News release
4 February 2010
Aviva plc worldwide long-term savings new business
12 months to 31 December 2009
AVIVA REPORTS ENCOURAGING FOURTH QUARTER SALES
Improved . Life and pensions sales of GBP8 billion in the
fourth fourth quarter, up 21% on the third quarter of 2009
quarter sales . Strong regional performance with life and pension
sales up 17% in the UK, 39% in Aviva Europe* and 45% in
the US compared with the third quarter of 2009
. Sales volumes managed to ensure capital efficiency
and profitability
. Worldwide total sales for the year of GBP36 billion
(2008: GBP40 billion)
Capital . IGD solvency surplus estimated at GBP4.5 billion
position (2008: GBP2.0 billion)
strengthened
Strong . Successful IPO of Delta Lloyd
strategic . GBP0.5 billion being paid to policyholders for
progress reattribution of UK inherited estate
. Completed sale of Australian life business
* which excludes Delta Lloyd
Andrew Moss, Aviva's group chief executive, commented:"In the fourth
quarter we increased sales across all our regions and
saw the first signs of an improved appetite to save among our
customers. European bancassurance was particularly strong."In 2009 as a
whole we have successfully managed new business to ensure
the right balance between volume, capital efficiency and profitability.
This means we have deliberately foregone sales in some areas."We also
achieved a number of important milestones in the final three
months of the year, in particular the IPO of our Dutch subsidiary,
Delta Lloyd, building further momentum in the delivery of our 'One
Aviva, twice the value' strategy."We start 2010 in a strong position. Our
focus remains on growing our
business profitably and improving our operational efficiency so that we
can fully benefit as our major markets return to economic growth."
Key financial highlights
Quarter 4 Quarter 3 Local
2009 2009 Sterling currency
GBPm GBPm change change
Total life and pensions
sales (PVNBP)1 7,943 6,587 21% 21%
Total investment sales2 830 1,094 (24)% (25)%
Total long-term savings 8,773 7,681 14% 14%
Restated
12 months 12 months Local
2009 2008 Sterling currency
GBPm GBPm change change
Total life and pensions
sales (PVNBP)1 32,003 36,245 (12)% (17)%
Total investment sales2 3,872 3,995 (3)% (9)%
Total long-term savings 35,875 40,240 (11)% (17)%
1. All references to sales in this announcement refer to the present
value of new business premiums (PVNBP) uless otherwise stated. PVNBP
is the present value of new regular premiums plus 100% of single
premiums.
2. Investment sales are calculated as new single premium plus the
annualised value of new regular premiums.
Information
Investor contacts Media contacts Timings Contents
Andrew Moss Hayley Stimpson Real time News release
+44 (0)20 7662 2286 +44 (0)20 7662 7544 media
conference
call
07.45am (GMT)
Overview.....1
Philip Scott Andrew Reid Analyst
+44 (0)20 7662 2264 +44 (0)20 7662 3131 conference
call
09:30am (GMT) Business
review.......1
Charles Barrows Sue Winston Statistical
+44 (0)20 7662 8115 +44 (0)20 7662 8221 supplement...6
Susie Yeoh Ed Simpkins/+44 (0)20 7662 2117 Matthew Newton
(Finsbury)
+44 (0)20 7251 3801
Media
There will be a conference call today for real-time media at 0745 hrs
(GMT). The conference call will be hosted by Andrew Moss, group chief
executive.
The Aviva media centre at www.aviva.com/media includes images, company
information and news release archive. Photographs are available on the
Aviva media centre at www.aviva.com/media.
Analysts
There will be a conference call today for analysts and investors at
0930 hrs (GMT) on +44 (0)20 7162 0125 (quoting "Aviva, Andrew Moss",
pass code 855891). This conference call will be hosted by Andrew Moss,
group chief executive.
Replay will be available until 18 February 2010 on +44 (0)20 7031
4064. The pass code for the whole conference call, including the
question and answer session, is 855891 and for the question and answer
session only the pass code is 2703086.
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PAGE 1
Overview
Aviva made substantial progress in 2009, building momentum in the
delivery of our 'One Aviva, twice the value' strategy. We concluded the
successful IPO of Delta Lloyd, simultaneously monetising some of the
value of our shareholding and updating the governance arrangements at
our Dutch subsidiary. We completed the sale of our Australian business
and are just concluding the payment of GBP0.5 billion to policyholders
in the reattribution of the UK inherited estate.
Against the backdrop of tough market conditions Aviva has also
delivered a robust sales performance, with total long-term savings new
business of GBP36 billion, having managed new business flows with a
strict focus on capital efficiency and profitability. In addition, we
have significantly strengthened our capital position with an estimated
IGD solvency surplus at the 2009 year-end of GBP4.5 billion.
Sales in the fourth quarter were encouraging and we saw an improvement
in customers' propensity to save. Life and pensions sales were higher
in all regions compared to the previous quarter, with a particularly
strong performance in both bancassurance and retail channels in Europe.
Aviva is in a strong position at the start of 2010. We remain focused
on growing our business profitably and improving our operational
efficiency. This, together with our strong capital position and
customers' clear preference for brands they can trust, means that we
will be well positioned as our major markets return to economic growth
this year.
Long-term savings
United Kingdom
Throughout 2009 Aviva's UK Life business has continued to follow a
consistent strategy of proposition development, improving operational
efficiency, enhancing customer and distributor service levels and
disciplined financial management.
Exceptional economic conditions have impacted consumer confidence and
reduced activity across the UK market. Against this backdrop, life and
pension new business sales were GBP8,914 million (2008: GBP11,858
million) with collective investment sales of GBP1,049 million
(2008: GBP1,485 million) and, while remaining focussed on
profitability, we have marginally improved our life and pension market
share to 10.6%3 (Q3 2008: 10.5%). An encouraging performance has been
seen in the fourth quarter of 2009, with life and pension sales growing
17% and collective investment sales growing 96% over third quarter
levels.
Life and pension sales through our joint venture with the Royal Bank of
Scotland grew by 3% to GBP1,246 million (2008: GBP1,211 million)
underpinned by over 10% growth in both pension and core protection
sales compared with previous year.
Total pension sales were GBP3,752 million (2008: GBP4,753 million) with
the fall due, in part, to the reduced number of large schemes written
compared with the same period last year. The pension market has
continued to be impacted by lower consumer confidence, limited salary
increases and higher unemployment, resulting in falls in both
increments and group scheme membership. Significant progress has been
made in improving our pension proposition, with our innovative
market-leading Pension Tracker being one of the reasons we were
recognised as Pension Provider of the Year at the 2009 Personal Finance
Awards.
At the end of 2009 we reopened our Wrap and Sipp platforms to new
business and we see this as a key platform for growth going forward.
Sales of protection products (excluding creditor) were GBP940 million
(2008: GBP890 million). Growth has been driven primarily by our on-line
Simplified Life proposition which has played a major part in
delivering, in the fourth quarter of 2009, our highest level of
quarterly sales in the last two years. Overall protection sales
(including creditor) were lower at GBP965 million (2008: GBP1,126
million), driven by the impact of the regulatory changes affecting
creditor business.
Total annuity sales were lower at GBP1,897 million (2008: GBP2,433
million) due to lower bulk purchase annuity volumes of GBP175 million
(2008: GBP826 million) as we remain resolute in achieving a minimum
level of return. Sales of individual annuities were 7% higher at
GBP1,722 million (2008: GBP1,607 million) reflecting our ability in a
contracting market to provide an annuity income, using our market-
leading pricing capability, which takes account of customers'
individual circumstances. New applications almost trebled during 2009
and the fourth quarter saw record new business volumes. Further
refinement of our postcode pricing approach will allow us to build on
this momentum in 2010.
Equity release sales have increased to GBP276 million (2008: GBP250
million). While a number of other providers have exited this market we
recognise that it plays an important part in the retirement plans of
customers and we remain fully committed to retaining this proposition
as part of our product offering.
Bond sales were GBP2,024 million (2008: GBP3,296 million). The reduction
compared with 2008 is in line with our focus on value driven by our
commission reductions and the withdrawal of the Inflation Protected
Guarantee option. We have delivered new propositions, including the
recent launch of a With-Profit Guaranteed bond, and increased the fund
choice on our Investment Portfolio bond.
The reattribution of our inherited estate began on 1 October and is now
almost complete. We received an overwhelmingly positive response with
more than 87% eligible policyholders voting, and 96% voting in favour
of the offer. Over 90% of the 740,000 cheques issued so far have been
deposited.
3 Source: Quarter 3 2009 ABI data
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PAGE 2
We expect the market to remain tough in the short-term as the impact of
the recession continues to influence demand for investment and savings
products, but the strength of our brand, broad product range and
distribution reach have left us well placed to continue driving growth.
Europe
In 2009, our European business, including Delta Lloyd, achieved a
robust sales performance despite challenging market conditions across
the region. Long term savings sales were 6% up at GBP18,704 million
(2008: GBP17,716 million), a reduction of 2% on a local currency basis.
Life and pensions sales were in line with prior year at GBP17,188
million (2008: GBP16,952 million), a 6% decrease on a local currency
basis.
As we announced in October 2009, our strategy in Europe is two fold:
firstly to make a 'Quantum Leap' in the performance of Aviva Europe,
creating one market leading pan-European business from 12 federated
businesses, and secondly the strategic management of our subsidiary
Delta Lloyd, where Aviva now holds a 58% stake having raised EUR1.1
billion total gross cash proceeds following the IPO in November 2009.
Aviva Europe
In 2009, Aviva Europe achieved an excellent sales performance in the
context of an extremely difficult market environment with volatile
equity markets and property market uncertainty. Life and pensions sales
were up 5% at GBP13,523 million (2008: GBP12,855 million) and were
broadly in line on a local currency basis. Excluding the one-off items
in 2008 relating to the transfer of the Caja Murcia risk portfolio and
the initial contributions from compulsory pensions in Romania, sales
were 11% higher on a sterling basis and were 4% up on a local currency
basis. In 2009, fourth quarter sales of GBP3,753 million were 39% higher
than those achieved in the third quarter, reflecting improvements in
customer confidence and the diversity of our products and distribution
channels.
We have made significant progress in our migration to a single Aviva
brand. From January 2010, we have operated as Aviva in Ireland and we
will complete our brand migration programme in June when we will
operate as Aviva in Poland.
We have delivered a strong bancassurance performance through responding
to customers' needs by offering innovative guaranteed products, and our
retail sales performance is improving with our partnership with AFER, a
leading savings association in France, achieving record sales. Our
focus on new business profitability means that we took actions, in both
distribution channels, on product mix and product design which have
helped us to offset the impact of customer preferences for more capital
intensive products such as savings with guarantees.
Bancassurance
We continue to exploit our leading and unique bancassurance franchise,
which is the major component of our businesses in Italy and Spain and
is also strong in France and Ireland.
Sales increased by 14% to GBP7,146 million (2008: GBP6,266 million), a
5% increase on a local currency basis. Excluding the one-off transfer of
the Caja Murcia protection portfolio of GBP170 million in 2008,
bancassurance sales were up 8% on a local currency basis. This is a
strong performance as bank partners continue to recognise the value of
this revenue stream.
Bancassurance sales in Italy increased by 63% to GBP3,285 million (2008:
GBP2,021 million), a 47% increase on a local currency basis. This growth
reflects strong sales of with-profit guaranteed products driven by
active marketing campaigns in the early part of the year. Protection
sales increased by 54% supported by our partnership with Banco Popolare
created in 2008.
In Spain, bancassurance sales were in line with the prior year at
GBP2,209 million (2008: GBP2,206 million), a 9% decrease on a local
currency basis. Excluding the Caja Murcia transfer in 2008, sales are
broadly level on a local currency basis. Sales in the fourth quarter
increased by 103% over third quarter levels, with a strong uptake in
pensions driven by marketing campaigns at the end of the Spanish tax
year.
Bancassurance sales in France increased by 27% to GBP1,141 million
(2008: GBP898 million), a 15% increase on a local currency basis.
Through offering competitive and simple guaranteed return products, our
partnership with Credit du Nord has capitalised on customers
transferring their savings from short-term deposit products into more
attractive insurance products. Unit-linked bond sales were impacted by
uncertainty in the financial markets in 2009, but started to increase
towards the end of the year with improving customer confidence.
Bancassurance sales in Poland were significantly lower than 2008 due to
the large volumes of short-term endowment policies sold through
Deutsche Bank as a special promotion in 2008.
Retail
We continue to build on our significant retail franchise as we develop
a single pan-European retail operating model with common tools and
methods supported by centralised sales support. The retail network is
the predominant sales channel for our businesses in France and Poland,
and is also strong in Ireland.
Retail sales were 3% down at GBP6,377 million (2008: GBP6,589 million),
a 7% decrease on a local currency basis. In 2008, we benefited from
GBP545 million of one-off initial contributions from the launch of
compulsory pensions in Romania. Excluding these, retail sales were in
line with the prior year on a local currency basis.
In France, retail sales performance was strong, up 26% to GBP3,750
million (2008: GBP2,982 million), a 14% increase on a local currency
basis. Our partnership with AFER continues to be extremely successful
with our range of simple, easy to understand products. AFER is a highly
trusted savings association and has increased sales by 41% growing its
customer base by 5% to 712,000 in 2009.
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PAGE 3
In Poland, retail sales were down 24% to GBP1,061 million (2008:
GBP1,401 million), a 17% decrease on a local currency basis. The sales
total for the fourth quarter of 2009 includes a positive benefit from
changes to assumptions for average policy duration. Within the year,
pension volumes reduced as these products become less attractive for
providers and distributors as a result of recent Polish pension
legislation changes. Further pension legislation proposals from the
Polish government are expected in 2010 and we are actively engaging
with the regulator as proposals are developed.
Retail sales in Ireland reduced by 2% to GBP636 million (2008: GBP646
million), an 11% decrease on a local currency basis. This reflects the
poor economic climate, which impacted the Irish life insurance industry
as a whole and an increasingly competitive marketplace.
Investment sales in Aviva Europe were up significantly on 2008 at GBP852
million (2008: GBP460 million). Consumer sentiment improved over the
course of the year, with a softening of customers' attitudes toinvestment
risk and a consequent transfer of funds into more actively
managed products. Our Absolute Tactical Asset Allocation fund was
particularly successful in Italy and Spain, supported by focused
marketing campaigns. Sales into Global Convertible funds improved,
supported by our long established expertise in this area, and we
continue to see renewed interest in emerging market bonds.
Delta Lloyd
Life and pension sales through Delta Lloyd were 11% lower than 2008 at
GBP3,665 million (2008: GBP4,097 million), a 19% decrease on a local
currency basis. This was due to lower levels of corporate pension
business reflecting reduced activity in this market in the early part
of this year. In 2009, Delta Lloyd secured two large corporate pension
schemes totalling GBP372 million compared with five schemes totalling
GBP1,106 million in 2008.
Individual savings sales were also lower, affected by competition from
rival bank products since the introduction of 'banksparen' products at
the beginning of 2008. In 2009, Delta Lloyd also sold GBP219 million
(2008: GBP38 million) of 'banksparen' products4 within its own banking
operation. The lower life and pension sales were partly offset by a
full year's contribution from Swiss Life Belgium, which Delta Lloyd
acquired in June 2008.
Investment product sales more than doubled to GBP664 million (2008: GBP3
04 million) reflecting strong sales of Delta Lloyd's Euro Credit fund.
North America
In the USA new business sales of GBP4,545 million (2008: GBP5,715
million) were 20% lower on a sterling basis and 33% lower on a local
currency basis. This reflected our continued focus on increasing capital
efficiency by moderating the pace of annuity sales compared to the
prior year, growing our life insurance business and our decision not to
write funding agreement sales in 2009 (2008: GBP848 million). Excluding
the impact of funding agreement sales written in 2008, life and annuity
sales were down 7% over the same period last year and 21% lower on a
local currency basis. Our fourth quarter sales have shown positive
growth from the third quarter this year, increasing by 45%, reflecting
both an improvement in annuity and life sales.
Sales of annuities for the year have decreased by 13% to GBP3,674
million (2008: GBP4,244 million), and by 27% on a local currency basis.
Sales in the fourth quarter were up 44% over the third quarter sales,
with the number of pending applications significantly higher than at the
previous quarter end. Customers continue to seek products with
guarantees and recognise Aviva as one of the stronger market
participants. However, demand for annuities in the first half of the
year exceeded our desired production, so we took actions to focus on
capital efficiency and ensure that the overall business mix for the
year was consistent with our strategic goals.
Life product sales, which mainly include indexed universal life and
term assurance products, were 40% higher at GBP871 million (2008: GBP623
million), and 19% higher on a local currency basis. This is a strong
result when set in the context of a US life market which declined 19%
through the first nine months of 2009. Our fourth quarter sales were
47% higher than the third quarter of this year. Our innovative products
and actions to build distribution through expansion into the brokerage
general agency market and leveraging our existing life and annuity
channels provide confidence in our position for future growth.
Asia Pacific
Total long-term savings sales for Asia Pacific were GBP2,663 million
(2008: GBP3,466 million). Life and pension sales were 21% below prior
year at GBP1,356 million (2008: GBP1,720 million), 30% lower on a local
currency basis, reflecting the impact of the volatile economic
environment across the region, which abated towards the last quarter of
the year. The fourth quarter sales were also impacted by the sale of
the Australian business, which completed on 1 October 2009. Excluding
the Australian business, life and pension sales increased by 20%
between the third and fourth quarters of 2009 reflecting a positive
change in trend and outlook for the region. However for the year, sales
for Asia fell by 19% to GBP1,095 million (2008: GBP1,351 million).
Our joint venture in South Korea continues to perform strongly with
sales of GBP288 million (2008: GBP149 million) and now represents 21% of
life and pension sales in the region. Sales growth is being led by the
bancassurance channel with our partner Woori Bank and its subsidiaries,
and the successful growth of our agency force.
Our joint venture in China, Aviva-COFCO, opened its tenth provincial
branch ahead of the 2010 target and recorded a 15% increase in sales to
GBP340 million (2008: GBP296 million), down 4% on a local currency
basis, reinforcing our position as one of the top three foreign
insurers in the market.
Sales in Singapore, Hong Kong, India and our other Asia markets are
lower than 2008 as a result of the uncertain economic environment
throughout the year which led to increased investor caution, as well as
our decision to scale back on the sale of capital intensive products in
a number of our markets, namely Hong Kong, Taiwan and Malaysia, in line
with our overall strategy to improve capital efficiency. The steps
which we have taken to enhance this efficiency and protect
profitability include modifying product mix and product repricing.
Lapses and persistency are also key challenges for the industry in the
current environment and several initiatives have been launched to
increase customer retention, focusing on customer service and product
design.
4 These sales are not included in our long-term savings figures as they
are receipts from banking product sales.
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PAGE 4
Investment product sales were lower than prior year at GBP1,307 million
(2008: GBP1,746 million), 32% lower on a local currency basis, as a
result of heightened investor caution and lower disposable income
throughout the year. Our fourth quarter result was also impacted by the
disposal of the Australia life business on 1 October, although sales
through Aviva Investors continued in this market. Singapore investment
product sales are broadly in line with the prior year due to improving
investor sentiment in the latter half of the year.
General Insurance
In our general insurance business we continue to write business for
profit not for volume, with the trends in business volumes broadly in
line with the first nine months of the year. However, we have seen
exceptional weather claims of around GBP100 million in the final quarter
of the year which will impact the combined operating ratio for the full
year. This has been driven particularly by the storms in both Ireland,
where exceptional claims were around GBP80 million, and in the UK.
Returning to top-line growth is a priority in our UK general insurance
business. Through the year we invested in building the Aviva brand in
the UK. This has established us well in customers' minds and already
the Aviva brand is as strong as Norwich Union was a year ago. Through
our 'Aviva deal' direct marketing campaign we sold more motor policies
in the fourth quarter than in the same period in the previous three
years.
In addition, in January this year we launched our Corporate Risks
business focusing on larger corporate risks. Reaction has been positive
with a number of contracts already secured.
Fund Management
Aviva Investors
Following a turbulent start to the year, market conditions continued to
improve alongside increased risk appetite among investors. In this
environment, Aviva Investors has continued to develop its business
focusing on third party and cross border sales opportunities. We have
accumulated assets during 2009 and have developed a strong sales
pipeline across all asset classes and markets.
Full year 2009 net inflows totalled GBP0.9 billion, of which GBP2.4
billion were sourced from third party clients, which offset outflows of
GBP1.5 billion from Aviva group companies. The overall total from group
companies included strong inflows into the French and North America
Life Business, although these were more than offset by significant
maturities in our UK with-profit funds.
Our liquidity fund range continued to generate interest through the
year attracting strong inflows in France and the UK, and our
Continental Europe distribution channel continued to contribute
meaningfully to sales performance through our SICAV fund range.
Convertible and tactical asset allocation funds were the primary
drivers of sales into this range, supported by focused sales and
marketing campaign.
Our absolute focus on our clients is bringing results. Aviva Investors
was ranked first quartile in the UK-focused Greenwich Quality Index,
which measures both investment quality and client service. Client
service achieved a significant improvement with first quartile ranking
in the 2009 survey and investment quality moved up to second quartile
from fourth in 2007. In addition, we continue to deliver improving
investment performance globally, with particular success in Australia
and France where over 90% of our funds outperformed their benchmark.
Our fund management capabilities have been recognised externally.
Among many independent accolades, Aviva Investors was named SRI
Provider of the year at the European Pensions 2009 Awards and the Aviva
Investors Listed Property Fund won the award for best Australian Listed
Property Fund at the annual AFR Smart Investor Awards.
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PAGE 5
Notes to editors
- Aviva is the leading provider of life and pension products in Europe
(including the UK) with substantial positions in other markets around
the world, making it the world's fifth largest insurance group based
on gross worldwide premiums at 31 December 2008.
- Aviva's principal business activities are long-term savings, fund
management and general insurance, with worldwide total sales* of
GBP51.4 billion and funds under management of GBP381 billion at 31
December 2008.
* Based on 2008 published life and pensions PVNBP on an MCEV basis,
total investment sales and general insurance and health net written
premiums, including share of associates' premiums.
The Aviva media centre at www.aviva.com/media includes images, company
and product information and a news release archive.
- All figures have been translated at average exchange rates applying
for the period. The average rates employed in this announcement are
1 euro = GBP0. 88 (12 months to 31 December 2008: 1 euro = GBP0.80)
and GBP1 = US$1.57 (12 months to 31 December 2008: GBP1 = US$1.85).
- Growth rates in the press release have been provided in sterling
terms unless stated otherwise. The supplements following present this
information on both a sterling and local currency basis.
- Definition: Present value of new business premiums (PVNBP)
PVNBP is derived from the single and regular premiums of the products
sold during the financial period and are expressed at the point of
sale. The PVNBP calculation is equal to total single premium sales
received in the period plus the discounted value of regular premiums
expected to be received over the term of the new contracts. The
discount rate used reflects the appropriate risk-free rate for the
country and duration of business. The projection assumptions used to
calculate PVNBP for each product are the same as those used to
calculate new business contribution. The discounted value of regular
premiums is also expressed as annualised regular premiums multiplied
by a Weighted Average Capitalisation Factor (WACF). The WACF will vary
over time depending on the mix of new products sold, the average
outstanding term of the new contracts and the projection assumptions.
- Cautionary statements:
This should be read in conjunction with the documents filed by Aviva
plc (the "Company" or "Aviva") with the United States Securities and
Exchange Commission ("SEC").
This announcement contains, and we may make verbal statements
containing, "forward-looking statements" with respect to certain of
Aviva's plans and current goals and expectations relating to future
financial condition, performance, results, strategic initiatives and
objectives. Statements containing the words "believes", "intends",
"expects", "plans", "seeks", "aims", "may", "could", "outlook",
"estimates" and "anticipates", and words of similar meaning, are
forward-looking. By their nature, all forward-looking statements
involve risk and uncertainty. Accordingly, there are or will be
important factors that could cause actual results to differ materially
from those indicated in these statements. Aviva believes these factors
include, but are not limited to: the impact of difficult conditions in
the global capital markets and the economy generally; the impact of
new government initiatives related to the financial crisis; defaults
in our bond, mortgage and structured credit portfolios; the impact of
volatility in the equity, capital and credit markets on our
profitability and ability to access capital and credit; changes in
general economic conditions, including foreign currency exchange
rates, interest rates and other factors that could affect our
profitability; risks associated with arrangements with third parties,
including joint ventures; inability of reinsurers to meet obligations
or unavailability of reinsurance coverage; a decline in our ratings
with Standard & Poor's, Moody's, Fitch and A.M. Best; increased
competition in the U.K. and in other countries where we have
significant operations; changes in assumptions in pricing and
reserving for insurance business (particularly with regard to
mortality and morbidity trends, lapse rates and policy renewal
rates), longevity and endowments; a cyclical downturn of the
insurance industry; changes in local political, regulatory and
economic conditions, business risks and challenges which may impact
demand for our products, our investment portfolio and credit
quality of counterparties; the impact of actual experience differing
from estimates on amortisation of deferred acquisition costs and
acquired value of in-force business; the impact of recognising an
impairment of our goodwill or intangibles with indefinite lives;
changes in valuation methodologies, estimates and assumptions used in
the valuation of investment securities; the effect of various legal
proceedings and regulatory investigations; the impact of operational
risks; the loss of key personnel; the impact of catastrophic events on
our results; changes in government regulations or tax laws in
jurisdictions where we conduct business; funding risks associated with
our pension schemes; the effect of undisclosed liabilities,
integration issues and other risks associated with our acquisitions;
and the timing impact and other uncertainties relating to
acquisitions and disposals and relating to other future acquisitions,
combinations or disposals within relevant industries.
For a more detailed description of these risks, uncertainties and
other factors, please see Item 3, "Risk Factors", and Item 5, "Operating
and Financial Review and Prospects" in Aviva's registration statement on
Form 20-F as filed with the SEC on 7 October 2009. Aviva undertakes no
obligation to update the forward-looking statements in this announcement
or any other forward-looking statements we may make. Forward-looking
statements in this announcement are current only as of the date on which
such statements are made.
Aviva plc is a company registered in England No. 2468686.
Registered office
St Helen's
1 Undershaft
London
EC3P 3DQ
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