Key performance indicators

Our IFRS earnings per share for 2009 was 37.8 pence (2008: 36.8 pence loss). This mainly reflects the improvement in financial markets in 2009. Economic and investment return assumptions during the year were in line with our long-term expectations with a positive variance of £77 million (2008: £2,544 million adverse).

• To demonstrate our commitment to "One Aviva, twice the value" we are aiming to double earnings per share by 2012.
• This ambition is based on total IFRS return, including investment volatility and non-operating items over the weighted average number of shares.

Our board has recommended a final dividend of 15.00 pence per share (2008: 19.91 pence). This brings the total dividend for the year to 24.00 pence and a dividend cover of 1.8 times (2008: 1.9 times) based on IFRS operating earnings after tax.

This is in line with last year's decision to reduce the dividend to a sustainable level from which it can grow.

• Our intention is to pay a dividend on a basis judged prudent using dividend cover of 1.5-2.0 times, while retaining capital to fund future growth.

In 2009 MCEV operating profit increased 3% to £3,483 million (2008: 3,367 million). IFRS operating profit reduced 12% to £2,022 million (2008: £2,297 million).

These results reflect higher long-term and savings results offset by lower general insurance and health profits and increased group debt costs.

• We aim to achieve steady sustainable growth in our operating profit, both on a MCEV and IFRS basis. In seeking to achieve this growth, we continue to adopt strict financial management disciplines underpinned by strong corporate governance.

Total worldwide sales decreased by 12% in 2009 to £45,068 million (2008: £51,377 million).

Long-term and savings sales decreased 11% to £35,875 million (2008: £40,240 million) mainly reflecting the tough economic climate. General insurance and health sales of £9,193 million (2008: £11,137 million) were down 17% reflecting the focus on writing for profit rather than volume.

• While our focus is on capital efficiency and profit rather than volumes, sales remain an important indicator. Worldwide sales comprise the PVNBP of long-term savings new business sales and net written premiums from the general insurance and health businesses.

The improvement in 2009 to 16.2% (2008: 11.0%) reflects the increase in the post-tax MCEV operating result and the impact of lower opening equity shareholder's funds following falls in asset values in 2008.

• Return on equity shareholders' funds is calculated as after-tax operating return, before adjusting items, on opening equity shareholders' funds, including life profits on a market consistent embedded value (MCEV) basis.

In addition to reporting on our financial performance, it is important that as a forward thinking company we are aware of our wider responsibilities and report on the non-financial aspects of our performance. We consider that our employees and customers are fundamental to the success of our business; as such, they form the basis for our non-financial measures, which include:

• Employee engagement and leadership
• Customer advocacy

Key performance indicators relating to our employees' views on Aviva are based on questions in our annual global "Employee Promise" survey. We changed our external provider in 2009 and we now report and set targets in line with their stronger global financial service (GFS) benchmark norms. To ensure consistency, we have therefore removed the historical trend data.

• Employee engagement represents the degree to which people believe in Aviva being a great place to work and are contributing to help meet our collective goals and ambitions.
• The survey results are used each year to determine and implement actions with the aim of achieving continuous improvement. The climate survey measures employees' perceptions of leadership, verifying alignment with our strategic direction and immediate business plans.
• Our aim is to improve both measures over time and meet or exceed a global financial services benchmark.

Twenty four businesses took part in our 2009 Net Promoter Score© survey (2008: 12). Sixteen met or exceeded the benchmark with 12 in the upper quartile. The ratio beating benchmark is the same as 2008; however, more businesses are in the upper quartile rankings.

• Customer advocacy gives us, in a single, simple measure, an accurate predictor of customer retention and cross-sell opportunity.