A refocused Aviva, transforming at pace.
We have taken major steps forward in simplifying the business. Our strategic focus is now on the UK, Ireland and Canada where we have leading positions. We are putting customers at the heart of everything we do and I am confident we will transform Aviva’s financial performance and deliver greater value for shareholders.
Our focus is on our strongest and most strategically advantaged businesses in the UK, Ireland and Canada, including Aviva Investors. These are markets where we have leading positions, can generate attractive returns, we have a strong powerful brand and we deliver excellent customer service. We are investing for growth in these markets.
Our international businesses are being managed-for-value. Where we cannot meet our strategic objectives for these businesses we will be decisive and withdraw capital.
We have fantastic franchises and exceptional long-term relationships with customers and distributors. We will invest in customer experience to provide excellent service and value for money along with delivering profitable growth for our shareholders. We have strong foundations, particularly in the UK. We must build on these foundations and go further to ensure we are top quartile in both value and profitability.
Financial strength, resilience and sustainability are critical to our strategy. We have maintained capital strength, built central liquidity and have clear plans in place to reduce our Solvency II debt leverage below 30% during 2021. After allowing for investment in the business, we expect to return to shareholders surplus capital in excess of 180% of our Solvency II cover ratio.
Targeting sustainable growth
Targets for our Core business across UK, Ireland and Canada are:
- Cumulative cash remittances: over £5 billion between 2021-23, with guidance for £1.8 billion in 2023
- Cost reduction: £300 million net savings by 2022 with £180m delivered by end 2020
- Debt leverage: <30% SII debt leverage which we expect to achieve by H1 2021
- Infrastructure and real estate investment in the UK: £10bn over next three years
- First major insurer globally to target net zero greenhouse emission status by 2040