Aviva 2013 Annual Report Download - page 22

Aviva plc
Annual report and accounts 2013
20
Investment
Cash ow and growth
Our aim is to be a diversied insurer with sustainable
and progressive cash ows underpinned by good
potential for growth.
Market type
Cash generator
UK, France, Canada
Growth
Poland, Lithuania,
Turkey, Singapore,
China, Indonesia,
Vietnam, India, Hong
Kong
Turnaround
Spain, Aviva Investors,
Ireland, Italy
The investment thesis sets out why investors
should choose us. There are compelling reasons
for investors to invest in Aviva. We offer both cash
ow and growth potential.
We will present our results as simply and clearly
as possible. Financial simplicity and clear nancial
priorities are essential for investors to make an
informed decision about us.
Cash ow
We have businesses able to
produce signicant cash ow:
§We have three core business lines with
scale – life insurance, general insurance
and our asset management business,
Aviva Investors
§Our business model gives us signicant
diversication benets. The different mix
of businesses reduces the impact on us of
any market shocks
§We focus on progressive cash ow
back to the Group centre. This is the
cash that we use for paying dividends
to shareholders
§We will maintain our balance sheet
strength and reduce debt levels over time.
Insurance companies’ nancials have been overly
complex. We have simplied our nancial
reporting metrics to focus on ve key measures
which can be seen in the adjacent table.
Growth
We have businesses that offer
growth potential in value of new
business which is a good proxy for
future cash ow:
§We are driving cash ow growth in our
established markets, for example in the
UK, France and in Canada
§We have businesses in selected growth
markets in Europe and Asia
§We are working hard to turn around the
performance of our businesses in Italy,
Spain and Ireland and to improve
performance at Aviva Investors. We have
made good progress in these businesses
§There are still expense and efciency
opportunities to realise. We remain on
track to reduce expenses by £400 million
in 2014 (vs. 2011 expense base).
Matrix of metrics – ve clear nancial priorities
Cash ow
Operating
prot Expenses VNB COR
Group
UK&I Life –
UK&I GI –
France
Canada –
Aviva Investors – –
Italy
Spain –
Poland
Turkey
Asia
Key: Critical Signicant Important
Key statistics
in 2013
£1.3bn
Cash remitted
to Group1
13%
Growth in
value of new business
excluding Malaysia
and Sri Lanka
(2013 vs 2012)
5
Key metrics: Cash ow,
operating prot,
expenses, Value of New
Business (VNB),
Combined Operating
Ratio (COR)
The market focus
shows how each market
performed against the key
metrics. Read more on
pages 30–42
Look at the KPI pages to
see how we performed
against our ve key
metrics. Read more on
pages 26–29
1 This includes £347 million remitted by UK general insurance in January 2014 relating to activity in 2013.