Aviva plc Third Quarter 2015 Interim Management Statement
Mark Wilson, Group Chief Executive Officer, said:
“We are maintaining the momentum of Aviva’s transformation with a further quarter of improved performance. In life insurance, value of new business was up 25%1, the eleventh consecutive quarter of growth. The general insurance combined ratio of 94.0% is a more than adequate result. This level of consistency is important as we transform and grow Aviva.
“The acquisition of Friends Life is everything we expected it to be. We have now achieved £91 million of savings against our target of £225 million. At the same time our UK Life business continues to grow and our customers are responding positively to the full range of pensions freedoms we offer.
“In asset management, our flagship fund range, AIMS, continues its strong investment performance and the Target Return Fund has recorded returns of 6.6% over the past 12 months. AIMS now has £1.9 billion of funds under management. We expect this growth to continue.”
9M15 numbers include Friends Life from 10 April 2015, the acquisition completion date. 9M14 is Aviva standalone.
Life Insurance
- Value of new business2 (VNB) grew 25%1 to £823 million (9M14: £685 million)
- UK Life VNB grew 36% to £404 million (9M14: £297 million), up 13% excluding Friends Life
- Aviva platforms continue to grow with over £2.2 billion of net inflows in the nine months to 30th September 2015 taking AUM to £7.3 billion
- Europe2 VNB grew 11%1 to £284 million with particularly strong growth in Italy2 up 55%1 to £57 million. Asia2 VNB up 21%1 to £115 million (9M14: £92 million)
General Insurance
- Combined operating ratio (COR) improved to 94.0% (9M14: 95.9%)
- UK & Ireland COR of 92.8% (9M14: 94.2%), Canada COR of 94.2% (9M14: 96.8%), Europe COR of 97.1% (9M14: 99.8%)
- GI and health net written premiums up 2%1 to £6,110 million
Asset Management
- AIMS Target Return fund continues to outperform peers with a return of 6.6% over the past 12 months. The AIMS suite of funds now has £1.9 billion under management.
Balance sheet
- IFRS net asset value up 2% to 387p per share (HY15: 380p)
- Resilient capital position throughout recent market volatility with an economic capital surplus3 of £10.1 billion (HY15: £10.8 billion), a coverage ratio of 172% (HY15: 176%) performing in line with our published sensitivities
- S&P revised upwards the financial risk profile of the Group to strong and S&P leverage ratio remains stable at 27% (HY15: 27%4)
Friends Life integration
- £91 million of run-rate synergies achieved against a £225 million target – ahead of plan
- £23 billion of Friends Life assets due to be transferred from AXA Investment Managers in November
Download the full announcement PDF (236 KB)
- On a constant currency basis.
- Poland includes Lithuania, Italy excludes Eurovita, Spain excludes CxG and Asia excludes South Korea.
- The economic capital surplus represents an estimated position. The economic capital requirement is based on Aviva’s own internal assessment and capital management policies. The term ‘economic capital’ does not imply capital as required by regulators or other third parties.
- HY15 S&P leverage ratio is on a pro-forma basis, taking account of planned redemptions, calls and other reductions of debt in Q3 2015.
Contacts
Investor contacts
Colin Simpson
+44 (0)20 7662 8115
David Elliot
+44 (0)20 7662 8048
Media contacts
Nigel Prideaux
+44 (0)20 7662 0215
Andrew Reid
+44 (0)20 7662 3131
Sarah Swailes
+44 (0)20 7662 6700
Timings
Real time media conference call: 07:30 hrs GMT
Analyst conference call: 08:30 hrs GMT
Tel: +44(0)20 3367 9433
Conference ID:511455