Aviva plc Preliminary Results 2008
Andrew Moss, chief executive, commented:
“In a tumultuous year, our underlying business has shown great resilience. Operating profits are up and we have maintained our dividend. Bottom line earnings have been affected by investment markets which have predictably created significant unrealised losses during the year.
“Aviva remains financially strong. We’ve undertaken a thorough review of the value of our assets and liabilities, and have made cautious provision for future losses so that we are in good shape to withstand the ongoing volatility and uncertainty in world markets. Maintaining our capital strength has been a priority for us and remains so this year.
“Meanwhile we continue to transform Aviva for the future. In these markets only the fittest will emerge as winners. Our increased share of the UK life and pensions market in 2008 is a good example of a market where we have growing competitive advantage. Our strategy is well-suited to current markets and our geographic diversity and composite model continues to deliver for us.”
Operating profits up; total return reflects investment markets; dividend maintained
- IFRS operating profit up 4% to £2,297 million
- IFRS loss after tax of £885 million
- IFRS net asset value per share of 416 pence
- Total dividend per share maintained at 33.00p
MCEV result volatile in current investment markets
- MCEV operating profit up 10% to £3,358 million
- MCEV loss after tax of £7,710 million
- MCEV net asset per share of 486 pence
Strong balance sheet and capital position
- IGD solvency surplus of £2.0 billion at 31 December 2008
- Prudent reserve strengthening undertaken
- Consistent strategy through global crisis has ensured the financial health of Aviva
Resilient business flows from composite model and geographic spread
- Life and pensions sales up 11% to £36,283 million
- General insurance result improved and combined operating ratio on target at 98%
- Difficult conditions in global markets has reduced asset management result
Transforming Aviva for the future
- £340 million of £500 million 2010 cost savings target achieved
- Significant progress in our UK business and launch of Aviva Investors
- Target to double US new business sales achieved a year early
- Move to global brand on track
- Committed to delivery of target to double IFRS earnings per share by 2012
| Investor contacts | ||
| Andrew Moss | Chief executive | +44 (0)20 7662 2286 |
| Philip Scott | Chief financial officer | +44 (0)20 7662 2264 |
| Charles Barrows | Investor relations director | +44 (0)20 7662 8115 |
| Jessie Burrows | Head of investor relations | +44 (0)20 7662 2111 |
| Media contacts | ||
| Hayley Stimpson | External affairs director | +44 (0)20 7662 7544 |
| Sue Winston | Head of group media relations | +44 (0)20 7662 8221 |
| James Murgatroyd / Ed Simpkins | Finsbury | +44 (0)20 7251 3801 |