LONDON, UNITED KINGDOM--(Marketwired - Oct 30, 2014) - Aviva plc (
Aviva plc Third Quarter 2014 Interim Management Statement
Mark Wilson, Group Chief Executive Officer, said:
"Aviva's turnaround is delivering. Our key metrics have improved again. Year to date, our net asset value is 10% higher; value of new business is up 15% 1 and the general insurance combined ratio improved to 95.9%.
"The steps we have taken to focus and strengthen the Group mean we are in a different position to two years ago.
"Notwithstanding this progress, there is still more to do before we can be satisfied we are fully delivering on our investment thesis of cash flow plus growth."
Cash flow
- Progress in cash remittances expected at FY14
- Operating capital generation £1.3 billion (9M13: £1.3 billion)
Value of new business
- Value of new business grew 15% 1 to £690 million 3 (9M13: £619 million 2,3 )
- Balanced product mix with VNB split 36% protection, 35% savings and 20% annuities
- Increase driven by strong performance in Europe (40% 1 ) and Asia (47% 1 )
- UK life returned to growth in the 3 rd quarter, with VNB up 18%. 9M14 VNB 9% lower
Expenses
- Momentum on expense efficiency has continued
Combined operating ratio
- Combined operating ratio (COR) of 95.9% (9M13: 96.9%)
- UK COR improved by 1.4 percentage points to 94.1% (9M13: 95.5%)
- Canada COR of 96.8% (9M13: 95.2%) impacted by worse weather and fire losses
Balance sheet
- IFRS net asset value increased 10% year to date to 298p (FY13: 270p)
- Economic capital 4 surplus £7.9 billion (FY13: £8.3 billion)
1 On a constant currency basis.
2 Comparative has been restated to reflect changes in MCEV liquidity premium valuation and an extension of the MCEV covered business. See the basis of preparation in note 1 to the statistical supplement for details.
3 Excludes Eurovita, Aseval, CxG and Malaysia.
4 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.
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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: 09:00 hrs GMT Tel: +44(0)20 3427 1900 Conference ID:2252936
