Annual report 2017

For our key metrics, we have:

• Increased Group adjusted operating profit¹ by 2% to £3,068 million (2016: £3,010 million)
• Operating earnings per share (EPS)³ increased by 7% to 54.8p (2016: 51.1p)
• Profit before tax attributable to shareholders’ profit increased by 68% to £2,003 million (2016: £1,193 million) and basic EPS increased by 19.7p to 35.0p (2016: 15.3p)
• Increased cash remittances² to Group by 33% to £2,398 million (2016: £1,805 million)
• Increased total dividend per share by 18% to 27.40p (2016: 23.30p) delivering four consecutive years of double digit growth
• Delivered a strong Solvency II capital position with an estimated shareholder Solvency II cover ratio² of 198% (2016: 189%) up 9pp. This includes operating capital generation² surplus movement in the year of £2.6 billion
• Reported total assets under management² of £490 billion – an increase of £40 billion on last year.

• Target higher than 5% increase in operating EPS³ from 2018 onwards
• Aim to deliver £8 billion of cash remittances² between 2016-2018 inclusive
• Focus on achieving a 55-60% dividend pay out ratio by 2020
• Target a Solvency II cover ratio² working range of between 150%–180%.

For our customers, we have:

• In October, we launched an effortless home claims trial in the UK, settling home insurance claims by asking just three questions
• Launched ‘The Ideas Hub’ where new initiatives are trialled with customers using social media
• Delivered solutions to help customers ‘feel safe again in their homes’, for example offering a leak detector, camera or smart battery for customers who have made flood, theft or fire claims
• Partnered with Neos, inventor of a connected home service, which detects leaks, smoke and intruders and alert you instantly by app
• Launched the Aviva Wellbeing app to track and improve their overall health and wellbeing.

In Digital, we have:

• Expanded the reach of MyAviva to include corporate customers and IFAs. It is now available in the UK, Singapore, France, Poland and Canada
• Invested in Wealthify, a robo investment platform, in October 2017
• Launched Aviva Quantum with a 500-strong team of data scientists.

Not Everywhere:

• During the year we announced the sale of Friends Provident International
• We also announced the sale of Spanish joint ventures Unicorp Vida, Caja España Vida and Aviva Vida y Pensiones
• In Taiwan we sold our joint venture, exiting the market.

• Build and deepen engagement with our customers on MyAviva
• Disrupt in digital to do more for our customers
• Continue to campaign for what’s important to our customers
• Continue to reallocate capital to focus on what we do best and drive higher returns.

For our people, we have:

• Continued to build a culture and environment which attracts and retains people with the right capabilities for the future
• Employee engagement is at 75% with 85% of colleagues seeing how their team’s work aligns to Aviva’s strategy
• Introduced CATS (Culture Action Team) globally with over 2,000 members committed to driving change to embed Aviva’s values
• Delivered our Leadership Accelerator programme to 290 of our senior leaders
• Launched Equal Parental Leave to help build an inclusive workforce.

For society, we have:

• Supported 2,400 community projects, helping 792,000 people
• Spearheaded the establishment of the World Benchmarking Alliance and public, transparent and authoritative league tables of companies’ contribution to the UN Sustainable Development Goals
• Awarded the UN Momentum for Change award in recognition of a decade of work reducing the environmental impact of our business and inspiring action on climate change
• Withdrew our investment from tobacco manufacturing companies
• Invested £527.5 million in lower carbon infrastructure as part of our strategic response to climate change.

• Continue to develop our leaders across Aviva through greater innovation, agility and accountability
• Build a culture where we consider our customers in every decision
• Develop an inclusive workforce that reflects the diversity of our customers
• Increase the impact of the Aviva Community Fund across the world
• Build on the success of our existing customer propositions, developing products and services that help our customers Defy Uncertainty in an increasingly sustainable way.