Aviva 2013 Annual Report Download - page 6

Aviva plc
Annual report and accounts 2013
4
Chairman’s statement
A year of transformation
2013 has been a very important year for Aviva
and for shareholders.
John McFarlane
Chairman
proceeds than originally expected, and our
businesses in Russia and Malaysia. We sold
our remaining holding in Delta Lloyd N.V. and
reached a satisfactory settlement with Bankia
in Spain.
Aviva’s major interests are now largely
concentrated in the UK, France and Canada,
but the Group does have attractive businesses
elsewhere in Europe and in the faster growth
Asia region.
Operating performance
The Group’s adjusted operating prot grew
by 6% during the year to £2,049 million.
Contributing to this was a continuation of a
Group-wide cost reduction programme that has
now delivered savings of £360 million out of the
£400 million target by the end of 2013, with the
full reduction now embedded in the 2014 plan.
The economic capital base and Group liquidity
have also been strengthened signicantly. This
has built our nancial strength and lowered the
risk of the Group. We plan further strengthening
over the coming years, accompanied by a
reduction in internal and external leverage.
We have strengthened signicantly our
risk management and audit processes, and
have invested heavily in preparing for the
implementation of Solvency II in January 2016,
and for our being designated a Global
Systemically Important Insurer.
Management has
overseen signicant
change in the Group’s
business portfolio to
focus on the most
attractive segments.
John McFarlane
Chairman
Key statistics
in 2013
£2.8bn
Total IFRS prot
before tax
17%
increase
Share price growth
during 2013
15.0p
Total dividend
2013 has been a very important year for Aviva
and for shareholders. The positive changes made
by your Board and management, have begun to
rebuild our reputation amongst investors that we
traditionally held. Of course, much is yet to be
done, but I’m sure shareholders will endorse the
progress that has been made, over a relatively
short time. I would particularly like to thank my
Board colleagues and our management team,
for their contribution to this.
A new management team
At the beginning of the year, Mark Wilson was
appointed as your Group Chief Executive Ofcer.
Mark has strong credentials for this role, and this
has since been demonstrated in the changes
Mark has made to upgrade signicantly the
calibre of our management team, as well as
the overall performance and nancial security
of the Company.
New leadership was appointed to UK & Ireland
General Insurance, Europe, Aviva Investors
and Asia, and to transformation and human
resources. A new Chief Information Ofcer
will also join the Group in April 2014.
Business portfolio narrowed
Management has overseen signicant change
in the Group’s business portfolio, to focus
on the most attractive segments and where
we have the greatest chance of success.
During the year we completed the sales of
the US business, for which we received higher