Aviva International - strong, balanced and profitable growth · PDF fileSatisfied customers...
Transcript of Aviva International - strong, balanced and profitable growth · PDF fileSatisfied customers...
© Aviva plc
Aviva International - strong, balanced and profitable growthTidjane Thiam Managing Director, Aviva International
© Aviva plc
We aim for sustainable and profitable growth
• The right markets
• The right capabilities- Provider of choice for customers- Partner of choice for distributors
• The right people
© Aviva plc
We start from a good place: good spread of positions across markets
• Netherlands (LTS & GI)
• Spain (LTS)
• Ireland (LTS & GI)
• Canada (GI)
• Poland (LTS)
• Singapore (LTS)
• China* (LTS)
• Turkey (LTS)
• Lithuania (LTS)
• Sri Lanka (LTS &GI)
Top 5 positions Within top 10 Market presence
* Among foreign players
• France (LTS)
• Italy (LTS)
• Australia (LTS)
• India (LTS)
• Hungary (LTS)
• Romania (LTS)
• USA (LTS)
• France (GI)
• Italy (GI)
• Turkey (GI)
• Poland (GI)
• Hong Kong (LTS)
• Czech Republic (LTS)
• Russia (LTS)
LTS – Long Term SavingsGI – General Insurance
© Aviva plc
Global Personal Financial Assets 2004100% = $102tn
Cash & Deposits
21%
Direct Investments
16%
Mutual Funds
8%
OccupationalPensions
11%Life and Pensions
12%
Home Equity
32%
Managed asset classes
Managed asset classes are a significant opportunity
© Aviva plc
…across the three major economic zones
Source: Mercer Oliver Wyman
North America
Europe
Japan
ROW
Asia excl. Japan
Latin America
Life & Pensions Assets 2004 ($bn)
Life
& P
ensi
ons
Ass
ets
CA
GR
(200
4-20
15) Aviva’s presence
Growth In Life and Pensions assets by region
None
StrongGrowingArea of bubble = Projected increase
in Life & Pensions assets to 2015
© Aviva plc
We will continue to invest in growing our GI presence
Strong positions to start from…
Leading positions in the UK, Ireland, Canada and the Netherlands
Well-established businesses supporting our LTS strategy in France, Italy, Poland and Turkey
…and many opportunities
• Leverage strengths in key capabilities to gain market share and increase profitability
• Add new distribution channels (e.g. banks, direct distribution)
• Acquire selectively to build scale
© Aviva plc
We aim for sustainable and profitable growth
• The right markets
• The right capabilities- Provider of choice for customers- Partner of choice for distributors
• The right people
© Aviva plc
Satisfied customers are the ones that create lasting value
Creating value through customer satisfaction –Aviva France
• They bring in new customers by referring your company to their families and friends
• They are prepared to buy other products from you as they trust you
* Client satisfaction rating equal to 5/10** Client satisfaction equal to 8/10
0%
50%
100%
Moderately satisfied * Very satisfied **
Recommending Aviva Wish to buy again
© Aviva plc
Creating value through customer insights – Aviva India
Product development using continuous research into customer needs
© Aviva plc
You only improve what you measure
Customer Satisfaction
Customer Advocacy
(customers are ready torecommend to others)
2005 2007
• Measured by 50%of our businesses
• Measured by 87%of our businesses
• Measured by 100% of our businesses
• Measured by 100%of our businesses
We aim at being the provider of choice for our customers
(customers are pleased about how company suits their needs)
© Aviva plc
We aim for sustainable and profitable growth
• The right markets
• The right capabilities- Provider of choice for customers- Partner of choice for distributors
• The right people
© Aviva plc
To win, we need to excel at reaching customers through their preferred distribution channels
Others
Tied Agents
Emerging Developing Mature Type A Mature Type B
Others
IFAs / Brokers
Bancassurance including JVs
Others
Tied Agents
IFAs / Brokers
Bancassurance including JVs
Tied Agents
Bancassurance including JVs
Others
IndiaPolandChina
FranceSpain, Italy
NetherlandsAustralia, USA
IFAs / Brokers
Tied Agents
Examples:
© Aviva plc
What we have achieved – diversified distribution
AI Life & Pensions distribution by channel 2000
AI Life & Pensions distribution by channel 2005
Broad access to customersNet of minorities
Basis 2000 APE Basis 2005 PVNBP
38%
7%
55%
34%26%
40%
Independent Agents/BrokersTied Agents/DirectBancassurance
© Aviva plc
Aviva operates the Direct Sales Force model in markets with differing degrees of maturity
UK
France
Netherlands
Life Premiums per Capita ($)
Life
Pre
miu
ms
as a
% o
f GD
P
Source: Sigma
Building proprietary distribution
0%1%2%3%4%5%6%7%8%9%
10%
0 500 1,000 1,500 2,000 2,500 3,000 3,500
China, IndiaC&EE
© Aviva plc
UniCredit
BdM
BPI
BPU
Crédit du Nord
ABN AMRO
DBS Singapore
DBS Hong Kong
Caixa Galicia
Unicaja
Caja Espana
Caja de Granada
Bancaja
Bancassurance: a strategy for the long term
Net of minorities, 2000 PVNBP calculated using 2003 capitalisation factor. Excludes distribution agreements, other than DBS
Bancassurance2000
Bancassurance2005
PVNBP £373m
PVNBP £2,602m
© Aviva plc
Insurance penetration of Spanish partner customer bases
Bancassurance growth from customer base penetration
Basis: Different customers in each Business Unit divided by the number of active customers in each Savings Bank.
0%
5%
10%
15%
20%
25%
2000 2001 2002 2003 2004 2005
Bancaja
Caixa GaliciaUnicaja
Caja Espana
Caja Granada
© Aviva plc
Bancassurance growth from extended distribution reach
Partners’ network has grown fourfold in five years
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2000 2001 2002 2003 2004 2005
Caja España Caja GranadaUnicajaCaixa GaliciaBancajaN
o. o
f bra
nche
s
© Aviva plc
Working with independent agents
• Aviva actively supporting the development of the independent financial planning channel
• Strong experience dealing with independent agents:- Aviva Singapore ranked 1st in the IFA sector- Aviva Australia positioned as
‘the home of the independents’- Aviva USA growing strongly through
independent agent distribution
© Aviva plc
We aim for sustainable and profitable growth
• The right markets
• The right capabilities- Provider of choice for customers- Partner of choice for distributors
• The right people
© Aviva plc
The right people: the importance of our teams
• Aviva’s decentralised model empowers local management teams
• Employee engagement is critical to delivering Aviva’s values
• Senior management bonuses partly linked to Business Unit scores for leadership and employee engagement
© Aviva plc
We aim for sustainable and profitable growth
• The right markets
• The right capabilities- Provider of choice for customers- Partner of choice for distributors
• The right people
© Aviva plc
This strategy has produced excellent results: among the fastest growing of our peers in Europe
Growth in Life premiums - Aviva vs. Peers in Europe excluding UK (CAGR 2000-2005, in %)
10
1
3
10
2
Aviva Allianz Axa Generali ING
Source: Annual Reports; Total Life and Pensions GWP
© Aviva plc
High growth can be achieved in large developed markets…
15.2
0.5
11.2
34.2
Aviva Italy Aviva France Delta Lloyd Aviva Spain
Aviva Businesses’ performance relative to national markets (CAGR 2000-2005)
2000-05 market CAGR
Note: Total PVNBP Growth net of minorities, constant currency (Source Aviva) - Life & Pensions Market Premium Growth (Source: Axco, Aviva) 12005 market premiums based on Delta Lloyd estimate of 1% growth
+5.9%+13.1% - 3.0%+1.3%1
© Aviva plc
…and we are adept at successfully entering new markets
35
74
2003 2004 2005
+197% p.a.
2003 2004 2005GeneraliAIAPrudentialAviva
-14
13
512
12
1234
Market position
Aviva PVNBP
India
31
15
7
2003 2004 2005
+112% p.a.
Aviva PVNBP
• 22 bancassurance deals giving access to more than 41m customers
• Extending presence into Sri Lanka
China
Basis foreign JVs