Reports

Annual report 2017

Our people and culture, our performance, and how we run our business.

In 2017 we delivered growth: in profits, in dividends, in capital and in cash.  

This year’s report demonstrates that Aviva’s fundamentals are in good shape. These results come amidst unprecedented political, economic and technological changes that have an effect on all aspects of our society. Nevertheless, we remain focused on delivering for our customers, so that they can navigate these uncertain times.
Sir Adrian Montague, CBE, Chairman

Our 2017 performance

Another year of delivering on our promises of cash flow plus growth.

27.4p

Total dividend per share, up 18%

54.8p

Operating earnings per share, up 7%

£3,068m

Group adjusted operating profit1, up 2%

£34.6bn

paid out in claims and benefits

 

75%

our employee engagement score

 

792,000

people helped by 2400 projects we supported

Find out about our sustainable business approach

   

Mark Wilson and team
Collegues at our Digital Garage, Hoxton, talking to Mark Wilson, Group CEO (centre)
Having successfully executed our plan to strengthen the balance sheet and focus Aviva on those businesses with the strongest fundamentals, we have increased our growth ambitions.
Mark Wilson, Group Chief Executive

Delivering on a clear plan of action

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.

1  Group adjusted operating profit is an Alternative Performance Measure (APM) which is used by the Group to supplement the required disclosures under IFRS. Please refer to note B in the ‘Accounting Policies’ section and to the ‘Other Information’ section within the Annual report and accounts for further information.

 This is an Alternative Performance Measure (APM) which provides useful information to enhance the understanding of financial performance. Further information on APM’s, including a reconciliation to the financial statements (where possible), can be found in the ‘Other Information’ section of the Annual report and accounts.

3 This measure is derived from the Group adjusted operating profit APM. Further details of this measure are included in the ‘Other Information’ section.