TIDMAV.
RNS Number : 6684L
Aviva PLC
11 May 2010
News release
11 May 2010
Aviva plc Interim Management Statement
3 months to 31 March 2010
+----------------------------------------------------------------------+--+
| AVIVA DELIVERS SECOND CONSECUTIVE QUARTER OF GROWTH |
+-------------------------------------------------------------------------+
| · Second consecutive quarter of growth: long-term savings sales | |
| up 16% to GBP10 billion (4Q09: GBP8.8 billion) | |
| · Long term savings sales in Europe and UK up 16%, | |
| representing 85% of group sales | |
| · Group margin in line with full year 2009 | |
| · IGD solvency surplus remains strong at GBP4.4 billion after | |
| deducting final dividend (FY: GBP4.5 billion) | |
| · UK pension scheme: long term funding plan and 2010 | |
| contributions of GBP365 million agreed; proposed closure of scheme | |
| already announced | |
| · MCEV net asset value per share of 505 pence, up 7% (FY09: 471 | |
| pence) | |
+----------------------------------------------------------------------+--+
Andrew Moss, Aviva's group chief executive, commented:
"This is an encouraging start to the year. Europe and the UK are the primary
engines for Aviva's growth today, accounting for 85% of our long-term savings
sales in the first quarter. Sales have recovered and we've seen strong
performances across our portfolio of life, general insurance and asset
management businesses, compared to the previous quarter. Our capital position
remains strong and this second quarter of growth bodes well for the rest of the
year, even though there is still a degree of economic uncertainty in a number of
markets.
"I'm pleased that we have agreed a long-term funding plan for our main UK
pension scheme in this quarter, which we expect will eliminate the deficit over
time. When combined with our proposal to close the scheme to future accruals,
this should provide a welcome degree of certainty on funding for all our
stakeholders."
Key financial highlights
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| | Quarter | Quarter | | Sterling | Sterling | Local |
| | 1 | 4 | Quarter | % | % | currency |
| | 2010 | 2009 | 1 | change | change | % change |
| | GBPm | GBPm | 2009 | on Q4 | on Q1 | on Q1 |
| | | | GBPm | 2009 | 2009 | 2009 |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| Total life and pensions sales | 9,131 | 7,943 | 9,569 | 15% | (5)% | (2)% |
| (PVNBP)1 | | | | | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| Total investment sales2 | 1,043 | 830 | 744 | 26% | 40% | 34% |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| Total long-term savings | 10,174 | 8,773 | 10,313 | 16% | (1)% | - |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| General insurance and health net | 2,465 | 2,126 | 2,467 | 16% | -% | (1)% |
| written premiums | | | | | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| World-wide total sales | 12,639 | 10,899 | 12,780 | 16% | (1)% | (1)% |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| | | | | | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| | 31 | 31December | | Sterling | | |
| | March | 2009 | | change | | |
| | 2010 | | | | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| MCEV net asset value per share | 505p | 471p | | 7% | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| IFRS net asset value per share | 395p | 374p | | 6% | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
| IGD solvency surplus | GBP4.4bn | GBP4.5bn | | (2)% | | |
+--------------------------------------+----------+------------+---------+----------+----------+----------+
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. Investment sales are calculated as new single premium plus the annualised
value of new regular premiums
Information
+-----------------+------------------+-----------------+-----------------------------+
| Investor | Media contacts | Timings | Contents |
| contacts | | | |
+-----------------+------------------+-----------------+-----------------------------+
| Andrew Moss | Hayley Stimpson | Real time media | News release |
| +44 (0)20 7662 | +44 (0)20 7662 | conference call | |
| 2286 | 7544 | 0745 hrs (BST) | Overview..................1 |
| | | | |
| Pat Regan | Sue Winston | Analyst | Business |
| +44 (0)20 7662 | +44 (0)20 7662 | conference call | review..................2 |
| 2228 | 8221 | 0930hrs (BST) | |
| | | | Statistical |
| Charles Barrows | Conor | | supplement...........8 |
| +44 (0)20 7662 | McClafferty/Nick | | |
| 8115 | Woodruff | | |
| | (Finsbury) | | |
| Jonathan Price | +44 (0)20 7251 | | |
| +44 (0)20 7662 | 3801 | | |
| 2111 | | | |
+-----------------+------------------+-----------------+-----------------------------+
Media
There will be a conference call today for real-time media at 0745 hrs (BST).
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
(BST) on +44 (0)20 7162 0192 (quoting "Aviva, Andrew Moss"). This conference
call will be hosted by Andrew Moss, group chief executive.
A replay will be available until 25 May 2010 on +44 (0)20 7031 4064. The pass
code for the whole conference call, including the question and answer session,
is 865267 and for the question and answer session only the pass code is 762568.
Page 1
Overview
I am pleased to report a second consecutive quarter of growth for Aviva.
Long-term savings sales for the first three months of this year have recovered
to over GBP10 billion and are 16% higher than the previous quarter, and in line
with the first quarter of 2009. Within this, life and pension sales continued to
gain momentum from the low point in the third quarter of last year to reach just
over GBP9 billion and the group margin has been maintained in line with the full
year 2009. Investment sales also increased, to over GBP1 billion and general
insurance and health premiums rose to GBP2.5 billion, a strong improvement over
the previous quarter. Our capital position remains strong and this second
quarter of growth bodes well for the rest of the year, even though there is
still a degree of economic uncertainty in some markets.
Strong performance across the group
Europe and the UK accounted for 85% of our long-term savings new business, with
sales increasing by 16% on a sterling basis compared to the previous quarter.
North America and Asia Pacific also reported strong first quarter sales.
One of the benefits of our global diversity is that we are well-positioned to
benefit from economic recovery as it happens at differing rates across a range
of geographies. We've responded by introducing products which meet customers'
new approach to saving, because they have told us that having the option to
minimise risk is now the most important factor in their buying decision.
Sales through bancassurance account for around one third of Aviva's life and
pensions sales. In the first quarter our bancassurance sales continued to grow
across all regions, increasing by 44% compared to the previous three months and
underlining Aviva's competitive advantage in this channel.
General insurance returning to growth
General insurance and health sales returned to growth in the first quarter. Net
written premiums were up 16% at GBP2.5 billion, compared to the previous quarter
as we began to reap the benefits of the initiatives that we put in place such as
the reshaping of our UK portfolio and our strategy of increasing our general
insurance sales through Aviva's European existing bancassurance relationships.
Claims were higher than expected in the first quarter, because of adverse
weather in the UK and Europe, but these were partly offset by better than
expected claims levels in Canada. We continue to focus on a group combined
operating ratio of 98% for the full year.
Good strategic progress
Aviva's programme to create a single operating model across Europe is delivering
benefits. We have successfully piloted our pan-European product development
centre in Ireland and cross-selling initiatives in a number of continental
markets. We're also optimistic about our plans to increase general insurance
sales through our European bancassurance partners, following some early success
with sales in Italy in the first quarter.
In the UK, where financial advisers have voted us Money Marketing Company of the
Year, we are also making good progress in bringing our life and general
insurance businesses closer together. Already this is helping us to eliminate
duplication on major programmes, such as Solvency II and will give us the
opportunity to harmonise terms and conditions for our employees in these
businesses.
Aviva Investors' strategy of increasing the proportion of third party business
has successfully delivered significant mandates from several pension schemes and
financial institutions in the UK, Europe and the United States.
Strong capital position maintained
Aviva's capital position remains strong. Our estimated IGD solvency surplus was
GBP4.4 billion as at 31 March 2010 (31 December 2009: GBP4.5 billion), after
allowing for the 2009 final dividend. We remain focused on cost management, with
our total cost base down 7% (excluding discontinued operations) and
like-for-like costs down 2% on the same period last year.
Our estimated net asset value per share on an MCEV basis was 505 pence at 31
March 2010 (31 December 2009: 471 pence). On an IFRS basis the estimated net
asset value per share was 395 pence at 31 March 2010 (31 December 2009: 374
pence). The provisions we put in place last year for potential defaults on debt
securities have not been used and we have not experienced any material
deterioration in commercial mortgage defaults.
Aviva continues to have a firm focus on capital. In 2010 we expect to generate
approximately GBP1.3 billion of net operating capital 1 ,an increase of 30% on
2009. We expect to achieve the increase through a combination of higher
in-force profits, an increase in general insurance profitability, disciplined
cost management and a continued focus on capital efficiency.
Outlook
Aviva has made an encouraging start to 2010, delivering a second consecutive
quarter of long-term savings growth. We will continue to focus on profitability
and capital, managing Aviva's new business flows in a disciplined way,
throughout the coming year.
1. Operational capital generated, net of investment in new business
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Page 2
Business Review
Long-term savings
United Kingdom
In the UK, our life and pensions business continued the momentum built-up at the
end of 2009. Life and pension sales were GBP2,557 million, an increase of 14%
compared to the previous quarter and in line with the first quarter of 2009
(4Q09 GBP2,250 million: 1Q09: GBP2,505 million). These sales were achieved
while maintaining our focus on profitability. Collective investment sales
increased to GBP426 million in the first three months of the year (4Q09: GBP418
million: 1Q09: GBP175 million), reflecting increased confidence among UK
investors.
Significant developments in the first quarter included record levels of
protection and annuity applications, strong individual pension sales and
particular success in the bulk purchase annuity market. We were also delighted
to be awarded the title of Money Marketing 'Company of the Year' for 2009. This
is a prestigious award for life insurance companies, voted for by financial
advisers, and demonstrates the value of our brand, product innovation and
service excellence.
The first quarter of 2010 saw record weekly core protection 2 applications
driven by the continued success of Aviva's Simplified Life offering through IFAs
and our partnerships with Barclays and the Post Office. Sales were GBP165
million, 1% above the previous quarter (4Q09: GBP164 million), achieved without
compromising our focus on profitability. Overall protection sales were GBP231
million (4Q09: GBP258 million) having been impacted by lower group life sales,
as competition in this market increased and we strengthened our focus on value
creation.
Total annuity sales of GBP877 million, are 35% higher than the fourth quarter of
2009 (4Q09: GBP648 million). Our well-developed bulk purchase annuity offering
delivered sales of GBP344 million (4Q09: GBP28 million) and it is pleasing that
we have been able to maintain our pricing discipline while winning new business.
Sales of individual annuities were GBP533 million (4Q09: GBP620 million)
reflecting the seasonal market fall in application levels during December and
January. However average weekly applications are now 19% higher than during
2009, as we continue to see the benefit of our pricing expertise and risk
selection.
Aviva's pension sales have remained resilient. Sales were 10% higher than the
fourth quarter of 2009 at GBP941 million (4Q09: GBP859 million) as customers'
propensity to save began to return and group schemes that we secured during 2009
converted into new business volumes.
Capitalising on Aviva's market leading position our equity release sales
increased by 52% to GBP96 million (4Q09: GBP63 million). In-line with our
strategy of focusing on creating value, bond sales were marginally lower at
GBP412 million (4Q09 GBP422 million).
First quarter life and pension sales through our joint venture with the Royal
Bank of Scotland were GBP250 million (4Q09: GBP274 million) primarily driven by
subdued bond sales as investors preferred the bank's strong ISA offering and the
reduction in guaranteed bond sales when compared with the first quarter of 2009
(1Q09: GBP382 million). Aviva's share of the joint venture's total sales was
GBP327 million, representing 1% growth over the fourth quarter of 2009 (4Q09:
GBP323 million).
Over the next three years the Retail Distribution Review (RDR) will have a major
impact on the market we operate in and we have put in place a number of
initiatives to ensure that we adapt successfully to these changes. We continue
to support advisers in their transition through to the post-RDR market, with
initiatives such as our Business Transformation Programme and our market-leading
Financial Adviser Academy. We are continuing to prepare for the changes with an
RDR-compliant Sipp and Wrap proposition, one of the few that conforms to the
current Platform discussion paper proposals. Furthermore we have delivered
adviser-charging for our individual pension products and will be introducing
this capability on other products in the coming months.
On 20 April we advised UK staff, and the Trustees of the Aviva Staff Pension
Scheme (ASPS) and the RAC staff pension scheme that we intend to begin
consultation with them regarding our proposal to close the final salary sections
of these pension schemes. The review is in light of future funding requirements,
and our desire to provide an equitable, sustainable and competitive pension for
all our UK employees.
While market conditions remain challenging, the momentum we've seen building
over the past three quarters is encouraging, and we are well-positioned to
benefit from increased market activity and the gradual return of consumer
confidence.
Europe
We delivered a strong performance in Europe, despite some continued challenging
economic conditions in a number of our markets. Long term savings sales were
GBP5,683 million, an increase of 19% on the previous quarter (4Q09: GBP4,791
million) and up 9% on the first quarter of 2009 (1Q09: GBP5,035 million). Within
this total, life and pensions sales were up 13% at GBP5,168 million (4Q09:
GBP4,583 million, 1Q09: GBP4,735 million), a 12% increase on a local currency
basis. Investment sales were GBP515 million an increase of 72% on the first
quarter of 2009.
2. Core protection - Mortgage Life Insurance and Term Assurance with or without
Critical Illness options, Simplified Life, Whole of Life cover and 50+ cover
=------------------------------------------------------------
Page 3
Aviva Europe
Life and pensions sales increased by 14% on the previous quarter to GBP4,285
million (4Q09: GBP3,753 million), and 13% compared to the first quarter of last
year. On a local currency basis this was 13% and 15% respectively.
We have responded to customer preference for savings products that have a
guaranteed element by developing products which are both attractive to customers
and meet our profitability criteria.
We have continued to make good progress with our European transformation
programme and are successfully embedding our pan-European operating model, which
includes the creation of a single bancassurance platform, a central procurement
capability, development of a common product suite and the piloting of our cross
selling and product initiatives in Poland, Ireland and a number of our emerging
markets. Compliance and legal projects are underway to finalise regulatory
approval for our European headquarters in Ireland and the groundwork for our
branch structure is well advanced.
Bancassurance
We continue to leverage our bancassurance franchise, which now includes 51
arrangements and makes Aviva the market leader in this distribution channel.
Sales increased by 48% from the previous quarter to GBP2,611 million (4Q09:
GBP1,762 million).
Sales performance in Italy, one of our major bancassurance markets, was very
strong up 150% to GBP1,542 million (4Q09: GBP618 million). Existing with-profit
and unit-linked products have been redesigned, making them more attractive to
customers while also adjusting surrender conditions to improve long term
retention. Sales have benefitted from some seasonal effects and we do not
expect volumes to continue at this level throughout the year. We have actions
in place to rebalance our sales mix to include a greater proportion of unit
linked products.
In France, sales have increased by 54% to GBP393 million (4Q09: GBP255 million).
In partnership with Credit du Nord, we introduced a new product, "Antarius
Duo", which has enabled us to capture sales from customers who are choosing to
transfer their savings from lower return, short-term deposits, into more
attractive insurance products.
In Spain the challenging market environment and resulting low levels of consumer
propensity to invest, combined with the beneficial effect of seasonality in the
prior quarter's sales, led to lower sales of GBP530 million, down 28% (4Q09:
GBP734 million). We are focused on increasing sales of our protection products,
which have grown by 56% since the previous quarter and in this sector we now
have the second largest market share in Spain.
In Ireland, sales were 13% lower at GBP117 million (4Q09: GBP134 million),
reflecting seasonal patterns in an economic environment that remains tough.
However, sales have increased by 43% on the same period last year, reflecting
the benefits of our partnership with Allied Irish Bank, who following their
reorganisation have increased their focus on life and pensions sales.
Retail
We continue to build on our significant retail franchise as we develop a single
pan-European retail operating model supported by centralised sales support.
Retail sales were 16% lower than the previous quarter at GBP1,674 million (4Q09:
GBP1,991 million), a 17% decrease on a local currency basis, but up 8% on the
same period last year.
France has delivered an excellent sales performance increasing sales by 6% to
GBP1,157 million (4Q09: GBP1,096 million). Sales through our partnership with
AFER increased by 56% on the previous year, as customers continued to be
attracted by our range of simple, easy to understand products. We have made
good progress on our strategic aim to grow unit linked product sales, with sales
up by 25% compared to the same period last year.
In Poland retail sales were 39% lower at GBP203 million (4Q09: GBP334 million,
equivalent to a 44% decrease on a local currency basis), largely as a result of
a one-off beneficial impact of assumption changes in the 2009 figure and some
seasonal sales effects. Pension sales in Poland have declined by 52% compared
to the previous year, as a result of Polish pension legislation changes. We are
developing a number of savings and protection initiatives and are focusing on
promoting unit linked products to existing customers, which has already
increased sales.
In Ireland retail sales were 48% lower at GBP130 million (4Q09: GBP248 million),
reflecting seasonal trends. However, we are encouraged by the fact that sales
were 24% higher than the same period last year and we have recently launched
several new protection and savings products.
Delta Lloyd
Life and pensions sales were up 6% at GBP883 million on the previous quarter
(4Q09: GBP830 million), supported by seasonal trends in pension and annuity
sales. Compared to the same period last year, sales were 6% lower, representing
a 4% decrease on a local currency basis.
Sales in Germany were predictably lower, following the announcement that Delta
Lloyd intends to close its loss-making German operation to new business.
Pensions and annuity sales were at a similar level to the same period last year
with no large contracts sold. However, we believe that the future prospects for
large group pension sales remain positive.
Investment sales were GBP173 million, 7% higher than the first quarter of last
year and equivalent to a 10% increase on a local currency basis. This reflects
an increased appetite for single premium investments in the Dutch market.
Page 4
North America
In North America our focus is on profitable growth, which we aim to achieve
through diversifying our business mix, increasing internal rates of return and
capital efficiency in this business. In the first three months of this year we
generated good life and pension sales growth compared to the previous quarter.
However, sales were lower than at the start of 2009 because of the specific
actions we took last year to moderate the pace of our annuity sales and focus on
capital efficiency, while driving growth in our life insurance business.
Compared to the fourth quarter of last year, sales rose by 24% to GBP997 million
(4Q09: GBP803 million), which equates to an increase of 14% on a local currency
basis. Measured against the same period last year, sales were 48% lower on a
sterling basis and 44% lower on a local currency basis (1Q09: GBP1,929 million).
Annuity sales grew by 49% in the first quarter, compared to the previous three
months (4Q09: GBP507 million), with good momentum in our application pipeline.
Viewed against the first quarter of 2009, annuity sales were 57% lower at GBP755
million (1Q09: GBP1,752 million), for the strategic reasons outlined above.
We delivered strong life sales of GBP242 million in the first quarter, although
following established seasonal patterns, sales were 18% lower than the fourth
quarter of 2009 (4Q09: GBP296 million). Against the same period last year, our
life sales have grown by 37%.
Asia Pacific
In Asia Pacific our strategy is one of organic investment for long-term value
creation, with particular focus on the key markets of China and India.
Life and pensions sales in the region increased by 33% (27% on a local currency
basis), compared with the previous quarter to GBP409 million (4Q09: GBP307
million). This reflects the improving economic environment and recovering
investor confidence, with most of our businesses contributing towards this
positive trend. Compared to the first quarter of last year, sales were up 26%
on a sterling and local currency basis (excluding the Australian life business
which we sold on 1 October 2009). Investment sales in the Asia Pacific region
were GBP102 million (4Q09: GBP99 million).
Our joint venture in China, Aviva-COFCO, increased sales by 51% to GBP134
million (4Q09: GBP89 million), driven by our strong multi-channel distribution
network and the opening of our tenth provincial branch in the last quarter of
2009. Sales were 65% higher than the same period in the previous year and
contributed 33% of our total life and pension sales in the region.
In India sales were up 106% to GBP37 million (4Q09: GBP18 million) reflecting
the successful relaunch of our investment linked product suite, improved
consumer sentiment and a more buoyant market leading up to the end of the tax
year.
Our joint venture in South Korea recorded sales of GBP101 million, an increase
of 28% on the previous quarter (4Q09: GBP79 million) led by robust bancassurance
sales through our partner Woori Bank and the successful expansion of our agency
force.
In Hong Kong, sales increased by 14% to GBP41 million (4Q09: GBP36 million),
driven by strong investment linked sales, via our bancassurance channel,
underpinned by improvements in both consumer sentiment and investment market
outlook.
Sales in Singapore and most of our other Asian markets were higher than the
previous quarter, reflecting the steady economic recovery and growth in the
region.
On 18 March we announced our entry into the fast growing Indonesian insurance
market through a joint venture agreement with PT Asuransi Wahana Tata. Aviva
acquired a 60% share of this company, which has gross assets of GBP15 million
(as at 31 December 2008).
Page 5
General Insurance
United Kingdom
We are seeing signs of a return to volume growth in 2010, reflecting the impact
of our marketing initiatives, including our "Get the Aviva Deal" marketing
campaign, rolling out direct pricing to insurance brokers and the success of the
RAC panel. As expected, following the actions we took last year to reshape our
UK portfolio, we are seeing good levels of retention in both personal and
commercial lines business. There is also clear evidence that the personal motor
market is starting to harden. The decline in net written premiums stopped in the
first quarter, with premiums of GBP913 million. This represents a 4% increase
over the last quarter of 2009 (4Q09: GBP880 million) and is a potential sign of
a return to growth.
Aviva Europe
In the first quarter of 2010 sales increased by 33% to GBP597 million (4Q09:
GBP448 million), broadly in line with the equivalent period last year (1Q09:
GBP610 million). One of our key strategic aims is to increase general insurance
sales through our leading bancassurance capability and this quarter we have had
some early success with strong sales growth in Italy.
We are also now piloting our pan-European product centre in Ireland. Together
with our claims transformation project this initiative will increase our ability
to write business more profitably.
North America
Our Canadian business applied targeted rate increases and focused on business
initiatives to improve our operational and underwriting effectiveness.
At GBP397 million, sales in the first quarter of 2010 were lower than the
previous quarter (4Q09: GBP449 million), in keeping with established seasonal
trends, but were 10% higher compared to the same period a year ago on a sterling
basis (1Q09: GBP360 million) and level on a local currency basis. This is a good
result in a highly competitive market.
Asia Pacific
On 9 April we re-entered the general insurance market in Singapore with the
launch of the first, dedicated, direct online car insurance website. This builds
upon our existing brand presence in Singapore and presents an attractive
proposition for customers in thecurrent market. Aviva's investment in this
initiative was in the region of GBP5 million.
Combined operating ratio
The Group general insurance combined operating ratio (COR) for the first quarter
of 2010 was impacted by adverse weather in the UK and Europe, although this was
partially offset by milder weather in Canada. We remain focused on delivery of a
98% COR for 2010.
Fund Management
Aviva Investors
Aviva Investors attracted net new business inflows of GBP0.7 billion in the
first quarter of 2010. Net inflows from external clients were GBP0.4 billion.
The most significant external inflows were to our UK cash and real estate
products and our absolute tactical asset allocation fund via the European SICAV,
reflecting improved performance and growing investor confidence in higher risk
assets.
A highlight of the quarter was our acquisition of River Road Asset Management a
leading value-oriented US equity manager. The acquisition supports the expansion
of our third party institutional business by combining existing fixed income
expertise in North America with River Road's equity investment capability.
Our focus on building third party business is beginning to deliver results. We
won a number of significant, unfunded mandates from notable pension schemes and
financial institutions in the UK, Europe and the US in the first quarter.
Importantly, these sales have been in line with our strategy to deliver higher
revenue generating mandates for Aviva Investors core capabilities including,
fixed income, convertible bonds, real estate and real estate securities.
We continue to focus on growing external assets under management and pursuing
higher margin opportunities with our target client groups.
Page 6
Capital Management
Sound risk management is a key part of our business and integral to maintaining
financial stability for our stakeholders. Through the first quarter we have
further strengthened our risk management operating model and governance in line
with recommendations from the Walker Review.
We continue to protect the balance sheet to large equity shocks through
appropriate hedging strategies and hold high quality diverse debt securities and
commercial mortgages portfolios. We have not experienced any material defaults
during the first quarter.
Capital generation
We remain focused on capital generation in our business and in 2010 we expect to
generate approximately GBP1.3 billion of net operating capital, an increase of
30% compared with 2009. We aim to generate the additional capital through a
combination of higher in-force profits, an increase in general insurance
profitability and a focus on greater capital efficiency.
IGD solvency
Our capital position remains strong. The estimated group regulatory capital
surplus position based on the EU Insurance Groups Directive was GBP4.4 billion
as at 31 March 2010 (31 December 2009: GBP4.5 billion), after accounting for the
payment of the 2009 full year dividend of GBP0.3 billion (net of scrip).
There have been positive developments on Solvency II with the publication of the
draft technical specifications for the fifth quantitative impact study (QIS5),
as part of the Solvency II consultation process. We are actively preparing for
the transition to Solvency II and we continue to be optimistic about the
proposed treatment of capital and the inclusion of a liquidity premium, as laid
out in QIS5, which we believe should form the basis for the final Solvency II
framework.
Sovereign debt
Our shareholder exposure (net of minority interests) to debt securities of the
governments of Greece, Spain and Portugal (including local authorities and
agencies) at 31 March 2010 is GBP0.9 billion (including our expected exposure to
those securities held within participating funds). Within this our exposure to
Greek debt securities is GBP150 million.
Net asset value
Our estimated net asset value per share on an MCEV basis was 505 pence as at 31
March 2010 (31 December 2009: 471 pence). On an IFRS basis estimated net asset
value per share was 395 pence at 31 March 2010 (31 December 2009: 374 pence).
These do not include the impact of the final dividend declared in March 2010.
Proposed changes to UK pension schemes
A long-term funding plan for the deficit in the Aviva Staff Pension Scheme
(ASPS) has now been agreed with the pension scheme Trustees, where
contributions, together with the anticipated growth in scheme investments are
expected to eliminate the ASPS deficit over time. As part of this funding plan,
Aviva will make a contribution of GBP365 million in 2010 towards the funding of
the ASPS deficit.
Page 7
Notes to editors
- Aviva is a 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 GBP45.1 billion and funds
under management of GBP379 billion at 31 December 2009.
* Based on 2009 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 (3
months to 31 March 2009: 1 euro = GBP0.91) and GBP1 = US$1.57 (3 months to 31
March 2009: GBP1 = US$1.44).
- 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 are 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 unavailability 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 Annual Report on Form 20-F as filed with the SEC on 30
March 2010. 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 8
Contents
Analyses
1. Trend analysis of PVNBP - discrete
2. Trend analysis of PVNBP - cumulative
3. Geographical analysis of life, pension and investment sales
4. Product analysis of life and pension sales
5. Analysis of sales via bancassurance channels
6. Geographical analysis of regular and single premiums - life and pensions
sales
7. Geographical analysis of regular and single premiums - investment sales
8. Europe analysis for bancassurance and retail sales
9. Trend analysis of general insurance net written premiums - discrete and
cumulative
Page 9
1 - Trend analysis of PVNBP - discrete
+--------------------+--------+----------+----------+-------+-------+--------+--+----------+----------+-----+
| | Present value of new business premiums1 | | | | |
+--------------------+-------------------------------------------------------+--+----------+----------+-----+
| | 1Q09 | 2Q09 | 3Q09 | | | | % Growth | |
| | GBPm | GBPm | GBPm | 4Q09 | 1Q10 | | on 4Q09 | |
| | | | | GBPm | GBPm | | | |
+--------------------+--------+----------+------------------+-------+--------+--+---------------------+-----+
| Life and pensions | | | | | | | Sterling | Local2 | |
| business | | | | | | | | currency | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Pensions | 989 | 1,100 | 804 | 859 | 941 | | 10% | 10% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Annuities | 475 | 358 | 416 | 648 | 877 | | 35% | 35% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Bonds | 713 | 506 | 383 | 422 | 412 | | (2)% | (2)% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Protection | 245 | 216 | 246 | 258 | 231 | | (10)% | (10)% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Equity release | 83 | 50 | 80 | 63 | 96 | | 52% | 52% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| United Kingdom | 2,505 | 2,230 | 1,929 | 2,250 | 2,557 | | 14% | 14% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| France | 1,270 | 1,170 | 1,100 | 1,351 | 1,550 | | 15% | 15% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Ireland | 187 | 239 | 264 | 382 | 247 | | (35)% | (35)% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Italy | 1,136 | 1,062 | 651 | 758 | 1,567 | | 107% | 107% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Poland | 351 | 203 | 189 | 336 | 206 | | (39)% | (44)% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Spain | 737 | 508 | 397 | 812 | 590 | | (27)% | (27)% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Other Europe | 112 | 96 | 98 | 114 | 125 | | 10% | 6% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Aviva Europe | 3,793 | 3,278 | 2,699 | 3,753 | 4,285 | | 14% | 13% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Of which: | 2,243 | 1,850 | 1,291 | 1,762 | 2,611 | | 48% | 48% | |
| Bancassurance | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Retail | 1,550 | 1,428 | 1,408 | 1,991 | 1,674 | | (16)% | (17)% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Aviva Europe | 3,793 | 3,278 | 2,699 | 3,753 | 4,285 | | 14% | 13% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Delta Lloyd 3 | 942 | 838 | 1,055 | 830 | 883 | | 6% | 6% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Europe | 4,735 | 4,116 | 3,754 | 4,583 | 5,168 | | 13% | 12% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+---------------------+-------+-------+--------+--+----------+----------+-----+
| North America | 1,929 | 1,260 | 553 | 803 | 997 | | 24% | 24% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Asia Pacific5 | 325 | 207 | 256 | 307 | 409 | | 33% | 27% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Australia | 75 | 91 | 95 | - | - | | - | - | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Total life and | 9,569 | 7,904 | 6,587 | 7,943 | 9,131 | | 15% | 14% | |
| pensions | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Investment sales4 | 744 | 1,204 | 1,094 | 830 | 1,043 | | 26% | 22% | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| Total long term | 10,313 | 9,108 | 7,681 | 8,773 | 10,174 | | 16% | 15% | |
| saving sales | | | | | | | | | |
+--------------------+--------+----------+------------------+-------+--------+--+----------+----------+-----+
| | | | | | | | | | | |
+--------------------+--------+----------+----------+-------+-------+--------+--+----------+----------+-----+
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. Growth rates are calculated based on constant rates of exchange.
3. Delta Lloyd, which operates in the Netherlands, Belgium and Germany, 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 Asia Pacific excludes the Australian life business that was sold on 1 October
2009
Page 10
2 - Trend analysis of PVNBP - cumulative
+-------------------+--------+----------+----------+--------+--------+------+
| | Present value of new business premiums1 | |
+-------------------+------------------------------------------------+------+
| | 1Q09 | 2Q09 YTD | 3Q09 YTD | | | |
| | YTD | GBPm | GBPm | 4Q09 | 1Q10 | |
| | GBPm | | | YTD | YTD | |
| | | | | GBPm | GBPm | |
+-------------------+--------+----------+----------+--------+--------+------+
| Life and pensions | | | | | | |
| business | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Pensions | 989 | 2,089 | 2,893 | 3,752 | 941 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Annuities | 475 | 833 | 1,249 | 1,897 | 877 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Bonds | 713 | 1,219 | 1,602 | 2,024 | 412 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Protection | 245 | 461 | 707 | 965 | 231 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Equity release | 83 | 133 | 213 | 276 | 96 | |
+-------------------+--------+----------+----------+--------+--------+------+
| United Kingdom | 2,505 | 4,735 | 6,664 | 8,914 | 2,557 | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| France | 1,270 | 2,440 | 3,540 | 4,891 | 1,550 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Ireland | 187 | 426 | 690 | 1,072 | 247 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Italy | 1,136 | 2,198 | 2,849 | 3,607 | 1,567 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Poland | 351 | 554 | 743 | 1,079 | 206 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Spain | 737 | 1,245 | 1,642 | 2,454 | 590 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Other Europe | 112 | 208 | 306 | 420 | 125 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Aviva Europe | 3,793 | 7,071 | 9,770 | 13,523 | 4,285 | |
+-------------------+--------+----------+----------+--------+--------+------+
| | 2,243 | 4,093 | 5,384 | 7,146 | 2,611 | |
| Of which: | | | | | | |
| Bancassurance | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Retail | 1,550 | 2,978 | 4,386 | 6,377 | 1,674 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Aviva Europe | 3,793 | 7,071 | 9,770 | 13,523 | 4,285 | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Delta Lloyd 2 | 942 | 1,780 | 2,835 | 3,665 | 883 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Europe | 4,735 | 8,851 | 12,605 | 17,188 | 5,168 | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| North America | 1,929 | 3,189 | 3,742 | 4,545 | 997 | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Asia Pacific4 | 325 | 532 | 788 | 1,095 | 409 | |
+-------------------+--------+----------+----------+--------+--------+------+
| Australia | 75 | 166 | 261 | 261 | - | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Total life and | 9,569 | 17,473 | 24,060 | 32,003 | 9,131 | |
| pensions | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Investment sales3 | 744 | 1,948 | 3,042 | 3,872 | 1,043 | |
+-------------------+--------+----------+----------+--------+--------+------+
| | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
| Total long term | 10,313 | 19,421 | 27,102 | 35,875 | 10,174 | |
| saving sales | | | | | | |
+-------------------+--------+----------+----------+--------+--------+------+
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. Delta Lloyd, which operates in the Netherlands, Belgium and Germany, is
managed independently from our other European businesses
3. Investment sales are calculated as new single premium plus the annualised
value of new regular premiums
4. Asia Pacific excludes the Australian life business that was sold on 1
October 2009
Page 11
3 - Geographical analysis of life, pension and investment sales
+----------+-------------------------------+----------+----------+-------------------------------+----------+-------------------------------+
| | Present value of new business |
| | premiums1 |
+ +-------------------------------------------------------------------------------------+
| | 3 months | 3 months 2009 | % Growth |
| | | GBPm | |
| | 2010 | | |
| | GBPm | | |
+ + + +------------------------------------------+
| | | | Sterling | Local2 currency |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Life and pensions business | | | | |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| | | | | |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| United Kingdom | 2,557 | 2,505 | 2 % | 2 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| | | | | |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| France | 1,550 | 1,270 | 22 % | 25 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Ireland | 247 | 187 | 32 % | 36 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Italy | 1,567 | 1,136 | 38 % | 42 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Poland | 206 | 351 | (41)% | (46)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Spain | 590 | 737 | (20)% | (18)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Other Europe | 125 | 112 | 12 % | 11 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Aviva Europe | 4,285 | 3,793 | 13 % | 15 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Delta Lloyd3 | 883 | 942 | (6)% | (4)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Europe | 5,168 | 4,735 | 9 % | 11 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| | | | | |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| North America | 997 | 1,929 | (48)% | (44)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| | | | | |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| China | 134 | 81 | 65 % | 81 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Hong Kong | 41 | 28 | 46 % | 58 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| India | 37 | 34 | 9 % | 9 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Singapore | 59 | 59 | - | 2 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| South Korea | 101 | 92 | 10 % | (2)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Other Asia | 37 | 31 | 19 % | 19 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Asia Pacific | 409 | 325 | 26 % | 26 % |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Australia | - | 75 | (100)% | (100)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| | | | | |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| TOTAL LIFE AND PENSIONS | 9,131 | 9,569 | (5)% | (2)% |
+-----------------------------------------------------+----------+-------------------------------+----------+-------------------------------+
| Investment sales4 | | | | |
+------------------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | | | | | |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | United Kingdom | 426 | 175 | 143 % | 143 % |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | | | | | |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Aviva Europe | 342 | 138 | 148 % | 151% |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Delta Lloyd3 | 173 | 162 | 7 % | 10 % |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Europe | 515 | 300 | 72 % | 75 % |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | | | | | |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Australia | 55 | 17 | 224 % | 189 % |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Singapore | 47 | 82 | (43)% | (42)% |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Asia Pacific | 102 | 99 | 3 % | 2 % |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Australia | - | 170 | (100)% | (100)% |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | | | | | |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | Total investment sales | 1,043 | 744 | 40 % | 34 % |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | | | | | |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | TOTAL LONG-TERM SAVINGS SALES | 10,174 | 10,313 | (1)% | - |
+----------+-------------------------------+---------------------+-------------------------------+----------+-------------------------------+
| | | | | | | |
+----------+-------------------------------+----------+----------+-------------------------------+----------+-------------------------------+
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. Growth rates are calculated based on constant rates of exchange.
3. Delta Lloyd, which operates in the Netherlands, Belgium and Germany, 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
Further analysis of the European bancassurance and retail sales are given on
page 16.
Page 12
4 - Product analysis of life, pension and investment sales
+------------------------------+------------------------------+--------+------------------------------+----------+
| | Present value of new |
| | business premiums1 |
+ +---------------------------------------------------------------------------------+
| | 3 months | 3 | % Growth |
| | 2010 | months | |
| | GBPm | 2009 | |
| | | GBPm | |
+ + + +-----------------------------------------+
| | | | Sterling | Local2 |
| | | | | currency |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Life and pensions business | | | | |
+------------------------------+------------------------------+--------+------------------------------+----------+
| | | | | |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Pensions | 941 | 989 | (5)% | (5)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Annuities | 877 | 475 | 85 % | 85 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Bonds | 412 | 713 | (42)% | (42)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Protection | 231 | 245 | (6)% | (6)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Equity release | 96 | 83 | 16 % | 16 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| United Kingdom | 2,557 | 2,505 | 2 % | 2 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| | | | | |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Pensions | 457 | 663 | (31)% | (30)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Savings | 3,561 | 2,803 | 27 % | 31 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Annuities | 20 | 29 | (31)% | (29)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Protection | 247 | 298 | (17)% | (15)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Aviva Europe | 4,285 | 3,793 | 13 % | 15 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Delta Lloyd3 | 883 | 942 | (6)% | (4)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Europe | 5,168 | 4,735 | 9 % | 11 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| | | | | |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Life | 242 | 177 | 37 % | 49 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Annuities | 755 | 1,752 | (57)% | (53)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Funding agreements | - | - | - | - |
+------------------------------+------------------------------+--------+------------------------------+----------+
| North America | 997 | 1,929 | (48)% | (44)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| | | | | |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Asia Pacific4 | 409 | 325 | 26 % | 25 % |
+------------------------------+------------------------------+--------+------------------------------+----------+
| Australia | - | 75 | (100)% | (100)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
| | | | | |
+------------------------------+------------------------------+--------+------------------------------+----------+
| TOTAL LIFE AND PENSIONS | 9,131 | 9,569 | (5)% | (2)% |
+------------------------------+------------------------------+--------+------------------------------+----------+
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. Delta Lloyd, which operates in the Netherlands, Belgium and Germany, is
managed independently from our other European businesses
4. Asia Pacific excludes the Australian life business that was sold on 1 October
2009
Page 13
5 - Analysis of sales via bancassurance channels
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | Present value of new |
| | business premiums1 |
+ +-----------------------------------------------------------------------+
| | 3 months 2010 | 3 | Sterling | Local |
| | GBPm | months | growth | currency |
| | | 2009 | | growth2 |
| | | GBPm | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Bancassurance | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| United Kingdom - RBS | 250 | 382 | (35)% | (35)% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| France - Credit du Nord | 393 | 379 | 4 % | 7 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Ireland - Allied Irish Bank | 117 | 82 | 43 % | 46 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| UniCredit Group | 854 | 667 | 28 % | 32 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Eurovita | 217 | 66 | 229 % | 239 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Unione di Banche | 418 | 328 | 27 % | 31 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Other | 53 | 25 | 112 % | 121 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Italy | 1,542 | 1,086 | 42 % | 46 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Poland | 3 | 17 | (82)% | (84)% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Bancaja | 180 | 188 | (4)% | (2)% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Caixa Galicia | 45 | 65 | (31)% | (29)% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Unicaja | 133 | 272 | (51)% | (50)% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Caja España | 110 | 82 | 34 % | 38 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Other | 62 | 63 | (2)% | 2 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Spain | 530 | 670 | (21)% | (19)% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Other Europe | 26 | 9 | 189 % | 189 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Aviva Europe | 2,611 | 2,243 | 16 % | 20 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Delta Lloyd 3- ABN Amro | 132 | 121 | 9% | 12% |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Europe | 2,743 | 2,364 | 16 % | 19 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| North America | - | - | - | - |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Asia Pacific | 203 | 159 | 28 % | 26 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Total life and pensions | 3,196 | 2,905 | 10 % | 12 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| Investment sales4 | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| United Kingdom - RBS | 77 | 44 | 75 % | 75 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| | | | | |
+----------------------------------------+----------------------------------------+--------+----------+----------+
| TOTAL BANCASSURANCE SALES | 3,273 | 2,949 | 11 % | 13 % |
+----------------------------------------+----------------------------------------+--------+----------+----------+
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. Delta Lloyd, which operates in the Netherlands, Belgium and Germany, 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 14
6 - Geographical analysis of regular and single premiums - life and pensions
sales
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| | Regular premiums | | Single |
| | | | premiums |
+------------+-----------------------------------------------------------------+----------+----------------------------+
| | 3 | Local | WACF | Present | 3 | WACF | Present | | 3 | 3 | Local |
| | months | currency | | value | months | | value | | months | months | currency |
| | 2010 | growth | | GBPm | 2009 | | GBPm | | 2010 | 2009 | growth |
| | GBPm | | | | GBPm | | | | GBPm | GBPm | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Pensions | 93 | (20)% | 4.7 | 439 | 116 | 4.9 | 564 | | 502 | 425 | 18 % |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Annuities | - | - | | - | - | | - | | 877 | 475 | 85 % |
| | | | - | | | - | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Bonds | - | - | | - | - | | - | | 412 | 713 | (42)% |
| | | | - | | | - | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Protection | 36 | (8)% | 6.4 | 231 | 39 | 6.2 | 240 | | - | 5 | (100)% |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Equity | - | - | | - | - | | - | | 96 | 83 | 16 % |
| release | | | - | | | - | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| United | 129 | (17)% | 5.2 | 670 | 155 | 5.2 | 804 | | 1,887 | 1,701 | 11 % |
| Kingdom | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| France | 30 | 20 % | 7.2 | 215 | 25 | 7.3 | 182 | | 1,335 | 1,088 | 26 % |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Ireland | 17 | (11)% | 4.3 | 73 | 19 | 4.5 | 85 | | 174 | 102 | 75 % |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Italy | 23 | (41)% | 4.9 | 113 | 40 | 6.9 | 274 | | 1,454 | 862 | 73 % |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Poland | 17 | (38)% | 10.5 | 178 | 25 | 11.9 | 298 | | 28 | 53 | (50)% |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Spain | 33 | (15)% | 5.1 | 169 | 40 | 5.5 | 220 | | 421 | 517 | (16)% |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Other | 19 | (17)% | 5.3 | 101 | 23 | 4.4 | 101 | | 24 | 11 | 118 % |
| Europe | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Aviva | 139 | (19)% | 6.1 | 849 | 172 | 6.7 | 1,160 | | 3,436 | 2,633 | 34 % |
| Europe | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Delta | 46 | (6)% | 9.5 | 439 | 50 | 9.5 | 477 | | 444 | 465 | (2)% |
| Lloyd 1 | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Europe | 185 | (16)% | 7.0 | 1,288 | 222 | 7.4 | 1,637 | | 3,880 | 3,098 | 28 % |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| North | 23 | 19 % | 10.3 | 237 | 21 | 8.3 | 175 | | 760 | 1,754 | (53)% |
| America | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Asia | 67 | 26 % | 4.1 | 274 | 53 | 4.8 | 257 | | 135 | 68 | 108 % |
| Pacific2 | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| Australia | - | (100)% | | - | 14 | 4.1 | 57 | | - | 18 | (100)% |
| | | | - | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
| TOTAL LIFE | 404 | (13)% | 6.1 | 2,469 | 465 | 6.3 | 2,930 | | 6,662 | 6,639 | 4 % |
| AND | | | | | | | | | | | |
| PENSIONS | | | | | | | | | | | |
+------------+--------+----------+------+---------+--------+---------+---------+----------+--------+--------+----------+
1. Delta Lloyd, which operates in the Netherlands, Belgium and Germany, is
managed independently from our other European businesses
2 Asia Pacific excludes the Australian life business that was sold on 1 October
2009
Page 15
7 - Geographical analysis of regular and single premiums - investment sales
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| | | | | | |
| | Regular2 | | Single | | PVNBP |
+ +-------------------------------------+------+----------------------------+------+----------+
| | 3 months | 3 | Local | | 3 | 3 | Local | | Local |
| | 2010 | months | currency | | months | months | currency | | currency |
| | GBPm | 2009 | growth | | 2010 | 2009 | growth | | growth |
| | | GBPm | | | GBPm | GBPm | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Investment | | | | | | | | | |
| sales | | | | | | | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| | | | | | | | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| United Kingdom | 21 | 17 | 24% | | 401 | 153 | 162% | | 143% |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| | | | | | | | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Aviva Europe | 1 | 1 | - | | 341 | 136 | 156% | | 151% |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Delta Lloyd1 | - | - | - | | 173 | 162 | 10% | | 10% |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Europe | 1 | 1 | - | | 514 | 298 | 77% | | 75% |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| | | | | | | | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Australia | - | - | - | | 55 | 17 | 189% | | 189% |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Singapore | - | - | - | | 47 | 82 | (42%) | | (42%) |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Asia Pacific | - | - | - | | 102 | 99 | 2% | | 2% |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| Australia | - | - | - | | - | 170 | (100%) | | (100%) |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| | | | | | | | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
| TOTAL | 22 | 18 | 22% | | 1,017 | 720 | 35% | | 34% |
| INVESTMENT | | | | | | | | | |
| SALES | | | | | | | | | |
+-----------------+-----------------+--------+----------+------+--------+--------+----------+------+----------+
+---------------------------------------------------------------+
| 1. Delta Lloyd, which operates in the Netherlands, Belgium |
| and Germany, 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 3 months to 31 March 2010 totalled GBP0.9 million (2009: |
| GBP1.3 million) and have been capitalised using a weighted |
| average capitalisation factor of 5 (2009: 5). As such, |
| regular premium SIPP sales have produced an overall |
| contribution to investment sales of GBP4 million (2009: GBP6 |
| million) out of the UK investment sales of GBP426 million |
| (2009: GBP175 million) |
| |
+---------------------------------------------------------------+
Page 16
8 - Europe analysis of bancassurance and retail sales
+--------------+----------+-----------+----------+----------+--------+------+----------+----------+--+--+--+-----+---+--+-------+
| Cumulative | Bancassurance | | | | | | |
| | | | Retail | | | | Total |
+--------------+--------------------------------------------+---------------+------------------------+--+--------+------+-------+
| | 3 | 3 | Local | 3 | 3 months 2009 | Local | 3 | 3 | Local |
| | months | months | currency | months | GBPm | currency | months | months | currency |
| | 2010 | 2009 | growth | 2010 | | growth | 2010 | 2009 | growth |
| | GBPm | GBPm | | GBPm | | | GBPm | GBPm | |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Life and pensions | | | | | | | | | |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| France | 393 | 379 | 7 % | 1,157 | 891 | 33 % | 1,550 | 1,270 | 25 % |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Ireland | 117 | 82 | 46% | 130 | 105 | 27 % | 247 | 187 | 36 % |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Italy | 1,542 | 1,086 | 46 % | 25 | 50 | (50)% | 1,567 | 1,136 | 42 % |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Poland | 3 | 17 | (84)% | 203 | 334 | (44)% | 206 | 351 | (46)% |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Spain | 530 | 670 | (19)% | 60 | 67 | (8)% | 590 | 737 | (18)% |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Other Europe | 26 | 9 | 189 % | 99 | 103 | (5)% | 125 | 112 | 11 % |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| | | | | | | | | | |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| Aviva Europe | 2,611 | 2,243 | 20 % | 1,674 | 1,550 | 8 % | 4,285 | 3,793 | 15 % |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| | | | | | | | | | |
+-------------------------+-----------+----------+----------+--------+-----------------+----------+--------+---------+----------+
| | | | | | | | | | | | | | | | |
+--------------+----------+-----------+----------+----------+--------+------+----------+----------+--+--+--+-----+---+--+-------+
+--------------+----------+-----------+-------+----------+-------+------+----------+----------+--+--+--+----+---+--+-------+
| Discrete | Bancassurance | | | | | | |
| quarter | | | Retail | | | | Total |
+--------------+-----------------------------------------+--------------+------------------------+--+-------+------+-------+
| | 1Q | 4Q | Local | 1Q | 4Q | Local | 1Q | 4Q | Local |
| | 2010 | 2009 | currency | 2010 | 2009 | currency | 2010 | 2009 | currency |
| | GBPm | GBPm | growth | GBPm | GBPm | growth | GBPm | GBPm | growth |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Life and pensions | | | | | | | | | |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| France | 393 | 255 | 54% | 1,157 | 1,096 | 6% | 1,550 | 1,351 | 15% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Ireland | 117 | 134 | (13)% | 130 | 248 | (48)% | 247 | 382 | (35)% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Italy | 1,542 | 618 | 150% | 25 | 140 | (82)% | 1,567 | 758 | 107% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Poland | 3 | 2 | 38% | 203 | 334 | (44)% | 206 | 336 | (44)% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Spain | 530 | 734 | (28)% | 60 | 78 | (23)% | 590 | 812 | (27)% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Other Europe | 26 | 19 | 37% | 99 | 95 | 4% | 125 | 114 | 10% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| Aviva Europe | 2,611 | 1,762 | 48% | 1,674 | 1,991 | (17)% | 4,285 | 3,753 | 13% |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| | | | | | | | | | |
| Page 17 | | | | | | | | | |
+-------------------------+-----------+-------+----------+-------+-----------------+----------+--------+--------+----------+
| | | | | | | | | | | | | | | | |
+--------------+----------+-----------+-------+----------+-------+------+----------+----------+--+--+--+----+---+--+-------+
9 - Trend analysis of general insurance net written premiums - discrete and
cumulative
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| Net written premiums | | |
+------------------------------------------------------------------------+----------+----------+
| | | | | | | Growth on 4Q09 |
+----------------+----------+-----------+----------+----------+----------+---------------------+
| | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 1Q10 | Sterling | Local |
| | Discrete | Discrete | Discrete | Discrete | Discrete | % | currency |
| | GBPm | GBPm | GBPm | GBPm | GBPm | | % |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| UK GI | 996 | 1,053 | 936 | 880 | 913 | 4% | 4% |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| Aviva Europe | 610 | 451 | 374 | 448 | 597 | 33% | 33% |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| Delta Lloyd | 353 | 324 | 249 | 237 | 367 | 55% | 55% |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| North America | 360 | 529 | 462 | 449 | 397 | (12)% | (12)% |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| Other | 148 | 123 | 99 | 112 | 191 | 71% | 71% |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| Total net | 2,467 | 2,480 | 2,120 | 2,126 | 2,465 | 16% | 16% |
| written | | | | | | | |
| premiums | | | | | | | |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------+----------+-----------+----------+----------+----------+----------+----------+
+----------------+-------+---------+----------+----------+----------+----------+----------+
| Net written premiums | | |
+-------------------------------------------------------------------+----------+----------+
| | | | | | | Growth on 1Q09 |
+----------------+-------+---------+----------+----------+----------+---------------------+
| | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 1Q10 | Sterling | Local |
| | YTD | YTD | YTD | YTD | YTD | % | currency |
| | GBPm | GBPm | GBPm | GBPm | GBPm | | % |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| UK GI | 996 | 2,049 | 2,985 | 3,865 | 913 | (8)% | (8)% |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| Aviva Europe | 610 | 1,061 | 1,435 | 1,883 | 597 | (2)% | 1% |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| Delta Lloyd | 353 | 677 | 926 | 1,163 | 367 | 4% | 7% |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| North America | 360 | 889 | 1,351 | 1,800 | 397 | 10% | - |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| Other | 148 | 271 | 370 | 482 | 191 | 29% | 30% |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| Total net | 2,467 | 4,947 | 7,067 | 9,193 | 2,465 | - | (1)% |
| written | | | | | | | |
| premiums | | | | | | | |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------+-------+---------+----------+----------+----------+----------+----------+
| | | | | | | | |
+----------------+-------+---------+----------+----------+----------+----------+----------+
End
This information is provided by RNS
The company news service from the London Stock Exchange
END
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