Why invest in Aviva
"Aviva offers stability and security – and also sustainable cash flows and growth. We have made good progress on efficiency and our balance sheet is strong and resilient, but we have much further to go to unlock our full potential – and deliver consistent, reliable growth in profits and dividends."
2015 Full year results annual report
Investment thesis - "Cash flow and growth"
- Our aim is to be a diversified insurer with sustainable and progressive cash flows underpinned by good potential for growth
- We will present our results as simply and clearly as possible.
- Financial simplicity and clear financial priorities are essential for investors to make an informed decision about us.
- We have simplified our financial reporting metrics to focus on five key metrics – cash flow, operating profit, expenses, value of new business (VNB) and combined operating ratio (COR).
More about our investment thesis:
Sustainable and progressive cash flow underpinned by a diversified insurance and asset management group with a robust balance sheet.
- Cash Flow
- We have three core businesses able to produce significant cash flow – life insurance, general insurance and our asset management business, Aviva Investors
- Our business model gives us significant diversification benefits which reduces the impact on us of any market shocks.
- We focus on progressive cash flow back to the Group centre which is used for paying dividends to shareholders.
- We will maintain our balance sheet strength.
- We are driving cash flow growth in our established markets, i.e. in the UK, France and in Canada.
- We have businesses in selected growth markets in Europe and Asia.
- We are already seeing improved performances from our businesses in Italy, Spain, Ireland and at Aviva investors.
- We are maintaining our focus on our operating expense ratio efficiency.
- We are making the most of our composite model as a digital insurer.
Key facts about the business
- 33 million customers
- We pay c.£30 billion in claims and benefits to customers each year.
- 29,600 employees and operating in 16 countries
- £290 billion Aviva Investors AUM (FY15)
- 320 – year old heritage
Read more about financial priorities .