Performance

IFRS earnings per share for 2009 increased to 37.8 pence. This mainly reflects the improvement in financial markets in 2009 partly offset by lower IFRS operating profits.

To demonstrate our commitment to ‘One Aviva, Twice the Value’ we are aiming to double earnings per share by 2012.

The total dividend for the year is 24.00 pence per share. This is in line with last year’s decision to reduce the dividend to a sustainable level from which it can grow.

Our intention is to pay a dividend on a basis judged prudent using dividend cover of 1.5 – 2.0 times, while retaining capital to fund future growth.

2009 operating profits reflect higher long-term and savings results (both IFRS and MCEV) offset by lower general insurance and health profits and increased group debt costs.

We aim to achieve steady sustainable growth in our operating profit, both on a MCEV and IFRS basis. In seeking to achieve this growth, we continue to adopt strict financial management disciplines underpinned by strong corporate governance.

Sales were lower in both long-term and savings and general insurance mainly reflecting the tough economic environment and our focus on writing for profit rather than volume in general insurance.

While our focus is on capital efficiency and profit rather than volumes, sales remain an important indicator. Worldwide sales comprise the PVNBP of long-term savings new business sales and net written premiums from the general insurance and health businesses.

The improvement in return on equity reflects the increase in the post-tax MCEV operating profit and the impact of lower opening equity shareholder’s funds following falls in asset values in 2008.

Return on equity shareholders’ funds is calculated as after-tax operating return, before adjusting items, on opening equity shareholders’ funds, including life profits on a market consistent embedded value (MCEV) basis.

Employee KPIs are now based on more robust scale and against stronger benchmarks. As we’ve changed our supplier, historical data is not comparable and has therefore been removed.

Employee engagement represents the degree to which people believe in Aviva being a great place to work and are contributing to help meet our collective goals and ambitions.

24 businesses took part in our 2009 Net Promoter Score ® survey (2008: 12). 16 met or exceeded the benchmark with 12 in the upper quartile. The ratio beating benchmark is the same as 2008; however, more businesses are in the upper quartile rankings.

Customer advocacy gives us, in a single, simple measure, an accurate predictor of customer retention and cross-selling opportunity.