Aviva plc - Strong performance, increased value, positive outlook

Andrew Moss, group chief executive, commented:

“The third quarter of 2010 saw continued strong profitability and good sales growth from both our life and general insurance businesses. New business profitability has improved and we’re on track to generate a very significant £1.5 billion of capital in 2010.

“As we look to the next phase of our growth, Aviva will sharpen its geographic focus and deepen its position in its key markets through its strengths in both life and general insurance. Our UK business is an excellent example of how this strategy is delivering value for our shareholders and customers.

“Aviva is well-placed to become a leading insurer in our chosen markets.”

Nine months 2010

Good sales growth

• Worldwide sales of £35.9 billion - up 5%
• Long-term savings sales of £28.6 billion - up 6%
• General insurance and health net written premiums of £7.3 billion - up 4%

Strong profitability and capital generation

• Group IRR stable at 12%
• General insurance COR of 97%
• On track to generate £1.5 billion operational capital in 2010
• IFRS net asset value up at 414p (30 June 2010: 394p); 424p on a pro forma basis including £275 million benefit from closure of UK final salary pension scheme

Strategy update: clear way forward to deliver shareholder value

Sharper focus, greater depth and clear financial deliverables

• Focus on markets where we have strength and scale
• Deepen positions in chosen markets
• Deliver at least £1.5 billion of operational capital in 2011
• Life IRR of at least 12% with payback of 10 years or less
• General insurance COR of 97% or better in 2011
• £200 million of cost savings and £200 million of efficiency gains by end 2012

Contacts

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