | | 8,447 | 7,922 | (5)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Life | 64 | 3 % | 8.9 | 568 | 49 | 8.9 | 434 | | 7 | 19 | (71)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Annuities | - | - | - | - | - | | - | | 3,167 | 2,736 | (9)% |
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Funding | - | - | - | - | - | | - | | - | 621 | (100)% |
| agreements | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| North | 64 | 3 % | 8.9 | 568 | 49 | 8.9 | 434 | | 3,174 | 3,376 | (26)% |
| America | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Asia | 130 | (6)% | 4.6 | 601 | 125 | 5.8 | 721 | | 187 | 332 | (54)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Australia | 48 | - | 4.1 | 198 | 46 | 3.5 | 162 | | 63 | 124 | (51)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| Asia Pacific | 178 | (4) % | 4.5 | 799 | 171 | 5.2 | 883 | | 250 | 456 | (53)% |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
| TOTAL LIFE | 1,223 | (13)% | 6.3 | 7,704 | 1,401 | 6.3 | 8,835 | | 16,356 | 18,179 | (19)% |
| AND PENSIONS | | | | | | | | | | | |
+-------------------+--------+----------+------+---------+--------+--------+---------+--+--------+--------+----------+
=------------------------------------------------------------------------------
=------------------------------------------------------------------------------
=------
Page 16
4 - Detailed worldwide investment sales analysis
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| | Regular | | Single | | PVNBP |
+ +----------------------------------------+-------+----------------------------+-------+----------+
| | 9 months | 9 | Local | | 9 | 9 | Local | | Local |
| | 2009 | months | currency | | months | months | currency | | currency |
| | GBPm | 2008 | growth | | 2009 | 2008 | growth | | growth |
| | | GBPm | | | GBPm | GBPm | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| United | 49 | 64 | (23%) | | 568 | 1,097 | (48%) | | (49%) |
| Kingdom2 | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Poland | 4 | 5 | (20%) | | 47 | 49 | 7% | | 6% |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Other | - | - | - | | 573 | 314 | 61% | | 61% |
| Europe | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Aviva | 4 | 5 | (20%) | | 620 | 363 | 54% | | 53% |
| Europe | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Netherlands (incl | - | - | - | | 684 | 272 | 122% | | 122% |
| Belgium and | | | | | | | | | |
| Germany) 1 | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Europe | 4 | 5 | (20%) | | 1,304 | 635 | 83% | | 82% |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Australia | - | - | - | | 781 | 1,227 | (39%) | | (39%) |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Singapore | - | - | - | | 322 | 264 | 2% | | 2% |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| Asia | - | - | - | | 1,103 | 1,491 | (31%) | | (31%) |
| Pacific | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
| TOTAL INVESTMENT | 53 | 69 | (23%) | | 2,975 | 3,223 | (15%) | | (16%) |
| SALES | | | | | | | | | |
+---------------------------+--------------------+--------+----------+-------+--------+--------+----------+-------+----------+
1. Our business in the Netherlands operates under the brand Delta Lloyd and
is managed independently from our other European businesses
2.UK regular premium investment sales include SIPP products. These are similar
in nature to pension products and their payment pattern is stable and
predictable and accordingly they have been capitalised. Regular premium SIPP
sales for the 9 months to 30 September 2009 totalled GBP3.4 million (2008:
GBP16.5 million) and have been capitalised using a weighted average
capitalisation factor of 5 (2008: 5). As such, regular premium SIPP sales have
produced an overall contribution to investment sales of GBP17 million (2008:
GBP82 million) out of the UK investment sales of GBP631 million (2008: GBP1,102
million)
=------------------------------------------------------------------------------
=-------------------
Page 17
5 - Trend analysis of PVNBP - cumulative
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| | Present value of new business premiums |
+------------------------+----------------------------------------------------------------------+
| | Restated | Restated | Restated | Restated | Q109 | Q209 | Q309YTD |
| | Q108 YTD | Q208 YTD | Q308 YTD | Q408 YTD | YTD | YTD | GBPm |
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Life and | | | | | | | |
| pensions | | | | | | | |
| business | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Individual | 945 | 2,038 | 2,946 | 3,722 | 900 | 1,918 | 2,649 |
| pensions | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Group pensions | 171 | 372 | 552 | 1,031 | 89 | 171 | 244 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Annuities | 518 | 1,286 | 1,920 | 2,433 | 475 | 833 | 1,249 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Bonds | 849 | 1,628 | 2,399 | 3,296 | 713 | 1,219 | 1,602 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Protection | 323 | 606 | 872 | 1,126 | 245 | 461 | 707 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Equity release | 44 | 80 | 156 | 250 | 83 | 133 | 213 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| United | 2,850 | 6,010 | 8,845 | 11,858 | 2,505 | 4,735 | 6,664 |
| Kingdom | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Euro funds | 682 | 1,374 | 1,987 | 2,689 | 1,027 | 1,986 | 2,909 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Unit-linked | 322 | 587 | 777 | 1,013 | 179 | 338 | 493 |
| funds | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Protection | 57 | 101 | 131 | 178 | 64 | 116 | 138 |
| business | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| France | 1,061 | 2,062 | 2,895 | 3,880 | 1,270 | 2,440 | 3,540 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Life and | 152 | 306 | 427 | 512 | 61 | 160 | 255 |
| savings | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Pensions | 178 | 393 | 551 | 787 | 126 | 266 | 435 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Ireland | 330 | 699 | 978 | 1,299 | 187 | 426 | 690 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Italy | 678 | 1,305 | 1,811 | 2,331 | 1,136 | 2,198 | 2,849 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Life and | 254 | 472 | 703 | 779 | 79 | 168 | 228 |
| savings | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Pensions | 315 | 479 | 801 | 1,063 | 272 | 386 | 515 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Poland | 569 | 951 | 1,504 | 1,842 | 351 | 554 | 743 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Life and | 454 | 874 | 1,221 | 1,712 | 594 | 997 | 1,316 |
| savings | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Pensions | 174 | 421 | 562 | 777 | 143 | 248 | 326 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Spain | 628 | 1,295 | 1,783 | 2,489 | 737 | 1,245 | 1,642 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Other Europe | 130 | 667 | 859 | 1,014 | 112 | 208 | 306 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Aviva Europe | 3,396 | 6,979 | 9,830 | 12,855 | 3,793 | 7,071 | 9,770 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Life | 331 | 530 | 808 | 899 | 191 | 369 | 560 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Pensions | 543 | 1,555 | 2,382 | 3,198 | 751 | 1,411 | 2,275 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Netherlands (including | 874 | 2,085 | 3,190 | 4,097 | 942 | 1,780 | 2,835 |
| Belgium and Germany) 1 | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Europe | 4,270 | 9,064 | 13,020 | 16,952 | 4,735 | 8,851 | 12,605 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Life | 132 | 273 | 453 | 623 | 177 | 374 | 575 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Annuities | 694 | 1,579 | 2,736 | 4,244 | 1,752 | 2,815 | 3,167 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Funding | 222 | 375 | 621 | 848 | - | - | - |
| agreements | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| North America | 1,048 | 2,227 | 3,810 | 5,715 | 1,929 | 3,189 | 3,742 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Asia | 338 | 684 | 1,053 | 1,351 | 325 | 532 | 788 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Australia | 99 | 212 | 286 | 369 | 75 | 166 | 261 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Asia Pacific | 437 | 896 | 1,339 | 1,720 | 400 | 698 | 1,049 |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
| Total life and | 8,605 | 18,197 | 27,014 | 36,245 | 9,569 | 17,473 | 24,060 |
| pensions | | | | | | | |
+------------------------+----------+----------+----------+----------+-------+--------+---------+
1. Our business in the Netherlands operates under the brand Delta Lloyd and
is managed independently from our other European businesses
=------------------------------------------------------------------------------
=----------------------------------------------------
Page18
6 - Trend analysis of PVNBP - discrete
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| | Present value of new business premiums |
+------------------------+----------------------------------------------------------------------+
| | Restated | Restated | Restated | Restated | Q109 | Q209 | Q309 |
| | Q108 | Q208 | Q308 | Q408 | GBPm | GBPm | GBPm |
| | GBPm | GBPm | GBPm | GBPm | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Life and | | | | | | | |
| pensions | | | | | | | |
| business | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Individual | 945 | 1,093 | 908 | 776 | 900 | 1,018 | 731 |
| pensions | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Group pensions | 171 | 201 | 180 | 479 | 89 | 82 | 73 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Annuities | 518 | 768 | 634 | 513 | 475 | 358 | 416 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Bonds | 849 | 779 | 771 | 897 | 713 | 506 | 383 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Protection | 323 | 283 | 266 | 254 | 245 | 216 | 246 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Equity release | 44 | 36 | 76 | 94 | 83 | 50 | 80 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| United | 2,850 | 3,160 | 2,835 | 3,013 | 2,505 | 2,230 | 1,929 |
| Kingdom | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Euro funds | 682 | 692 | 613 | 702 | 1,027 | 959 | 923 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Unit-linked | 322 | 265 | 190 | 236 | 179 | 159 | 155 |
| funds | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Protection | 57 | 44 | 30 | 47 | 64 | 52 | 22 |
| business | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| France | 1,061 | 1,001 | 833 | 985 | 1,270 | 1,170 | 1,100 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Life and | 152 | 154 | 121 | 85 | 61 | 99 | 95 |
| savings | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Pensions | 178 | 215 | 158 | 236 | 126 | 140 | 169 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Ireland | 330 | 369 | 279 | 321 | 187 | 239 | 264 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Italy | 678 | 627 | 506 | 520 | 1,136 | 1,062 | 651 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Life and | 254 | 218 | 231 | 76 | 79 | 89 | 60 |
| savings | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Pensions | 315 | 164 | 322 | 262 | 272 | 114 | 129 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Poland | 569 | 382 | 553 | 338 | 351 | 203 | 189 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Life and | 454 | 420 | 347 | 491 | 594 | 403 | 319 |
| savings | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Pensions | 174 | 247 | 141 | 215 | 143 | 105 | 78 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Spain | 628 | 667 | 488 | 706 | 737 | 508 | 397 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Other Europe | 130 | 537 | 192 | 155 | 112 | 96 | 98 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Aviva Europe | 3,396 | 3,583 | 2,851 | 3,025 | 3,793 | 3,278 | 2,699 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Life | 331 | 199 | 278 | 91 | 191 | 178 | 191 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Pensions | 543 | 1,012 | 827 | 816 | 751 | 660 | 864 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Netherlands (including | 874 | 1,211 | 1,105 | 907 | 942 | 838 | 1,055 |
| Belgium and Germany) 1 | | | | | | | |
| | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Europe | 4,270 | 4,794 | 3,956 | 3,932 | 4,735 | 4,116 | 3,754 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Life | 132 | 141 | 180 | 170 | 177 | 197 | 201 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Annuities | 694 | 885 | 1,157 | 1,508 | 1,752 | 1,063 | 352 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Funding | 222 | 153 | 246 | 227 | - | - | - |
| agreements | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| North America | 1,048 | 1,179 | 1,583 | 1,905 | 1,929 | 1,260 | 553 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Asia | 338 | 346 | 369 | 298 | 325 | 207 | 256 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Australia | 99 | 113 | 74 | 83 | 75 | 91 | 95 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Asia Pacific | 437 | 459 | 443 | 381 | 400 | 298 | 351 |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
| Total life and | 8,605 | 9,592 | 8,817 | 9,231 | 9,569 | 7,904 | 6,587 |
| pensions | | | | | | | |
+------------------------+----------+----------+----------+----------+--------+--------+--------+
1. Our business in the Netherlands operates under the brand Delta Lloyd and
is managed independently from our other European businesses
END
=------------------------------------------------------------------------------
=--------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSLXLLBKFBXFBQ
|