Annual Report 2024

VOICE OVER: We’re Aviva.

With our customers today, for a better tomorrow.

All 20 million of them.

Supporting them through all the key moments in their lives, by being the go-to brand

for their insurance, wealth and retirement needs.

Today, we’ve released an excellent set of full year results.

Thanks to the hard work and dedication of our colleagues,

making it click for our customers, clients, communities, shareholders and each other.

1.76 billion of operating profit.

Underlying SII Own Funds Generation at £1.5bn.

Undiscounted COR at 96.3%.

Solvency II cover ratio is 203%.

2024 total dividend per share is 35.7p.

We have momentum.

We’re growing right across the Group.

We’re consistently delivering for our customers and we're excited about the future.

MICHAEL KORNER: Amanda. Great to be here with you today to talk about our full year results.

Could you start just by sharing some of the headlines in your own words?

AMANDA BLANC: Well, first of all, thank you very much for doing this, Michael.

It's really great to be here.

And actually, I think when you look back at 2024, what you see from Aviva

is a really excellent set of results with strong and consistent delivery.

So what does that mean?

Well, I think what we've seen is great growth right across the business.

And that's translated into double digit growth in operating profit, double digit growth in our underlying Own Funds Generation, and strong cash remittances, which of course are our three key targets.

So I think, you know, this is an impressive set of results, and we're very, very pleased with them.

MICHAEL KORNER: That's fantastic to hear. Now could you talk some of the highlights from across the Markets?

Yes I can and there are lots of highlights.

So let's start with the UK and Ireland General Insurance.

Firstly your own part of the business, Aviva Zero has had a really great performance in 2024, but the overall business has had strong performance. Plus 16% growth overall.

You've seen really strong growth in Personal Lines but also strong growth in Global Corporate Specialty and the mid-market and SME business.

So, overall very, very strong performance.

Turning now to Canada.

Canada clearly had strong growth, double digit, but they also had CAT events during 2024.

A significant number of events, lots of customer claims.

But they handled them brilliantly with really, really good market leading customer service.

Turning now to IWR, Insurance, Wealth and Retirement.

Let's start with the Insurance part of that business.

Strong and profitable growth in the Health business.

In Protection we've integrated the AIG business.

Then if you look at Wealth, we've had a terrific year, £200 billion of assets.

We’re the largest wealth platform in the UK.

And just to put that in some sort of context, we've grown by £50 billion over the last two years.

So we've seen strong growth both in Workplace but also on the Adviser Platform.

And finally, if we think about the Retirement business, we've had record flows in the Bulk Purchase Annuity business, which is, you know, incredibly strong.

And that has been supported by Aviva Investors who have originated assets

to back that business.

MICHAEL KORNER: Sounds like we've got strong organic growth across all of our markets.

Now, a large part of our strategy is about becoming capital light.

Can you tell me a bit more about that?

AMANDA BLANC: Yes. So, as you know, we have an ambition to reach 70% of our business capital

light by 2026.

And why do we use this expression capital light? Why is this important?

Well, obviously, if you're growing the business but using less capital to do that, then the business is going to be more profitable.

And that's really good for our shareholders.

And I think through the organic growth that we've achieved in the business, but also the targeted M&A that we've already undertaken, so AIG and Probitas, it means that we are making really good progress towards that ambition.

Now, clearly with Direct Line Group, that gives us the opportunity to accelerate that even further and that's why that is so exciting.

Thank you. Can you say a bit about how we’re delivering for our customers?

Yes. I mean obviously the customer is at the heart of Aviva’s strategy. And with 17 million customers in the UK and over 20 million customers, if you include Canada and Ireland, I think we've got a huge responsibility to make sure that we do a really good job for our customers.

So we've done loads of things in 2024, but maybe I'll pick up three things which I think are,

you know, really important.

Firstly, we launched the new MyAviva app.

So as we call it, the digital front door, which sounds pretty fancy, but what it really means

is the customers get better digital journeys.

And what we've seen there is the Online Experience Score increasing to over 70% in 2024,

which I think is a really strong progress for us.

Then secondly, if we talk about this very big topic of generative AI and, you know,

obviously everybody's really keen on this at the moment.

But here what we've done is for our claims agents, we've used generative AI so that when the customer is actually dialling in, we're using generative AI behind the scenes to call up the customer details, everything that's happened on the claim so that when the agent

speaks to the customer, they've got that information in front of them and also, the likely question that the customer is ringing up about, which I think is really clever

and also means the customers are not kept waiting on hold. And we've seen nearly half

of our agents now using that in Motor. So I think that's great.

And the third area that's worth pointing out is our service called Find and Combine. And here what we do is help our customers to pull together workplace pensions that they may have had from previous employment into one place.

MICHAEL KORNER: Turning now to our shareholders. What's the message for them today?

AMANDA BLANC: So there's five messages for the shareholders today.

The first one is Aviva is the go-to diversified insurer in the UK with attractive businesses

in Canada and Ireland.

Secondly, we have a customer focused strategy. Thirdly, we have organic growth opportunities across the UK, Ireland and Canada, in all lines of business.

Fourthly, we spent the last four years delivering and we've shown a consistent track record of delivery.

And finally, we're delivering superior returns for shareholders and that can be further enhanced with the acquisition of Direct Line Group.

MICHAEL KORNER: And finally, what would you like us to take from today's results?

AMANDA BLANC: So I think what you see here is a business that’s performing, right. It's got momentum, but there's still a huge amount more to go after.

So everybody should be really excited about what the opportunities are.

And of course, that's created by the great people that we have within the business.

If you think about all of our colleagues working really hard for our customers, what I want to do today is, of course, the key message to them is to say: thank you very much, but please don't stop.

MICHAEL KORNER: Thanks so much for your time, Amanda. It's been great talking to you today.

AMANDA BLANC: Thank you, Michael.