Detailed report
- 01 Highlights of the year
- 02 Chairman's statement
- 03 Business overview
- 04 Group chief executive's review
- 05 Operating review
- 06 Employees
- 07 Corporate social responsibility
- 08 Financial review
- 09 Board of directors
- 10 Directors' report
- 11 Corporate governance
- 12 Audit Committee report
- 13 Nomination Committee report
- 14 Directors' remuneration report
- 15 Independent auditors' report
- 16 Accounting policies
- 17 Financial information
- 18 Aviva Group of companies
- 19 Shareholder information
Highlights
Highlights of the year
£2,344m
Operating profit before tax*
£17.2bn
Worldwide long-term savings new business sales**
25.36p
Full year dividend
£12.9bn
Shareholders funds†
Operational highlights
- Strong performance in both long-term savings and general insurance businesses
- Improved life result; higher new business contribution across all major business units and sustained sales growth in continental Europe
- Excellent general insurance result with strong profit growth and a combined operating ratio‡ of 97%, beating our group target
- Strong capital position and a significant increase in shareholder funds†
Aviva is the world’s fifth-largest insurance group~ and the biggest in the UK. It is one of the leading providers of life and pensions products in Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales of £33 billion## and £273 billion of assets under management. The group has 49,000 employees serving 30 million customers worldwide.
Geographical breakdown of worldwide business mix#
| Long term savings†† | ||
|---|---|---|
| 1 | UK | 32% |
| 2 | Continental Europe | 37% |
| 3 | Rest of world | 4% |
| General insurance | ||
|---|---|---|
| 4 | UK | 17% |
| 5 | Continental Europe | 6% |
| 6 | Rest of world | 4% |
Life profits reporting In reporting the Aviva plc headline operating profit, life profits have been included using the European embedded value (EEV) basis. The modified statutory basis, which is used in our accounts, is also identified in the headline figures. We have focused on the EEV basis, as we believe life EEV operating return is a more realistic measure of the performance of life businesses than the modified statutory basis. Life modified statutory operating profit before tax amounted to £1,185 million. The basis used for reporting EEV profit is consistent with the principles launched in May 2004 by the CFOs Forum, a group of 19 insurers with implementation required by no later than 31 December 2005. We have chosen to adopt the EEV principles early. This is used throughout the Aviva group to assess performance and as it is adopted by our peers will be used by the investment community to assess performance. The results for 2003 shown as comparatives which were previously reported to an achieved profits basis have been restated to an EEV basis.
| * | From continuing operations, including Life European Embedded Value (EEV) operating return before amortisation of goodwill and exceptional items. |
| ** | From continuing operations, including share of associates’ premiums. |
| † | On an EEV basis. |
| ‡ | Combined operating ratio (COR) broadly expresses the total of claims
costs, commission and expenses as a percentage of premiums and is one of our key performance measures. |
| †† | Including health premium income. |
| # | With reference to net premium income from continuing operations. |
| ~ | Based on gross worldwide premiums. |
| ## | Based on gross worldwide premiums, including share of associates’ premiums. |
All growth rates in this document are quoted at constant rates of exchange.
