Aviva 2005 Annual Report Download - page 13

Overview
Aviva plc 2005
£268m
Savings from purchasing power
>2.8 million
Roadside callouts attended
RAC integration cost savings
We expect to achieve annualised cost savings of £100 million in 2006, exceeding the £80 million
per annum cost savings target announced when RAC was acquired. We are making substantial
progress on delivering revenue benefits, and expect to generate annualised operating profit of
£250 million on a like-for-like basis from RAC by 2008, including an additional 1.4 million customers.
Expanding on our insurance proposition
Our ownership of HPI vehicle information check specialists and Solus Accident Repair Centre
enables us to provide a more complete range of motoring services to our customers, while
gaining revenue and cost-saving benefits.
Leveraging group knowledge
Knowledge gained from HPI, digital flood mapping and our Pay As You Drive™ scheme has
allowed us to improve our pricing decisions. Our Canadian business is now serviced by more
than 150 staff in India, benefiting from cost and service advantages already seen in the UK.
Developing our
Autograph™proposition
Aviva Canada is rolling out Autograph™, an innovative
motor product that allows customers to take more
control of the premiums they pay. Autograph™
was developed last year and is now offered through
a select team of 12 brokers in Ontario. Its technology
allows drivers to track their driving patterns and,
if they choose, submit the data to Aviva for a
discount on their premiums. Autograph™ offers
customised insurance for the individual and we are
confident that there will be a person in every household
who can benefit from this unique programme.
For example, mothers who are driving a second car
with low mileage, or who have younger drivers living at
home on their policy, are ideal candidates. The Ontario
test will provide us with the information and feedback
we need to develop a national rollout plan.
Offering a complete
motoring solution
The acquisition of RAC is transforming our UK
business, making us a leading provider of insurance
and motoring services. We’ve already launched
new motor and travel insurance products under
the RAC Direct Insurance brand and will shortly
be launching a homeowner product. In acquiring
a group that provides roadside assistance,
windscreen repair, vehicle inspection and driver
training, we’re now able to offer a complete
motoring solution for our customers.
£1,551m
2001 946**
2002 942**
2003 972**
2004 1,259†
£10.3bn
2001 7.9
2002 7.8
2003 8.5
2004 9.8
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