Aviva plc
 Interim report 2004		   Highlights
 
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Highlights
Chairman's statement
Group Chief Executive's review
 
Overview
Long-term savings
Fund management
General insurance
Corporate costs
Cost savings
Outlook
Financials
Shareholder information
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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 to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It had premium income and investment sales of over £15 billion† in the first half of 2004, and around £240 billion of assets under management at 30 June 2004.


Financial highlights
unaudited results - six months ended 30 June 2004

£1,130m
operating profit before tax‡
£7.9bn
worldwide long-term savings new business sales†
97%
worldwide general insurance combined operating ratio
9.36p
interim dividend
£11.1bn
total shareholders’ funds#

  


Operational highlights

Operational and cost efficiency initiatives continuing to deliver benefits
Diversity in distribution and geographical base with a leading UK position, strong presence in Europe and growing in Asia
Successful development of our offshore operations with 3,700 staff working in India by the end of 2004
Customer service initiatives underway in our life business
Continuing product and distribution innovation in our general insurance operations
Ongoing development of our bancassurance partnerships with new distribution to come on line in France and Italy in the second half of 2004 and early 2005 respectively
* Based on gross worldwide premiums for the year ended 31 December 2003
† Including share of associates’ premiums
‡ Including life achieved operating profit, before amortisation of goodwill and exceptional items
# On an achieved profit basis
All growth rates in this document are quoted at constant rates of exchange All operating profit is from continuing operations
Life profits reporting In reporting the Aviva plc headline operating profit, life profits have been included using the achieved profit basis. This is used throughout the Aviva group and by many in the investment community to assess performance. The modified statutory basis, which is used in our accounts, is also identified in the headline figures. We have focused on the achieved profit basis, as we believe life achieved operating profit 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 £548 million. The basis used for reporting achieved profit is consistent with the guidance circulated by the Association of British Insurers.