Results announcement
AVIVA DELIVERS SECOND CONSECUTIVE QUARTER OF GROWTH
- Second consecutive quarter of growth: long-term savings sales up 16% to £10 billion (4Q09: £8.8 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 £4.4 billion after deducting final dividend (FY: £4.5 billion)
- UK pension scheme: long term funding plan and 2010 contributions of £365 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 1 2010 £m |
Quarter 4 2009 £m |
Quarter 1 2009 £m |
Sterling % change on Q4 2009 |
Sterling % change on Q1 2009 |
Local currency % change on Q1 2009 | |
|---|---|---|---|---|---|---|
| Total life and pensions sales (PVNBP)1 | 9,131 | 7,943 | 9,569 | 15% | (5)% | (2)% |
| 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 written premiums | 2,465 | 2,126 | 2,467 | 16% | -% | (1)% |
| World-wide total sales | 12,639 | 10,899 | 12,780 | 16% | (1)% | (1)% |
| 31 March 2010 |
31 December 2009 |
Sterling change |
||||
| MCEV net asset value per share | 505p | 471p | 7% | |||
| IFRS net asset value per share | 395p | 374p | 6% | |||
| IGD solvency surplus | £4.4bn | £4.5bn | (2)% | |||
Information
| Investor contacts | Media contacts |
|---|---|
| Andrew Moss +44 (0)20 7662 2286 Pat Regan +44 (0)20 7662 2228 Charles Barrows +44 (0)20 7662 8115 Jonathan Price +44 (0)20 7662 2111 |
Hayley Stimpson +44 (0)20 7662 7544 Sue Winston +44 (0)20 7662 8221 Conor McClafferty/Nick Woodruff (Finsbury) +44 (0)20 7251 3801 |
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.
1All 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.
2Investment sales are calculated as new single premium plus the annualised value of new regular premiums.
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