Aviva 2007 Annual Report Download - page 18
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In 2007, the group’s strategy was underpinned by focusing on a number of
key financial performance measures. The key measures that are used to assess
performance at a group level are set out below:
Aviva plc
Annual Report and
Accounts 2007
14
Business
review
Business review continued:
Key performance indicators
0
500
1,000
2004 2005 2006 2007
3,000
2,500
2,000
1,500
Operating profit (£m)
Group operating profit before tax
EEV
IFRS
Group operating profit before tax*
We aim to achieve steady sustainable growth in our operating profit,
both on an EEV and IFRS basis. In seeking to achieve this growth,
we continue to adopt strict financial management disciplines underpinned
by strong corporate governance.
Our EEV operating profit remained strong at £3,286 million
(2006 restated: £3,251 million). On an IFRS basis, operating profit was
£2,228 million (2006 restated: £2,609 million). These results reflect strong
performances in the life segment offset by lower results in the general
insurance segment as a result of adverse weather and increased competition.
* Group EEV operating profit is calculated using long-term savings operating profit on an EEV basis before adjusting items. Group IFRS operating profit is
calculated using long-term savings operating profit on an IFRS basis before adjusting items. 2004 to 2006 have been restated to reflect the new definition
of IFRS operating profit – see page 132 for details.
0
10
30
20
2004 2005 2006 2007
100
70
80
90
60
50
40
(pence)
Earnings per share (IFRS)
Earnings per share
To demonstrate our commitment to our vision of “one Aviva twice the value”,
we have announced our ambition to double IFRS earnings per share by 2012.
This ambition is based on total IFRS return, including investment volatility and
non-operating items over the weighted average number of shares.
Our IFRS earnings per share for 2007 was 49.2 pence (2006: 87.5 pence).
This reflects the reduction in operating profit, mainly due to lower results in
the general insurance segment as a result of adverse weather in the UK and
increased competition, and net adverse short-term fluctuations and economic
assumption changes due to closing market conditions.
0
10,000
5,000
20,000
15,000
2004 2005 2006 2007
40,000
35,000
30,000
25,000
(£m)
Total long-term savings
Investment sales
Life and Pension sales
Long-term savings new business sales
During 2007 we announced regional growth targets for our life businesses.
These are as follows:
– UK to grow at least in line with the market
– Europe to grow sales by an average of 10% per year to 2010
– North America to double sales within three years of AmerUs
acquisition (2009)
– Asia Pacific to grow sales by an average of 20% per year to 2010
Our total new business sales, including investment sales, increased by 25%
in 2007 to £38,583 million (2006: £30,762 million). This reflected strong
growth across all our regions, performing in line with their individual targets.