Annual Report 2015

Page Contents:

Your Aviva

At Aviva, we help our 33 million customers save for the future and manage the risks of everyday life. Our 29,600 people are focused on helping to free our customers from fear of uncertainty.

Group CEO Mark Wilson, talking about Aviva's 2015 performance.

We have businesses across 16 markets in UK, Europe, Asia and Canada, offering life insurance, general insurance, accident & health insurance, and asset management.

  • £2,665m Operating profit on IFRS basis up 20%1,2
  • £1,507m Cash remittances up 5%1
  • £1,192m Value of new business up 19%1
  • 94.6% Combined operating ratio improved by 1.1pp
  • 50% Operating expense ratio improved by 1.1pp1,2
Sir Adrian Montague - Chairman

Aviva has made remarkable progress in the past three years. It has moved from turnaround to transform and grow.

Sir Adrian MontagueChairman

Download Chairman's letter (PDF 80 KB)

Tom Stoddard - CFO

Our financial discipline and careful management have paid off in 2015: lots of good news and no bad news surprises.

Tom StoddardChief Financial Officer

Download Chief Financial Officer's review (PDF 192 KB)

  1. 2015 numbers include Friends Life from 10 April 2015, the acquisition completion date. 2014 numbers are Aviva stand-alone as previously reported (i.e. do not include Friends Life).
  2. 2014 operating profit on an IFRS basis was restated to exclude amortisation and impairment of acquired value of in-force business which is now shown as a non-operating item.

Our strategy

We have a clear strategy to deliver sustainable and progressive cash flows underpinned by good potential for growth, by ensuring our people always put customers first

True Customer Composite

Meeting all customer needs across life, general, accident & health insurance and asset management

£31bn Paid out in benefits and claims to our customers in 2015

Why it's important

We can provide customers with life, general, accident and health insurance and asset management - a True Customer Composite. This is what differentiates us. We are the only composite insurer of scale in the UK, and one of only a few in the world.

Why now

In a digital world, the advantages of being a True Customer Composite become more tangible. We have a much greater opportunity to deal directly with customers, and digital enables us to provide a wide range of products that meet their needs.

Digital First

Emphasising customer experience driven by digital - online and mobile

1.8m registrations on MyAviva

Why it's important

We put Digital First. This is how we will capitalise on being a True Customer Composite. With their busy everyday lives, customers are increasingly turning to digital to make things more convenient, easier and quicker. So, if it is a choice of where we invest, it will be in Digital First across all our distribution channels - it's how customers want to do business with us.

Why now

The environment in which we operate is changing rapidly due to recent advances in technology and digital distribution. Digital allows customers to connect with us directly, allowing us to improve customer experience, increase interaction with our customers and reduce the cost to serve them.

Not Everywhere

Our focus is on markets where we can have critical mass

16 markets in the UK, Europe, Asia and Canada

Why it's important

We focus our resources where we can be most competitive. We will focus on a select number of markets and business lines where we have scale and profitability or a distinct competitive advantage - where we can win.

Why now

It is integral to delivering Aviva's strategy. We will only deliver the full benefits of the composite model by putting Digital First if we focus our resources where we can be most competitive.

Market Review

Our progress and future plans

UK and Ireland

We are the UK’s largest insurer with leading positions in both life and general insurance, serving one in every four households. We are also a leading provider in Ireland’s life and pensions market.

  • £625m Value of new business
  • 95% Combined operating ratio

Read Ricky's story: "Everyone at Aviva has been brilliant"

Life was good for Ricky, his wife, Sarah, and their daughter, Isabella.

He enjoyed his job as a teacher and they’d just bought a family home with space for brothers and sisters for Isabella.

Then Ricky found he had testicular cancer.

Everything was thrown up in the air. They didn’t know what treatment he’d need, what the prognosis was or how they’d pay the mortgage if he was too ill to work.

Their financial adviser told them to check whether they had critical illness cover as part of their life insurance with Aviva. They did – and it would clear their mortgage if either of them fell seriously ill or died.

Ricky talked to us and we paid out on their policy. It was a huge weight off their minds.

Then the best news of all. After an operation, Ricky learnt that his cancer hadn’t spread and he wouldn’t need chemotherapy.

Ricky encourages people to go to the doctor so illness can be caught early – and he’s a convert to insurance: “I was amazed by how many people aren’t covered – I’ve told all my friends they must think about it.”

We’re delighted that he’s better and that, in his words, “everyone at Aviva has been brilliant.” Now the Lovelace family can look forward to the future. And they have a new addition – a little sister for Isabella, named Darla.


We are Canada's second largest general insurer¹ providing a range of personal and commercial lines products to over 2.8 million customers

  • £214m General insurance operating profit
  • 93.8% Combined operating ratio

Hear more about St. Jacobs Farmers’ Market

"One of the best decisions we made was to review our insurance regularly"

Imagine if 70 businesses in your community vanished overnight: livelihoods lost, lost income for suppliers, and thousands of disappointed customers.

That’s what happened in St. Jacobs, Ontario, when the much-loved St. Jacobs Farmers’ Market burnt down.

Overnight, local people lost the place where they went for everything from antiques to livestock. One business owner said it “felt like losing a home – like you weren’t going to see your family anymore.” But local people resolved that the market would rise again and, as the local mayor said “everybody came together to make it work” – that included Aviva, as the Market’s insurer. Marcus, the Market’s President, said “one of the best decisions we made was to review our insurance with our broker regularly, which resulted in us having the right coverage to be able to recover.” This was a complex case, but John, our loss adjuster, quickly agreed a plan of action and we made a substantial advance so the resurrection of the Farmers’ Market could begin. Within a few weeks a temporary market was operating. In total, Aviva paid out around £2.7 million or just under $CAD5 million. Now a bigger, better St. Jacobs Farmers’ Market is back as a bustling much-loved place, with a huge diversity of shops and stalls, where people can meet their friends and family. We’re proud we helped St. Jacobs Farmers’ Market to rise from the ashes – and take its place back at the heart of the community.

  1. Market Security Analysis & Research Inc, 2014 online database


We offer a wide range of life, general insurance, health and asset management products to more than ten million customers in five markets – France, Italy, Poland¹, Turkey and Spain. We operate a composite model in France, Italy and Poland

  • £400m Value of new business²
  • 95.4% Combined operating ratio

Read Anna's story: "Aviva has thought about absolutely everything"

We launched our new “You, Me, We” package in Poland in 2015. It’s tailored to meet different people’s needs at different times in their lives.

We can offer this to customers because we’re a True Customer Composite. And we think it means simplicity and convenience for our customers, delivered digitally.

“You” is for young people and offers everything from life insurance to health benefits in the event of injuries like breaks, twists or sprains.

“Me” provides the full spectrum of insurance to single people – with additional benefits like pet care and even housekeeping. And “We” is for young families. It’s not just insurance but offers things like child care and tutoring – and even someone to call when you want advice on caring for your baby.

Anna loves our “Me” package. In addition to the protection and accident cover, she knows her much-loved dog will be cared for if she has to go into hospital. As someone who looks after herself, she also appreciates the healthy eating recipes we send her every week.

Anna thinks “You, Me, We” shows that “Aviva has thought about absolutely everything”. She describes herself as someone who smiles a lot. We hope Aviva has made her smile that much wider.

  1. Aviva Poland also has management responsibility for Aviva's operation in Lithuania.
  2. Excluding Eurovita and CxG


We have wholly-owned subsidiaries in Singapore and Hong Kong, affinity joint ventures in China, Indonesia and India, and bancassurance joint ventures in Taiwan and Vietnam. Through the acquisition of Friends Life, our presence also covers Friends Provident International Limited (FPI), which has branches in Singapore, Hong Kong and the United Arab Emirates

  • £151m Value of new business¹
  • 101.6% General insurance combined operating ratio

Hear more about Rainbow's story

"My policy makes me feel safe"

We’re delighted we can meet so many of our customers’ insurance and savings needs. You could say we offer all the colours of the rainbow!

That’s especially apt for one of our customers in Changsha, in the province of Hunan, China, known to her friends as Rainbow.

Rainbow has been with us since 2008 to meet her financial and insurance needs – from savings to health cover. And she even goes shopping and eats out with our agent, Ms Liu. Rainbow isn’t just a customer, she’s a friend.

She’s also a fan of our Chunyu Online Doctor, part of her critical illness cover through Aviva. This allows her to hold an online consultation with a doctor when it suits her. She finds it far quicker and more efficient than a time-consuming visit to a hospital or clinic.

Her top priority is her family, not least caring for her elderly parents. But she also has a business to run and must travel for work. So, when she’s away and her father has had some of the inevitable aches and pains of age, she can make sure he is getting the right care through the online doctor service.

Rainbow told us about an ancient Chinese saying which roughly translates as “save something for a rainy day” – so you feel safe and can enjoy your life.

That’s our philosophy too.

  1. Excludes South Korea

Aviva Investors

We are Aviva's investment management business, with £290 billion assets under management

  • £105m Aviva Investors fund management operating profit
  • £290bn Assets under management

Read Ian's story: "Our goal is to deliver better outcomes for our customers"

At Aviva, we put our customers at the heart of everything we do. That’s certainly true at Aviva Investors, where our flagship fund range, AIMS, continues to deliver positive returns in volatile investment markets.

We often work with strong partners who complement our business and in the United States we’ve found one such partner – Virtus Investment Partners, which provides Aviva Investors’ strategies to US customers in US open-ended mutual funds. It’s a great match. Virtus can draw on Aviva’s knowhow in investing across different markets and asset classes in order to deliver the outcomes customers want. And Aviva benefits from Virtus’s success in articulating sophisticated investment strategies to financial advisers and clients. The first fruit of our promising partnership is a mutual fund available to US investors which employs the AIMS investment approach. The fund is managed by a great team – like Ian Pizer, the Head of Investment Strategy, who helps develop the ideas for our partnership with Virtus. The goal is to deliver a return of 5% per annum above the federal funds target rate (gross of fees), on average, over rolling three-year periods, with a volatility target of less than half that of global equities, over the same rolling three-year periods. That’s a technical way of saying its absolute focus is on achieving the right outcome for customers, regardless of the prevailing stock market environment.

  1. Aviva Poland also has management responsibility for Aviva's operation in Lithuania.
  2. Excluding Eurovita and CxG

Our people and corporate responsibility

We are creating a bright and sustainable future for our customers, employees and communities.

Our people

Helping our people do the best work of their lives

Our people

I am extremely proud to work for Aviva. I believe in our strategy and see that the customer is at the heart of what we do

'Voice of Aviva' survey - employee comment

Corporate responsibility

At Aviva we focus on tackling the most important issues of our time with bright ideas, for our customers, their communities and the world

Corporate responsibility

Volunteering through Aviva has really helped me to grow as a person and develop my skills

Aviva employee
  • Care moreWe care like crazy about our customers, our communities and each other
  • Kill complexityWe are obsessed with making things simpler for our customers and each other
  • Never restWe are driven to think bigger and do better for our customers and each other
  • Create legacyWe strive to create a sustainable future for our customers and each other


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