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Aviva plc 2017 Preliminary Results.


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Mark Wilson, Group Chief Executive Officer, said:

“In 2017, Aviva delivered growth in profits, in dividends, in capital and in cash. Aviva grew operating earnings per share by 7% and our full year dividend by 18%, the fourth consecutive year of double-digit dividend growth. 

Our largest market, the UK, has gone from strength to strength, growing sales, market share and profit. For Aviva, the UK is a dependable and growing business.

Aviva has broad-based growth, with six of our eight major markets delivering double-digit profit improvement. We now have a collection of strong and growing businesses.

This year, we expect to deploy £2 billion of excess cash, including £900 million in debt reduction, in excess of £500 million of capital returns to shareholders and about £600 million for bolt-on acquisitions. 

We continue to invest in our businesses and in particular on priorities such as digital to make our products and services easier for our customers.

Aviva is now a simpler, stronger group and we are growing. Our strategy is paying dividends. ”

Watch a short film with Mark Wilson talking about today’s results.

Profit
  • Operating EPS1,2 up 7% to 54.8 pence (2016: 51.1 pence)
  • Operating profit3 up 2% to £3,068 million (2016: £3,010 million)
  • Operating profit from eight major markets excluding divestments up 6% to £3,508 million (2016: £3,300 million)
  • IFRS profit after tax £1,646 million (2016: £859 million)

Dividend

  • 2017 total dividend per share up 18% to 27.4 pence (2016: 23.3 pence)
  • Dividend payout ratio 50%, 2017 target delivered

Capital

  • Solvency II capital surplus £12.2 billion (2016: £11.3 billion)
  • Solvency II cover ratio1,4 198% (2016: 189%)
  • Operating capital generation1 £2.6 billion (2016: £3.5 billion)
  • IFRS net asset value per share1 423 pence per share (2016: 414 pence)

Cash

  • Cash remittances1 up 33% to £2,398 million (2016: £1,805 million)
  • Group centre liquidity £2.0 billion (2016: £1.8 billion)

Growth

  • General insurance net written premiums up 11% to £9,141 million (2016: £8,211 million)
  • Value of new business1 up 25% to £1,243 million (2016: £992 million)
  • Aviva Investors fund management revenue up 14% to £577 million (2016: £506 million)
  • Total group assets under management1 (AUM) up 9% to £490 billion (2016: £450 billion)

Combined ratio

  • General insurance combined operating ratio1 96.6% (2016: 94.2%5)

Download the full announcement PDF (1.0 MB)

Footnotes:

  1. This is an Alternative Performance Measure (APM) which provides useful information to enhance the understanding of financial performance. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
  2. This measure is derived from the Group adjusted operating profit APM. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
  3. Group adjusted operating profit is a non-GAAP Alternative Performance Measure (APM) which is not bound by the requirements of IFRS.
  4. The estimated Solvency II position represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds of £3.3 billion (2016: £2.9 billion) and staff pension schemes in surplus of £1.5 billion (2016: £1.1 billion). These exclusions have no impact on Solvency II surplus. The estimated Solvency II position includes the pro forma impacts of the disposals of Friends Provident International Limited (£0.1 billion increase to surplus) and the Italian Avipop Assicurazioni S.p.A (£0.1 billion increase to surplus). The 31 December 2016 Solvency II position included pro forma adjustments for the impact of the announced disposal of Antarius and the future impact of changes to UK tax rules announced by the Chancellor of the Exchequer’s Autumn statement, which was removed following clarification in the 13 July 2017 Finance Bill. The 31 December 2016 Solvency II position also includes an adverse impact of a notional reset of the transitional provisions (TMTP) to reflect interest rates at 31 December 2016 £0.4 billion decrease to surplus.
  5. 2016 excludes the impact of the change in the Ogden discount rate of £475 million, which was recognised as an exceptional adjusting item. 2016 also excludes the impact from an outward quota share reinsurance agreement written in 2015 and completed in 2016 in Aviva Insurance Limited (AIL).


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