Aviva 2002 Annual Report Download - page 17

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03 Aviva plc
Annual report + accounts 2002
Pehr G Gyllenhammar
Chairman
We are looking forward to an open, transparent and competitive
European Market becoming a reality. The European Financial
Services Round Table (EFR) – a group of top people from Europe’s
largest banks and insurance companies – is working to achieve
that goal. I am the EFR’s chairman and we are proposing ways to
build the missing links in the creation of such a market, ahead of
the enlargement of the European Union in 2004 when 10 new
members will join. A level playing field will benefit competition and
the consumer.
We obviously upset many of our shareholders and the market
when we announced our proposal last year to reduce our dividend.
The decision was the correct course of action necessary to retain
capital to take advantage of profitable growth opportunities.
The subsequent fall in the equity markets has created a strain on
our capital position and increased the importance of striking the
right balance between retention of funds to grow our long-term
savings business and dividend payments.
We propose a final dividend for 2002 of 14.25 pence net per
share, which brings the total for the year to 23 pence. This is
consistent with the dividend policy announced in February 2002
and will be payable on 16 May 2003 to shareholders on the
register on 28 March 2003.
The world of business has been plagued by many scandals and
unacceptable behaviour during the year. We operate to high
standards of ethics and corporate governance and also have a
demanding programme of corporate social responsibility, for which
we have attracted flattering attention.
Our regulators have on several occasions criticised our industry in
an aggressive fashion. I think that should in future be done in a
more discriminating way, as there are examples of good behaviour.
The buying public should not be made to mistrust a whole industry
when that is unjustified.
We have announced that Sir Michael Partridge, a non-executive
director and member of the audit committee, will retire on 7 May
2003, at the close of our annual general meeting. Sir Michael
originally joined the board of Norwich Union in 1996. I thank him
for his invaluable contribution during this period.
We aspire to be the low-cost producer, top service provider and
insurer of choice. I readily admit that we have a distance to go, but
we will get there. Our management is committed and our loyal
staff continue to train and equip themselves to face the challenge.
I thank them for their unstinting efforts in the past year.
It is in difficult times that we see excellent opportunities to improve
further our leadership position.
Aviva relative to FTSE Eurotop 300 Life Assurance and FTSE Eurotop 300
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
80
100
40
20
60
0
Aviva rebased
FTSE Eurotop 300 Life rebased to 100
FTSE Eurotop 300 rebased to 100