Aviva plc 2001 Preliminary Results
CGNU reports strong results for the year ended 31 December, the introduction of Aviva as its new global brand and a rebased dividend policy which is consistent with the high growth nature of the refocused business
Richard Harvey, Group Chief Executive, commented:
"This is a strong set of results. Our life businesses have outperformed in our major markets in the UK and Europe through organic development, acquisitions, partnerships and new ventures that extend our distribution capabilities. In general insurance we have delivered a significant improvement in results through lower weather-related claims and a focused approach to our realigned small commercial and personal lines portfolio. Through this action we have achieved our target combined operating ratio of 102%, which we believe is capable of being sustained through the underwriting cycle.
"With the integration successfully completed we are now looking to future growth. The introduction of the Aviva brand will create opportunities for us to harness the benefits of our size and international capabilities."
Pehr Gyllenhammar, Chairman, commented:
"The Board has concluded that the realignment of the dividend policy strikes the appropriate balance between dividend payments and the retention of capital to take advantage of profitable growth opportunities. This reflects the high growth nature of our business as we continue to advance in those international markets where we can build leadership positions."
- Strong results with operating profit* up 41% to £2,004 million in a challenging environment
On a modified statutory basis, operating profit before tax was £1,533 million (2000: £1,028 million) - Record sales of long-term savings business delivering profitable growth
- Outperformance of long-term savings business in major markets with worldwide new business sales at £15 billion
- New business contribution up 30% to £591 million (2000: £454 million**), with worldwide margins of 25.5% (2000: 23.9%**)
- Worldwide life achieved operating profit up at £1,674 million (2000: £1,569 million)
- Sustainable returns from general insurance
- Re-shaped general insurance business delivers worldwide combined operating ratio of 102%
- General insurance operating profit, up 133% to £945 million, due to action taken to improve performance and to lower weather-related claims
- Integration successfully completed and cost savings target exceeded
- Proposed change of group name to Aviva† to reflect the international nature of the newly integrated business
- For commercial reasons certain strong brands, such as Norwich Union in the UK, will be retained with the endorsement 'an Aviva company'
- Full year 2001 dividend unchanged at 38.0 pence net per share
- Rebased dividend policy, to support the scale and pace of profitable long-term savings growth
* From continuing operations including life achieved operating profit before amortisation of goodwill and exceptional items
** Using the application of 2001 economic assumptions
† Aviva is a trademark of the CGNU group
All growth rates quoted are at constant rates of exchange.
Enquiries
Richard Harvey, Group Chief Executive, +44 (0)20 7662 2286
Mike Biggs, Group Finance Director, +44 (0)20 7662 2031
Analysts:
Steve Riley, Investor Relations Director, +44 (0)20 7662 8115
James Matthews, Head of Investor Relations, +44 (0)20 7662 2137
Media:
Hayley Stimpson, Director of External Affairs, +44 (0)20 7662 7544
Alex Child-Villiers, Financial Dynamics, +44 (0)20 7269 7107