Aviva 2013 Annual Report Download - page 11

Aviva plc
Annual report and accounts 2013
9
Strategic report Governance IFRS Financial statements Other information
Group Chief Executive Ofcer’s statement continued
Improve cash remittances
§Cash remittances up 40% to
£1,269 million
Turnaround Italy, Spain, Ireland and
Aviva Investors
§Structural progress made, new
management appointed
§Dividend payments resumed from Italy
and Ireland
Complete the disposal of US
business
§Completed – proceeds higher than
originally announced
Strengthen our nancial position
§Economic capital surplus of
£8.3 billion
§Increased Group centre liquidity to
£1.6 billion
Reduce intercompany loan
§Balance now £4.1 billion at the end
of February 2014 from £5.8 billion
§Plan to reduce to £2.2 billion
Lower external leverage ratio in the
medium term
§Reducing external debt over the
medium term – £240 million to be
called in April 2014
Ensure £400 million expenses
savings ow through to the income
statement in 2014
§£360 million cost savings achieved
by 2013
Reduce restructuring costs
in 2014
§Ongoing – 2013 restructuring costs of
£363 million
Cash ow
§Continue to improve cash remittances
§Show improvement in cost income
ratio
§Continue to improve our turnaround
businesses
§Reduce integration and restructuring
costs in 2014
Growth
§Increase VNB in our life businesses
through product mix and pricing
§Improve COR and underwriting in
general insurance businesses through
predictive analytics
§Improve net ows in asset
management
§Strategic partnerships e.g. Indonesia
§Improve efciency and invest in digital
and automation
Financial strength
§Ensure £400 million of expense
savings reach the income statement
§Execute on plans to reduce
intercompany loan
§Deliver on remaining divestments
§Reduce external leverage over the
medium term
§Prepare for Solvency II
Joint venture in
Indonesia
In January 2014 Aviva signed
a joint venture agreement
with Astra International,
Indonesia’s largest publicly
listed company, to sell and
distribute life insurance
products in the region.
Astra Aviva Life will be the
preferred provider of a range
of life insurance products to
Astra and its subsidiaries.
Indonesia has 245 million
people, the fourth largest
population in the world,
and recorded 6.2% gross
domestic product growth
in 2012.
It is one of the fastest
growing life insurance
markets globally, with low
levels of insurance
penetration and a rapidly
expanding middle class.
During the period
2002–2012 life insurance
premiums grew at a
compound annual growth
rate of 25%.
Progress
against
2013 focus
areas
Priorities
for 2014
In 2013 we set out:
§A clear strategic framework of four
theses: investment, distribution,
customer and people
§Our purpose and our values
In 2014 we will:
Ensure our people understand how they
can each contribute to the delivery of the
strategy and help us, as an organisation,
to live by our values