Aviva plc 2015 Preliminary Results Announcement

Mark Wilson, Group Chief Executive Officer, said:

“2015 was about stability and growth at Aviva, against a background of market volatility and uncertainty. Aviva is now a stronger and more focused business. We have completed the fix phase of our transformation.”

“With a Solvency II ratio¹ of 180% and a surplus¹ of £9.7 billion, our balance sheet is one of the strongest and most resilient in the UK market. Over the last four years, we have tripled our economic capital surplus.”

“The integration of the £6 billion Friends Life acquisition has gone faster and better than expected. We expect to achieve our target of £225 million integration synergies in 2016, one year ahead of schedule. After nine months, we have achieved run-rate synergies of £168 million and expect £1.2 billion of capital benefits, £400 million of which we have realised in 2015.”

“Operating profits^2,3 are up 20% to £2.7 billion, and value of new business increased 24%^4,5, representing twelve consecutive quarters of growth. The combined ratio³ in our general insurance business improved to 94.6%, the best in nine years, despite the recent floods and Aviva Investors grew fund management profits by 33% to £105 million.”

“Overall this is a highly satisfactory set of results and the Board has decided to increase the final dividend per share 15% to 14.05p.”

“We enter 2016 from a position of strength. Our focus remains on transforming our business and delivering on our commitments.”

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1. The estimated Solvency II ratio represents the shareholder view. This ratio excludes the contribution to Group Solvency Capital Requirement (‘SCR’) and Group Own Funds of fully ring-fenced with-profits funds (£2.7 billion) and staff pension schemes in surplus (£0.7 billion) - these exclusions have no impact on Solvency II surplus. The impact from internal reinsurance arrangements between UK Life, UK and Ireland General Insurance and Aviva International Insurance Limited and the securitisation of equity release mortgages held by UK Life, effective 1 January 2016, have also been reflected in the Solvency II position.
2. Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
3. Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
4. Poland includes Lithuania, Italy excludes Eurovita, Spain excludes CxG and Asia excludes South Korea.
5. On a constant currency basis.

Contacts

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