[
]
£1,318m
Operating profit before tax*
£12.1bn
Worldwide long-term savings new business sales**
9.83p
Interim dividend
£12.6bn
Shareholders’ funds†
Aviva is the world’s sixth-largest insurance group# and the largest 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 had worldwide sales of £17 billion~ in the first half of 2005, and £291 billion of assets under management at 30 June 2005. The group has 60,000 employees serving 30 million customers worldwide.
| Long-term saving** | ||
|---|---|---|
| 1 | UK | 27% |
| 2 | Continental Europe | 39% |
| 3 | Rest of world | 4% |
| General insurance and health†† | ||
|---|---|---|
| 4 | UK | 17% |
| 5 | Continental Europe | 9% |
| 6 | Rest of world | 4% |
Life and pensions sales have been stated throughout this document on the basis of the present value of new business premiums (PVNBP). PVNBP is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.
| * | From continuing operations, including Life European Embedded Value (EEV) operating return before impairment of goodwill and exceptional items. |
| ** | Based on PVNBP for life and pensions business plus total investment sales. |
| † | On an EEV basis excluding preference shares, direct capital instrument and minority interests. |
| ‡ | 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. |
| †† | With reference to net premium income from continuing operations. |
| # | Based on both gross worldwide premiums and market capitalisation at 31 December 2004. |
| ~ | Based on PVNBP for life and pensions, total investment sales and general and health net written premiums, including share of associates’ premiums. |
All growth rates in this document are quoted at constant rates of exchange.
This announcement may contain “forward-looking statements” with respect to certain of Aviva’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Aviva’s control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Aviva and its affiliates operate. As a result, Aviva’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Aviva’s forward-looking statements.
Aviva undertakes no obligation to update the forward-looking statements contained in this announcement or any other forward-looking statements we may make.
IFRS reporting We have reported our interim results in line with the new International Financial Reporting Standards (IFRS). The results for 2004 shown as comparatives, which were previously reported on a UK GAAP basis, have been restated to an IFRS basis.
Life profits reporting In reporting the Aviva plc headline operating profit, life profits have been included using the European embedded value (EEV) basis. The IFRS 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 IFRS basis. Life IFRS operating profit before tax amounted to £510 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. 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 2004 shown as comparatives, which were previously reported on an achieved profits basis, have been restated to an EEV basis.
