Chair's update
Dear Shareholder
Welcome to the first update of 2023. As you can see, there has been a lot going on. The wider economic outlook remains volatile, but our full year results paint a consistent picture: Aviva has delivered another twelve months of strong performance.
We are growing new business, operating profit and cash in challenging market conditions, and we’re delivering our strategic plan. You can read more in our Annual Report about how we are unlocking Aviva’s unique competitive advantages of our customer base, our scale, and our diversification.
Delivering our strategy will allow us to continue to offer attractive and reliable dividends to our shareholders. There are more details below of our 2022 final dividend and the buyback of ordinary shares.
You can also read more about some of our recent work on sustainability. The range of activity is impressive, from insuring the transition to a low-carbon economy to helping restore rare British ecosystems for the benefit of wildlife and our communities.
I look forward to seeing some of you in person soon at our Annual General Meeting in Norwich, and thank all of you for your continued support for Aviva.
George Culmer - Chair
Financial updates
2022 full year financial results
Amanda Blanc, Group Chief Executive Officer, said:
"We are making excellent progress at Aviva. Operating profits and dividends are growing and we have strong trading momentum despite significant market volatility. We have radically simplified Aviva, we are financially strong and we are utterly focused on transforming and growing the business.
Our core businesses in the UK, Ireland and Canada grew in 2022, and contributed to a very strong, all round performance. Life insurance value of new business is up 15%, general insurance sales1,2 are up 8% and overall operating profit is up 35%. We are investing to make it easier for customers to do business with Aviva and customer numbers in the UK have grown to 15.5m.
The diversified model we have built at Aviva has proved its worth, providing clear benefits for customers and shareholders and driving our great results last year. Whilst I am pleased with what’s been accomplished over the past twelve months, I am clear there is significantly more value which Aviva can and will deliver in 2023 and beyond.”
Find out more - Our results - Aviva plc
1 Sales refers to present value of new business premiums (PVNBP) in Life or gross written premiums (GWP) in General Insurance.
2 Constant currency.
2022 final dividend
On 9 March 2023 Aviva announced a final dividend for 2022 of 20.7 pence per share payable on 18 May 2023
Find out more - Dividends - Aviva plc
2022 Annual Report & Accounts
On 9 March 2023 Aviva published its 2022 Annual Report & Accounts which are available to download here - Annual Report 2022 - Aviva plc.
Buyback of ordinary shares
On 9 March 2023, Aviva announced a share buyback programme of its ordinary shares for up to a maximum aggregate consideration of £300 million3 (the "Programme"), commencing on 10 March 2023.
Read more – Aviva plc to commence buyback of ordinary shares (investis.com)
3 During the Programme, the Broker has discretion to notify Aviva of a reduction in the Programme size due to a decrease in trading liquidity of the Shares. If such notification is received, a further announcement will be made.
2023 Annual General Meeting & General Meeting
This year’s AGM will be held on Thursday, 4 May 2023 at 10.30 am at Norwich City Football Club, Carrow Road, Norwich, NR1 1JE (Carrow Road), with facilities to attend electronically.
As a proud UK business, we want to celebrate our strong connections with communities around the country, as well as giving shareholders from different regions a better chance to attend in person. For this year's meeting, we have decided to move the venue out of London to the city of Norwich, where we have a large general insurance business.
A General Meeting relating to a proposed reduction in capital will be held on the same date and at the same location as the AGM. The General Meeting will take place either at 1pm or 30 minutes following the conclusion or adjournment of the AGM, whichever is later.
Read more - Shareholder meetings and archives - Aviva plc
2023 provisional financial calendar
Read more - Investors - Aviva plc
Shareholder warning
We have had an increasing number of reports from shareholders that they have received cold calls where they are asked to confirm personal details such as their address. Shareholders are advised that such calls have not been arranged by either Aviva or our Registrar, Computershare, and are likely to be part of a scam. Shareholders who receive such calls are advised to hang up.
Environment & community updates
Science-based emission targets
Amanda Blanc, Aviva’s Group Chief Executive Officer, said:
‘Science Based Targets is a key initiative in the journey to Net Zero. Robust, scientifically based, verification brings much needed accountability to our emissions targets. Receiving validation from the SBTi is an important milestone for Aviva as we transition to Net Zero.
Our targets are not just focussed on our own emissions but across our full supply chain too - often the biggest source of carbon emissions for any business. So taking suppliers with us on our journey to achieving Net Zero supply chain by 2030 is key, something we took a significant step towards by hosting our first Net Zero Supplier Summit in November.”
Aviva helps restore rare native British rainforests
Aviva announced a £38 million donation to restore Britain’s lost temperate rainforests in the UK. Aviva believes this is one of the most effective nature based interventions to help remove carbon dioxide from the atmosphere. The restored rainforests will also provide a positive contribution to the nature and biodiversity crisis, as well as supporting flood protection and resilience. The donation is part of Aviva’s Net Zero 2040 ambition.
- Aviva will help restore Britain’s lost rainforests, as part of a £100 million programme of nature-based projects in UK and Ireland to help address climate change by removing carbon dioxide from the atmosphere
- Aviva will partner with The Wildlife Trusts to re-establish the UK’s rare and biodiverse temperate rainforest
- The project is expected to remove approximately 800,000 tonnes of carbon from the atmosphere - equivalent to the emissions created by one person taking over 740,000 transatlantic flights4
4Calculated using BEIS GHG conversion factors of 0.19kg/CO2e per passenger km
Aviva enters growing offshore wind insurance market
Adam Winslow, CEO of Aviva UK & Ireland General Insurance, said:
“Aviva has pledged to achieve Net Zero by 2040 and in November we set out our commitment to help support the UK to become the most climate-ready large economy by 20302. Supporting our growing renewable energy industry, both on and offshore, is a critical part of achieving that ambition."
Living Pension initiative
On 21 March 2023, the Living Wage Foundation (LWF) launched the Living Pension and Aviva is one of the first UK employers to be awarded the Living Pension accreditation.
Danny Harmer, Chief People Officer, Aviva, said:
“By adopting the Living Pension and paying the real Living Wage, organisations can help their people balance saving for tomorrow with living for today. Aviva is proud to be amongst the first companies to offer the “Living Pension” to our own employees and, as one of the UK’s leading pension providers, we are raising awareness with our clients too, so that more people have a decent standard of living when they retire.”
Doug Brown, CEO UK & Ireland Life, Aviva, said:
“The Living Pension accreditation, combined with the incoming changes to auto-enrolment, could make a real difference in levelling up pensions for younger workers, part-time workers – who are often women - and those with multiple lower-paid or part-time jobs.
“This is a voluntary savings target, recognising that not all employers will be able to make these changes right now, especially when faced with current economic challenges. It is an important step forward in helping employers provide a living income for their people during their working lives and beyond.”
Register and feedback
We’ll share more shareholder updates in June, September, and December 2023. Register to get an email when these are available. Want to keep up to date with the latest Aviva news? Follow Aviva Plc on Twitter and LinkedIn for regular updates.
If you have any feedback or suggestions for our shareholder update, please email aviva.shareholders@aviva.com
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