Aviva 2006 Annual Report Download - page 19

Using brands to widen
leadership positions
Using scale to deliver
benefits, including
cost-competitiveness
Building profitable businesses
in selected areas where
we have, or can achieve,
market-leading positions
Delivering growth
organically and through
carefully selected
acquisitions designed to
increase shareholder value
Aviva plc
Annual Report and Accounts 2006 15
Measuring awareness and
favourability using the International
Aviva brand tracker
Improving further our key
stakeholders’ perceptions of Aviva
(e.g. regulators, shareholders and
investors)
Delivering annualised savings of
£250 million from the UK cost and
efficiency programme by the end
of 2007
Meeting published cost and revenue
targets for the acquisitions of
AmerUs and Ark Life
Meeting cost-saving and service
targets in Aviva Global Services
Growing our overall EEV and IFRS
operating profit steadily and
sustainably
Meeting or beating the group’s
12.5% return on equity
shareholders’ funds target
Meeting or beating our group-wide
98% general insurance combined
operating ratio target for the
foreseeable future
Growing UK long-term sales at least
as quickly as the market in 2007
Growing our long-term sales in our
European and International regions
by on average at least 10% pa over
next five years, while growing new
business profit at least as quickly
Establishing a 10% market share
in China in ten cities/provinces
by 2010
Establishing a top-five market
position and a 10% life market
sharein Russia within five years
Invested in the Aviva brand,
significantly increasing awareness
and favourability in the financial
and business community
Reinforced the message that Aviva
is a progressive company in all it
does through our pan-European
“Forward thinking” campaign
Gained valuable media exposure
when Dee Caffari was the first
woman to successfully sail solo
non-stop around the world against
the prevailing wind and currents
Strengthened our local market-
leading brands, including RAC
and Hibernian
Completed the RAC integration,
delivering cost savings of
£100 million
Initiated a major cost and efficiency
programme in the UK that will
reduce costs by £250 million per
annum by the end of 2007
Established Aviva Global Services
to provide offshore support to UK
and Canadian businesses
Relocated both of our Irish
businesses to a single site
Maintained the most cost-efficient
operating platform in the Spanish
market
Maintained a strong group long-
term new business margin of 3.5%
Increased general insurance only
operating profits by £156 million
despite modest growth in net
written premiums
Focused in France on capital-
efficient unit-linked products
through Fourgous transfers
Maintained a balance between
profitability and sales volumes in
achallenging Dutch market
Collected investment awards in
France (best fund manager over five
years) and the UK (two property
fund manager awards)
Achieved growth of 21% in total
long-term savings sales
Completed successfully the
acquisitions of:
–AmerUs (USA)
–Ark Life (Ireland)
–Eagle Insurance (Sri Lanka)
Rapidly grew our organic start-ups
in China and India
Commenced limited trading in
Russia, ahead of plan
Gained access to additional bank
branches in Italy through our joint
venture with UniCredit Group
Won the “Best of European
Business” award for introducing
new products and acquiring and
integrating new businesses
Overview Business review Governance Financial statements Other information
Developing further the Aviva brand
through co-ordinated “Forward
thinking” campaigns across
our markets
Establishing an international Aviva
brand tracker to provide a global
baseline and local targets
Maximising the benefit we obtain
from our portfolio of strong global
and local brands
Delivering on our cost-saving targets
in the UK
Delivering on our target integration
benefits in the USA and Ireland
Continuing to exploit our scale by
sharing knowledge and skills in
multi-channel distribution, product
development and service delivery
Leveraging our low-cost flexible
operating model to maximise the
benefits of scale
Exploiting the know-how and
product set that AmerUs has in the
indexed-annuity market segment
Simplifying our business model in
the UK to reduce duplication and
drive efficiencies
Continuing to focus on higher-
margin unit-linked products in
France
Generating increased sales in the
Netherlands through our focus on
small to medium enterprise pension
contracts and developing “white
label” products
Leveraging the benefits of our
recent acquisitions
Capturing the opportunities
presented by the retirement of
the “baby boomer” generation
Monitoring closely opportunities
that may arise to gain scale or
expand distribution
Growing faster than the market in
WesternEurope wherelow growth
is expected in 2007
Capturing opportunities arising
from increasing wealth in Russia
and Central and EasternEurope
by continuing to invest in our
businesses