Preliminary Results 12 months ended 31 December 2002

PRELIMINARY RESULTS
12 MONTHS ENDED 31 DECEMBER 2002

Aviva reports robust operating profit* of £1,798 million (2001: £1,983 million) for the 12 months to 31 December 2002. On a modified statutory basis, operating profit** was £1,296 million (2001: £1,512 million)

ROBUST LIFE PERFORMANCE IN TOUGH MARKETS

• Total life achieved operating profit of £1,524 million (2001: £1,665 million) after a net charge of £123 million (2001: £78 million) arising from prudent annuitant mortality strengthening
• New business contribution of £578 million (2001: £591 million) with worldwide margins of 24.4% (2001: 25.5%)
• Leading position in European bancassurance distribution with worldwide bancassurance sales up 50% to £3.0 billion (2001: £2.0 billion)
• Continuing benefits of geographical diversity with our Continental European businesses contributing 49% of life achieved operating profit

EXCELLENT GENERAL INSURANCE RESULT

• Worldwide combined operating ratio† of 101.4% (2001: 104%)
• Worldwide combined operating ratio on continuing operations†† of 101.7% (2001: 103%)
• General insurance operating profit† higher at £959 million (2001: £924 million)

RESILIENT CAPITAL POSITION

• Equity shareholders’ funds of £9.5 billion (2001: £11.6 billion, restated***)
• Orphan estate is estimated at £4.3 billion and the estimated free asset ratio# of the UK life funds is 11.8%

 

Richard Harvey, Group Chief Executive, commented:

“We have delivered a robust set of results in a difficult year where the ongoing turmoil in investment markets has affected consumer demand and investor sentiment. These results demonstrate the effectiveness of our product and distribution strategies and are a measure of the Group’s financial and operational strength.

“The benefits of a strong business model, where resilient long-term savings operations are allied with a cash-generative general insurance business, are evident in these tough market conditions. We expect 2003 to be a challenging year and will continue our emphasis on capital disciplines, cost management and building our bancassurance opportunities.”

* From continuing and discontinued operations, including life achieved operating profit and stated before tax, amortisation of goodwill and exceptional items.

** From continuing and discontinued operations, before tax, amortisation of goodwill, amortisation of acquired additional value of in-force long-term business and exceptional items.

*** Restated for the impact of Financial Reporting Standard 19 “Deferred Tax”.

# Calculated in accordance with FSA regulations and includes implicit items.

† From continuing and discontinued operations.

†† Continuing operations excludes the results of the disposed general insurance operations in Australia and New Zealand sold in 2002 and the results of the US general insurance operations sold in June 2001.
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
Sue Winston	Head of Group Media Relations	+44 (0)20 7662 8221
Alex Child-Villiers	Financial Dynamics	+44 (0)20 7269 7107

 

Download the full preliminary results announcement (PDF 301KB)