Aviva Plc third quarter update*

Amanda Blanc, Chief Executive Officer, said:

“We are making good progress in our strategy to simplify Aviva’s portfolio and have recently announced the sale of Aviva Singapore and Aviva Vita in Italy for £2 billion.

We are announcing today a new sustainable and resilient dividend policy, based on our core markets of the UK, Ireland and Canada. As we simplify Aviva’s portfolio, we will deliver further value to shareholders by returning excess capital above 180% solvency cover ratio#, once our debt leverage target ratio has been reached.

The Board has declared a 7.0 pence per share interim dividend in respect of the 2020 financial year which will be paid in January 2021. The Board currently expects to recommend a final 2020 dividend of 14 pence per share which is subject to a final decision to be taken in March 2021. The expected 2020 total dividend of 21.0 pence per share is then expected to grow by low to mid-single digits. 

Our trading performance is robust and our financial position is strong with a capital surplus of £11.8 billion. The first nine months have demonstrated Aviva’s ability to grow in core markets where we have attractive, long-term growth prospects. Bulk purchase annuities sales increased to £5 billion, which is a record for Aviva and commercial insurance premiums are up 9% across the UK, Canada and Ireland. 

The response of our people to the Covid crisis has been nothing less than phenomenal and I would like to thank them for all they have done for our customers this year. We continue to work at pace to deliver our strategy, support our customers, and unlock value for Aviva shareholders.”

9M20 operating highlights

Trading

  • Life PVNBP £32.1 billion (9M19: £32.4 billion)
  • Value of new business (VNB)‡  £714 million (9M19: £828 million)
  • General insurance net written premiums (NWP) £7.1 billion (9M19: £7.0 billion)
  • Controllable costs £2.8 billion (9M19: £3.0 billion)

Dividend 

  • 2020 interim dividend of 7.0 pence per share
  • 2020 final dividend expected to be 14.0 pence per share, 21.0p total, subject to a board decision in March 2021
  • No 2019 final dividend (2019 total dividend:15.5 pence per share)
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Capital & liquidity

  • Solvency II capital surplus £11.8 billion (HY20: £12.0 billion)
  • Solvency II cover ratio‡# 195% (HY20: 194%)
  • Solvency II net asset value# 410 pence per share
  • Centre liquidity £2.8 billion1 (July 2020: £2.5 billion)

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-ENDS-

*This announcement contains inside information. The person responsible for making this announcement on behalf of the Group is Kirstine Cooper (Group Company Secretary).
Denotes Alternative Performance Measures (APMs), which are key performance indicators of the Group used to measure our performance and financial strength. Further details are included in the ‘Other information’ section of the HY20 Analyst Pack.

# The estimated Solvency II position represents the shareholder view only.

1 Stated as at end October 2020

Enquiries:

Media:

Andrew Reid
+44 (0)7800 694 276

Sarah Swailes
+44 (0)7800 694 859

Analysts:

Diane Michelberger
+44 (0)20 7662 0911

Notes to editors

  • For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/
  • Analyst presentation and Q&A will be streamed on www.aviva.com at 0900 hrs GMT
  • 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 2020. The average rates employed in this announcement are 1 euro = £0.88 (Q3 2019: 1 euro = £0.88) and CAD$1 = £0.58 (Q3 2019: CAD$1 = £0.59). Growth rates in this announcement have been provided in sterling terms unless stated otherwise.
  • We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’.
  • In 2019, we paid £33.2 billion in claims and benefits on behalf of our 33.4 million customers.
  • We will focus on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. Our International businesses in Europe and Asia will be managed for long-term shareholder value. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience.
  • Total group assets under management at Aviva group are £522 billion (HY20) and our Solvency II capital surplus is £11.8 billion (Q320). 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
  • The Aviva newsroom at www.aviva.com/newsroom includes links to our image library, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
  • You can follow us on Twitter: www.twitter.com/avivaplc/  
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  • For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
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