 |
| Through strict cost control and stringent
capital allocation we have run and
developed our business with undisturbed
continuity and maintained a Standard &
Poor’s AA range of ratings for the group. |
| Our two main operational aims – to be
the insurance industry ’s low-cost
producer and provider of choice – are
being reached gradually. We benchmark
our performance continually to measure
our progress. |
| In the UK, our long-term savings
business is showing resilience in a slow
market. We are making steady progress
in France, with strong performances
in Spain and Italy. Our recent
bancassurance agreement with ABN
AMRO in the Netherlands is off to a
promising start. In the United States we
are growing profitably. Our start-up
operations in India and China are
growing well, above plan. |
| Our UK general insurance operation is
turning in excellent results and good
free cashflow. Worldwide, our general
insurance business is improving steadily,
and Canada is promising after a setback
earlier in the year. |
| Our fund management results are more
robust than in the previous year. |
| We continue to look for promising
strategic opportunities, and will expand
our business where we see the chance
to be a market leader and grow the
business profitably. |
| We propose a final dividend for 2003
of 15.15 pence net per share,
which brings the total for the year to
24.15 pence, an increase of 5%.
This will be payable on 17 May 2004
to shareholders on the register on
26 March 2004. Our policy remains
that of growing the dividend by about
5% a year. |
| Aviva is a firm supporter of sensible
corporate governance disciplines, and
we already follow what has become
regarded as best board room practice.
From the 2004 financial year we shall
be required to report the board ’s
compliance with the revised Combined
Code on Corporate Governance. The
Code incorporates recommendations
from the Higgs review of the role of
non-executive directors, which
generated considerable debate in the
City throughout 2003, and the Smith
report on audit committees. We are
ahead of the game reporting this year as
if the Code had been in effect for 2003. |
| Two non-executive directors,
Carole Piwnica and Anna Catalano,
joined our board during the year, and
are already making significant
contributions . |
| One long-time executive director,
Tony Wyand, retired in November 2003.
Likewise, Philip Twyman will retire in
M a rch this year. I would like to thank
both of them for their exceptional
contributions. They will be missed for
their eminent qualities and their
international experience. Sir Michael
Partridge, a non-executive director and
member of the audit committee, retired
in May 2003, and I thank him for his
invaluable contribution. |
| Mike Biggs decided to leave the group
at 31 December. He did an excellent job,
and I thank him for what he
accomplished. Philip Twyman took on
additional responsibility for the group
finance director role from 1 January on
a transitional basis. I am pleased that
Andrew Moss will be joining us from
Lloyd’s of London as group finance
director later in the year. |
| As chairman of the European Financial
Services Round Table, I am pleased with
the progress we are making towards the
creation of a single market for financial
services, although much patience is
required. We have proposed significant
simplification to supervision and
regulation, steps toward a single capital
market, and are preparing proposals for
more effective and community-wide
consumer protection. |
| In the area of corporate social
responsibility, Aviva has high ambitions
and is making good progress. I feel that
all business operations in our group now
understand our mission and are eager to
do their best. |
| Our staff have been under pressure
through several years of adversity. I
know that our management recognise
that ambitious efforts are needed to
motivate and encourage our dedicated
employees. Management has done well
under demanding circumstances and will
continue to address these issues. |
| I believe that Aviva has emerged from
tough times in good shape. We are
strongly positioned as a leading
European-based financial services group.
That should benefit you as our
shareholders. |
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