Aviva 2013 Annual Report Download - page 7

Aviva plc
Annual report and accounts 2013
5
Strategic report Governance IFRS Financial statements Other information
Chairman’s statement continued
The Group has also worked effectively with our
regulators around the world, and particularly with
the new Prudential Regulation Authority and the
Financial Conduct Authority in the UK.
Dividend
Last year, we made the difcult decision to
reduce dividend levels with reference to our
earning capacity and cash ows, and eliminate
the dilutive scrip dividend programme.
Notwithstanding this, shareholders have
benetted from signicant share price growth
that more than offset the lower dividend.
The Board is able to declare a nal dividend of
9.40 pence per share (2012: 9.00 pence). We are
also introducing a dividend reinvestment plan
(DRIP), which allows shareholders to reinvest their
dividend in the Company’s shares through a
market purchase rather than a new issue of
shares. This avoids the dilutive effect that the
previous Scrip dividend scheme had over time.
Board and governance
It is an honour for me to serve as your Chairman.
During 2013 and more recently, there have been
a number of changes to your Board. Sir Adrian
Montague was appointed as Senior Independent
Director. Sir Adrian has signicant experience of
the nancial services industry and government
and regulatory issues.
We also appointed a number of new
non-executive directors, with relevant experience
in nancial services, with the appointment of
Bob Stein, Michael Mire and Patricia Cross.
Aviva is making good progress in complying
with Lord Davies’ proposals which we aim to full
with the search, currently in progress,
for an additional director.
During the year we have also made a number
of changes to Board committees as part of an
ongoing programme to refresh membership.
I believe we have a strong, experienced and
diverse Board with a good balance of skills, and
remain comfortable that the Board exercises
strong and robust challenge as well as strategic
oversight to the executive team.
The year saw Russell Walls and Richard Goeltz
retire from the Board as non-executive directors,
following nine years’ service, and the resignation
of Trevor Matthews as executive director. I would
like to thank them for their contribution to the
Board and committees.
Patrick Regan resigned as Chief Financial Ofcer
on 22 January 2014 and will step down from
the Board before the AGM. Pat has been a
tremendous support to Mark in Aviva’s nancial
transformation. He leaves with my best wishes
and those of Aviva’s Board.
I am pleased to announce that Tom Stoddard
will be joining as the new Chief Financial Ofcer
on 5 May 2014. Tom joins from Blackstone, the
global investment and advisory rm, and has
experience in advising insurance companies.
Our people
It has nevertheless been a challenging year
for our workforce in the face of signicant cost
reduction. However, despite this, our people have
retained their focus on the business and delivered
very strong results.
The increased certainty and condence in the
business as we move forward will make Aviva
a better place to work. We have also aligned
employees’ interests with shareholders through
share plan schemes and employees will be able
to benet in the Group’s improvement.
The Board is very grateful for the continued
effort and support of our staff in what has been
a challenging period.
Investing in communities
We focus our investment in communities on
the issues that matter most to our customers
and those that are most closely aligned to
our business, to maximise the value of our
investment. We also provide access to insurance
for all areas of society such as affordable contents
insurance to low income households, a exible
insurance solution for learner drivers, and the
provision of low-cost insurance policies for
individuals in the Indian sub-continent on low
incomes, for a policy premium of less than
£2 a year.
Aviva Investors also works with fund managers
and analysts globally to integrate environmental,
social and corporate governance issues into
our investment decision-making and analysis
to deliver long-term shareholder value for
our clients.
Looking ahead
Aviva is a very signicant company in our sector in
the UK and internationally. With the changes we
have made, and continue to make, I am condent
that Aviva has the necessary foundation to grow,
and to generate good returns, at acceptable
risks going forward. I believe for us and for our
shareholders, the best is yet to come.
John McFarlane
Chairman
5 March 2014
Committee
chairmen
As at the date of this
report, the Board
committees are chaired
by the following
Non-Executive
Directors:
§Audit Committee:
Glyn Barker
§Governance
Committee:
Scott Wheway
§Nomination
Committee:
John McFarlane
§Remuneration
Committee:
Patricia Cross
§Risk Committee:
Michael Hawker, AM.
To read the Chairman’s
Governance letter, turn
to page 62