Aviva plc 2019 full year results.
Maurice Tulloch, Chief Executive Officer, said:
"In 2019, we set out our priorities and financial targets, strengthened our leadership team and remained focused on helping our customers prepare for a better future. We’ve made good progress, but there is much more to do.
"Our return on equity was 14.3% and operating profit increased 6% to a record £3.2 billion. Our capital position remains strong and resilient at a 206% Solvency cover ratio. The Board has increased the full year dividend by 3% to 30.9 pence per share.
"Customers are choosing Aviva to help them save for their future, draw a secure income in retirement and insure what matters most to them. In 2019, we increased customer numbers by 2% to 33.4 million, and improved customer satisfaction levels.
"In general insurance, sales are up 2% and the outlook is positive in the majority of our markets. In our major life businesses, we have increased customer net inflows and grown assets by 9% to £417 billion. Aviva Investors secured third party net inflows of £2.3 billion on the back of strong investment performance.
"My objective is to run Aviva better. We will improve business performance and enhance returns through disciplined action on expenses and underwriting. We will focus capital and resources where we can achieve competitive advantage and strong returns and we will take robust action across the portfolio where our performance falls short or where we can see a better way of delivering value to our shareholders."
- Solvency II return on equity1,2,‡ 14.3% (2018: 12.5%)
- Own funds generation1,2 £2.3 billion (2018: £2.0 billion)
- Operating capital generation2,‡# £2.3 billion (2018: £3.2 billion)
- Operating profit3,‡# up 6% to £3,184 million (2018: £3,004 million5)
- Operating EPS3,4,‡# up 8% to 60.5 pence (2018: 56.2 pence5)
- IFRS profit before tax £3,374 million (2018: £2,129 million)
- Basic EPS 63.8 pence (2018: 38.2 pence)
- Final dividend per share 21.40 pence
- Total 2019 dividend per share 30.9 pence (2018: 30.0 pence)
Capital & Cash
- Solvency II capital surplus2 £12.6 billion (2018: £12.0 billion)
- Solvency II cover ratio2,‡# 206% (2018: 204%)
- Solvency II net asset value2 per share 423 pence (2018: 392 pence)
- Cash remittances‡# £2.6 billion (2018: £3.1 billion)
- Centre liquidity6 £2.4 billion (2018: £1.6 billion)
- Debt leverage ratio‡ 31% (2018: 33%)
- IFRS net asset value per share 434 pence (2018: 424 pence)
- Life PVNBP up 12% to £45.7 billion (2018: £40.8 billion)
- Value of new business (VNB)‡ up 2% to £1,224 million (2018: £1,202 million)
- General insurance net written premiums (NWP) up 2% to £9.3 billion (2018: £9.1 billion)
- General insurance combined operating ratio (COR)‡ 97.5% (2018: 97.2%5)
- Controllable costs‡ £3,939 million (2018: £3,968 million)
- Achieved savings £72 million7, before programme implementation and IFRS 17 costs of £59 million
‡Denotes Alternative Performance Measures (APMs) which are key performance indicators of the Group used to measure our performance and financial strength. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
#Denotes key performance indicators which are used by the Group to determine or modify remuneration. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
1Includes Group centre, debt costs and other items not allocated to the markets.
2The estimated Solvency II position represents the shareholder view only. See section 3 of the Overview for more details.
3Group adjusted operating profit is a non-GAAP APM which is not bound by the requirements of IFRS. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
4This measure is derived from the Group adjusted operating profit APM. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
5During 2019 the Group adjusted operating profit APM has been revised and now includes the amortisation and impairment of internally generated intangible assets to better reflect the operational nature of these assets (see note B2(b)). Group adjusted operating profit continues to exclude amortisation and impairment of intangible assets acquired in business combinations. Comparative amounts have been restated resulting in a reduction in the prior period Group adjusted operating profit of £112 million. There is no impact on profit before tax attributable to shareholders’ profit. Following the change in the definition of Group adjusted operating profit, COR, operating expenses and operating earnings per share have also been restated to include the amortisation and impairment of internally generated intangible assets. Comparative amounts have been restated resulting in an increase in prior period COR of 0.6%, an increase in prior period operating expenses of £112 million and a reduction in prior period operating earnings per share of 2.2 pence.
6Stated as at end February.
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Real time media conference call: 07:45 hrs & 11:00 GMT
Analyst presentation: 09:00 hrs GMT