AVIVA France, Italy, Spain

Transcription

AVIVA
France, Italy, Spain
Paris seminar, November 2002
Tony Wyand
Group Executive Director
Disclaimer
This presentation may contain certain “forward“forward-looking statements” with
respect to certain of Aviva’s plans and its current goals and expectations
relating to its future financial condition, performance and results.
results. By their
nature, all forwardforward-looking statements involve risk and uncertainty because
they relate to future events and circumstances which are beyond Aviva’s
control including among other things, UK domestic and global economic
economic
and business conditions, market related risks such as fluctuations
fluctuations in
interest rates and exchange rates, the policies and actions of regulatory
regulatory
authorities, the impact of competition, inflation, deflation, the
the timing impact
and other uncertainties of future acquisitions or combinations within
within
relevant industries, as well as the impact of tax and other legislation
legislation and
other regulations in the jurisdictions in which Aviva and its affiliates
operate. As a result, Aviva’s actual future financial condition, performance
and results may differ materially from the plans, goals and expectations
expectations set
forth in Aviva’s forward
forward--looking statements.
Aviva undertakes no obligation to update the forward looking statements
statements
contained in this presentation or any other forward looking statements
statements we
may make.
2
Seminar programme
14.00 Introduction & overview
14.20 France
Overview
General Insurance
Investment Mgmt
Life business
Tony Wyand
Bernard Pottier
Etienne Silhol
Bernard Pottier
Bruno Rostain
15.20 Break
15.30 Italy
Cesare Brugola
16.10 Spain
Gerardo Arostegui
16.50 Summary & close
Tony Wyand
17.00 Reception
3
Aviva has Europe’s strongest life platform
g Aviva
is the largest provider of life & pensions to Europe
g …..with
substantial market positions in continental Europe
Spain
New business sales (APE)
Europe (ex UK)
9 months 2002
Rank: 5th
Italy
The Netherlands
Rank: 4th
14%
17%
6%
16%
Rank: 6th
13%
25%
France
Rank: 10th
9%
Poland
Rank: 2nd
Ireland
Rank: 4th
Other
4
Growth cocktail =
High state pensions and ageing populations
State pension for average worker
as % of final salary (i)
Worker to pensioner ratios (ii)
2000
2040e
Spain
2.7
1.4
Italy
2.4
1.1
France
2.7
1.5
2.5
1.2
2.6
1.5
Germany
UK
0
25
50
75
100%
Undeliverable state pensions
Sources : (i) Goldman Sachs
: (ii) CES ifo: (ages 20-59 / over 60s)
5
Attractive trading environment
g Lower
regulatory environment than UK
g Sustainable
g Single
margins
country platforms required
g Emergence
of equity-linked culture stalled………..
Market equity exposure 2001
42%
UK
19%
18%
France
Spain
14%
Equities
- Direct ownership
- Mutual funds
- Life & pensions
Italy
6
Source: Deutsche Bundesbank, Banque de France, Banca d’Italia, ONS, Banco de España, Goldman Sachs estimates.
Aviva aligns distribution to country models
Multidistribution
Direct sales
Bancassurance
7
Distribution key to capturing growth
Aviva’s investment in bancassurance is
achieving substantial and profitable growth
g Track
record important
(understand banking culture / incentives / pricing)
g “Warm”
client bases totaling 14m customers across
France, Italy and Spain
g Deals
priced to meet target returns
g Efficiency
is the key to bancassurance margins
8
Aviva is Europe’s bancassurer
*
19 UK
Building Societies
* Effective from 2004
9
Opportunities in Eastern Europe
“Asia on our doorstep”
g Expect
g Large
g
above western EU GDP growth
populations
Aviva’s current exposure 140m
g Life
penetrations under 1%
g Pension
g
reforms underway
Aviva captured 30% of Polish pensions market
10
Eastern Europe - EU accession brings
economic benefits
Poland
Poland
•• 1992
1992 £5m
£5m greenfield
greenfield investment
investment
•• In
In 2001:
2001:
•N
private pensions
pensions (30%of
(30%of market)
market)
•Noo 11 private
•20%
•20%of
of total
total life
life market
market
•40%
of
individual
•40% of individual life
life
•Over
•Over 2m
2m customers
customers
Turkey
Turkey
•• Life
Life launch
launch 1996
1996
•• 13%
13%market
market share,
share, No.
No. 33
Czech
Czech Republic
Republic
•• Launched
Launched 1997
1997
Romania
Romania
•• Launched
Launched 2000,
2000, top
top 55
Hungary
Hungary
•• Acquisition
Acquisition of
of Top-6
Top-6 life
life assurer
assurer 2001
2001
Lithuania
Lithuania
•• Launched
Launched 2001
2001
•• 9%
market
9% market share
share
11
Profitable development in continental Europe
g 47%
£m
of group’s life profit
(34% in 1997)
Life achieved operating profit*
13% pa CAGR
800
400
0
1997
1998
*Operating profit before tax and exceptional items
1999
2000
2001
12
Profitable development of life businesses in
continental Europe
Annualised H1 2002 return*
16.8%
13.4%
11.8%
France
Italy
*Life achieved operating profit post tax / opening embedded value
Spain
13
French, Italian and Spanish life businesses are
within a flexible capital structure
Aviva plc
CGUII plc
Life
NU Insurance
Australia
UK Life
General
Major overseas subsidiaries
France
Capital
Dividends
Italy
Spain
14
High quality capital position
g
Financing organic growth
g
France
-
self-financing including funding for Crédit
du Nord and Médéric deals
g
Italy
-
self-financing for organic growth
g
Spain
-
requires small capital funding over next 3
years reflecting early development stage
g
High quality assets
g
Matched positions on guarantees
15
France, Italy, Spain
g Outstanding
growth opportunities
g Pre-eminent
distribution skills
g Strong
local management
16
Appendix
18
Continental European key developments
g
Substantial investment in future growth
g
Exited subscale or volatile businesses
Bancassurance
2000: Bancaja, Spain
2001: Unicaja, Spain
Caixa Galicia, Spain
Disposals
2000: German GI
2001: Belgium GI
2002: Portugal GI
CGU Courtage
Caja Espana, Spain
Royal St George Banque
Nagelmackers, Netherlands
Plus Ultra
2002: Caja Granada, Spain
BPCI, Italy
Mederic joint venture, France
2004: Credit du Nord,France
19
Aviva France
Paris Seminar November 2002
Bernard Pottier
Chief Executive
France: historical perspective
1885
Commercial Union Northern
in France (b ranch) in France
1985 Commercial Union
French company (non life)
L EPARGNE
DE FRANCE
1856
Abeille
1902
La Paix
1976
Abeille and La Paix
merge to form
Groupe Victoire
1984 Acquisition of
l’Epargne de France
(life and savings)
GA
1879
1901
Lion Fire Norwich Union
Insurance Co
in France
in France
1902
amalgamated
into the Yorkshire
Insurance Co.
1967
becomes
part of
GA
1991 Creation of Eurofil
1994
Commercial Union
acquires Groupe Victoire
1998
CGU France
2000 CGU France
merges with
Norwich Union France
2002 renamed
Aviva
1
1994 - 2005: Key milestones
g
1994: A major step, the acquisition of Groupe Victoire
g an old established French company
g profit minded, high quality management
g where we developed financial, planning and reporting discipline
g
1998: Merger with General Accident France
g
2000: Merger with Norwich Union France
g
2001: Sale of CGU Courtage (€ 301m before fees and other charges)
Sale of Royal St Georges Banque (€ 27m before fees and
other charges)
g
2002 - 2004: Partnership with Crédit du Nord
g
2005: Move from the centre of Paris to Bois-Colombes
2
France: one of the Group’s “Big Engines”,
with solid results
France is, on average,
the second largest
contributor to total
Group premium income
and to profit (after the
UK)
Big engines:
Aviva has established,
profitable long-term
savings businesses in the
UK, France, Ireland and
the Netherlands and
rapidly built successful
businesses in Italy and
Spain
UK GAAP Results (in € m) *
1995
1996
1997
1998
1999
2000
2001
H1 02
1995 - 2002
Total
68
138
268
215
240
318
502
225
1,974
Result on Life Modified
103
Statutory Operating basis
160
212
232
226
221
392
163
1,709
Result including LAOP
* Excluding GA pre-1998 and Norwich Union pre-2000;
cost of 1999 storms in France excluded from 1999 results (€ 58m) & 2000 results (€ 148m)
At year-end published rates of exchange
3
French premium income
NWP by type of business excluding CGU Courtage
(first half-year figures 2002: € 2 215m)
AFER
42%
Life
76%
General Insurance
20%
Health
4%
NonAFER
34%
4
2001: A large spread of distribution channels,
focus on Life and non volatile GI business
- breakdown of net premium income by distribution channel
Life AFER: € 1 827m
Epargne
Actuelle
33%
Life Non AFER: € 1 754m
Other dedicated
intermediaries
15%
Others
6%
AFER Brokers
28%
Agents
18%
UFF
21%
NUD
3%
Sales force
28%
Agents
9%
59% controlled
Independant
Brokers
34%
Ex NUF : 26%
Captive
Brokers
6%
Ex AV: 8%
General Insurance: € 912m
(excluding CGU Courtage)
Others
1%
Agents
93%
Direct Marketing
6%
99% controlled
5
Multidistribution strength (1): the market
Life
Direct
& Others
6%
Sales
force
17%
Brokers
9%
General Insurance
Banks
60%
Agents
8%
French market
Source : Fédération Française des Sociétés d’Assurances
Banks
8%
Direct &
Others
5%
Mutuelles
Agents
34%
35%
Brokers
18%
French market
6
Multidistribution strength (2): our answers
Life
General Insurance
Norwich Union Direct
Médéric
Abeille vie & UFF
Abeille vie &
Norwich Union
France
Direct
& Others
6%
Sales
force
17%
Brokers
9%
Banks
60%
Eurofil
Crédit du Nord
Sogessur, Bred,
Crédit du Nord
Banks
8%
Direct &
Others
5%
Mutuelles
Agents
34%
35%
Agents
8%
Abeille
assurances
Brokers
18%
Abeille assurances
CGU Courtage
French market
French market
Widest distribution of any French insurer
(except those channels we have decided to exit)
7
Multidistribution: companies specialising by market
2001GWP: € 5.1 bn
Group staff number: 2 756
(excluding sales force and agents)
Martin Bride
Finance Director
Aviva
France
(ex CGU France)
Bruno Rostain
Life
Aviva Vie
Etienne Silhol
General Insurance
Aviva Direct
Marcel Nicolaï
Asset Management
Aviva Gestion d’Actifs
Aviva Assurances
(ex Victoire Asset Management)
(ex Abeille vie) (ex Norwich Union Direct) (ex Abeille assurances)
2001 GWP (in €m) 3 517
Staff number
628
180
106
915
918
g
ProCapital (40%)
56
359
55
g
Médéric Epargne (51%) - 2003
g
Antarius (50%) - 2004
B-to-B financial service provider
76% stake
Bank / sales force
g
Sogessur (35%)
GI Bancassurance
Bancassurance
8
Aviva France
General Insurance
Etienne Silhol
Chief Executive
g
Key value factors of our operation
g
Management tools and actions
g
Drivers for the future
1
Distribution, not just risk carrier
1.2 million clients
Eurofil
€ 56 m
Aviva agents
Life
€ 434 m
Abeille
General
Insurance
€ 618 m
Aviva Assurances tied agents: 900
points of sales, strong local franchise
g
Health
€ 192 m
Premiums through Aviva assurances
and Eurofil, 2001
g
Eurofil: n° 2 in the direct market
2
Tied agents network: a strong network
GI business
Aviva share of agent channel
5,8%
6,2%
6,0%
5,6%
2,3%
2,4%
6,1%
6,0%
5,6%
2,3%
2,2%
6,7%
gaining share of agent
channel
g
maintaining share of
overall GI market
2,5%
2,3%
2,2%
g
2,3%
Av iva share of total
1994 1995 1996 1997 1998 1999 2000 2001
3
Sourc e : FFSA
Tied agents network: a strong network
Life distributed through agents
8,2%
Aviva share of agent channel
6,5%
5,5%
4,6%
g
5,1%
5,0%
4,8%
4,5%
2,0%
1,6%
2,1%
1995
Sourc e : FFSA
1996
1,4%
1,6%
1,6%
1994
regaining share of overall life
market, banks excluded
g
Aviva share of total, banks excluded
1,7%
gaining share of agent channel
1,3%
1997
1998
1999
2000
2001
4
Tied agents network: key features
g
Personal and small commercial lines
g
From n° 5 in 1998 to n° 3 network for
Aviva life in 2001
g
Regional not big cities
g
Franchise is good local care at
decent price
g
Agent typically has 1 or 2 employees
g
Also paying small claims
g
N° 4 in agricultural risks
g
N° 4 in individual health top-up
5
Tied agents network: stable relationship,
high persistency rates
g
Exclusive agents:
- commission-based income, however Aviva owns client base
- agent only gives an Aviva quote
g
Local relationship brings high persistency
Household only
84
Motor only
85
Health only
% of clients still
insured at one year
anniversary related to
product(s) purchase
85
Household +
Motor
94
Household +
Motor + Health
75
98
6
80
85
90
95
100
Tied agents network: strong growth of life
distribution
Number of active agents
Aviva’s third largest channel
for life sales
420
365
256
3
1000
Volume
(€m)
3
800
227
305
398
Rank
600
3
255
270
239
196
very active
272
236
400
not active
5
200
moderately active
456
515
372
297
0
1998
1999
2000
2001
1998
1999
2000
2001
7
Platform for bancassurance, direct and standard
claims
g
g
Bancassurance partnerships
160 000 clients
Focus on selling the second
contract
²
1.39
1.43
1.30
1999
2000
2001
Contracts per client
g
Claims platform for Aviva
Assurances (TSA)
²
70% use of preferred garage
8
g Key
value factors of our operation
g Management
g Drivers
tools and actions
for the future
9
Management tools: Accident Year
99
COR target 102%
101
104
105
103
107
103
Excl. stor ms
119
+5.7%
+4.5%
+3.3%
+2.7%
Portfolio exposure
Net Written premium
+1.8%
Net COR (inverted scale)
+1.2%
+0.5%
+0.2%
-0.1%
-0.6%
-2.2%
-1.9%
-2.7%
-4.2%
1995
1996
Aviva assurances
1997
1998
1999
2000
2001
10
Management tools: network segmentation
g
Heartland position and Agency value index based on results, quality and growth in
profitable lines
g
Agency’s position on the grid determines our actions
A
B
Results
C
D
44
59
Reorganisation,
sales animation
and training
49
11
Internal growth,
delegation
173
88
Underwriting quality,
Profit-sharing
41
19
Focus on underwriting
and admin. quality
18
25
D
187
76
72
Region 9,
Reorganisation
45
C
21
3
B
Development
A
11
Management tools: agents rating control
g
Quotation and sales exclusively based on our rate :
competitors rate does not interfere
g
Underwriting delegated to agents strictly automated
by IT
g
For Motor, underwriting agent quality audits retroact
on their price
12
Market dynamics confirmed
Overall market premium
growth
+ 5%
+ 3%
+5%
+6%+6%+6%
+6%
+4%
+3%
+2%
+ 1%
-0%
-1%
-1%
"Having re-emerged from several
years of stagnation, the French P&C
industry has not only enjoyed a
growth in premiums in 2000 and 2001
but is also expected to experience
further growth in the next cycle"
Jean-Luc Lepreux, SVP at Moody's
September 2002
-3%
-5%
19 92 19 93 1 994 1 99 5 1 99 6 199 7 199 8 19 99 20 00 20 01
13
Source FFSA
Overall market growth of motor
premium per vehicle
Change in Motor liability claims
frequency
3%
+2,5%
+5%
2%
+3%
+1%
1%
+5% +5% +4%
+2%
-1%
+2%
+1% +2%
-3% -3%
-1%
0%
-0,5%
-1%
-1,6%
-2%
-3%
-3%
-3,0%
-3,1%
1995
1996
-5%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
-3,0%
-3,0%
2000
2001
-4%
1997
1998
1999
14
Source FFSA
Overall market growth of household
premium
Overall market growth of
commercial lines premium
+11%
+9%
+8%
+7%
+6%
+5%
+4%
+6% +6%
+2% +4%
+3%
+5% +5%
+3% +4%
+1% +1% +1%
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
+10%
+4%
+10%
+7%
+5%
+5%
+7%
+4%
+1%
-2% -2%
-1%
-4%
-3%
-5%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
15
Source FFSA
Aviva Rate increases
Achieved in 2002
Perspectives for 2003
g
Motor private: +3%
(5% decrease of frequency)
+ (April)
g
Personal fire: +5%
+ (April)
g
Health: +3.5% (January)
+5.6%
+3% (September)
g
Commercial lines: +6% to +10%
(7% average)
From +6% to +30%
(double digit average)
16
Focus on delivering results
General insurance combined operating ratio (%)
103
104
100
AXA: 106.0
AGF: 106.6
H1 2001
2001
(1) H1 2002 excludes CGU courtage
H1 2002 (1)
17
g Key
value factors of our operation
g Management
g Drivers
tools and actions
for the future
18
Development extends out of cities
Source : Insee 1999
Housing development areas
Active rural areas
Traditional rural areas
19
Our agents network is well positioned for out-of-city
development
Source : Insee
1999
Aviva agents
network
20
Our agents network is a key growth engine for Life
and Health
62% of agents
Now : 66% of
agents sell
Health
sell ASR
(individual pensions
product
launched in May)
1998 : 33% of
agents sell
Health
50%
55%
57%
62%
33%
9%
1998
1999
2000
2001
2002
May
June
July
August
Sept
Oct
21
« Multidetention path »:
increase cross selling
g
g
HELIOS business model:
- Commercial efficiency
Number of contracts for new
clients after 6 months
Growth of prototypes compared
to the rest of the network
20%
14%
11%
1.58
7%
Helios Agents
Rest of network
GI new Health new
business business
1.33
- Claims efficiency: use of Carglass
TSA platform: 90% + Agents: 24%
Currently
Test
22
Turning our agent network into a competitive advantage
g
2002: 60 agents hired / 700
candidates
New agents perform
better
g
106.8%
94.2%
55.9%
46.7%
34.3%
16.3%
GI business
Life business
New Agents
Health
Rest of network
4-year progression of new agents appointed
in 1997 compared to the rest of network
23
In summary
Agents are a key channel for Life, Health and
profitable GI
g
Group platform for partnership, direct and agents
claims
g
g
Strong management tools and rating controls
Further improvement expected from rating
momentum, claims and network efficiencies
g
24
Appendix
25
General insurance product mix
hail and
construction
9%
commercial
lines
16%
personal
motor
31%
commercial
motor
9%
health
22%
personal fire
13%
Breakdown of Aviva GI GWP 2001
26
Aviva France
Bernard Pottier
Chief Executive
g
Aviva France’s in-house asset management arm
g
€ 46.7 bn under management at 30 June 2002
g
N° 3 amongst insurance Groups for UCITs funds under
management
g
A pro-active low cost organisation: administration costs around
2.6 bp
g
2001 Pre-tax profit: € 18 m
1
Aviva Gestion d’Actifs: 2001 portfolio
Portfolio by customer
Others 6%
Bond risk analysis
UFF GI 3%
1%
Life
Non- AFER
22%
Rating >= A
31%
Life AFER
68%
Private
Govt. & public
sector bonds
59%
Rating BBB 4%
Below BBB 1%
Semi-public & other
state-related 5%
Breakdown of UK GAAP consolidated
French life assets at 30 June 2002
Total: £ 27.9bn
Property 1.9%
Assets c overing
linked liabilities
19.9%
Equities 0.9%
Backing Technical
funds £ 26.6bn
(95.3%)
Fixed interest &
other 63.0%
Equities
10.5%
Fixed interest &
other 3.8%
Backing Shareholders’
funds £ 1.3bn
(4.7%)
2
performance: a considerable
competitive advantage for life sales
End October 2002
Year to
date
1 year
3 years
Number of funds
35
35
34
Top quartile
49%
57%
65%
1st and 2nd quartiles
71%
80%
94%
1st, 2nd and 3rd quartiles
91%
94%
97%
3
Aviva Gestion d’Actifs: an award
winning asset manager
2002
Product
Product range
Mieux Vivre Votre Argent
Best insurance asset manager
Investir
Le Revenu
Award for unit trusts over 5 years
N° 1, international bonds (10 years)
Victoire Oblig International
Le Revenu
La Trib une / Standard & Poor's
La Trib une / Standard & Poor’s
Best asset manager over 3 years
N° 1, international bonds (3 years)
Best performance over 3 years
Best performance over 1 year
2001
L ’Agéfi
N° 1, international bond
2001
La Trib une
N° 1, international bonds over 10 years
La Vie Financière
N° 1, fund management over 3 years
Victoire Oblig International ,
Victoire Convertibles
Mieux Vivre Votre Argent
Best insurance asset manager
La Trib une
Best Performance over 1 year
4
Aviva France
Life operation
Bruno Rostain
Chief Executive
Agenda
z
Growth dynamics of French life market
z
Aviva vie’s position in market
z
Lines of business strategy
z
Control of distribution
z
New opportunities
z
Margin and cost management
z
Summary
1
French Life Insurance Market
Opportunities
z
A stable, favourable legal and tax environment
z
Positive demographics
z
Pressure to reduce social charges
z
A government prepared to reform pensions
Life insurance already the predominant vehicle for households’
savings
z
2
Sustained growth in the market
CAGR : 9%
€ bn
80
60
40
20
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Life and savings turnover – ordinary business
Source : Fédération Française des Sociétés d’Assurance
3
Distribution channel stabilising
100%
Other
90%
80%
70%
Branch networks
of financial
organisations
60%
50%
40%
30%
Tied sales forces
20%
Brokers
General agents
10%
0%
1991 1992 1993 1994 1995 1996 1997 1998 1999
Life and savings turnover – ordinary business
2000 2001
4
French market products overview
I
MAIN CATEGORIES :
Savings and pensions plans for individuals, self employed and small firms
Protection plans for individuals (term insurance, funeral plans …)
I
SAVINGS AND PENSION PLANS :
Unit linked products
Premiums : voluntary or programmed contributions
Tax framework : capital gains tax free after 8 years, capital gains when
changing unit also tax free, reduced inheritance tax.
Large range of funds :
G
mutual funds (unit linked funds)
G
«French» with profit fund with guaranteed bonuses (no « terminal
bonus » and guaranteed surrender values, no « market adjustment
factor »). These guarantees are matched by assets mainly invested in
long term bonds.
5
A market in which unit-linked funds
have established their position
€ bn
40
Unit-linked fund turnover
CAC 40
CAC
10000
30
7500
20
5000
10
2500
0
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Life and savings turnover – 2002: 12 months rolling at 9/2002
Sources : Euronext and Fédération Française des Sociétés d’Assurance
6
Aviva Life operation
A Top Ten player in the French life market
4th traditional insurer
CNP
Crédit Agricole
Axa
BNP - Paribas
Crédit Mutuel
Generali
AGF
Société Générale
Crédit Lyonnais
4% AVIVA
Traditional
insurers
Groupama GAN
La Mondiale
Bancassurance
Banque Populaire
0%
2%
4%
6%
8%
10%
12%
14%
2001 Life and savings turnover
16%
18%
20%
Market share
7
Leading market positions
N°1 in savings association business with Afer
N°1 in direct sales of individual protection insurance with Aviva Direct
(ex Norwich Union Direct)
Ranked 4th by turnover in the French life and savings market in 2001
(excluding banks’ subsidiaries)
Ranked 3rd by reserves in the French life and savings market in 2001
(excluding banks’ subsidiaries)
Aviva Gestion d’Actifs (ex Victoire Asset Management) best
performing fund manager over 1 and 3 years (La Tribune-Standard &
Poor’s)
8
Base 100
in 1998
Growth faster than the market
+52% Aviva APE (*)
150
+43% Aviva
+30% Market
125
+22% Traditional
Networks
100
1998
1999
2000
2001
(*) APE: Annual Premium Equivalent = new business
i.e. regular premiums + single premiums / 10
Life premium income - 2002 : 12 months rolling 3Q2002
2002
9
Focused on the most profitable segments
of the market
z Individual savings and protection (93% of total premium income)
z Unit linked products
z Distribution through controlled networks (including long term partnerships)
offering the medium term prospect of stable new business margins
40%
Gross Margin of New Business
30%
20%
10%
0%
1999
2000
2001
1H2002
10
Focused on the most profitable segments
of the market …
Share of unit linked funds within new business
(i.e. 1% solvency margin versus 4% )
80%
70%
60%
Non-Afer
50%
40%
30%
20%
Market
10%
Afer
0%
1999
2000
2002 : 3Q2002 - 12 months rolling
2001
2002
11
… while maintaining the ability to stabilise
production in a market currently
unfavourable towards unit-linked funds
Cumulative APE
in € m
Afer
including SFER
200
160
150
120
100
80
50
40
0
0
3m
6m
9m
Non-Afer
Cumulative APE
in € m
12m
2001
6m
3m
2002
Change in accumulated savings-pensions APE since January
9m
12m
12
Aviva Life operation controls 59% of
its distribution
Other
captive
brokers
Aviva vie
Direct sales
forces
51%
76%
UFF:
a network of
financial advisors
Aviva
Assurances
Médéric Epargne
50%
from 2003
100%
Aviva Direct
Direct Sales
tied agents
Capital link with % of ownership
• Aviva own distribution channels
• future JVs
Antarius
Epargne Actuelle:
bank distribution
a captive broker
dedicated to AFER
from 2004
Independent
brokers
13
AFER: number 1 savings association
Scale competitive advantage
z 560 000 members
reserves of € 26.2 bn at end 2001
€ 1.8 bn premium income 2001
z Very strong brand: 29 awards attributed
by the financial press to the product and to
asset management performed by Aviva
Gestion d’Actifs (presently VAM)
z Low loadings and low administration
cost (0.1% of mathematical reserves vs
market average of 0.33%)
z Choice of three investment funds:
bond fund (industry reference in the
French market) and 2 unit-linked funds
€ bn
30
Growth in funds invested
since the creation of AFER
(key profit driver)
24
18
12
6
0
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001
z Customer loyalty:
42% of new members introduced through customers
98% of members are satisfied with AFER
a 2001 lapse ratio of 2.2% excluding death and 3.3% including death
14
AFER : a dedicated and highly
efficient organisation
Aviva Gestion
d’Actifs
Asset management
SEV
Aviva Vie
Co-Insurer
75%
Gie AFER
AFER
Association
Co-Insurer
• Administrative management
• Development and networks other than
Aviva ‘s
• Staff of 110 managing 650 000 policies
560 000 members
15
Two examples of controlled and
profitable distribution
Epargne Actuelle
Union Financière de France
16
Epargne Actuelle
A highly efficient and profitable Afer distributor
• 184 000 customers
• 32 agencies, 67 sales staff, 17 administrative staff
• € 8.75bn of reserves
• 34% of Afer premium income (40% of unit linked)
Key features
strong direct marketing knowledge generating referrals for
face-to-face selling
highly efficient :
premium income of almost € 7m per employee
17
Union Financière de France
a medium-sized operator which is growing in strength
iHighly professional sales network offering investment advice
iAn accumulator of assets invested mainly in equity oriented products and real estate
iEmphasis on training, corporate culture and very high loyalty of salesmen (more than
93% in 2001 for fully trained people)
Number of customers
Key figures at 31/12/2001
150 000
142 750 customers (+12% in 2 years)
Average life savings retention rate
95.6%
Gross savings collected: € 748m of
which 40% in life insurance
Over 700 fully trained sales advisers
170 trainees working
33 branch offices
Assets managed: € 5.5bn
125 000
100 000
1997
1998
1999
2000
2001
Sept.
2002
18
Aviva vie Non AFER
Marketing tools and administration capacities
ready for growth
Aviva vie has reorganised its direct sales forces by:
z sharply reducing the number of networks
z developing modern tools to support sales persons:
Training, PCs, sales software,
Ready-to-use marketing operations on the existing
portfolio and towards prospects
z giving customer service tools including platform to
deal directly with direct sales forces’ clients
requirements
Our IT systems and customer service ability now
provide opportunities to develop profitable partnerships
and further reduce costs
19
Costs reduction
Impact of CGU - NU merger
a 10% staff reduction
Administration costs as % of reserves
(non-Afer savings)
Staff number
1180
1160 1162
1140
1137
1125
1120
1100
1137
1115
1119
0,60%
1111
0,55%
1132
1099
1080
Merger savings
0,49%
1060
1040
1055
1020
1000
Q4 1999
0,44%
1052
1033
Q3 2000
Q4 2000
Q1 2001
Q2 2001
Q3 2001
1047
Q4 2001
1998
1999
2000
2001
A further decrease in unit costs is expected as fixed
costs will be spread over more activities through new
partnerships ...
0,43%
2002
20
Crédit du Nord partnership

A long-term partnership will be put into place in 2004
Crédit du Nord
Aviva France
50%
50%
Antarius
Exclusive distribution agreement
Administration management and fund
management of euro funds
Key Figures 2001
A strong customer base: 1.3
million clients for the Crédit du Nord
Group
Written premiums: € 547m of
which 58% was unit-linked fund
business
Reserves at 31/12/2001:
€ 2 542m
Based on 2001 figures, Antarius
represents 50% of new non-Afer
business
21
Médéric partnership
Use of Médéric
customer data base
Médéric
a group protection
know -how
Aviva vie
a saving know-how
Administration management
Transfer of Group
protection portfolio
80%
49%
From 2Q2003
Asset management
51%
20%
Joint Venture
Médéric Epargne
Life company
Médéric Epargne
Développement
Distribution company
Médéric is one of the leading Provident Institutions
with 2.7 million customers and 1 million beneficiaries
22
Life operation results :
resilience in turbulent financial markets
in €m
Annual Premium Equivalent (APE)
Gross New Business Margin
2000
2001
1H01
1H02
363
375
195
176
28,4% 33,9%
274
3Q02
268
28,8% 31,0%
Gross Life Achieved Operating Profit
334
366
177
179
UK Statutory Result (MSSB)
234
258
121
115
0,0
0,0
0,0
0,0
UK Unrealised Capital Gains (UCG)
829
470
723
315
Solvency ratio excl. French UCG *
1,14
1,19
1,22
1,21
Solvency ratio incl. French UCG *
2,69
2,55
2,66
2,25
Provision pour Risque d'Exigibilité
3Q01
* average ratio for the life operation
UK unrealised capital gains do not include UCG on bonds
French unrealised capital gains include UCG on bonds
23
In a competitive market, Aviva Life operation
has the potential to increase value
Focus remains on profit through
g
individual business versus group business
g
unit-linked funds versus guaranteed rate products
g
controlled distribution
g
cost reduction programs
g
rationalise information systems after mergers
Excellent growth platform
g
a solid customer base
g
Aviva Gestion d’Actifs’ excellent track record as a fund manager
Development will come from
g
existing distribution with capacity to grow
g
cross sell to GI customers
g
new distribution partnerships
24
Aviva France
Bernard Pottier
Chief Executive