Our business

Our markets

One of our main strategic advantages is our diversity across countries, products and investments.

Our geographic footprint

We are the only large scale , multi-line insurer in the UK, our home market. We also have a strong presence in selected markets in Europe, North America and South-East Asia. Our international businesses account for approximately half of Aviva’s customer base and provide a good source of diversification.

Customer base

  • International businesses

    53.0%

  • UK

    47.0%

We have significantly simplified and focused our geographic footprint over recent years, halving the number of markets in which we have operations.

Aviva’s portfolio is composed of eight major businesses, which deliver cash and growth, and six strategic investments, which we expect will deliver significant growth over the medium or long term. 

Our businesses

Major markets - solid growth, sustainable cash    

We are focused on eight attractive, growing markets where we  are, or have the potential to be, best in class. It is these businesses which will underpin our cash flow plus growth strategy. Within these markets, we have competitive strength in distribution, brand, capability and scale efficiency that allows us to deliver consistent growth and attractive returns. 

Our ambitions in our eight major markets

UK France Poland Canada
• Savings
• Structural growth
• BPA & GCS
• Expand appetite • Digital direct
• Gaining share
• Mix
• Further • Optimisations
• Unlock distribution potential
• Efficiency benefits
• GI
• Continued growth
• Direct sales productivity
• Digital direct
• Partner channel
• Recover program
• Distribution breadth
• Composite expansion
Aviva Investors Ireland Singapore Italy

• Externalisation
• 3rd party AUM
• Diversified excellence

• Adding talent & capability

• Maintain margin excellence

• Scale up composite

• Friends First integration

• Disruption play

• Expand FA channel

• Leading asset platform

• Broaden distribution

• Product innovation driving

• Improved mix and margin

We target above mid-single digit growth from 2018 in our major markets. 

UK

Aviva is the UK’s largest insurer with an 18% share of the UK life and savings market, and a 10% share of the UK general insurance and health market. We offer a market-leading range of products to individual and corporate customers covering their savings, retirement, insurance and health needs.

18%

Share of the UK life and savings market

10%

Share of the UK general insurance and health market    

We have access to customers across the UK through our unparalleled distribution network, with: 

  • a growing digital direct offering for sales and service
  • strong relationships with independent financial advisors, brokers, employee benefit consultants, banks
  • single-tie agreements with three of the largest estate agencies.

The UK insurance market remains attractive with a large, ageing and affluent population, structural savings growth (including auto-enrolment) and digital opportunities.

We aim to grow our business by deepening our multi-line strategy and expanding in targeted markets such as corporate multinational, bulk purchase annuities, home, digital and SME.

France

France is Aviva’s second largest market. It accounts for 19% of the Group’s operating profit1. We offer a wide range of life, health, general insurance and investments products to around 3 million customers.

19%

Percentage of Aviva's operating profit

3 million

Number of customers

Aviva France benefits from strong and diverse distribution and increased brand recognition. Our channels include tied agents, financial advisors and direct. We also have a partnership with l’Afer, France’s largest savings association, and hold a majority shareholding in UFF, one of the market’s leading wealth management advisors network. We have a strong presence in the investments market with Aviva Investors.

Our strategy in France will focus on improving our digital systems to make the most of our distribution potential. We aim to increase our customer base by 1 million by 2022. We will be integrating our different brands to give our customers better access to our full range of products in one single place.

1. All references throughout to ‘Operating profit’ represent ‘Group adjusted operating profit’, an APM which is not bound by the requirements of IFRS.

Canada

We are the second-largest general insurer in Canada with a 10% market share. We have around 4000 employees. We offer home, motor, business and other personal general insurance products to around 2.8 million customers countrywide.

10%

Market share

2.8 million

Number of customers

As a business mainly operating through an intermediary broker channel, we have strong relationships with thousands of independent broker partners across Canada. In 2016, we acquired Royal Bank of Canada’s general insurance business and signed a 15-year distribution agreement to provide a full suite of products to RBC Insurance customers.

As a responsible insurer, we attach significant importance to prevention. We have led several campaigns to raise awareness on the importance of prevention such as un-distracted driving and disaster risk reduction. We are also industry leaders in reform - leading the public debate calling for stronger action against auto insurance fraud

Poland

We offer individual and group life insurance, long-term investments, property insurance for individuals and companies, investment funds and health insurance to over 3 million customers in Poland (including pensions). We are the country’s largest private life insurance provider.
 
We have strong distribution across the country, with a network of over two thousand insurance agents, as well as insurance agencies, brokers and banks. We are the largest bancassurance provider in Poland, with a joint venture with BZ WBK Santander and distribution agreements with ING Bank Śląski and Eurobank.
 
Aviva Poland has a strong focus on digital. By the end of 2017, MyAviva (MojaAviva) had already 120,000 users. Offering better digital equipment to our agents has been a priority, and from 2019 we expect to stop using paper forms and automate the administration of policies. 

120,000

Number of MyAviva users by 2017

3 million

Number of customers

Operating as a subsidiary of Aviva Poland, Aviva is Lithuania’s largest life insurance and pension provider. We provide life insurance, savings, pensions and investment products to more than 244,000 customers across the country. We have a strong sales network of over 450 agents across 17 locations.

Aviva has been among the top life insurance companies in Lithuania for several years in a row. In 2017 we were selected as a top 10 best medium-sized enterprise by European Business Awards. 

Italy

We offer a comprehensive range of life, pensions, health, general insurance and investments products to over 1.5 million customers in Italy. We partner with top banks and have a growing independent financial advisors and agents network.

Aviva Italy is a leader in the market in product design and this is translating into increased new business. We remain focused on expanding distribution and increasing emphasis on our multi-line business model. Through digital, we’re applying our expertise in improving our service to customers and distribution partners.

450

Agents across 18 locations

1.5 million

Number of customers

Aviva Italy is committed to Aviva’s global digital agenda. It has set up a collaboration the PoliHub – the innovation district and start-up accelerator of the Polytechnic University of Milan - to launch the Aviva Customer Innovation Award.  

Ireland

Aviva is a leading insurer in Ireland and one of the country’s most recognised brands.  Aviva Ireland provides retirement income, life cover, protection, general insurance, and investment and savings products to 1 million customers.

In 2017, Aviva acquired Friends First to increase the scale and competitiveness of its life operations and complement its leading market position in general insurance. Our ambition is to become one of the leading multi-line insurers in the Irish market.

Through our investment in digital, we’ve made it easier for a growing number of customers and brokers to do business with us online. Our multi-line proposition, which rewards our loyal customers, has resulted in a 52% increase in the numbers who choose to hold more than one Aviva product.

1 million

Number of customers

We intend to use our market-leading brand, reaffirmed by the renewal of the sponsorship of the Aviva Stadium in January 2018, to make the most of our multi-line model and deliver further growth.

Singapore

We are a top-tier insurer in Singapore, serving one million customers and managing £5bn assets. We offer a comprehensive product range and are one of the few companies providing life, health and general insurance. We’re the only one to offer an investment platform – Navigator.

In 2016 we set up Aviva Financial Advisers, the country’s leading independent adviser network, to whom we provide technology, compliance and administrative support. Our strategy is to drive the evolution of distribution in the market towards financial advisers which is the fastest-growing distribution channel in Singapore.

1 million

Number of customers

We are also one of the biggest providers of employee benefits and healthcare insurance. As a trusted insurer of the government, we currently insure employees of the Ministry of Defence and the Ministry of Home Affairs

Aviva Investors

Aviva Investors is Aviva’s global asset management business, with expertise in multi-asset, fixed income, equity and real assets. We currently invest around £350 billion on behalf of our customers across major markets. In a world of Solvency II, we also provide the solutions for the Group to achieve the returns it needs.

Our ambition is to be a global leader in outcome-oriented investing, through products that meet customers’ specific investment goals, and increase investments in real assets such as real estate and infrastructure.

We continue to build our Global Responsible Investing credentials, winning the coveted Responsible Investor Innovation and Industry Leadership award. Environmental and social thinking and governance (ESG) is embedded within our investment decision-making process across all asset classes.  


Strategic investments

We have made a number of strategic investments which will accelerate growth and provide increased value. These businesses are targeting long-term growth by working with leading local partners in populous countries with strong growth characteristics. 

These businesses make a modest contribution to Aviva’s financial performance today, but they are sources of long-term upside for Group adjusted operating profit, cash-flow and value*.

Strategic investments support long-term growth

Market Population Growth drivers
China 1.4bn

• Broad geographic footprint with agency growth

• Digital agency tools boosting productivity

Hong Kong 7.4m

• Disruption play

• JV with Hillhouse and Tencent launched in 2018

Indonesia 261m

• JV with No. 1 conglomerate (Astra)

• Geographic expansion, multi-channel approach 

Vietnam 92.7m

• 100% owned

• Long-term exclusive distribution

Turkey 79.5m

• No. 2 Life position

• Structural market growth

India 1.3bn

• Improved market fundamentals

• Strategy under review

* This is an APM which is not bound by the requirements of IFRS

Turkey

Turkey presents an attractive opportunity for insurance, with a large young population and low insurance penetration rates. We operate in Turkey through AvivaSA, a joint venture with Sabancı Holding, one of Turkey’s largest conglomerates.

AvivaSA is a leading private pension provider and life insurer in the country, serving over 2.2 million customers. We have strong distribution through a partnership with Akbank, one of the country’s largest banks, as well as direct sales, corporate sales and through a strong agent network.

2.2 million

Number of customers

Our ambition is to become a top insurer in Turkey. We are already the market leader in pension funds with 19.5% market share and aim to deepen our presence in auto-enrolment and life insurance.

China

With a population of 1.4bn and low insurance penetration, China is set to become one of the world’s most attractive insurance markets in the next decade. In China, we have a partnership with COFCO, one of the country’s leading food conglomerates. We also have a fast-growing agency channel.

89

Branches

We offer life insurance products in 14 provinces with over 89 branches across China and are ranked top 10 among foreign insurers. We also have a digital health and wellness platform that aims to help people in remote locations access a GP digitally.

Our focus in China is to grow our multi-channel distribution model and improve our services to customers and partners through digital. 

Hong Kong

We have an exciting opportunity to revolutionise the insurance industry in Hong Kong. We’ve partnered with leading investment management firm Hillhouse Capital and tech giant Tencent Holdings Limited to create the first truly digital insurer in a market dominated by intermediaries. 

We combine the expertise of the industry leaders to bring simple, flexible solutions with zero commission to customers in the digital era. 

Blue, our new digital joint venture, started operations in 2018, offering simple insurance products direct to customers.

Indonesia

Indonesia has a population of 260m and offers an attractive insurance market, with a young digitally connected population, a rising high-consumption workforce and low insurance penetration.

In 2015, we partnered with PT Astra International Tbk, one of Indonesia’s largest diversified conglomerates. Our joint venture, Astra Life, offers life insurance products to customers of Permata Bank, a top 10 bank in Indonesia and part of the Astra family.

Since we started operations in 2016, we have rapidly increased our customer base, and we expect to continue to grow in the medium and long-term.

Vietnam

We believe in Vietnam as a long-term investment. In 2017 we transformed our joint venture into a wholly-owned subsidiary now operating as Aviva Vietnam. We have invested in a young, talented and dynamic agency network and opened a second office in Ho Chi Minh City in 2018.

In addition to building our own agency force, we have a distribution agreement with former joint venture partner VietinBank which grants us access to a network of over 1,100 branches.  

Aviva Vietnam has achieved significant business growth and we aim to continue growing in the market through diversifying our distribution channels and products.    

India

India presents great opportunities for digital insurance, with a young dynamic population that is increasingly connected. We have a joint venture with Dabur Group, one of the country’s largest conglomerates, to provide life insurance and savings to around 500 thousand customers.