Regional overviews: UK
One Aviva triangle
Our strategic priorities:
Market leadership
- Address legacy systems issues
- Transform business model
- Exploit UK synergies
- Generate capital
How will we achieve this?
Competitive advantage with brand, breadth of distribution and product range
UK life
- Winning combination of balanced distribution and broad product mix
- Top three by market share across all product categories
- Legacy simplification with service, cost and retention improvements
UK general insurance
- Managing through the cycle by:
- Premium rating leadership
- Flattening the impact of claims inflation
- Expense management
- Re-engineering the business to leverage a single IT platform and simplify the product set
- Build on service excellence
Asset management
- Combine our global asset management businesses to create a one Aviva global investors capability
Progress in 2007:
Improved to a three star (out of five) Financial Adviser Service Awards rating
- We improved our Financial Adviser Service Award for the second year running, receiving a three star rating in the Life & Pension and the Investment Provider categories
Delivered on our cost-saving targets
- Our operational review announced in September 2006 has delivered the targeted £250 million of annualised savings at a cost of £250 million
Simplified our business model to reduce duplication and drive efficiencies
- In March 2007, our life operation announced a partnership with Swiss Re to outsource the administration of almost three million life and pensions policies, expected to complete in early 2009, enabling us to reduce our 550 product systems to 220
Looking forward:
Our medium-term targets are to:
- Grow long-term savings new business sales at least as fast as the market, while at least maintaining margins
- Deliver an additional £200 million of cost savings by 2008 in the general insurance business and a further £100 million in the life business by the end of 2009
- Deliver insurance excellence, achieving a 98% combined operating ratio or better
- Launch Aviva Investors as the global asset management arm of Aviva, under unified management
Financial Highlights
| Total sales | |
|---|---|
| £20,302m (2006: £19,601m) |
|
| PVNBP | £11,655m |
| Investment sales | £2,751m |
| Net written premiums | £5,896m |
| £20,302m | |
| EEV operating profit | |
|---|---|
| £1,330m (2006: £1,936m) |
|
| Long-term savings | £864m |
| Fund management | £41m |
| General insurance | £433m |
| Other operations | £(8)m |
| £1,330m | |
| IFRS operating profit | |
|---|---|
| £1,225m (2006: £1,853m) |
| Employees and locations | |
|---|---|
| 33,686 (2006: 33,251) |
|
| Our life and general insurance businesses are based in York and Norwich respectively, with operations in over 35 UK locations. We also have overseas operations in India and Sri Lanka | |
| Morley our fund management business is based in the UK and has offices spread across the globe | |
| Major operating brands | ||
|---|---|---|
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Norwich Union is a market leader in the UK long-term savings market | |
 |
Norwich Union Insurance is the leading general insurer in the UK and we also provide a wide range of motoring services through the RAC | |
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Morley is one of the UK's largest active fund managers and the largest fund management business in the Aviva group | |
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