Annoucement

Aviva Newsroom - 13 April 2011

Aviva plc (Aviva) preliminary results for the year ended 31 December 2010

3 March 2011

26% growth in operating profit
Strong results pave the way for further growth



Strong performance
  • IFRS operating profit up 26% to £2.55 billion (FY 2009: £2.02 billion)
  • Profit before tax up 35% to £2.44 billion (FY 2009: £1.81 billion)
  • Increased net operational capital generation by 70% to £1.7 billion1 (FY 2009: £1.0 billion)
  • IFRS Net Asset Value per share up by 21% to 454p (FY 2009: 374p)
  • EEV equivalent NAV per share 621p 
  • IFRS return on equity 14.8% (FY 2009: 10.9%) 
  • Total dividend per share up 6% to 25.5 pence 

Profitable growth in both life and general insurance

  • Improved life new business IRR to 12.5% and payback to 8 years (FY 2009: 10.0% and 14 years) and long term savings sales up 4% to £37.4 billion (FY 2009: £35.9 billion) 
  • General insurance COR of 96.8% (FY 2009: 99%) and general insurance and health net written premiums up 6% to £9.7 billion

Positive outlook: good platform for continued growth

  • Focusing on markets where we have strength and scale: UK and Europe is the largest savings market in the world with greatest absolute growth in next five years 
  • Improved profitability and focus on robust capital generation 
  • Stronger balance sheet - pension deficit reduced to zero from £1.7 billion2 (31.12.09); IFRS shareholder equity now exceeds pre-financial crisis levels, increasing during the year by £2.5 billion to £13.0 billion  
  • Financial strength recognised in recent positive rating action by S&P and Fitch

Andrew Moss, group chief executive, commented:
“We’ve gone from strength to strength in 2010. In a tough external environment we’ve outperformed. Operating profits are up 26% and we are able to reinvest in the business and pay a healthy and growing dividend."

“Over the last few years, we've grown the business, significantly reduced costs and strengthened the balance sheet. As a result, we’ve created a good platform for the next phase of growth."

“We have a clear strategy and we are meeting our customers’ needs. By focusing on what we do best in the markets where we have strength and scale, we will continue to prosper in 2011.”

1 Gross of Delta Lloyd longevity assumption change
2 IAS19 basis

For full content of the media release, please visit: http://www.aviva.com/media

To watch the video of interview with Andrew Moss, Group Chief Executive of Aviva plc, please visit: http://www.aviva.com/investor-relations/presentations/2011/andrew-moss-0303/

About Aviva plc

Aviva plc is the world's sixth-largest3  insurance group, serving more than 53 million4  customers across Europe, North America and Asia Pacific.

Our main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £47.1 billion and funds under management of £402 billion at 31 December 2010.4

We are the largest insurance services provider in the UK and one of the leading providers of life and general insurance products in Europe.4

3 Based on gross worldwide premiums at 31 December 2009
4 Source: Aviva plc Annual Report and Accounts 2010

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