SOURCE: Aviva PLC

May 16, 2013 02:10 ET

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


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