In this section
|
Page
|
Overview
|
|
Key financial metrics
|
2
|
1 Cash
|
|
i Cash remitted to Group
|
3
|
ii Operating capital generation
|
3
|
iii Free surplus emergence
|
5
|
2 Operating Profit: IFRS basis
|
6
|
3 Expenses
|
7
|
4 Value of new business by market
|
8
|
5 General insurance combined operating ratio
|
9
|
6 Business unit performance
|
10
|
i United Kingdom and Ireland Life
|
10
|
ii United Kingdom and Ireland General Insurance & Health
|
11
|
iii Europe
|
12
|
iv Canada
|
14
|
v Asia
|
15
|
vi Fund management
|
16
|
7 Profit drivers: IFRS basis
|
17
|
i Life business
|
17
|
ii General insurance and health
|
20
|
iii Fund flows
|
23
|
8 Capital & assets summary
|
24
|
i Summary of assets
|
24
|
ii Net asset value
|
26
|
iii Return on equity
|
28
|
iv European Insurance Groups Directive (IGD)
|
29
|
v Economic capital
|
30
|
Financial supplement
|
31
|
A Income & expenses
|
32
|
B IFRS financial statements and notes
|
37
|
C Capital & liquidity
|
83
|
D Analysis of assets
|
93
|
E VNB & sales analysis
|
109
|
F MCEV financial statements and notes
|
115
|
Other information
|
147
|
6 months 2015
£m
|
Restated1
6 months 2014
£m
|
Sterling
% change
|
|
Life business
|
1,021
|
973
|
5%
|
General insurance and health
|
422
|
403
|
5%
|
Fund management
|
33
|
48
|
(31)%
|
Other*
|
(306)
|
(353)
|
13%
|
Total
|
1,170
|
1,071
|
9%
|
Operating earnings per share**
|
22.1p
|
24.2p
|
(9)%
|
* Includes other operations, corporate centre costs and group debt and other interest costs.
|
** Net of tax, non-controlling interests, preference dividends, coupon payments in respect of direct capital instruments (DCI) and fixed rate tier 1 notes (net of tax).
|
6 months 2015
£m
|
6 months
2014
£m
|
Sterling
% change
|
|
Operating expenses
|
1,498
|
1,399
|
7%
|
Integration & restructuring costs
|
172
|
42
|
-
|
Expense base
|
1,670
|
1,441
|
16%
|
Operating expense ratio1
|
52.8%
|
51.7%
|
1.1pp
|
6 months 2015
£m
|
6 months 2014
£m
|
Sterling %
change2
|
Constant currency
% change2
|
|
United Kingdom & Ireland
|
260
|
183
|
42%
|
42%
|
France
|
98
|
110
|
(11)%
|
(1)%
|
Poland3
|
30
|
34
|
(11)%
|
(1)%
|
Italy3
|
39
|
26
|
49%
|
66%
|
Spain3
|
13
|
14
|
(12)%
|
(2)%
|
Turkey
|
12
|
14
|
(14)%
|
(6)%
|
Asia3
|
76
|
61
|
24%
|
18%
|
Aviva Investors
|
6
|
2
|
-
|
-
|
Value of new business3
|
534
|
444
|
20%
|
25%
|
6 months 2015
|
6 months 2014
|
Change
|
|
United Kingdom & Ireland
|
93.2%
|
94.4%
|
(1.2)pp
|
Europe
|
94.3%
|
96.4%
|
(2.1)pp
|
Canada
|
91.9%
|
96.8%
|
(4.9)pp
|
General insurance combined operating ratio
|
93.1%
|
95.5%
|
(2.4)pp
|
6 months 2015
£m
|
6 months 2014
£m
|
Sterling
% change
|
|
IFRS profit after tax
|
545
|
863
|
(37)%
|
6 months 2015
|
6 months 2014
|
Sterling
% change
|
|
Interim dividend per share
|
6.75p
|
5.85p
|
15%
|
30 June
2015
£bn
|
31 December 2014
£bn
|
Sterling
% change
|
|
Estimated economic capital surplus4
|
10.8
|
8.0
|
35%
|
Estimated IGD solvency surplus4
|
5.2
|
3.2
|
63%
|
IFRS net asset value per share
|
380p
|
340p
|
12%
|
MCEV net asset value per share5
|
508p
|
527p
|
(4)%
|
1 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
|
2 Currency movements are calculated using unrounded numbers so minor rounding differences may exist.
|
4 The economic capital and IGD surpluses represent an estimated position. The economic 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.
|
5 In preparing the MCEV information, the directors have done so in accordance with the European Insurance CFO Forum MCEV Principles.
|
6 months 2015
£m
|
Restated1
6 months 2014
£m
|
Restated1
Full year
2014
£m
|
|
United Kingdom & Ireland Life
|
287
|
350
|
437
|
United Kingdom & Ireland General Insurance & Health2
|
-
|
-
|
294
|
France
|
98
|
101
|
264
|
Poland
|
81
|
99
|
106
|
Italy
|
-
|
-
|
32
|
Spain
|
3
|
33
|
68
|
Other Europe
|
4
|
3
|
3
|
Europe
|
186
|
236
|
473
|
Canada
|
2
|
-
|
138
|
Asia
|
-
|
21
|
23
|
Other3
|
20
|
16
|
66
|
Total
|
495
|
623
|
1,431
|
6 months 2015
£m
|
6 months 2014
£m
|
Full year
2014
£m
|
|
Operating capital generation1
|
|||
Life in-force business2
|
922
|
885
|
1,715
|
General insurance, fund management and other operations
|
286
|
272
|
544
|
Operating capital generated before investment in new business
|
1,208
|
1,157
|
2,259
|
Capital invested in new business
|
(218)
|
(247)
|
(319)
|
Operating capital generated - Group as reported
|
990
|
910
|
1,940
|
|
- Operating free surplus emergence, including release of required capital, for the life in-force business (net of tax and non-controlling interests);
|
|
- Operating profits for the general insurance and other non-life businesses net of tax and non-controlling interests from non-covered business only, where non-covered business is that which is outside the scope of Life MCEV methodology; and
|
|
- Capital invested in new business. For life business this is the impact of initial and required capital on free surplus. For general insurance business this reflects the movement in required capital, which has been assumed to equal the regulatory minimum multiplied by the local management target level. Where appropriate, movements in capital requirements exclude the impact of foreign exchange and other movements deemed to be non-operating in nature.
|
|
The amount of operating capital remitted to Group depends on a number of factors including non-operating items and local regulatory requirements.
|
2 During 2014, internal reinsurance arrangements were undertaken by the UK Annuity business to reinsure an additional 10% to Aviva International Insurance Limited (which occurred in the first half of 2014) and an additional 12.5% to Aviva UK Life & Pensions (which occurred in the second half of 2014). At FY14 these arrangements had an adverse impact on Group MCEV free surplus of £204 million (HY14: £105 million). On an economic capital basis these transactions improve the UK Life position and as a result the adverse impact on MCEV free surplus has therefore been excluded from OCG to reflect the economic substance of the management action.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life & Other Covered Business OCG
|
Non-life OCG
|
|||||||||
6 months 2015 £m
|
Free surplus emergence
|
New business strain
|
Other/ management
actions
|
Life
OCG
|
General insurance
and health1
|
Fund
management1
|
Non-
insurance1
|
Non Life
Usage2
|
Non-life
OCG
|
Total
OCG
|
United Kingdom & Ireland Life
|
355
|
(52)
|
158
|
461
|
-
|
-
|
1
|
-
|
1
|
462
|
United Kingdom & Ireland General Insurance & Health
|
-
|
-
|
-
|
-
|
194
|
-
|
(2)
|
20
|
212
|
212
|
Europe
|
296
|
(146)
|
27
|
177
|
37
|
-
|
(6)
|
(3)
|
28
|
205
|
Canada
|
-
|
-
|
-
|
-
|
97
|
-
|
-
|
7
|
104
|
104
|
Asia
|
50
|
(42)
|
23
|
31
|
-
|
-
|
(9)
|
(3)
|
(12)
|
19
|
Fund Management
|
9
|
(3)
|
4
|
10
|
-
|
(3)
|
-
|
1
|
(2)
|
8
|
Other
|
-
|
-
|
-
|
-
|
(2)
|
-
|
(21)
|
3
|
(20)
|
(20)
|
Total Group operating capital generation
|
710
|
(243)
|
212
|
679
|
326
|
(3)
|
(37)
|
25
|
311
|
990
|
Life & Other Covered Business OCG
|
Non-life OCG
|
|||||||||
6 months 2014 £m
|
Free surplus emergence
|
New business strain
|
Other/ management
actions3
|
Life
OCG
|
General insurance
and health1
|
Fund
management1
|
Non-
insurance1
|
Non Life
Usage2
|
Non-life
OCG
|
Total
OCG
|
United Kingdom & Ireland Life
|
237
|
(52)
|
232
|
417
|
-
|
-
|
(3)
|
-
|
(3)
|
414
|
United Kingdom & Ireland General Insurance & Health
|
-
|
-
|
-
|
-
|
208
|
-
|
(2)
|
22
|
228
|
228
|
Europe
|
380
|
(153)
|
7
|
234
|
35
|
-
|
(4)
|
(7)
|
24
|
258
|
Canada
|
-
|
-
|
-
|
-
|
60
|
-
|
1
|
(21)
|
40
|
40
|
Asia
|
49
|
(32)
|
(22)
|
(5)
|
1
|
1
|
(10)
|
-
|
(8)
|
(13)
|
Fund Management
|
2
|
-
|
-
|
2
|
-
|
7
|
-
|
(8)
|
(1)
|
1
|
Other
|
-
|
-
|
-
|
-
|
(2)
|
-
|
(20)
|
4
|
(18)
|
(18)
|
Total Group operating capital generation
|
668
|
(237)
|
217
|
648
|
302
|
8
|
(38)
|
(10)
|
262
|
910
|
Life & Other Covered Business OCG
|
Non-life OCG
|
|||||||||
Full year 2014 £m
|
Free surplus emergence
|
New business strain
|
Other/ management
actions3
|
Life
OCG
|
General insurance
and health1
|
Fund
management1
|
Non-
insurance1
|
Non Life
Usage2
|
Non-life
OCG
|
Total
OCG
|
United Kingdom & Ireland Life
|
462
|
(15)
|
441
|
888
|
-
|
-
|
(1)
|
1
|
-
|
888
|
United Kingdom & Ireland General Insurance & Health
|
-
|
-
|
-
|
-
|
384
|
-
|
-
|
41
|
425
|
425
|
Europe
|
693
|
(272)
|
32
|
453
|
67
|
-
|
(11)
|
(10)
|
46
|
499
|
Canada
|
-
|
-
|
-
|
-
|
140
|
-
|
-
|
(4)
|
136
|
136
|
Asia
|
98
|
(58)
|
(15)
|
25
|
1
|
1
|
(8)
|
4
|
(2)
|
23
|
Fund Management
|
14
|
(5)
|
(10)
|
(1)
|
-
|
9
|
-
|
(7)
|
2
|
1
|
Other
|
-
|
-
|
-
|
-
|
9
|
-
|
(47)
|
6
|
(32)
|
(32)
|
Total Group operating capital generation
|
1,267
|
(350)
|
448
|
1,365
|
601
|
10
|
(67)
|
31
|
575
|
1,940
|
1 Operating profit net of tax and non-controlling interests from uncovered businesses only, where non-covered business is that which is outside the scope of life MCEV methodology.
|
2 This reflects the movement in required capital, which has been assumed to equal the regulatory minimum multiplied by the local management target level. Where appropriate, movements in capital requirements exclude the impact of foreign exchange and other movements deemed to be non-operating in nature.
|
3 During 2014, internal reinsurance arrangements were undertaken by the UK Annuity business to reinsure an additional 10% to Aviva International Insurance Limited (which occurred in the first half of 2014) and an additional 12.5% to Aviva UK Life & Pensions (which occurred in the second half of 2014). At FY14 these arrangements had an adverse impact on Group MCEV free surplus of £204 million (HY14: £105 million). On an economic capital basis these transactions improve the UK Life position and as a result the adverse impact on MCEV free surplus has therefore been excluded from OCG to reflect the economic substance of the management action.
|
Release of future profits and required capital
|
30 June
2015
£m
|
31 December
2014
£m
|
Year 1
|
1,753
|
1,137
|
Year 2
|
1,604
|
1,059
|
Year 3
|
1,535
|
1,071
|
Year 4
|
1,638
|
1,204
|
Year 5
|
1,632
|
1,169
|
Year 6
|
1,597
|
1,157
|
Year 7
|
1,515
|
1,088
|
Year 8
|
1,469
|
1,060
|
Year 9
|
1,386
|
981
|
Year 10
|
1,327
|
922
|
Years 11-15
|
5,831
|
4,232
|
Years 16-20
|
4,553
|
3,547
|
Years 20+
|
9,169
|
7,583
|
Total net of controlling interests1
|
35,009
|
26,210
|
6 months 2015
£m
|
Restated1
6 months 2014
£m
|
Restated1
Full Year
2014
£m
|
|
Operating profit before tax attributable to shareholders' profits
|
|||
Life business
|
|||
United Kingdom & Ireland
|
569
|
483
|
1,049
|
France
|
195
|
198
|
412
|
Poland
|
63
|
113
|
183
|
Italy
|
65
|
76
|
148
|
Spain
|
43
|
62
|
126
|
Turkey
|
6
|
6
|
13
|
Europe
|
372
|
455
|
882
|
Asia
|
79
|
34
|
87
|
Other
|
1
|
1
|
1
|
Total life business (note 7.i)
|
1,021
|
973
|
2,019
|
General insurance and health
|
|||
United Kingdom & Ireland
|
239
|
263
|
499
|
Europe
|
59
|
57
|
113
|
Canada
|
131
|
83
|
189
|
Asia
|
(4)
|
1
|
(2)
|
Other
|
(3)
|
(1)
|
9
|
Total general insurance and health (note 7.ii)
|
422
|
403
|
808
|
Fund management
|
|||
Aviva Investors2
|
32
|
41
|
79
|
United Kingdom2
|
-
|
6
|
6
|
Asia
|
1
|
1
|
1
|
Total fund management
|
33
|
48
|
86
|
Other
|
|||
Other operations (note A1)
|
(57)
|
(54)
|
(105)
|
Market operating profit
|
1,419
|
1,370
|
2,808
|
Corporate centre (note A2)
|
(79)
|
(64)
|
(132)
|
Group debt costs and other interest (note A3)
|
(170)
|
(235)
|
(463)
|
Operating profit before tax attributable to shareholders' profits
|
1,170
|
1,071
|
2,213
|
Tax attributable to shareholders' profit
|
(304)
|
(254)
|
(563)
|
Non-controlling interests
|
(82)
|
(84)
|
(143)
|
Preference dividends and other3
|
(23)
|
(21)
|
(86)
|
Operating profit attributable to ordinary shareholders
|
761
|
712
|
1,421
|
Operating earnings per share4
|
22.1p
|
24.2p
|
48.3p
|
1 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
|
4 Net of tax, non-controlling interests, preference dividends, coupon payments in respect of direct capital instruments (DCI) and fixed rate tier 1 notes (net of tax). The calculation of basic earnings per share uses a weighted average of 3,437 million (HY14: 2,941 million; FY14: 2,943 million) ordinary shares in issue, after deducting shares owned by the employee share trusts.
|
|
1 On a constant currency basis.
|
6 months 2015
£m
|
6 months 2014
£m
|
|
United Kingdom & Ireland Life
|
369
|
278
|
United Kingdom & Ireland General Insurance & Health
|
364
|
378
|
Europe
|
267
|
306
|
Canada
|
158
|
161
|
Asia
|
65
|
45
|
Aviva Investors
|
169
|
143
|
Other Group activities
|
106
|
88
|
Operating cost base
|
1,498
|
1,399
|
Integration & restructuring costs
|
172
|
42
|
Expense base
|
1,670
|
1,441
|
6 months 2015
£m
|
6 months 2014
£m
|
|
Claims handling costs1
|
170
|
175
|
Non-commission acquisition costs2
|
480
|
418
|
Other expenses
|
848
|
806
|
Operating cost base
|
1,498
|
1,399
|
6 months
2015
|
Restated1
6 months 2014
|
|
Life2
|
33.9%
|
30.0%
|
General insurance3
|
14.1%
|
14.6%
|
Health3
|
12.3%
|
13.6%
|
Fund management4
|
13bps
|
12bps
|
Group total5
|
52.8%
|
51.7%
|
1 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
|
Gross of tax and non-controlling interests
|
6 months 2015
£m
|
6 months 2014
£m
|
Full Year
2014
£m
|
United Kingdom
|
253
|
177
|
473
|
Ireland
|
7
|
6
|
9
|
United Kingdom & Ireland
|
260
|
183
|
482
|
France
|
98
|
110
|
205
|
Poland
|
30
|
34
|
64
|
Italy - excluding Eurovita
|
39
|
26
|
63
|
Spain - excluding CxG
|
13
|
14
|
30
|
Turkey
|
12
|
14
|
30
|
Europe
|
192
|
198
|
392
|
Asia - excluding South Korea
|
76
|
61
|
122
|
Aviva Investors1
|
6
|
2
|
9
|
Value of new business - excluding Eurovita, CxG & South Korea
|
534
|
444
|
1,005
|
Eurovita, CxG & South Korea
|
-
|
-
|
4
|
Total value of new business
|
534
|
444
|
1,009
|
Net written premiums
|
Claims ratio2
|
Commission and expense ratio3
|
Combined operation ratio4
|
|||||||||
6 months 2015
£m
|
6 months 2014
£m
|
Full Year 2014
£m
|
6 months 2015
%
|
6 months 2014
%
|
Full Year 2014
%
|
6 months 2015
%
|
6 months 2014
%
|
Full Year 2014
%
|
6 months 2015
%
|
6 months 2014
%
|
Full Year 2014
%
|
|
United Kingdom1
|
1,851
|
1,836
|
3,663
|
62.0
|
61.1
|
61.0
|
31.2
|
33.2
|
33.8
|
93.2
|
94.3
|
94.8
|
Ireland
|
134
|
136
|
272
|
65.5
|
67.4
|
67.1
|
28.0
|
29.2
|
29.5
|
93.5
|
96.6
|
96.6
|
United Kingdom & Ireland
|
1,985
|
1,972
|
3,935
|
62.2
|
61.5
|
61.4
|
31.0
|
32.9
|
33.5
|
93.2
|
94.4
|
94.9
|
Europe
|
674
|
747
|
1,313
|
67.4
|
69.6
|
69.7
|
26.9
|
26.8
|
28.0
|
94.3
|
96.4
|
97.7
|
Canada
|
1,013
|
1,026
|
2,104
|
60.9
|
66.4
|
65.5
|
31.0
|
30.4
|
30.6
|
91.9
|
96.8
|
96.1
|
Asia
|
6
|
7
|
13
|
71.6
|
72.1
|
65.3
|
39.3
|
27.5
|
32.5
|
110.9
|
99.6
|
97.8
|
Other5
|
-
|
5
|
7
|
|||||||||
Total
|
3,678
|
3,757
|
7,372
|
62.8
|
64.5
|
64.0
|
30.3
|
31.0
|
31.7
|
93.1
|
95.5
|
95.7
|
3 Commission and Expense ratio: written commissions and expenses expressed as a percentage of net written premiums.
|
UK & Ireland
|
Europe
|
Canada
|
Total
|
|||||
6 months
2015
%
|
6 months 2014
%
|
6 months
2015
%
|
6 months
2014
%
|
6 months 2015
%
|
6 months 2014
%
|
6 months
2015
%
|
6 months
2014
%
|
|
Underlying claims ratio1
|
66.2
|
64.8
|
70.4
|
67.0
|
66.7
|
63.2
|
67.0
|
64.5
|
Prior year reserve strengthening/(release)2
|
(0.5)
|
(2.4)
|
(1.5)
|
2.6
|
(5.8)
|
(0.9)
|
(2.1)
|
(0.8)
|
Weather over/(under) long term average3
|
(3.5)
|
(0.9)
|
(1.5)
|
-
|
-
|
4.1
|
(2.1)
|
0.8
|
Claims ratio
|
62.2
|
61.5
|
67.4
|
69.6
|
60.9
|
66.4
|
62.8
|
64.5
|
Commission and expense ratio4
|
31.0
|
32.9
|
26.9
|
26.8
|
31.0
|
30.4
|
30.3
|
31.0
|
Combined operating ratio
|
93.2
|
94.4
|
94.3
|
96.4
|
91.9
|
96.8
|
93.1
|
95.5
|
1 Underlying claims ratio represents the claims ratio adjusted to exclude prior year claims development and weather variations vs. expectations, gross of the impact of profit sharing arrangements.
|
2 Prior year reserve strengthening/(release) represents the changes in the ultimate cost of the claims incurred in prior years, gross of the impact of profit sharing arrangements.
|
3 Weather over/(under) long term average represents the difference between the reported net incurred cost of general insurance claims that have occurred as a result of weather events and the equivalent long term average expected net costs, gross of the impact of profit sharing arrangements.
|
4 Commission and expense ratio includes the impact of profit sharing arrangements.
|
6 months 2015
£m
|
6 months 2014
£m
|
Full Year
2014
£m
|
|
Cash remitted to Group
|
287
|
350
|
437
|
Life operating profit: IFRS basis (restated)1
|
569
|
483
|
1,049
|
Expenses
|
|||
Operating expenses
|
369
|
278
|
565
|
Integration and restructuring costs
|
86
|
14
|
28
|
455
|
292
|
593
|
|
Value of new business
|
260
|
183
|
482
|
|
1 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
Cash remitted to Group1
|
-
|
-
|
294
|
Operating profit: IFRS basis
|
239
|
263
|
499
|
Expenses
|
|||
Operating expenses
|
364
|
378
|
755
|
Integration and restructuring costs
|
13
|
5
|
11
|
377
|
383
|
766
|
|
Combined operating ratio2
|
93.2%
|
94.4%
|
94.9%
|
Claims ratio
|
Commission and expense ratio
|
Combined operating ratio
|
|||||||
United Kingdom & Ireland
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
Personal
|
65.7
|
62.4
|
62.4
|
30.0
|
33.1
|
33.9
|
95.7
|
95.5
|
96.3
|
Commercial
|
57.1
|
60.3
|
59.9
|
32.4
|
32.5
|
32.9
|
89.5
|
92.8
|
92.8
|
Total
|
62.2
|
61.5
|
61.4
|
31.0
|
32.9
|
33.5
|
93.2
|
94.4
|
94.9
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
Cash remitted to Group (restated)2
|
186
|
236
|
473
|
Operating profit: IFRS basis (restated)3
|
|||
Life (restated)3
|
372
|
455
|
882
|
General insurance & health
|
59
|
57
|
113
|
431
|
512
|
995
|
|
Expenses
|
|||
Operating expenses
|
267
|
306
|
596
|
Integration and restructuring costs
|
10
|
1
|
17
|
277
|
307
|
613
|
|
Value of new business
|
|||
Value of new business - excluding Eurovita & CxG
|
192
|
198
|
392
|
Effects of disposals/Assets held for sale (Eurovita & CxG)
|
-
|
(5)
|
(1)
|
192
|
193
|
391
|
|
Combined operating ratio4
|
94.3%
|
96.4%
|
97.7%
|
Combined operating ratio4 - excluding Turkey
|
94.3%
|
94.4%
|
96.0%
|
|
1 Our European business includes life and general insurance business written in France, Poland, Italy, and Turkey (GI business disposed of in December 2014), life business in Spain and health business in France.
|
|
2 Cash remittances have been restated to include interest remitted on internal loans.
|
|
3 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
|
|
4 General insurance business only.
|
Claims ratio
|
Commission and expense ratio
|
Combined operating ratio
|
|||||||
Europe
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
France
|
69.2
|
68.7
|
70.1
|
25.2
|
25.7
|
26.8
|
94.4
|
94.4
|
96.9
|
Poland
|
55.9
|
55.4
|
57.6
|
38.8
|
34.8
|
38.4
|
94.7
|
90.2
|
96.0
|
Italy
|
64.8
|
68.5
|
66.6
|
29.3
|
26.7
|
27.4
|
94.1
|
95.2
|
94.0
|
Turkey
|
-
|
108.2
|
101.5
|
-
|
38.3
|
45.4
|
-
|
146.5
|
146.9
|
Total
|
67.4
|
69.6
|
69.7
|
26.9
|
26.8
|
28.0
|
94.3
|
96.4
|
97.7
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
Cash remitted to Group
|
2
|
-
|
138
|
General Insurance operating profit: IFRS basis
|
131
|
83
|
189
|
Expenses
|
|||
Operating expenses
|
158
|
161
|
316
|
Integration and restructuring costs
|
2
|
1
|
4
|
160
|
162
|
320
|
|
Combined operating ratio
|
91.9%
|
96.8%
|
96.1%
|
Claims ratio
|
Commission and expense ratio
|
Combined operating ratio
|
|||||||
Canada
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full Year
2014
%
|
Personal
|
65.2
|
68.6
|
68.1
|
28.4
|
27.9
|
28.3
|
93.6
|
96.5
|
96.4
|
Commercial
|
53.4
|
62.7
|
61.1
|
35.8
|
34.7
|
34.4
|
89.2
|
97.4
|
95.5
|
Total
|
60.9
|
66.4
|
65.5
|
31.0
|
30.4
|
30.6
|
91.9
|
96.8
|
96.1
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
Cash remitted to Group
|
-
|
21
|
23
|
Operating profit: IFRS basis
|
|||
Life
|
79
|
34
|
87
|
General insurance & health
|
(4)
|
1
|
(2)
|
75
|
35
|
85
|
|
Expenses
|
|||
Operating expenses
|
65
|
45
|
80
|
Integration and restructuring costs
|
-
|
-
|
1
|
65
|
45
|
81
|
|
Value of new business
|
|||
Value of new business - excluding South Korea
|
76
|
61
|
122
|
Effects of disposals (South Korea)
|
-
|
5
|
5
|
76
|
66
|
127
|
|
Combined operating ratio1
|
110.9%
|
99.6%
|
97.8%
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
Cash remitted to Group1
|
20
|
16
|
16
|
Operating profit: IFRS basis
|
|||
Aviva Investors
|
32
|
41
|
79
|
United Kingdom
|
-
|
6
|
6
|
Asia
|
1
|
1
|
1
|
33
|
48
|
86
|
|
Aviva Investors: Operating profit: IFRS basis
|
|||
Fund management
|
32
|
41
|
79
|
Other operations
|
-
|
-
|
(18)
|
32
|
41
|
61
|
|
Expenses1
|
|||
Operating expenses
|
169
|
143
|
298
|
Integration and restructuring costs
|
2
|
(5)
|
4
|
171
|
138
|
302
|
|
Value of new business1
|
6
|
2
|
9
|
|
1 Only includes Aviva Investors.
|
Internal
£m
|
External
£m
|
Total
£m
|
|
Aviva Investors
|
|||
Funds under management at 1 January 2015
|
200,415
|
45,483
|
245,898
|
Gross Sales
|
7,678
|
2,773
|
10,451
|
Gross claims/redemptions
|
(9,063)
|
(3,086)
|
(12,149)
|
Market movements and other2
|
(1,867)
|
(2,064)
|
(3,931)
|
Acquisition of Friends Life
|
22,339
|
-
|
22,339
|
Funds under management at 30 June 2015
|
219,502
|
43,106
|
262,608
|
|
2 'Market movements and other' includes external liquidity outflows of £1.1 billion.
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||||||
6 months 2015
£m
|
Restated2
6 months 2014
£m
|
Restated2
Full Year 2014
£m
|
6 months 2015
£m
|
Restated2
6 months 2014
£m
|
Restated2
Full Year 2014
£m
|
6 months 2015
£m
|
6 months 2014
£m
|
Full Year 2014
£m
|
6 months 2015
£m
|
Restated2
6 months 2014
£m
|
Restated2
Full Year 2014
£m
|
|
New business income
|
251
|
200
|
462
|
102
|
105
|
227
|
73
|
61
|
126
|
426
|
366
|
815
|
Underwriting margin
|
103
|
62
|
175
|
109
|
130
|
230
|
35
|
26
|
58
|
247
|
218
|
463
|
Investment return
|
547
|
391
|
738
|
494
|
551
|
1,113
|
31
|
29
|
50
|
1,072
|
971
|
1,901
|
Total Income
|
901
|
653
|
1,375
|
705
|
786
|
1,570
|
139
|
116
|
234
|
1,745
|
1,555
|
3,179
|
Acquisition expenses
|
(188)
|
(151)
|
(278)
|
(116)
|
(142)
|
(263)
|
(63)
|
(48)
|
(96)
|
(367)
|
(341)
|
(637)
|
Administration expenses
|
(253)
|
(162)
|
(364)
|
(226)
|
(225)
|
(467)
|
(28)
|
(21)
|
(36)
|
(507)
|
(408)
|
(867)
|
Total Expenses
|
(441)
|
(313)
|
(642)
|
(342)
|
(367)
|
(730)
|
(91)
|
(69)
|
(132)
|
(874)
|
(749)
|
(1,504)
|
DAC and other
|
109
|
143
|
316
|
9
|
36
|
42
|
31
|
(13)
|
(15)
|
149
|
166
|
343
|
569
|
483
|
1,049
|
372
|
455
|
882
|
79
|
34
|
87
|
1,020
|
972
|
2,018
|
|
Other business1
|
1
|
1
|
1
|
|||||||||
Total
|
1,021
|
973
|
2,019
|
|
2 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on total equity for any period presented as a result of this restatement.
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
6 months 2015
£m
|
Restated
6 months 2014
£m
|
6 months 2015
£m
|
6 months 2014
£m
|
6 months 2015
£m
|
6 months 2014
£m
|
6 months 2015
£m
|
Restated
6 months 2014
£m
|
|
New business income (£m)
|
251
|
200
|
102
|
105
|
73
|
61
|
426
|
366
|
APE (£m)1
|
894
|
713
|
498
|
584
|
192
|
147
|
1,584
|
1,444
|
As margin on APE (%)
|
28%
|
28%
|
20%
|
18%
|
38%
|
41%
|
27%
|
25%
|
Underwriting margin (£m)
|
103
|
62
|
109
|
130
|
35
|
26
|
247
|
218
|
Analysed by:
|
||||||||
Expenses
|
27
|
14
|
25
|
29
|
19
|
19
|
71
|
62
|
Mortality and longevity
|
76
|
50
|
73
|
89
|
13
|
4
|
162
|
143
|
Persistency
|
-
|
(2)
|
11
|
12
|
3
|
3
|
14
|
13
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
6 months 2015
£m
|
Restated
6 months
2014
£m
|
6 months
2015
£m
|
6 months
2014
£m
|
6 months
2015
£m
|
6 months
2014
£m
|
6 months
2015
£m
|
Restated
6 months
2014
£m
|
|
Unit-linked margin (£m)
|
353
|
225
|
225
|
219
|
26
|
7
|
604
|
451
|
As annual management charge on average reserves (bps)
|
90
|
91
|
144
|
119
|
108
|
117
|
105
|
104
|
Average reserves (£bn)
|
78.8
|
49.2
|
31.2
|
36.7
|
4.8
|
1.2
|
114.8
|
87.1
|
Participating business (£m)
|
58
|
50
|
222
|
252
|
(7)
|
(4)
|
273
|
298
|
As bonus on average reserves (bps)
|
26
|
29
|
79
|
82
|
n/a
|
n/a
|
53
|
61
|
Average reserves (£bn)
|
44.9
|
34.5
|
56.1
|
61.6
|
2.5
|
1.6
|
103.5
|
97.7
|
Spread margin (£m)
|
105
|
71
|
4
|
13
|
6
|
20
|
115
|
104
|
As spread margin on average reserves (bps)
|
41
|
35
|
25
|
60
|
133
|
211
|
41
|
44
|
Average reserves (£bn)
|
51.6
|
40.9
|
3.2
|
4.3
|
0.9
|
1.9
|
55.7
|
47.1
|
Expected return on shareholder assets (£m)
|
31
|
45
|
43
|
67
|
6
|
6
|
80
|
118
|
Total (£m)
|
547
|
391
|
494
|
551
|
31
|
29
|
1,072
|
971
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
6 months
2015
£m
|
6 months
2014
£m
|
6 months
2015
£m
|
6 months
2014
£m
|
6 months
2015
£m
|
6 months
2014
£m
|
6 months
2015
£m
|
6 months
2014
£m
|
|
Acquisition expenses (£m)
|
(188)
|
(151)
|
(116)
|
(142)
|
(63)
|
(48)
|
(367)
|
(341)
|
APE (£m)1
|
894
|
713
|
498
|
584
|
192
|
147
|
1,584
|
1,444
|
As acquisition expense ratio on APE (%)
|
21%
|
21%
|
23%
|
24%
|
33%
|
33%
|
23%
|
24%
|
Administration expenses (£m)
|
(253)
|
(162)
|
(226)
|
(225)
|
(28)
|
(21)
|
(507)
|
(408)
|
As existing business expense ratio on average reserves (bps)
|
29
|
26
|
50
|
44
|
68
|
89
|
37
|
35
|
Average reserves (£bn)
|
175.3
|
124.6
|
90.5
|
102.6
|
8.2
|
4.7
|
274.0
|
231.9
|
6 months 2015
|
UK
Personal
£m
|
UK
Commercial
£m
|
Total
UK
£m
|
Ireland
£m
|
Total UK & Ireland
£m
|
Canada Personal
£m
|
Canada Commercial
£m
|
Total
Canada
£m
|
Europe
£m
|
Asia &
Other1
£m
|
Total
£m
|
General insurance
|
|||||||||||
Gross written premiums
|
1,090
|
917
|
2,007
|
139
|
2,146
|
678
|
399
|
1,077
|
704
|
7
|
3,934
|
Net written premiums
|
1,047
|
804
|
1,851
|
134
|
1,985
|
657
|
356
|
1,013
|
674
|
6
|
3,678
|
Net earned premiums
|
1,067
|
741
|
1,808
|
128
|
1,936
|
642
|
372
|
1,014
|
591
|
7
|
3,548
|
Net claims incurred
|
(696)
|
(424)
|
(1,120)
|
(84)
|
(1,204)
|
(418)
|
(200)
|
(618)
|
(398)
|
(9)
|
(2,229)
|
Of which claims handling costs
|
(96)
|
(4)
|
(100)
|
(39)
|
(28)
|
-
|
(167)
|
||||
Written commission
|
(245)
|
(165)
|
(410)
|
(18)
|
(428)
|
(128)
|
(72)
|
(200)
|
(134)
|
-
|
(762)
|
Written expenses2
|
(72)
|
(96)
|
(168)
|
(20)
|
(188)
|
(58)
|
(56)
|
(114)
|
(47)
|
(3)
|
(352)
|
Movement in DAC
|
(11)
|
16
|
5
|
-
|
5
|
4
|
(4)
|
-
|
13
|
-
|
18
|
Underwriting result
|
43
|
72
|
115
|
6
|
121
|
42
|
40
|
82
|
25
|
(5)
|
223
|
Longer-term investment return3
|
111
|
10
|
121
|
51
|
30
|
1
|
203
|
||||
Other4
|
(3)
|
-
|
(3)
|
(2)
|
-
|
-
|
(5)
|
||||
Operating profit
|
223
|
16
|
239
|
131
|
55
|
(4)
|
421
|
||||
Health insurance
|
|||||||||||
Underwriting result
|
(2)
|
-
|
4
|
(3)
|
(1)
|
||||||
Longer-term investment return
|
2
|
-
|
-
|
-
|
2
|
||||||
Operating profit
|
-
|
-
|
4
|
(3)
|
1
|
||||||
Total operating profit
|
239
|
131
|
59
|
(7)
|
422
|
||||||
General insurance combined operating ratio
|
|||||||||||
Claims ratio
|
65.2%
|
57.2%
|
62.0%
|
65.5%
|
62.2%
|
65.2%
|
53.4%
|
60.9%
|
67.4%
|
62.8%
|
|
Commission ratio
|
23.3%
|
20.6%
|
22.1%
|
13.2%
|
21.5%
|
19.5%
|
20.2%
|
19.8%
|
19.9%
|
20.7%
|
|
Expense ratio
|
6.9%
|
12.1%
|
9.1%
|
14.8%
|
9.5%
|
8.9%
|
15.6%
|
11.2%
|
7.0%
|
9.6%
|
|
Combined operating ratio5
|
95.4%
|
89.9%
|
93.2%
|
93.5%
|
93.2%
|
93.6%
|
89.2%
|
91.9%
|
94.3%
|
93.1%
|
|
Assets supporting general insurance and health business
|
|||||||||||
Debt securities
|
4,399
|
555
|
4,954
|
3,014
|
1,851
|
214
|
10,033
|
||||
Equity securities
|
7
|
-
|
7
|
206
|
19
|
-
|
232
|
||||
Investment property
|
138
|
2
|
140
|
-
|
116
|
-
|
256
|
||||
Cash and cash equivalents
|
634
|
52
|
686
|
97
|
181
|
24
|
988
|
||||
Other6
|
2,988
|
91
|
3,079
|
128
|
182
|
-
|
3,389
|
||||
Assets at 30 June 2015
|
8,166
|
700
|
8,866
|
3,445
|
2,349
|
238
|
14,898
|
||||
Debt securities
|
4,429
|
825
|
5,254
|
3,261
|
2,140
|
203
|
10,858
|
||||
Equity securities
|
7
|
-
|
7
|
222
|
22
|
-
|
251
|
||||
Investment property
|
91
|
4
|
95
|
-
|
128
|
-
|
223
|
||||
Cash and cash equivalents
|
865
|
79
|
944
|
123
|
185
|
48
|
1,300
|
||||
Other6
|
3,372
|
101
|
3,473
|
122
|
172
|
-
|
3,767
|
||||
Assets at 31 December 2014
|
8,764
|
1,009
|
9,773
|
3,728
|
2,647
|
251
|
16,399
|
||||
Average assets
|
8,465
|
855
|
9,320
|
3,586
|
2,498
|
245
|
15,649
|
||||
LTIR as % of average assets
|
2.6%
|
2.3%
|
2.6%
|
2.8%
|
2.4%
|
0.8%
|
2.6%
|
|
5 COR is calculated as incurred claims expressed as a percentage of net earned premiums, plus written commissions and written expenses expressed as a percentage of net written premiums. COR is calculated using unrounded numbers so minor rounding differences may exist.
|
6 months 2014
|
UK
Personal
£m
|
UK
Commercial
£m
|
Total
UK
£m
|
Ireland
£m
|
Total UK & Ireland
£m
|
Canada Personal
£m
|
Canada Commercial
£m
|
Total
Canada
£m
|
Europe
£m
|
Asia &
Other1
£m
|
Total
£m
|
General insurance
|
|||||||||||
Gross written premiums
|
1,088
|
900
|
1,988
|
143
|
2,131
|
659
|
403
|
1,062
|
784
|
9
|
3,986
|
Net written premiums
|
1,041
|
795
|
1,836
|
136
|
1,972
|
648
|
378
|
1,026
|
747
|
12
|
3,757
|
Net earned premiums
|
1,104
|
750
|
1,854
|
134
|
1,988
|
620
|
378
|
998
|
664
|
13
|
3,663
|
Net claims incurred
|
(689)
|
(445)
|
(1,134)
|
(90)
|
(1,224)
|
(425)
|
(237)
|
(662)
|
(462)
|
(13)
|
(2,361)
|
Of which claims handling costs
|
(97)
|
(4)
|
(101)
|
(41)
|
(29)
|
-
|
(171)
|
||||
Written commission
|
(267)
|
(164)
|
(431)
|
(18)
|
(449)
|
(123)
|
(75)
|
(198)
|
(139)
|
(1)
|
(787)
|
Written expenses2
|
(80)
|
(97)
|
(177)
|
(22)
|
(199)
|
(58)
|
(56)
|
(114)
|
(61)
|
(3)
|
(377)
|
Movement in DAC
|
(8)
|
10
|
2
|
(4)
|
(2)
|
6
|
-
|
6
|
12
|
-
|
16
|
Underwriting result
|
60
|
54
|
114
|
-
|
114
|
20
|
10
|
30
|
14
|
(4)
|
154
|
Longer-term investment return3
|
139
|
9
|
148
|
56
|
37
|
3
|
244
|
||||
Other4
|
(2)
|
-
|
(2)
|
(3)
|
-
|
-
|
(5)
|
||||
Operating profit
|
251
|
9
|
260
|
83
|
51
|
(1)
|
393
|
||||
Health insurance
|
|||||||||||
Underwriting result
|
1
|
-
|
5
|
-
|
6
|
||||||
Longer-term investment return
|
2
|
-
|
1
|
1
|
4
|
||||||
Operating profit
|
3
|
-
|
6
|
1
|
10
|
||||||
Total operating profit
|
263
|
83
|
57
|
-
|
403
|
||||||
General insurance combined operating ratio
|
|||||||||||
Claims ratio
|
62.3%
|
59.3%
|
61.1%
|
67.4%
|
61.5%
|
68.6%
|
62.7%
|
66.4%
|
69.6%
|
64.5%
|
|
Commission ratio
|
25.6%
|
20.6%
|
23.5%
|
13.3%
|
22.8%
|
18.9%
|
19.8%
|
19.3%
|
18.7%
|
21.0%
|
|
Expense ratio
|
7.8%
|
12.1%
|
9.7%
|
15.9%
|
10.1%
|
9.0%
|
14.9%
|
11.1%
|
8.1%
|
10.0%
|
|
Combined operating ratio5
|
95.7%
|
92.0%
|
94.3%
|
96.6%
|
94.4%
|
96.5%
|
97.4%
|
96.8%
|
96.4%
|
95.5%
|
|
Assets supporting general insurance and health business
|
|||||||||||
Debt securities
|
3,602
|
998
|
4,600
|
3,132
|
2,166
|
232
|
10,130
|
||||
Equity securities
|
14
|
-
|
14
|
254
|
26
|
-
|
294
|
||||
Investment property
|
1
|
6
|
7
|
-
|
128
|
-
|
135
|
||||
Cash and cash equivalents
|
883
|
65
|
948
|
90
|
262
|
37
|
1,337
|
||||
Other6
|
4,142
|
101
|
4,243
|
136
|
186
|
-
|
4,565
|
||||
Assets at 30 June 2014
|
8,642
|
1,170
|
9,812
|
3,612
|
2,768
|
269
|
16,461
|
||||
Debt securities
|
3,515
|
994
|
4,509
|
3,098
|
2,255
|
243
|
10,105
|
||||
Equity securities
|
15
|
-
|
15
|
301
|
23
|
-
|
339
|
||||
Investment property
|
1
|
6
|
7
|
-
|
133
|
-
|
140
|
||||
Cash and cash equivalents
|
1,490
|
194
|
1,684
|
95
|
152
|
51
|
1,982
|
||||
Other6
|
5,088
|
109
|
5,197
|
79
|
159
|
-
|
5,435
|
||||
Assets at 31 December 2013
|
10,109
|
1,303
|
11,412
|
3,573
|
2,722
|
294
|
18,001
|
||||
Average assets
|
9,375
|
1,237
|
10,612
|
3,592
|
2,745
|
282
|
17,231
|
||||
LTIR as % of average assets
|
3.0%
|
1.5%
|
2.8%
|
3.1%
|
2.8%
|
2.8%
|
2.9%
|
|
5 COR is calculated as incurred claims expressed as a percentage of net earned premiums, plus written commissions and written expenses expressed as a percentage of net written premiums. COR is calculated using unrounded numbers so minor rounding differences may exist.
|
Full Year 2014
|
UK
Personal
£m
|
UK
Commercial
£m
|
Total
UK
£m
|
Ireland
£m
|
Total UK & Ireland
£m
|
Canada Personal
£m
|
Canada Commercial
£m
|
Total
Canada
£m
|
Europe
£m
|
Asia &
Other1
£m
|
Total
£m
|
General insurance
|
|||||||||||
Gross written premiums
|
2,239
|
1,694
|
3,933
|
285
|
4,218
|
1,344
|
832
|
2,176
|
1,389
|
15
|
7,798
|
Net written premiums
|
2,152
|
1,511
|
3,663
|
272
|
3,935
|
1,325
|
779
|
2,104
|
1,313
|
20
|
7,372
|
Net earned premiums
|
2,202
|
1,511
|
3,713
|
267
|
3,980
|
1,280
|
770
|
2,050
|
1,308
|
23
|
7,361
|
Net claims incurred
|
(1,359)
|
(905)
|
(2,264)
|
(179)
|
(2,443)
|
(872)
|
(471)
|
(1,343)
|
(912)
|
(13)
|
(4,711)
|
Of which claims handling costs
|
(193)
|
(6)
|
(199)
|
(79)
|
(59)
|
-
|
(337)
|
||||
Written commission
|
(564)
|
(309)
|
(873)
|
(36)
|
(909)
|
(259)
|
(157)
|
(416)
|
(250)
|
(1)
|
(1,576)
|
Written expenses2
|
(175)
|
(189)
|
(364)
|
(44)
|
(408)
|
(115)
|
(111)
|
(226)
|
(117)
|
(5)
|
(756)
|
Movement in DAC
|
(8)
|
(5)
|
(13)
|
(3)
|
(16)
|
15
|
3
|
18
|
1
|
-
|
3
|
Underwriting result
|
96
|
103
|
199
|
5
|
204
|
49
|
34
|
83
|
30
|
4
|
321
|
Longer-term investment return3
|
260
|
18
|
278
|
112
|
74
|
6
|
470
|
||||
Other4
|
(4)
|
-
|
(4)
|
(6)
|
-
|
-
|
(10)
|
||||
Operating profit
|
455
|
23
|
478
|
189
|
104
|
10
|
781
|
||||
Health insurance
|
|||||||||||
Underwriting result
|
15
|
-
|
8
|
(3)
|
20
|
||||||
Longer-term investment return
|
6
|
-
|
1
|
-
|
7
|
||||||
Operating profit
|
21
|
-
|
9
|
(3)
|
27
|
||||||
Total operating profit
|
499
|
189
|
113
|
7
|
808
|
||||||
General insurance combined operating ratio
|
|||||||||||
Claims ratio
|
61.7%
|
59.9%
|
61.0%
|
67.1%
|
61.4%
|
68.1%
|
61.1%
|
65.5%
|
69.7%
|
64.0%
|
|
Commission ratio
|
26.2%
|
20.4%
|
23.8%
|
13.4%
|
23.1%
|
19.6%
|
20.2%
|
19.8%
|
19.1%
|
21.4%
|
|
Expense ratio
|
8.1%
|
12.5%
|
10.0%
|
16.1%
|
10.4%
|
8.7%
|
14.2%
|
10.8%
|
8.9%
|
10.3%
|
|
Combined operating ratio5
|
96.0%
|
92.8%
|
94.8%
|
96.6%
|
94.9%
|
96.4%
|
95.5%
|
96.1%
|
97.7%
|
95.7%
|
|
Assets supporting general insurance and health business
|
|||||||||||
Debt securities
|
4,429
|
825
|
5,254
|
3,261
|
2,140
|
203
|
10,858
|
||||
Equity securities
|
7
|
-
|
7
|
222
|
22
|
-
|
251
|
||||
Investment property
|
91
|
4
|
95
|
-
|
128
|
-
|
223
|
||||
Cash and cash equivalents
|
865
|
79
|
944
|
123
|
185
|
48
|
1,300
|
||||
Other6
|
3,372
|
101
|
3,473
|
122
|
172
|
-
|
3,767
|
||||
Assets at 31 December 2014
|
8,764
|
1,009
|
9,773
|
3,728
|
2,647
|
251
|
16,399
|
||||
Debt securities
|
3,515
|
994
|
4,509
|
3,098
|
2,255
|
243
|
10,105
|
||||
Equity securities
|
15
|
-
|
15
|
301
|
23
|
-
|
339
|
||||
Investment property
|
1
|
6
|
7
|
-
|
133
|
-
|
140
|
||||
Cash and cash equivalents
|
1,490
|
194
|
1,684
|
95
|
152
|
51
|
1,982
|
||||
Other6
|
5,088
|
109
|
5,197
|
79
|
159
|
-
|
5,435
|
||||
Assets at 31 December 2013
|
10,109
|
1,303
|
11,412
|
3,573
|
2,722
|
294
|
18,001
|
||||
Average assets
|
9,436
|
1,156
|
10,592
|
3,650
|
2,685
|
273
|
17,200
|
||||
LTIR as % of average assets
|
2.8%
|
1.6%
|
2.7%
|
3.1%
|
2.8%
|
2.2%
|
2.8%
|
|
5 COR is calculated as incurred claims expressed as a percentage of net earned premiums, plus written commissions and written expenses expressed as a percentage of net written premiums. COR is calculated using unrounded numbers so minor rounding differences may exist.
|
Managed
assets at
1 January 2015
£m
|
Acquisitions1
£m
|
Premiums
and deposits, net of reinsurance
£m
|
Claims and redemptions,
net of reinsurance
£m
|
Net flows2
£m
|
Effect of disposals,
market
and other movements
£m
|
Managed
assets at
30 June 2015
£m
|
|
Life and platform business
|
|||||||
UK - non-profit - platform
|
5,282
|
-
|
1,732
|
(215)
|
1,517
|
18
|
6,817
|
UK - non-profit - other
|
83,731
|
63,810
|
3,568
|
(3,842)
|
(274)
|
(2,249)
|
145,018
|
Ireland
|
5,518
|
-
|
231
|
(332)
|
(101)
|
(578)
|
4,839
|
United Kingdom & Ireland (excluding UK with-profits)
|
94,531
|
63,810
|
5,531
|
(4,389)
|
1,142
|
(2,809)
|
156,674
|
Europe
|
96,602
|
-
|
4,103
|
(3,469)
|
634
|
(5,432)
|
91,804
|
Asia
|
4,240
|
7,505
|
714
|
(451)
|
263
|
(234)
|
11,774
|
Other
|
1,862
|
-
|
13
|
(80)
|
(67)
|
65
|
1,860
|
197,235
|
71,315
|
10,361
|
(8,389)
|
1,972
|
(8,410)
|
262,112
|
|
UK - with-profits and other
|
46,677
|
65,597
|
|||||
Total life and platform business
|
243,912
|
327,709
|
Shareholder business assets
|
Participating fund assets
|
|||||||
Carrying value in the statement of financial position
|
General Insurance & health &
other1
£m
|
Annuity and non-profit
£m
|
Policyholder (unit linked assets)
£m
|
UK style with profits
£m
|
Continental European-style participating funds
£m
|
Total assets analysed
£m
|
Less assets of operation classified as held for sale
£m
|
Carrying
value in the
statement of
financial
position
£m
|
Debt securities
|
||||||||
Government bonds
|
6,456
|
11,288
|
16,356
|
21,438
|
23,563
|
79,101
|
-
|
79,101
|
Corporate bonds
|
4,092
|
22,598
|
7,653
|
13,317
|
23,387
|
71,047
|
-
|
71,047
|
Other
|
192
|
2,735
|
2,128
|
2,450
|
4,493
|
11,998
|
-
|
11,998
|
10,740
|
36,621
|
26,137
|
37,205
|
51,443
|
162,146
|
-
|
162,146
|
|
Loans
|
||||||||
Mortgage loans
|
68
|
19,614
|
-
|
570
|
1
|
20,253
|
-
|
20,253
|
Other loans
|
133
|
600
|
318
|
2,133
|
684
|
3,868
|
-
|
3,868
|
201
|
20,214
|
318
|
2,703
|
685
|
24,121
|
-
|
24,121
|
|
Equity securities
|
220
|
337
|
48,385
|
12,672
|
3,443
|
65,057
|
-
|
65,057
|
Investment property
|
256
|
176
|
6,325
|
4,031
|
779
|
11,567
|
-
|
11,567
|
Other investments
|
667
|
1,420
|
39,638
|
3,379
|
2,504
|
47,608
|
-
|
47,608
|
Total as at 30 June 2015
|
12,084
|
58,768
|
120,803
|
59,990
|
58,854
|
310,499
|
-
|
310,499
|
Total as at 31 December 2014
|
12,463
|
46,820
|
71,454
|
42,077
|
64,009
|
236,823
|
-
|
236,823
|
IFRS
|
30 June
2015
£m
|
pence per
share2
|
31 December
2014
£m
|
pence per
share2
|
Equity attributable to shareholders of Aviva plc at 1 January1
|
10,018
|
340p
|
7,964
|
270p
|
Operating profit - (Restated)3
|
1,170
|
29p
|
2,173
|
74p
|
Investment return variances and economic assumption changes on life and non-life business
|
37
|
1p
|
188
|
6p
|
Profit/(loss) on the disposal and remeasurements of subsidiaries and associates
|
-
|
-
|
232
|
8p
|
Goodwill impairment and amortisation of intangibles
|
(83)
|
(2)p
|
(114)
|
(4)p
|
Amortisation and impairment of acquired value of in-force business
|
(162)
|
(4)p
|
-
|
-
|
Integration and restructuring costs
|
(172)
|
(4)p
|
(140)
|
(5)p
|
Tax on operating profit and on other activities
|
(245)
|
(6)p
|
(601)
|
(20)p
|
Non-controlling interests
|
(81)
|
(3)p
|
(169)
|
(6)p
|
Profit after tax attributable to shareholders of Aviva plc
|
464
|
11p
|
1,569
|
53p
|
AFS securities (fair value) & other reserve movements
|
(15)
|
-
|
62
|
2p
|
Ordinary dividends
|
(362)
|
(9)p
|
(446)
|
(15)p
|
Direct capital instruments and fixed rate tier 1 notes interest and preference share dividend
|
(23)
|
(1)p
|
(86)
|
(3)p
|
Foreign exchange rate movements
|
(404)
|
(10)p
|
(317)
|
(11)p
|
Remeasurements of pension schemes
|
(267)
|
(7)p
|
1,315
|
45p
|
Friends Life acquisition4
|
5,975
|
55p
|
-
|
-
|
Other net equity movements5
|
4
|
1p
|
(43)
|
(1)p
|
Equity attributable to shareholders of Aviva plc at 30 June/31 December1
|
15,390
|
380p
|
10,018
|
340p
|
|
3 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement. Amortisation and impairment of AVIF has been added as a separate line item outside of operating profit.
|
MCEV2
|
30 June
2015
£m
|
pence per
share1
|
31 December
2014
£m
|
pence per
share3
|
Equity attributable to shareholders of Aviva plc at 1 January3
|
15,547
|
527p
|
13,643
|
463p
|
Operating profit
|
1,103
|
27p
|
2,885
|
98p
|
Investment return variances and economic assumption changes on life and non-life business
|
(128)
|
(3)p
|
(36)
|
(1)p
|
Profit/(loss) on the disposal and remeasurements of subsidiaries and associates
|
-
|
-
|
178
|
6p
|
Goodwill impairment and amortisation of intangibles
|
(91)
|
(2)p
|
(130)
|
(4)p
|
Integration costs and restructuring
|
(167)
|
(4)p
|
(159)
|
(6)p
|
Exceptional items
|
(2)
|
-
|
(198)
|
(7)p
|
Tax on operating profit and on other activities
|
(308)
|
(8)p
|
(674)
|
(23)p
|
Non-controlling interests
|
(74)
|
(2)p
|
(208)
|
(7)p
|
Profit after tax attributable to shareholders of Aviva plc
|
333
|
8p
|
1,658
|
56p
|
AFS securities (fair value) & other reserve movements
|
-
|
-
|
(1)
|
-
|
Ordinary dividends
|
(362)
|
(9)p
|
(446)
|
(15)p
|
Direct capital instruments and fixed rate tier 1 notes interest and preference share dividend
|
(23)
|
(1)p
|
(86)
|
(3)p
|
Foreign exchange rate movements
|
(652)
|
(16)p
|
(546)
|
(19)p
|
Remeasurements of pension schemes
|
(267)
|
(7)p
|
1,315
|
45p
|
Friends Life acquisition4
|
5,975
|
5p
|
-
|
-
|
Other net equity movements5
|
4
|
1p
|
10
|
-
|
Equity attributable to shareholders of Aviva plc at 30 June/31 December3
|
20,555
|
508p
|
15,547
|
527p
|
|
1 Number of shares as at 30 June 2015: 4,046 million (31 December 2014: 2,950 million).
|
|
2 In preparing the MCEV information, the directors have done so in accordance with the European Insurance CFO Forum MCEV Principles.
|
|
4 Includes the dilution effect on MCEV NAV per share of the increase in number of shares arising as a result of the acquisition of Friends Life. As the opening MCEV is greater than the opening IFRS, the dilution effect is more significant under MCEV. As a result the acquisition leads to a 5p increase in pence per share under MCEV compared to 55p under IFRS.
|
|
5 The pence per share impact includes the effects of rounding.
|
6 months 2015
%
|
Restated1
Full Year
2014
%
|
|
United Kingdom & Ireland Life
|
14.6%
|
16.1%
|
United Kingdom & Ireland General Insurance and Health
|
8.7%
|
9.0%
|
Europe
|
12.1%
|
13.0%
|
Canada
|
19.7%
|
14.2%
|
Asia
|
21.2%
|
9.4%
|
Fund management
|
17.4%
|
23.2%
|
Corporate and Other Business
|
n/a
|
n/a
|
Return on total capital employed
|
11.6%
|
11.4%
|
Subordinated debt
|
5.0%
|
5.3%
|
Senior debt
|
2.3%
|
2.1%
|
Return on total equity
|
14.6%
|
14.2%
|
Less: Non-controlling interest
|
12.4%
|
10.5%
|
Direct capital instruments and fixed rate tier 1 notes
|
7.8%
|
5.5%
|
Preference capital
|
8.5%
|
8.5%
|
Return on equity shareholders' funds2
|
15.5%
|
16.2%
|
|
1 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on total equity for any period presented as a result of this restatement. The combined impact of the operating profit restatement and the change to the calculation of return on equity has decreased the FY14 return on equity shareholders' funds from 17.4% to 16.2%.
|
|
2 Return on equity including the impact of amortisation and impairment of acquired value of in-force business would be 10.9% (FY14: 15.8%).
|
UK life
funds
£bn
|
Other business
£bn
|
30 June
2015
£bn
|
31 December
2014
£bn
|
|
Insurance Groups Directive (IGD) capital resources
|
12.5
|
9.9
|
22.4
|
14.4
|
Less: capital resources requirement
|
(12.5)
|
(4.7)
|
(17.2)
|
(11.2)
|
Insurance Group Directive (IGD) excess solvency
|
-
|
5.2
|
5.2
|
3.2
|
Cover over EU minimum (calculated excluding UK life funds)
|
2.1 times
|
1.6 times
|
£bn
|
|
IGD solvency surplus at 31 December 2014
|
3.2
|
Operating profits net of other income and expenses
|
0.6
|
Net hybrid debt issue1
|
0.4
|
Pension scheme funding
|
(0.2)
|
Acquisition of Friends Life
|
1.6
|
CRR increase
|
(0.1)
|
Other regulatory adjustments
|
(0.3)
|
Estimated IGD solvency surplus at 30 June 2015
|
5.2
|
|
1 Net hybrid debt issue includes £1 billion benefit of two new Tier 2 subordinated debt instruments issued on 4 June 2015; offset by £(0.6) billion derecognition of two instruments with first call dates in the second half of 2015.
|
30 June
2015
£bn
|
Equities
down
10%
|
Interest
rates up
1%
|
|
Sensitivities on IGD
|
5.2
|
(0.0)
|
(0.0)
|
30 June
2015
£bn
|
31 December
2014
£bn
|
|
Available economic capital
|
25.1
|
18.6
|
Standalone required economic capital
|
(20.8)
|
(16.1)
|
Diversification benefit
|
6.5
|
5.9
|
Diversified required economic capital
|
(14.3)
|
(10.2)
|
Estimated economic capital position at 30 June/31 December
|
10.8
|
8.4
|
Cover Ratio
|
176%
|
182%
|
Foreseeable dividend accrual
|
-
|
(0.4)
|
Estimated economic capital position at 30 June/31 December
|
10.8
|
8.0
|
Cover ratio
|
176%
|
178%
|
6 months
2015
£bn
|
Full year
2014
£bn
|
|
Economic capital surplus position at 1 January
|
8.0
|
8.3
|
MCEV operating earnings
|
0.8
|
1.6
|
Economic variances (including FX)
|
(1.0)
|
(0.5)
|
Exceptional and other non-operating items
|
(0.3)
|
(0.4)
|
Dividends and appropriations, and shares issued in lieu of dividends
|
-
|
(0.5)
|
Net hybrid debt issuance
|
0.4
|
(0.3)
|
Acquisition of Friends Life
|
7.3
|
-
|
Available capital benefits from acquisitions and disposals
|
-
|
0.2
|
Other
|
(0.3)
|
0.1
|
Change in available economic capital
|
6.9
|
0.2
|
Impact of trading operations and other
|
0.4
|
0.3
|
Other changes in methodology
|
(0.9)
|
(0.6)
|
Acquisition of Friends Life
|
(3.6)
|
-
|
Capital requirement impact from acquisitions and disposals
|
-
|
0.2
|
Change in diversified required economic capital
|
(4.1)
|
(0.1)
|
Estimated economic capital surplus position at 30 June/31 December before foreseeable dividend accrual
|
10.8
|
8.4
|
Foreseeable dividend accrual
|
-
|
(0.4)
|
Estimated economic capital surplus position at 30 June/31 December
|
10.8
|
8.0
|
30 June
2015
£bn
|
31 December
2014
£bn
|
|
Credit risk1
|
3.9
|
2.4
|
Equity risk2
|
2.0
|
1.5
|
Interest rate risk3
|
0.7
|
0.6
|
Other market risk4
|
1.5
|
1.4
|
Life insurance risk5
|
2.2
|
1.3
|
General insurance risk6
|
0.8
|
0.8
|
Other risk7
|
3.2
|
2.2
|
Total
|
14.3
|
10.2
|
|
1 Capital held in respect of credit risk recognises the Group's shareholder exposure to changes in the market value of assets and defaults. A range of specific stresses are applied reflecting the difference in assumed risk relative to the investment grade and duration.
|
|
3 Capital held in respect of interest rate risk recognises the Group's shareholder exposure to changes in the market value of assets. A range of specific stresses are applied reflecting the difference in assumed risk relative to investment grade and duration.
|
|
4 Capital held in respect of other market risk recognises the Group's shareholder exposure to changes in the market value of commercial mortgages and property, but also captures risk in association with inflation and foreign exchange.
|
In this section
|
Page
|
A Income & expenses
|
32
|
B IFRS financial statements and notes
|
37
|
C Capital & liquidity
|
83
|
D Analysis of assets
|
93
|
E VNB & Sales analysis
|
109
|
F MCEV financial statements and notes
|
115
|
Income & expenses
|
|
Reconciliation of Group operating profit to profit
after tax - IFRS basis
|
32
|
A1 Other operations
|
33
|
A2 Corporate centre
|
33
|
A3 Group debt costs and other interest
|
33
|
A4 Life business: Investment return variances
and economic assumption changes
|
34
|
A5 Non-life business: Short-term fluctuation in
return on investments
|
35
|
A6 General insurance and health business:
economic assumption changes
|
35
|
A7 Impairment of goodwill, associates, joint
ventures and other amounts expensed
|
36
|
A8 Profit/loss on the disposal and
remeasurement of subsidiaries, joint ventures
and associates
|
36
|
A9 Amortisation and impairment of acquired
value of in-force business
|
36
|
A10 Exceptional items
|
36
|
6 months 2015
£m
|
Restated1
6 months 2014
£m
|
Restated1
Full Year 2014
£m
|
|
Operating profit before tax attributable to shareholders' profits
|
|||
Life business
|
|||
United Kingdom & Ireland
|
569
|
483
|
1,049
|
Europe
|
372
|
455
|
882
|
Asia
|
79
|
34
|
87
|
Other
|
1
|
1
|
1
|
Total life business
|
1,021
|
973
|
2,019
|
General insurance and health
|
|||
United Kingdom & Ireland
|
239
|
263
|
499
|
Europe
|
59
|
57
|
113
|
Canada
|
131
|
83
|
189
|
Asia
|
(4)
|
1
|
(2)
|
Other
|
(3)
|
(1)
|
9
|
Total general insurance and health
|
422
|
403
|
808
|
Fund management
|
|||
Aviva Investors
|
32
|
41
|
79
|
United Kingdom
|
-
|
6
|
6
|
Asia
|
1
|
1
|
1
|
Total fund management
|
33
|
48
|
86
|
Other
|
|||
Other operations (note A1)
|
(57)
|
(54)
|
(105)
|
Market operating profit
|
1,419
|
1,370
|
2,808
|
Corporate centre (note A2)
|
(79)
|
(64)
|
(132)
|
Group debt costs and other interest (note A3)
|
(170)
|
(235)
|
(463)
|
Operating profit before tax attributable to shareholders' profits
|
1,170
|
1,071
|
2,213
|
Integration and restructuring costs
|
(172)
|
(42)
|
(140)
|
Operating profit before tax attributable to shareholders' profits after integration and restructuring costs
|
998
|
1,029
|
2,073
|
Adjusted for the following:
|
|||
Investment return variances and economic assumption changes on long-term business (note A4)
|
(75)
|
44
|
72
|
Short-term fluctuation in return on investments backing non-long-term business (note A5)
|
166
|
165
|
261
|
Economic assumption changes on general insurance and health business (note A6)
|
(54)
|
(67)
|
(145)
|
Impairment of goodwill, joint ventures and associates and other amounts expensed (note A7)
|
(22)
|
(24)
|
(24)
|
Amortisation and impairment of intangibles
|
(61)
|
(38)
|
(90)
|
Amortisation and impairment of acquired value of in-force business (note A9)
|
(162)
|
(19)
|
(40)
|
Profit on the disposal and re-measurement of subsidiaries, joint ventures and associates (note A8)
|
-
|
51
|
174
|
Exceptional items (note A10)
|
-
|
-
|
-
|
Non-operating items before tax
|
(208)
|
112
|
208
|
Profit before tax attributable to shareholders' profits
|
790
|
1,141
|
2,281
|
Tax on operating profit
|
(304)
|
(254)
|
(563)
|
Tax on other activities
|
59
|
(24)
|
(38)
|
(245)
|
(278)
|
(601)
|
|
Profit after tax
|
545
|
863
|
1,680
|
Profit from discontinued operations2
|
-
|
-
|
58
|
Profit for the period
|
545
|
863
|
1,738
|
|
1 Operating profit has been restated to exclude amortisation and impairment of acquired value of in-force business, which is now shown as a non-operating item. See note B2 for further details. There is no impact on the result or the total equity for any period presented as a result of this restatement.
|
|
2 Discontinued operations relate to US life and related internal asset management businesses (US Life) sold in 2013.
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
United Kingdom & Ireland Life
|
(6)
|
(6)
|
(4)
|
United Kingdom & Ireland General Insurance
|
-
|
-
|
4
|
Europe
|
(12)
|
(12)
|
(26)
|
Asia
|
(9)
|
(10)
|
(8)
|
Other Group operations1
|
(30)
|
(26)
|
(71)
|
Total
|
(57)
|
(54)
|
(105)
|
6 months 2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
Project spend
|
(2)
|
(5)
|
(9)
|
Central spend and share award costs
|
(77)
|
(59)
|
(123)
|
Total
|
(79)
|
(64)
|
(132)
|
6 months
2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
|
External debt
|
|||
Subordinated debt
|
(153)
|
(142)
|
(289)
|
Other
|
(10)
|
(10)
|
(21)
|
Total external debt
|
(163)
|
(152)
|
(310)
|
Internal lending arrangements
|
(53)
|
(99)
|
(186)
|
Net finance income on main UK pension scheme
|
46
|
16
|
33
|
Total
|
(170)
|
(235)
|
(463)
|
Life business
|
6 months
2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
Investment variances and economic assumptions
|
(75)
|
44
|
72
|
Equities
|
Properties
|
|||||
6 months
2015
%
|
6 months
2014
%
|
Full year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full year
2014
%
|
|
United Kingdom
|
5.4%
|
6.6%
|
6.6%
|
3.9%
|
5.1%
|
5.1%
|
Eurozone
|
4.3%
|
5.7%
|
5.7%
|
2.8%
|
4.2%
|
4.2%
|
General Insurance and health
|
6 months
2015
£m
|
6 months
2014
£m
|
Full Year
2014
£m
|
Analysis of investment income:
|
|||
- Net investment income
|
141
|
363
|
666
|
- Foreign exchange gains/losses and other charges
|
(31)
|
(15)
|
(8)
|
110
|
348
|
658
|
|
Analysed between:
|
|||
- Longer-term investment return, reported within operating profit
|
205
|
248
|
477
|
- Short-term fluctuations in investment return, reported outside operating profit
|
(95)
|
100
|
181
|
110
|
348
|
658
|
|
Short-term fluctuations:
|
|||
- General insurance and health
|
(95)
|
100
|
181
|
- Other operations1
|
261
|
65
|
80
|
Total short-term fluctuations
|
166
|
165
|
261
|
30 June
2015
£m
|
30 June
2014
£m
|
31 December
2014
£m
|
|
Debt securities
|
10,033
|
10,130
|
10,858
|
Equity securities
|
232
|
294
|
251
|
Properties
|
256
|
135
|
223
|
Cash and cash equivalents
|
988
|
1,337
|
1,300
|
Other2
|
3,389
|
4,565
|
3,767
|
Assets supporting general insurance and health business
|
14,898
|
16,461
|
16,399
|
Assets supporting other non-long term business1
|
816
|
881
|
562
|
Total assets supporting non-long term business
|
15,714
|
17,342
|
16,961
|
Longer-term rates of
return on equities
|
Longer-term rates of
return on property
|
|||||
6 months
2015
%
|
6 months
2014
%
|
Full year
2014
%
|
6 months
2015
%
|
6 months
2014
%
|
Full year
2014
%
|
|
United Kingdom
|
5.4%
|
6.6%
|
6.6%
|
3.9%
|
5.1%
|
5.1%
|
Eurozone
|
4.3%
|
5.7%
|
5.7%
|
2.8%
|
4.2%
|
4.2%
|
Canada
|
5.8%
|
6.8%
|
6.8%
|
4.3%
|
5.3%
|
5.3%
|
AVIVA PLC
|
|
By: /s/ K.A. Cooper
|
|
K.A. Cooper
|
|
Group Company Secretary
|