Aviva 2002 Annual Report Download - page 16

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Chairman’s statement
02 Aviva plc
Annual report + accounts 2002
The year 2002 was a difficult one for investors. Returns
were mostly negative, and often dramatically so. Aviva
shareholders have also seen our share price decline.
Our policyholders have experienced both a shrinking
investment and reduced bonuses. There is nothing we can
do about world equity markets. What we can do, however,
is try to be better than the market and perform above the
level of our competitors. It seems to me that we have
succeeded in that ambition.
In life and pensions, we have grown to be the number one
provider to Europe, having been a medium-sized company only
four years ago. In general insurance, we have outperformed
the market and few of our competitors in the world have been
more profitable.
We have further streamlined and focused our business during
the year. The biggest sale was of our Australian and New Zealand
general insurance operations, following an unsolicited offer at a
price the board felt compelled to accept. We also exited markets
where we were sub-scale.
In contrast, we are expanding where we see opportunities to be
leaders. We signed a further bancassurance partnership agreement
in Spain and are now the third-biggest life and savings operation
in that country. We have come from virtually nowhere a few years
back. In France we signed a bancassurance agreement with Crédit
du Nord to further consolidate our position. In the Netherlands we
agreed to be the exclusive life and general insurer for ABN AMRO,
one of the country’s three leading banks, and in Italy we agreed
our fourth major bancassurance partnership with Banca Popolare
Commercia e Industria.
Our capital position has suffered as a result of the decline in equity
markets. However, we remain strong and our rating is healthy.
In life and pensions,
we have grown to
be the number one
provider to Europe,
having been a
medium-sized
company only four
years ago.
Group strategy
1 To grow our long-term savings business aggressively and profitably.
2 To build a world-class fund management business.
3 To take a focused approach to general insurance, with disciplined underwriting
and efficient claims handling.
4 To build top-five positions in key markets.
5 To withdraw from lines of business or markets which do not offer the potential for
market-leading positions or superior returns.