Aviva 2009 Annual Report Download - page 6

04
Aviva plc Group chief executive’s review
Annual Report and Accounts 2009
Andrew Moss
Group chief executive
Read more about
our strategy
l 06 – 07
Read more about
how our regions
are performing
l 12 – 18
Listen to Andrew discuss
our year in our new
online review
Visit Aviva at
www.aviva.com
A year of significant
progress
I’m pleased with our progress this year. It has been a year of
strong financial performance and delivery against our strategic
plans. I’m proud of the way my team has performed and I’m
confident that by remaining focused on our strategy we will
make further progress in 2010.
Aviva has delivered a strong return to profit with IFRS total profit after tax at
£1,315 million. On an MCEV basis, which takes into account the long-term nature
of life insurance business, the total profit after tax was £2,935 million compared to
a loss of £7,707 million in 2008. This rebound in total profits reflects the combined
effects of a recovery in equity markets, together with our disciplined business
management and cost control. Operating profit is 12% lower at £2,022 million
on an IFRS basis and up 3% on an MCEV basis to £3,483 million.
We have strengthened Aviva’s capital position substantially over the past year
and IGD solvency surplus, the buffer we hold above our liabilities, has more than
doubled to £4.5 billion reflecting some bold capital management initiatives and
a recovery in investment markets.
We have made excellent progress in the delivery of our strategy, including our
move to a single brand, the IPO of our Dutch business, the reattribution of the
inherited estate in the UK and the restructuring of our cost base.
In driving Aviva forward, we will retain our disciplined approach. We expect the
external environment to remain unpredictable for some time but are encouraged
that we saw the first signs of an improved appetite to save among our customers
in the final quarter of last year.
We will continue to deliver against the strategy that has helped us to navigate
the global economic crisis so successfully. We will maximise the value of being a
single, global group, as we aim to deliver a consistently positive experience for our
53 million customers around the world.
Progress
Creating a global brand has been the most visible sign of ‘One Aviva’ so far.
We're working hard to ensure it's much more than a name change.
We're making progress towards delivering ‘twice the value’ – improving the
way we serve our customers, increasing our efficiency, focusing on profitability,
removing cost from the business and delivering strong results.
Regions
— Successful rebrand to Aviva in the UK
— Integrating 12 of our businesses in Europe
— Life assurance portfolio outperforms market in North America
— Expanded customer reach in Asia Pacific through new bancassurance deals
— Improved investment and earnings performance for Aviva Investors
Highlights
— Improved financial strength with IGD solvency more than doubled in 2009
— Successful partial sale of Delta Lloyd in the Netherlands for £1 billion
— Sale of Australian life business
— £471 million paid to policyholders from reattribution of inherited estate