Aviva PLC announces 1Q 2013 IMS
LONDON--(Marketwired - May 16, 2013) -
News Release Aviva plc Interim management statement for the three months to 31 March 2013 16 May 2013 Aviva plc First Quarter 2013 Interim Management Statement Cash flow * Operating capital generation stable at GBP0.5 billion (1Q12:GBP0.5 billion) * Continued focus on improving remittance ratios Expenses * Operating expenses 10% lower at GBP769 million1 (1Q12:GBP852 million) * Restructuring costs of GBP54 million in the quarter Value of new * Pro forma2 value of new business up 18% to GBP191 business million (1Q12:GBP162 million) * Increase driven by improved profitability in UK Life and Asian growth Combined * Combined operating ratio stable at 96% (1Q12: 96%) operating ratio Balance sheet * IFRS net asset value3 increased 9% to 302p (FY12:278p4) * Pro forma5 economic capital surplus6 GBP7.3 billion, 173% (FY12: GBP7.1 billion, 172%) * Internal debt reduced by GBP300 million * Sale of remaining shareholding in Delta Lloyd, and disposal of businesses in Russia and Malaysia completed * Cash proceeds of EUR608 million for the transfer of Aseval received in April Mark Wilson, Group Chief Executive Officer, said: "In the first quarter we have taken steps to deliver our investment thesis of cash flow and growth. "Our operating expenses are now 10% lower and we are on track to deliver our cost savings target of GBP400 million. "Our key measure of growth - value of new business - has increased by 18% driven by actions to improve profitability in UK Life and growth in our Asian business. In general insurance, our profitability was stable with a COR of 96% with a strong result in Canada. "Net asset value has increased by 9% to 302 pence and our internal debt level has reduced by GBP300 million. "Today's results demonstrate the first steps towards delivery. I am conscious of the challenges and do not want to set expectations at an unrealistic level. Progress so far has been satisfactory and there is a great deal more we need to do for our shareholders." 1. Operating expenses excludes integration and restructuring costs and US Life. Total expense base including integration and restructuring costs and US Life business is 9% lower at GBP887 million (1Q 12: GBP980 million). 2. Pro forma basis excludes US Life, Aseval, Russia, Malaysia, Sri Lanka, Ark Life, Czech Republic, Hungary and Romania Life. 3. The pro forma IFRS net asset value reflects the proceeds of the Aseval transaction with Bankia and the sale of our business in Malaysia. 4. The FY12 IFRS NAV of 278p excludes the proceeds of the Aseval transaction with Bankia and the sale of our business in Malaysia. 5. The pro forma economic capital surplus includes the impact of the US Life, Malaysia and Aseval transactions and an increase in pension scheme risk allowance from five to ten years of stressed contributions. 6. The economic capital surplus represents an estimated position. The 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. Contacts Investor Media contacts Timings contacts Mark Wilson Nigel Prideaux Real time media conference call: +44 (0)20 7662 +44 (0)20 7662 0730 hrs 2286 0215 Pat Regan Andrew Reid Analyst conference call: 0930 hrs +44 (0)20 7662 +44 (0)20 7662 Tel: +44 (0)20 3147 4971 2228 3131 Conference ID: 875473 David Elliot Sarah Swailes +44 (0)207 662 +44 (0)20 7662 8048 6700 Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/8373E_1-2013-5-15.pdf END This information is provided by RNS The company news service from the London Stock Exchange END
