A19 Cost savings commitments for targets announced since October 2007
A19 – Cost savings commitments for targets announced since October 2007
| Announced cost savings targets (recurring, annualised savings) |
Cost savings targets £m |
|---|---|
| Cost savings targets announced in: | |
| Year ended 31 December 2007 | 350 |
| Year ended 31 December 2008 | 150 |
| Total cost savings targets | 500 |
| Progress towards cost savings target (recurring, annualised savings) |
Cost savings achieved £m |
|---|---|
| Savings achieved in: | |
| Prior years | 340 |
| Year ended 31 December 2009 | 170 |
| Total savings achieved | 510 |
| Savings expected to be achieved in 2010 | 35 |
| Total savings | 545 |
Savings achieved of £510 million comprise £333 million for Aviva UK General Insurance, £117 million for Aviva UK Life and £60 million for Europe.
| Movement in costs to deliver cost savings targets (total expenses incurred) |
Costs to deliver £m |
|---|---|
| Costs incurred in: | |
| Prior years | 369 |
| Year ended 31 December 2009 | 210 |
| Total costs incurred | 579 |
| Costs to be incurred in 2010 | 26 |
| Total costs | 605 |
All £210 million of costs incurred in the year were classified as restructuring costs in the income statement.
1. Cost savings initiatives included in this note are supported by detailed operational implementation plans, which identify the activities, timeframe and expected costs of delivering the planned initiatives.
2. Cost savings "achieved" are the annualised, recurring costs delivered in the period.
3. Costs to deliver cost savings targets are the total one-off costs that will be required to complete and deliver announced cost savings programmes. They are measured at the real value of the initial costs expected to be incurred.
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