Aviva 2014 Annual Report Download - page 13

What we
said we’d do What we’ve done Our plan of action
Cash ow • Continue to improve cash
remittances
• Show improvement in cost
income ratio
• Continue to improve our
turnaround businesses
• Reduce integration and
restructuring costs in 2014.
• Cash remittances up 11%
• Cost income ratio has improved
by 2.6 percentage points
to 51.5%
• Cash remittances from
turnaround businesses2 up 15%
• Integration and restructuring
costs down 61% to
£140 million.
• Continue to improve cash
remittances and cost income
ratio of all our businesses
• Complete proposed acquisition
of Friends Life to improve
incremental cash ow by
c.£0.6 billion and add signicant
scale and expertise to our back
book initiative.
Growth • Increase VNB in our life
businesses through product mix
and pricing
• Improve COR and underwriting
in general insurance businesses
through predictive analytics
• Improve net ows in asset
management
• Strategic partnerships e.g.
Indonesia
• Improve efciency and invest in
digital and automation.
• VNB up 11% to £1,010 million3
• Improvement in underwriting
result has driven a
1.6 percentage point
improvement in COR to 95.7%
• Launched Aviva Investors Multi
Asset Strategy range
• Launched our joint venture with
Astra International in Indonesia
and continued to work closely
with COFCO Ltd in China
• Invested in our digital strategy
including the appointment
ofaChief Digital Ofcer,
Andrew Brem.
• Allocate capital to those
markets which have attractive
growth opportunities
• Continue to increase VNB in our
life business
• Improve COR and underwriting
in our general insurance
business through automation
• Drive positive external fund
ows at Aviva Investors
• Ensure digital is a key enabler to
True Customer Composite
• Complete proposed acquisition
of Friends Life to:
– add up to c.£70 billion of
funds for Aviva Investors
– bring c.5 million4 Friends Life
customers.
Financial
strength
• Ensure £400 million of expense
savings reach the income
statement1
• Execute on plans to reduce the
intercompany loan
• Deliver on remaining divestments
• Reduce external leverage over
the medium term
• Prepare for Solvency II.
• Intercompany loan reduced
from £4.1 billion to £2.8 billion
as at 28 February 2015
• £571 million expense savings
achieved since 2011
• Disposals of River Road, Korea,
Eurovita, Turkey general
insurance and CxG completed
• External leverage down to 28%
on a S&P basis
• Preparation continues for
Solvency II
• Enhanced capital management
of Ireland Life and Spain.
• Reduce intercompany loan to
£2.2 billion by the end of 2015
• Ensure readiness to start
Solvency II reporting on
1 January 2016
• Continue to improve our
nancial controls
• Complete proposed Friends Life
transaction to:
– reduce leverage
– deliver £225 million of
expected synergy benets.
1 Based on 2011 baseline expense total of £3,366 million.
2 Our turnaround businesses include Spain, Aviva Investors, Ireland and Italy.
3 Excludes Eurovita, Aseval, CxG and Malaysia.
4 Based on customer numbers as at 31 December 2013 and prior to the deduction of overlapping customers.
Strategic report
Aviva plc Annual report and accounts 2014 |09