TIDMAV.
RNS Number : 7521F
Aviva PLC
09 November 2022
Page 1
News Release
09 November 2022
Aviva plc Q3 2022 Trading Update
Continued positive momentum in Q3 across our diversified
business model
Strong capital and liquidity positions despite market
volatility
Dividend guidance and outlook for capital returns unchanged
Wealth UK&I Life General Insurance General Insurance Solvency II
GBP7.0bn GBP466m GBP7.2bn 94.3% 223%
Net flows, 6% VNB +46% GWP +10% COR +1.9pp Shareholder
(1) of opening cover ratio
AuM
9M21: GBP7.3bn 9M21: GBP319m 9M21: GBP6.5bn 9M21: 92.4% HY22: 234%
------------------ --------------- ----------------- -----------------
Amanda Blanc, Group Chief Executive Officer, said:
"Trading is positive and our performance is consistently strong.
We have had a good nine months due to our market leading positions,
our customer focus and the clear benefits of Aviva's diversified
business across insurance, wealth and retirement.
"Our customers have continued to save for their future and
protect what is valuable to them. Flows in our Wealth business were
encouraging and general insurance volumes continue to grow,
especially in commercial lines. Profitability also remains robust
across both life and general insurance.
"Aviva's capital and liquidity position is strong and our high
quality asset portfolio has performed well during the recent period
of extreme market volatility.
"We remain confident in the outlook for Aviva. We are on track
to deliver our financial targets and trading momentum is building.
Our dividend guidance remains unchanged and, as previously
announced, we anticipate commencing additional returns of capital
to shareholders with our 2022 full year results."
Continued strong trading momentum driven by our diversified
business model
-- UK&I Life value of new business (VNB) GBP466m, up 46%,
and VNB margin of 1.9% (9M21: 1.3%), driven by higher VNB in
Annuities & Equity Release of GBP143m (9M21: GBP16m).
-- Continued good sales(2) growth of 3% in Wealth and 4% in
Protection & Health were offset by lower Bulk Purchase Annuity
(BPA) volumes as we remain selective and disciplined on price.
Overall UK&I Life sales(2) of GBP24.9bn were down 1%.
-- Strong net flows in Workplace of GBP4.1bn, up 11%. Overall
Wealth net flows were a resilient 6%(1) of opening AuM at GBP7.0bn,
but down 4% versus 9M21 due to the challenging environment for
investment activity on our Platform business.
-- Acquisition of Succession Wealth completed in August.
Succession Wealth advisers can now access Aviva's platform and are
already benefiting from its competitive offering and outstanding
service. As a result, they can also access Aviva's multi-asset
funds.
-- General Insurance gross written premiums (GWP) up 10% (7% at
constant currency) to GBP7.2bn. UK GWP up 7% to GBP3.9bn and Canada
GWP up 8% at constant currency to GBP3.0bn.
-- GI combined operating ratio (COR) remains strong at 94.3%
(9M21: 92.4%) and reflects more normal claims frequency versus the
same period last year. We continue to maintain a disciplined
response to claims inflation .
Footnotes are shown on page 3
Page 2
Continued focus on cost efficiency
-- Baseline controllable costs(3) down 2% year-on-year to
GBP2bn, reflecting continued focus on efficiency as we continue to
make further operational savings through cost initiatives and
ongoing simplification of the business.
-- On track to deliver savings target of GBP750m (gross of
inflation) by end of 2024 relative to our 2018 baseline .
Capital position remains well above top-end of our target
range
-- Estimated Solvency II shareholder cover ratio of 223% (HY22:
234%) was down 11pp during Q3, mainly driven by operating capital
generation and net positive market movements more than offset by
the interim dividend, GBP500m redemption of Restricted Tier 1 debt,
and the completion of the Succession Wealth acquisition.
-- Estimated Solvency II cover ratio pro forma of 215% (HY22:
213%) after planned GBP500m further debt reduction and pension
scheme payment, is 35 points above the top-end of our target
range.
-- Surplus capital above a 180% cover ratio increased during Q3
from GBP2.3bn to GBP2.5bn on a pro forma basis.
-- Following the 'mini-budget' at the end of Q3, the UK
experienced very high levels of market volatility. The Group's
capital and liquidity demonstrated very strong resilience during
this period.
-- The Group's Solvency II position remains very strong, and we
estimate only a minimal impact to the cover ratio from the yield
falls in October.
-- The impact of the extreme market volatility in Q3 on our
Solvency II cover ratio was not as positive as implied by our
published sensitivities. This is because the sensitivities are one
dimensional in nature (e.g. they assume parallel yield curve
shifts, and they apply equally across all geographies) and could
not fully capture the complex factors and exceptionally rapid
movements in this period.
-- Solvency II debt leverage ratio of 31% at Q322 (HY22: 30%),
29% pro forma for planned further debt reduction and pension scheme
payment.
-- In line with our Interim Results announcement in August, we
anticipate commencing a new share buyback programme with our 2022
full year results, subject to market conditions and regulatory
approval.
-- Assuming a new buyback is agreed, its size will be determined
by the Board at year end and will take account of the financial
position at that time, as well as both the drivers of the capital
surplus (including the impact of market movements) and our
preference to return surplus capital regularly and sustainably.
Strong centre liquidity
-- Centre liquidity (Oct 22) remains strong at GBP1.9bn (Jul 22:
GBP2.7bn), with the reduction since July driven mainly by the
interim dividend payment, GBP500m redemption of Restricted Tier 1
debt and completion of the Succession Wealth acquisition, partly
offset by cash remittances to the centre during the period.
-- In keeping with similar businesses in the sector, the Group
uses a variety of derivative financial instruments. Objectives
include managing exposure to market, foreign exchange, and/or
interest rate risk, and also the matching of cashflows in its
annuity business.
-- Following the sharp and rapid rise in interest rates at the
end of Q3 the value of these instruments moved significantly. This
required sizeable collateral flows which we were able to routinely
meet through our standard daily liquidity management procedures.
Aviva has the ability to meet collateral calls through a variety of
different types of assets.
-- We regularly monitor and stress our capital and liquidity
requirements to a 1 in 200 stress level and hold considerable
buffers over these prudent requirements.
-- The Group does not have an offering in the Liability Driven
Investment (LDI) market, other than for the Aviva staff pension
schemes, and therefore has no external exposures in this
regard.
Page 3
Shareholder asset portfolio remains well positioned
-- Aviva's high quality shareholder asset portfolio of GBP75bn
at Q322 continues to perform well and is defensively
positioned.
-- Shareholder asset exposure to equities, emerging market
sovereigns, and European peripherals is low.
-- Corporate bonds represent GBP19.5bn or 26% of the portfolio.
Of this 86% is externally rated investment grade and 14% internally
rated. Aviva has a long history in private debt, with a robust
internal rating model, and these internally rated assets are
secured loans with an average rating of 'single A' quality.
-- The corporate bond portfolio continues to perform well with
<GBP150m downgraded to a lower letter during the first nine
months of 2022, and no corporate bond downgrades below investment
grade.
-- Our commercial mortgage portfolio of GBP5.9bn comprises
largely long-duration fixed rate contracts with low average
loan-to-value (LTV) ratios of approximately 45%.
-- Our securitised mortgage loans and equity release portfolio
of GBP9.0bn is mostly internally securitised with low average LTVs
of approximately 25%.
Outlook
-- Given the challenging economic backdrop and market
volatility, our strong performance over the first nine months
together with our diversified product set further reinforces our
confidence in the prospects, financial targets and outlook for the
Group.
-- Our capital and liquidity positions have been tested by
recent market conditions and have been shown to be robust and
resilient. We continue to monitor exposures carefully but we
believe our capital strength will remain a competitive
advantage.
-- Our dividend guidance(4) of c.GBP870m (c.31.0p) for 2022 and
c.GBP915m (c.32.5p) for 2023, together with our intention to return
further capital to shareholders in 2023 are unchanged.
-- Across our Workplace, Health and Group Protection businesses
we expect a continuation of the strong Q3 YTD trends into the
fourth quarter.
-- We will maintain a disciplined approach in a competitive
market for Bulk Purchase Annuities. The longer term outlook for
BPAs remains very positive, and higher interest rates mean that we
now expect more schemes to de-risk over the coming years, albeit
with reduced transfer values of scheme liabilities. We remain
committed to our target of GBP15-20bn of BPA volumes over
2022-24.
-- In General Insurance we expect the rating environment to
remain favourable in commercial lines, while in personal lines we
will continue to price appropriately for claims inflation. We
expect a full year COR that is broadly consistent with Q3 YTD
performance, subject to normal weather conditions in Q4.
Pages 4-6 of the release cover 9M22 trading performance in more
detail
1 Net flows annualised as a percentage of opening assets under management
2 References to sales represent present value of new business
premiums (PVNBP) which is an Alternative Performance Measure (APM).
Further information can be found in the 'Other information' section
of our Half Year 2022 Report
3 Baseline controllable costs exclude strategic investment, cost
reduction implementation, IFRS 17 and other costs not included in
the 2018 baseline
4 The Board has not approved or made any decision to pay any
dividend in respect of any future period
Page 4
Life sales(1) and Value of New Business (VNB)
PVNBP VNB
------ ------ --------- ----- ----- ---------
9M22 9M21 Sterling 9M22 9M21 Sterling
GBPm GBPm % change GBPm GBPm % change
---------------------------------------- ------ ------ --------- ----- ----- ---------
Insurance (Protection & Health) 1,913 1,845 4% 142 146 (3)%
Wealth & Other 17,527 16,970 3% 157 141 11%
Retirement (Annuities & Equity Release) 4,276 5,294 (19)% 143 16 794%
Ireland Life 1,224 1,210 1% 24 16 50%
---------------------------------------- ------ ------ --------- ----- ----- ---------
UK & Ireland Life total 24,940 25,319 (1)% 466 319 46%
International investments 837 909 (8)% 64 67 (4)%
---------------------------------------- ------ ------ --------- ----- ----- ---------
Total 25,777 26,228 (2)% 530 386 37%
---------------------------------------- ------ ------ --------- ----- ----- ---------
Total life sales of GBP25,777m, 2% lower. Total VNB up strongly
to GBP530m, 37% higher.
Insurance (Protection & Health)
-- Protection & Health sales up 4% to GBP1,913m reflecting
good performance in Group Protection and Health partly offset by
Individual Protection.
-- Protection sales up 3% with strong performance in Group
Protection (new scheme wins and strong retention) more than
offsetting Individual Protection where volumes were flat but PVNBP
was down due to higher interest rates.
-- Health sales up 5% as SME business continues to perform
strongly with consumer demand for private medical insurance
remaining positive.
Wealth
-- Wealth & Other sales up 3% to GBP17,527m reflecting
strong performance in Workplace. During Q3 we won 89 new Workplace
schemes, reflecting excellent activity levels and improving
conversion rates.
-- The strength in Workplace was partly offset by reduced sales
in our Platform business, reflecting the impact of the challenging
macro environment on investment activity and a strong prior year
which saw the benefit of pent-up demand from savings accumulated in
2020.
-- VNB up 11% partly reflecting the higher Workplace volumes.
Retirement (Annuities & Equity Release)
-- Annuities & Equity Release sales 19% lower, with strong
growth in Equity Release more than offset by lower volumes of
Individual Annuity and BPA business, where we remain focused on
maintaining pricing discipline.
-- In Equity Release, we have seen continued excellent momentum
during Q3 and our pipeline of applications remains strong. As
interest rates increased, our pricing discipline has meant we were
quick to react, repricing on a weekly basis allowing us to stay in
the market and to continue to offer customers a way to release
value from their homes while managing our risk appetite.
-- BPA volumes of GBP2,883m YTD (9M21: GBP3,996m) reflect our
focus on selection and pricing discipline. Including schemes where
we are preferred provider, October YTD volumes were GBP4bn. We
expect to maintain discipline during Q4 and will continue to only
write deals that we consider attractive. Higher interest rates are
positive for the longer term market outlook, albeit with lower
transfer values of scheme liabilities.
-- VNB is up significantly to GBP143m (9M21: GBP16m) primarily
reflecting higher BPA margins (Q3 2021 was low due to timing of
reinsurance and asset allocation).
Ireland Life
-- Sales were 1% higher, with VNB up 50% reflecting improved
margins as our integrated product offering is embedded, as well as
improved reinsurance terms.
International investments
-- Sales and VNB were 8% and 4% lower respectively, reflecting a
strong prior period comparator as well as the impacts of lockdown
in China.
1 References to sales represent present value of new business
premiums (PVNBP) which is an Alternative Performance Measure (APM).
Further information can be found in the 'Other information' section
of our Half Year Report 2022
Page 5
Wealth and Aviva Investors net flows(1) and assets under
management (AUM)
Net Assets under
flows management
------- ----- ------ -------------------------
30 30 Jun
9M22 9M21 Sep 22
GBPm GBPm change 22 GBPbn GBPbn change
----------------------------------------- ------- ----- ------ --------- ------ ------
Wealth 7,024 7,295 (4)% 143 140 2%
Of which: platform 3,394 4,224 (20)%
Of which: workplace 4,055 3,637 11%
Of which: individual pensions and other (425) (566) 25%
Aviva Investors (3,335) 893 (473)% 218 232 (6)%
Of which: external assets 709 1,601 (56)%
Of which: internal assets (299) (708) 58%
Of which: strategic actions (3,745) - (100)%
----------------------------------------- ------- ----- ------ --------- ------ ------
Wealth
-- Net flows continue to show resilience, 4% lower at GBP7,024m
(9M21: GBP7,295m). This represents 6% (annualised) of opening AUM,
a robust performance in current market conditions, as the Workplace
business performed strongly amid more challenging market conditions
in platform.
-- Workplace net flows up 11% following a strong third quarter,
benefiting from strong retention and the impact of wage inflation
on employee contributions.
-- Platform net flows were 20% lower reflecting market
volatility and lower consumer demand amid the uncertain economic
environment.
-- The acquisition of Succession Wealth closed in Q3 with
adviser access to the Aviva platform now operational.
Aviva Investors
-- External net flows were positive at GBP709m (9M21: GBP1,601m)
and included GBP507m in Q3 alone, a resilient performance in a very
tough market environment.
-- Our flows in Q3 have been helped by our strength in real
assets and our recently enhanced capabilities such as Emerging
Market debt.
-- Total net outflows of GBP3,335m primarily reflects
anticipated strategic actions of GBP3,745m from clients previously
part of the Group, mainly in France.
-- Assets under management reduced by 6% during the quarter to
GBP218bn primarily driven by the impact on valuations of fixed
income securities from rising bond yields.
General Insurance GWP and COR
GWP COR
------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
Personal lines Commercial lines Total Total
9M22 9M21 9M22 9M21 9M22 9M21 9M22 9M21
Sterling Sterling Sterling
GBPm GBPm % change GBPm GBPm % change GBPm GBPm % change % % Change
-------- ------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
0.8
UK 1,789 1,785 -% 2,147 1,895 13% 3,936 3,680 7% 95.0% 94.2% pp
4.2
Ireland 146 158 (8)% 175 155 13% 321 313 3% 94.4% 90.2% pp
3.1
Canada 1,867 1,653 13% 1,101 893 23% 2,968 2,546 17% 93.3% 90.2% pp
-------- ------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
Total 3,802 3,596 6% 3,423 2,943 16% 7,225 6,539 10% 94.3% 92.4% 1.9pp
-------- ------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
Overall
-- GWP up 10% (7% at constant currency) to GBP7.2bn, reflecting
strong growth across commercial lines and in Canada personal lines.
Canada delivered growth of 8% at constant currency, and the UK
delivered growth of 7%.
-- COR of 94.3% (9M21: 92.4%) reflects a return to more normal
claims frequency partly offset by lower levels of adverse PYD and
improved weather versus long-term average.
-- We remain vigilant and are continuing to price appropriately
for the high inflation environment.
UK & Ireland
-- UK commercial lines growth of 13% was driven by the continued
favourable rate environment (7pp) as well as strong new business
and retention (6pp), including +13% growth in SME and +14% in GCS
lines.
1 Aviva Investors net flows excludes liquidity funds and cash
Page 6
-- UK personal lines premiums were flat in the period, where our
principal focus is on maintaining pricing discipline in the current
environment. In UK motor we have increased new business rates on
average by c.15% YTD and in Home by c.8% YTD to mitigate claims
inflation.
-- UK COR of 95.0% (9M21: 94.2%) reflects increased claims
frequency, partly offset by improved performance in commercial
lines and lower weather costs.
-- Ireland growth of 4% at constant currency reflects strong
rate and retention in commercial lines. COR of 94.4% includes a
return to more normal Motor claims frequency post COVID-19.
Canada
-- Commercial lines premiums were up 15% at constant currency,
with new business benefiting from both favourable rate environment
and new business activity and retention in both SME and GCS.
-- Personal lines premiums were up 5% at constant currency,
reflecting increased rate in personal property and further growth
in Ontario auto.
-- COR of 93.3% (9M21: 90.2%), an increase of 3.1 pp reflecting
a return to more normal levels of claims frequency, partly offset
by favourable PYD and lower commissions.
Capital & centre liquidity
Solvency II shareholder cover ratio
-- Estimated Solvency II shareholder cover ratio of 223% (HY22:
234%) was down 11pp during Q3, mainly driven by operating capital
generation and net positive market movements more than offset by
the interim dividend, GBP500m redemption of Restricted Tier 1 debt,
and the completion of the Succession Wealth acquisition.
-- Estimated Solvency II cover ratio pro forma of 215% (HY22:
213%) after a planned GBP500m further debt reduction and pension
scheme payment, is 35 points above the top-end of our target
range.
-- Surplus capital above a 180% cover ratio increased during Q3
from GBP2.3bn to GBP2.5bn on a pro forma basis.
-- Following the 'mini-budget' at the end of Q3, the UK
experienced very high levels of market volatility. The Group's
capital and liquidity demonstrated very strong resilience during
this period.
-- The Group's Solvency II position remains very strong, and we
estimate only a minimal impact to the cover ratio from the yield
falls in October.
-- The impact of this volatility in Q3 on our Solvency II cover
ratio was not as positive as implied by our published
sensitivities. This is because the sensitivities are one
dimensional in nature (e.g. they assume parallel yield curve
shifts, and they apply equally across all geographies) and could
not fully capture the complex factors and exceptionally rapid
movements in this period.
Movements recognised in Q3 2022(1)
----------------------------------------------------------------------
Total Further
GBP500m capital debt
redemption generation reduction Pro forma Pro forma
of Acquisitions 2022 incl. & pension estimated estimated
subordinated and interim market scheme at Q3 at HY
GBPbn HY 2022 debt disposals dividend movements Q3 2022 payment 2022 2022
------------ ------- ------------ ------------ --------- ---------- ------- ---------- --------- ----------
Own funds 18.0 15.9 (0.6) 15.4 16.4
SCR (7.7) (7.1) - (7.1) (7.7)
------------ ------- ------- ---------- --------- ----------
Surplus 10.3 8.8 (0.6) 8.2 8.7
------------ ------- ------------ ------------ --------- ---------- ------- ---------- --------- ----------
Solvency II
Shareholder
cover ratio
(%) 234% (7)pp (5)pp (4)pp 5pp 223% (8)pp 215% 213%
------------ ------- ------------ ------------ --------- ---------- ------- ---------- --------- ----------
Solvency II debt leverage ratio
-- Solvency II debt leverage ratio of 31% at Q3. Pro forma debt
leverage of 29% after allowing for planned further debt reduction
and pension scheme payment.
Centre liquidity
-- Centre liquidity (Oct 22) remains strong at GBP1.9bn (Jul 22:
GBP2.7bn), with the reduction since July driven mainly by the
interim dividend payment, GBP500m debt redemption and completion of
the Succession Wealth acquisition, partly offset by cash
remittances to the centre during the period.
-- Cash remittances at Q3 2022 were GBP1.1bn (9M21: GBP1.1bn),
and we expect full year cash remittances to be ahead of the
GBP1.66bn remitted (from continuing operations) in 2021.
1 Rounding differences apply
Page 7
Appendix
Q3 discrete quarter information
Life sales(1) and Value of New Business (VNB)
PVNBP VNB
----- ----- --------- ----- ----- ---------
Q322 Q321 Sterling Q322 Q321 Sterling
GBPm GBPm % change GBPm GBPm % change
---------------------------------------- ----- ----- --------- ----- ----- ---------
Insurance (Protection & Health) 586 590 (1)% 42 51 (18)%
Wealth & Other 5,631 5,271 7% 48 31 55%
Retirement (Annuities & Equity Release) 1,514 2,828 (46)% 68 (34) 300%
Ireland Life 366 390 (6)% 8 6 33%
---------------------------------------- ----- ----- --------- ----- ----- ---------
UK & Ireland Life total 8,097 9,079 (11)% 166 54 207%
International investments 268 292 (8)% 18 8 125%
---------------------------------------- ----- ----- --------- ----- ----- ---------
Total 8,365 9,371 (11)% 184 62 197%
---------------------------------------- ----- ----- --------- ----- ----- ---------
Wealth and Aviva Investors net flows(2)
Net
flows
----- ----- --------
Sterling
Q322 Q321 %
GBPm GBPm change
------------------------------------------- ----- ----- --------
Wealth 2,062 2,122 (3)%
Aviva Investors 918 64 1,334%
Of which: Aviva Investors external assets 507 517 (2)%
------------------------------------------- ----- ----- --------
General Insurance GWP and COR
GWP COR
------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ------
Personal lines Commercial lines Total Total
Q322 Q321 Q322 Q321 Q322 Q321 Q322 Q321
Sterling Sterling Sterling
GBPm GBPm % change GBPm GBPm % change GBPm GBPm % change % % Change
-------- ------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
(0.9)
UK 591 572 3% 717 615 17% 1,308 1,187 10% 94.0% 94.9% pp
1.3
Ireland 53 53 -% 56 48 17% 109 101 8% 91.0% 89.7% pp
3.1
Canada 729 606 20% 385 279 38% 1,114 885 26% 96.1% 93.0% pp
-------- ------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
0.9
Total 1,372 1,231 11% 1,158 942 23% 2,531 2,173 16% 94.8% 93.9% pp
-------- ------ ----- --------- ------ ----- --------- ------ ----- --------- ----- ----- ------
1 References to sales represent present value of new business
premiums (PVNBP) which is an Alternative Performance Measure (APM).
Further information can be found in the 'Other information' section
of our Half Year 2022 Report
2 Aviva Investors net flows excludes liquidity funds and cash
Page 8
Analyst call
An analyst call will take place at 0830hrs GMT on 9 November
2022 and will be live-streamed via our website. A replay will be
available after the event. www.aviva.com
Click on, or paste the following link into your web browser, to
view the Q322 update presentation:
https://www.aviva.com/content/dam/aviva-corporate/documents/investors/pdfs/presentations/2022/aviva-q3-update-2022-presentation.pdf
Enquiries
Analysts:
Rupert Taylor Rea +44 (0)7385 494 440
Joel von Sternberg +44 (0)7384 231 238
Michael O'Hara +44 (0)7837 234 388
Media:
Andrew Reid +44 (0)7800 694 276
Sarah Swailes +44 (0)7800 694 859
Page 9
Notes to editors
-- Throughout this trading update we use a range of financial
metrics to measure our performance and financial strength. These
metrics include Alternative Performance Measures (APMs), which are
non-GAAP measures that are not bound by the requirements of IFRS
and Solvency II. A complete list and further guidance in respect of
the APMs used by the Group can be found in the 'Other information'
section of the 2022 Interim Results Announcement.
-- All figures have been translated at average exchange rates
applying for the period, with the exception of the capital position
which is translated at the closing rates on 30 September 2022. The
average rates employed in this announcement are 1 euro = GBP0.85
(Q3 2021: 1 euro = GBP0.86) and CAD$1 = GBP0.62 (Q3 2021: CAD$1 =
GBP0.58). Growth rates in this announcement have been provided in
sterling terms unless stated otherwise. Where percentage movements
are quoted on a constant currency basis, this is calculated by
applying year to date average exchange rates to prior period.
-- We are the UK's leading Insurance, Wealth & Retirement
business and we operate in the UK, Ireland and Canada. We also have
international investments in Singapore, China and India.
-- We help our 18.5 million customers make the most out of life,
plan for the future, and have the confidence that if things go
wrong we'll be there to put it right.
-- We have been taking care of people for 325 years, in line
with our purpose of being 'with you today, for a better tomorrow'.
In 2021, we paid GBP30.2 billion in claims and benefits to our
customers.
-- Aviva is a market leader in sustainability. In 2021, we
announced our plan to become a Net Zero carbon emissions company by
2040, the first major insurance company in the world to do so. This
plan means Net Zero carbon emissions from our investments by 2040;
setting out a clear pathway to get there with a cut of 25% in the
carbon intensity of our investments by 2025 and of 60% by 2030; and
Net Zero carbon emissions from our own operations and supply chain
by 2030. Find out more about our climate goals at
www.aviva.com/climate-goals and our sustainability ambition and
action at www.aviva.com/sustainability
-- Aviva is a Living Wage and Living Hours employer and provides
market-leading benefits for our people, including flexible working,
paid carers leave and equal parental leave. Find out more at
www.aviva.com/about-us/our-people
-- As at 30 June 2022, total Group assets under management at
Aviva Group were GBP353 billion and our Solvency II shareholder
capital surplus as at 30 September 2022 was GBP8.8 billion. Our
shares are listed on the London Stock Exchange and we are a member
of the FTSE 100 index.
-- For more details on what we do, our business and how we help
our customers, visit www.aviva.com/about-us
Page 10
Cautionary statements
This document should be read in conjunction with the documents
distributed by Aviva plc (the 'Company' or 'Aviva') through The
Regulatory News Service (RNS). This announcement contains, and we
may make other verbal or written 'forward-looking statements' with
respect to certain of Aviva's plans and current goals and
expectations relating to future financial condition, performance,
results, strategic initiatives and objectives. Statements
containing the words 'believes', 'intends', 'expects', 'projects',
'plans', 'will', 'seeks', 'aims', 'may', 'could', 'outlook',
'likely', 'target', 'goal', 'guidance', 'trends', 'future',
'estimates', 'potential' and 'anticipates', and words of similar
meaning, are forward-looking. By their nature, all forward-looking
statements involve risk and uncertainty. Accordingly, there are or
will be important factors that could cause actual results to differ
materially from those indicated in these statements. Aviva believes
factors that could cause actual results to differ materially from
those indicated in forward-looking statements in the announcement
include, but are not limited to: the impact of ongoing uncertain
conditions in the global financial markets and the national and
international political and economic situation generally (including
those arising from the Russia-Ukraine conflict); market
developments and government actions (including those arising from
the evolving relationship between the UK and the EU); the effect of
credit spread volatility on the net unrealised value of the
investment portfolio; the effect of losses due to defaults by
counterparties, including potential sovereign debt defaults or
restructurings, on the value of our investments; changes in
interest rates that may reduce the value or yield of our investment
portfolio and impact our asset and liability matching; the
unpredictable consequences of reforms to reference rates, including
LIBOR; the impact of changes in short or long-term inflation; the
impact of changes in equity or property prices on our investment
portfolio; fluctuations in currency exchange rates; the effect of
market fluctuations on the value of options and guarantees embedded
in some of our life insurance products and the value of the assets
backing their reserves; the amount of allowances and impairments
taken on our investments; the effect of adverse capital and credit
market conditions on our ability to meet liquidity needs and our
access to capital; changes in, or restrictions on, our ability to
initiate capital management initiatives; changes in or inaccuracy
of assumptions in pricing and reserving for insurance business
(particularly with regard to mortality and morbidity trends, lapse
rates and policy renewal rates), longevity and endowments; a
cyclical downturn of the insurance industry; the impact of natural
and man-made catastrophic events (including the longer-term impact
of COVID-19) on our business activities and results of operations;
the transitional, litigation and physical risks associated with
climate change; failure to understand and respond effectively to
the risks associated with environmental, social or governance
("ESG") factors; our reliance on information and technology and
third-party service providers for our operations and systems; the
impact of the Group's risk mitigation strategies proving less
effective than anticipated, including the inability of reinsurers
to meet obligations or unavailability of reinsurance coverage; poor
investment performance of the Group's asset management business;
the withdrawal by customers at short notice of assets under the
Group's management; failure to manage risks in operating securities
lending of Group and third-party client assets; increased
competition in the UK and in other countries where we have
significant operations; regulatory approval of changes to the
Group's internal model for calculation of regulatory capital under
the UK's version of Solvency II rules; the impact of actual
experience differing from estimates used in valuing and amortising
deferred acquisition costs (DAC) and acquired value of in-force
business (AVIF); the impact of recognising an impairment of our
goodwill or intangibles with indefinite lives; changes in valuation
methodologies, estimates and assumptions used in the valuation of
investment securities; the effect of legal proceedings and
regulatory investigations; the impact of operational risks,
including inadequate or failed internal and external processes,
systems and human error or from external events and malicious acts
(including cyber attack and theft, loss or misuse of customer
data); risks associated with arrangements with third parties,
including joint ventures; our reliance on third-party distribution
channels to deliver our products; funding risks associated with our
participation in defined benefit staff pension schemes; the failure
to attract or retain the necessary key personnel; the effect of
systems errors or regulatory changes on the calculation of unit
prices or deduction of charges for our unit-linked products that
may require retrospective compensation to our customers; the effect
of simplifying our operating structure and activities; the effect
of a decline in any of our ratings by rating agencies on our
standing among customers, broker-dealers, agents, wholesalers and
other distributors of our products and services; changes to our
brand and reputation; changes in tax laws and interpretation of
existing tax laws in jurisdictions where we conduct business;
changes to International Financial Reporting Standards relevant to
insurance companies and their interpretation (for example, IFRS
17); the inability to protect our intellectual property; the effect
of undisclosed liabilities, separation issues and other risks
associated with our business disposals; and other uncertainties,
such as diversion of management attention and other resources,
relating to future acquisitions, combinations or disposals within
relevant industries; the policies, decisions and actions of
government or regulatory authorities in the UK, the EU, the US,
Canada or elsewhere, including changes to and the implementation of
key legislation and regulation (for example, FCA Consumer Duty and
Solvency II). Please see
Aviva's most recent Annual Report and Accounts for further
details of risks, uncertainties and other factors relevant to the
business and its securities.
Aviva undertakes no obligation to update the forward looking
statements in this announcement or any other forward-looking
statements we may make. Forward-looking statements in this report
are current only as of the date on which such statements are
made.
This report has been prepared for, and only for, the members of
the Company, as a body, and no other persons. The Company, its
directors, employees, agents or advisers do not accept or assume
responsibility to any other person to who this document is shown or
into whose hands it may come, and any such responsibility or
liability is expressly disclaimed.
This information is provided by RNS, the news service of the
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END
TSTBKFBKDBDBDDK
(END) Dow Jones Newswires
November 09, 2022 02:00 ET (07:00 GMT)
Aviva (LSE:AV.)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Aviva (LSE:AV.)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
