In this section
|
Page
|
|
Overview
|
||
Key financial metrics
|
2
|
|
1
|
Cash
|
3
|
i
|
Cash remitted to Group
|
3
|
ii
|
Excess centre cash flow
|
3
|
iii
|
Operating capital generation
|
3
|
iv
|
Free surplus emergence
|
5
|
2
|
Operating profit: IFRS basis
|
6
|
3
|
Expenses
|
7
|
4
|
Value of new business
|
8
|
5
|
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
|
22
|
8
|
Capital & assets summary
|
23
|
i
|
Summary of assets
|
23
|
ii
|
Net asset value
|
25
|
iii
|
Return on equity
|
27
|
iv
|
European Insurance Groups Directive (IGD)
|
28
|
v
|
Economic capital
|
29
|
vi
|
Solvency II
|
30
|
Financial supplement
|
33
|
|
Income & expenses
|
34
|
|
IFRS financial statements
|
39
|
|
Capital & assets
|
93
|
|
Capital & liquidity
|
94
|
|
Analysis of assets
|
103
|
|
VNB & Sales analysis
|
125
|
|
MCEV financial statements
|
131
|
|
Other information
|
159
|
Cash remitted to Group
|
Operating capital generation
|
|||||
2015
£m
|
2014
£m
|
Sterling% change
|
2015
£m
|
2014
£m
|
Sterling% change
|
|
United Kingdom & Ireland Life
|
667
|
437
|
53%
|
1,465
|
888
|
65%
|
United Kingdom & Ireland General Insurance & Health1
|
358
|
294
|
22%
|
370
|
425
|
(13)%
|
Europe
|
431
|
473
|
(9)%
|
424
|
499
|
(15)%
|
Canada2
|
6
|
138
|
(96)%
|
154
|
136
|
13%
|
Asia and Other
|
45
|
89
|
(49)%
|
114
|
(8)
|
-
|
Total
|
1,507
|
1,431
|
5%
|
2,527
|
1,940
|
30%
|
2015
£m
|
Restated3
2014
£m
|
Sterling% change
|
|
Life business
|
2,419
|
2,019
|
20%
|
General insurance and health4
|
765
|
808
|
(5)%
|
Fund management
|
106
|
86
|
23%
|
Other*
|
(625)
|
(700)
|
11%
|
Operating profit before tax4
|
2,665
|
2,213
|
20%
|
Operating earnings per share4 **
|
49.2p
|
48.3p
|
2%
|
* 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 the direct capital instrument (DCI) and tier 1 notes (net of tax).
|
2015
£m
|
2014
£m
|
Sterling% change
|
|
Operating expenses
|
3,030
|
2,795
|
8%
|
Integration & restructuring costs
|
379
|
140
|
-
|
Expense base
|
3,409
|
2,935
|
16%
|
Operating expense ratio3
|
50.0%
|
51.1%
|
(1.1)pp
|
2015
£m
|
2014
£m
|
Sterling %
change5
|
Constant currency %
change5
|
|
United Kingdom & Ireland
|
625
|
482
|
30%
|
30%
|
France
|
198
|
205
|
(4)%
|
7%
|
Poland6
|
65
|
64
|
2%
|
13%
|
Italy6
|
79
|
63
|
26%
|
40%
|
Spain6
|
31
|
30
|
5%
|
17%
|
Turkey
|
27
|
30
|
(10)%
|
4%
|
Asia6
|
151
|
122
|
23%
|
22%
|
Aviva Investors
|
16
|
9
|
79%
|
79%
|
Value of new business6
|
1,192
|
1,005
|
19%
|
24%
|
2015
|
2014
|
Change
|
|
United Kingdom & Ireland4
|
95.0%
|
94.9%
|
0.1pp
|
Europe
|
95.4%
|
97.7%
|
(2.3)pp
|
Canada
|
93.8%
|
96.1%
|
(2.3)pp
|
General insurance combined operating ratio4
|
94.6%
|
95.7%
|
(1.1)pp
|
2015
£m
|
2014
£m
|
Sterling% change
|
|
IFRS profit after tax
|
1,079
|
1,738
|
(38)%
|
2015
|
2014
|
Sterling% change
|
|
Final dividend per share
|
14.05p
|
12.25p
|
15%
|
Total dividend per share
|
20.80p
|
18.10p
|
15%
|
2015
|
2014
|
Sterling% change
|
|
Estimated Solvency II cover ratio7
|
180%
|
||
Estimated economic capital surplus8
|
£11.6bn
|
£8.0bn
|
45%
|
Estimated IGD solvency surplus8
|
£6.0bn
|
£3.2bn
|
88%
|
IFRS net asset value per share
|
389p
|
340p
|
14%
|
MCEV net asset value per share9
|
515p
|
527p
|
(2)%
|
1 Cash remittances include amounts of £351 million received from UK & Ireland GI in February 2016 in respect of 2015 activity and £273 million received from UKGI in February 2015 in respect of 2014 activity.
|
2 CAD$230 million in respect of 2015 activity has been retained at the Canadian holding company in order to part-fund the proposed RBC General Insurance Company acquisition.
|
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 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
5 Currency movements are calculated using unrounded numbers so minor rounding differences may exist.
|
6 Poland includes Lithuania, Italy excludes Eurovita, Spain excludes CxG and Asia excludes South Korea.
|
7 The estimated Solvency II ratio represents the shareholder view. This ratio excludes the contribution to Group Solvency Capital Requirement ('SCR') and Group Own Funds of fully ring-fenced with-profits funds (£2.7 billion) and staff pension schemes in surplus (£0.7 billion) - these exclusions have no impact on Solvency II surplus. The impact from internal reinsurance arrangements between UK Life, UK and Ireland General Insurance and Aviva International Insurance Limited and the securitisation of equity release mortgages held by UK Life, effective 1 January 2016, have also been reflected in the Solvency II position.
|
8 The economic capital and IGD solvency 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.
|
9 In preparing the MCEV information, the directors have done so in accordance with the European Insurance CFO Forum MCEV Principles. No allowance for the impact of Solvency II has been made as permitted by the additional guidance issued in October 2015 by the European Insurance CFO Forum.
|
2015
|
2014
|
|||
Operating Capital Generation
£m |
Cash Remittances
£m |
Operating Capital Generation
£m |
Cash Remittances
£m |
|
United Kingdom & Ireland Life
|
1,465
|
667
|
888
|
437
|
United Kingdom & Ireland General Insurance & Health1
|
370
|
358
|
425
|
294
|
France
|
255
|
252
|
259
|
264
|
Poland
|
99
|
81
|
136
|
106
|
Italy
|
30
|
45
|
77
|
32
|
Spain
|
36
|
49
|
40
|
68
|
Other Europe
|
4
|
4
|
(13)
|
3
|
Europe
|
424
|
431
|
499
|
473
|
Canada2
|
154
|
6
|
136
|
138
|
Asia
|
65
|
21
|
23
|
23
|
Other3
|
49
|
24
|
(31)
|
66
|
Group
|
2,527
|
1,507
|
1,940
|
1,431
|
1 Cash remittances include amounts of £351 million received from UK & Ireland GI in February 2016 in respect of 2015 activity and £273 million in FY14 received from UKGI in February 2015 in respect of 2014 activity.
|
2 CAD$230 million in respect of 2015 activity has been retained at the Canadian holding company in order to part-fund the proposed RBC General Insurance Company acquisition.
|
3 Other includes Aviva Investors and Group Reinsurance.
|
2015
£m
|
2014
£m
|
|
Dividends received1
|
1,378
|
1,412
|
Internal interest received
|
129
|
19
|
Cash remitted to Group
|
1,507
|
1,431
|
External interest paid
|
(554)
|
(425)
|
Internal interest paid
|
(138)
|
(170)
|
Central spend
|
(252)
|
(173)
|
Other operating cash flows2
|
136
|
29
|
Excess centre cash flow3
|
699
|
692
|
1 This excludes a £150 million dividend paid by Friends Life holdings prior to the acquisition.
|
2 Other operating cash flows include central investment income and group tax relief payments and other financial cash flows previously reported under central spend.
|
3 Before non-operating items and capital injections.
|
2015
£m
|
2014
£m
|
|
Operating capital generation1
|
||
Life in-force business2
|
2,293
|
1,715
|
General insurance, fund management and other operations
|
552
|
544
|
Operating capital generated before investment in new business
|
2,845
|
2,259
|
Capital invested in new business
|
(318)
|
(319)
|
Operating capital generated after investment in new business - Group as reported
|
2,527
|
1,940
|
1 Operating capital generation comprises the following components:
|
- 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 represents business 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 and an additional 12.5% to Aviva UK Life & Pensions. At FY14 these arrangements had an adverse impact on Group MCEV free surplus of £204 million. On an economic capital basis these transactions improved the UK Life position and as a result the adverse impact on MCEV free surplus was excluded from OCG to reflect the economic substance of the management action.
|
Life & Other Covered Business OCG
|
Non-life OCG
|
|||||||||
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
|
830
|
19
|
618
|
1,467
|
-
|
-
|
(2)
|
-
|
(2)
|
1,465
|
United Kingdom & Ireland General Insurance & Health
|
-
|
-
|
-
|
-
|
300
|
-
|
27
|
43
|
370
|
370
|
Europe
|
579
|
(271)
|
62
|
370
|
66
|
-
|
(9)
|
(3)
|
54
|
424
|
Canada
|
-
|
-
|
-
|
-
|
157
|
-
|
(1)
|
(2)
|
154
|
154
|
Asia
|
131
|
(94)
|
40
|
77
|
2
|
1
|
(17)
|
2
|
(12)
|
65
|
Fund Management
|
19
|
(6)
|
7
|
20
|
-
|
32
|
-
|
(10)
|
22
|
42
|
Other
|
7
|
-
|
-
|
7
|
13
|
-
|
(17)
|
4
|
-
|
7
|
Total Group operating capital generation
|
1,566
|
(352)
|
727
|
1,941
|
538
|
33
|
(19)
|
34
|
586
|
2,527
|
Life & Other Covered Business OCG
|
Non-life OCG
|
|||||||||
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 non-covered 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 and an additional 12.5% to Aviva UK Life & Pensions. At FY14 these arrangements had an adverse impact on Group MCEV free surplus of £204 million. On an economic capital basis these transactions improved the UK Life position and as a result the adverse impact on MCEV free surplus was excluded from OCG to reflect the economic substance of the management action.
|
Release of future profits and required capital
|
2015
£m
|
2014
£m
|
Year 1
|
1,690
|
1,137
|
Year 2
|
1,490
|
1,059
|
Year 3
|
1,468
|
1,071
|
Year 4
|
1,542
|
1,204
|
Year 5
|
1,509
|
1,169
|
Year 6
|
1,462
|
1,157
|
Year 7
|
1,409
|
1,088
|
Year 8
|
1,455
|
1,060
|
Year 9
|
1,370
|
981
|
Year 10
|
1,336
|
922
|
Years 11-15
|
5,797
|
4,232
|
Years 16-20
|
4,503
|
3,547
|
Years 20+
|
8,118
|
7,583
|
Total net of non-controlling interests1,2
|
33,149
|
26,210
|
1 2015 includes £8,041 million of free surplus emergence related to the recently acquired Friends Life business.
|
2 Free surplus emergence is on a Solvency I basis (including allowances for Economic Capital), but not Solvency II.
|
2015
£m
|
Restated1
2014
£m
|
|
Operating profit before tax attributable to shareholders' profits
|
||
Life business
|
||
United Kingdom & Ireland
|
1,432
|
1,049
|
France
|
395
|
412
|
Poland
|
129
|
183
|
Italy
|
139
|
148
|
Spain
|
92
|
126
|
Turkey
|
11
|
13
|
Europe
|
766
|
882
|
Asia
|
244
|
87
|
Other
|
(23)
|
1
|
Total life business (note 7.i)
|
2,419
|
2,019
|
General insurance and health
|
||
United Kingdom & Ireland2
|
430
|
499
|
Europe
|
114
|
113
|
Canada
|
214
|
189
|
Asia
|
(6)
|
(2)
|
Other
|
13
|
9
|
Total general insurance and health2 (note 7.ii)
|
765
|
808
|
Fund management
|
||
Aviva Investors3
|
105
|
79
|
United Kingdom3
|
-
|
6
|
Asia
|
1
|
1
|
Total fund management
|
106
|
86
|
Other
|
||
Other operations (note A1)
|
(84)
|
(105)
|
Market operating profit2
|
3,206
|
2,808
|
Corporate centre (note A2)
|
(180)
|
(132)
|
Group debt costs and other interest (note A3)
|
(361)
|
(463)
|
Operating profit before tax attributable to shareholders' profits2
|
2,665
|
2,213
|
Tax attributable to shareholders' profits
|
(598)
|
(563)
|
Non-controlling interests
|
(152)
|
(143)
|
Preference dividends and other4
|
(74)
|
(86)
|
Operating profit attributable to ordinary shareholders2
|
1,841
|
1,421
|
Operating earnings per share2,5
|
49.2p
|
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.
|
2 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
3 The UK Retail fund management business was transferred from UK Life to Aviva Investors on 9 May 2014 and hence is included in Aviva Investors from 9 May 2014 onwards.
|
4 Other includes coupon payments in respect of the direct capital instrument (DCI) and tier 1 notes (net of tax).
|
5 Net of tax, non-controlling interests, preference dividends, coupon payments in respect of the direct capital instrument (DCI) and tier 1 notes (net of tax). The calculation of basic earnings per share uses a weighted average of 3,741 million (FY14: 2,943 million) ordinary shares in issue, after deducting treasury shares.
|
1 On a constant currency basis.
|
2015
£m
|
2014
£m
|
|
United Kingdom & Ireland Life
|
815
|
565
|
United Kingdom & Ireland General Insurance & Health
|
697
|
755
|
Europe
|
526
|
596
|
Canada
|
298
|
316
|
Asia
|
141
|
80
|
Aviva Investors
|
345
|
298
|
Other Group activities
|
208
|
185
|
Operating cost base
|
3,030
|
2,795
|
Integration & restructuring costs
|
379
|
140
|
Expense base
|
3,409
|
2,935
|
2015
£m
|
2014
£m
|
|
Claims handling costs1
|
303
|
345
|
Non-commission acquisition costs2
|
818
|
828
|
Other expenses
|
1,909
|
1,622
|
Operating cost base
|
3,030
|
2,795
|
1 As reported within net claims and benefits paid of £21,985 million (FY14: £19,474 million).
|
2 As reported within fee and commission expense of £3,347 million (FY14: £3,389 million).
|
2015
|
Restated1
2014
|
|
Life2
|
32.2%
|
29.7%
|
General insurance3
|
13.9%
|
14.8%
|
Health3
|
14.5%
|
15.7%
|
Fund management4
|
13bps
|
12bps
|
Group total5
|
50.0%
|
51.1%
|
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 Life non-commission acquisition and administration expenses gross of DAC on new business expressed as a percentage of Life operating income.
|
3 Written expenses including claims handling costs expressed as a percentage of net written premiums.
|
4 Aviva Investors' operating expenses expressed as a percentage of average funds under management.
|
5 Group operating expenses expressed as a percentage of operating profit before operating expenses and group debt costs.
|
Gross of tax and non-controlling interests
|
2015
£m
|
2014
£m
|
United Kingdom
|
609
|
473
|
Ireland
|
16
|
9
|
United Kingdom & Ireland
|
625
|
482
|
France
|
198
|
205
|
Poland
|
65
|
64
|
Italy - excluding Eurovita
|
79
|
63
|
Spain - excluding CxG
|
31
|
30
|
Turkey
|
27
|
30
|
Europe
|
400
|
392
|
Asia - excluding South Korea
|
151
|
122
|
Aviva Investors1
|
16
|
9
|
Value of new business - excluding Eurovita, CxG & South Korea
|
1,192
|
1,005
|
Eurovita, CxG & South Korea
|
-
|
4
|
Total value of new business
|
1,192
|
1,009
|
|
1 UK Retail fund management business was transferred from UK Life to Aviva Investors on 9 May 2014 and hence is included in Aviva Investors from 9 May 2014 onwards.
|
2 The trend analysis of VNB and present value of new business premiums (PVNBP) are included in Financial supplement, section E: VNB & sales analysis.
|
3 Poland includes Lithuania, Italy excludes Eurovita, Spain excludes CxG and Asia excludes South Korea.
|
4 On a constant currency basis.
|
Net written premiums
|
Claims ratio3
|
Commission and
expense ratio4
|
Combined operating ratio5
|
|||||
2015
£m
|
2014
£m
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
|
United Kingdom1,2
|
3,685
|
3,663
|
64.7
|
61.0
|
30.4
|
33.8
|
95.1
|
94.8
|
Ireland
|
282
|
272
|
67.9
|
67.1
|
26.7
|
29.5
|
94.6
|
96.6
|
United Kingdom & Ireland
|
3,967
|
3,935
|
64.9
|
61.4
|
30.1
|
33.5
|
95.0
|
94.9
|
Europe
|
1,200
|
1,313
|
66.2
|
69.7
|
29.2
|
28.0
|
95.4
|
97.7
|
Canada
|
1,992
|
2,104
|
63.3
|
65.5
|
30.5
|
30.6
|
93.8
|
96.1
|
Asia
|
12
|
13
|
62.6
|
65.3
|
39.0
|
32.5
|
101.6
|
97.8
|
Other6
|
-
|
7
|
||||||
Total2
|
7,171
|
7,372
|
64.5
|
64.0
|
30.1
|
31.7
|
94.6
|
95.7
|
1 United Kingdom excluding Aviva Re and agencies in run-off.
|
2 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
3 Claims ratio: incurred claims expressed as a percentage of net earned premiums.
|
4 Commission and expense ratio: written commissions and expenses expressed as a percentage of net written premiums.
|
5 Combined operating ratio: aggregate of claims ratio and commission and expense ratio.
|
6 Other includes Aviva Re.
|
UK & Ireland2
|
Europe
|
Canada
|
Total2
|
|||||
2015
%
|
2014
%
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
|
Underlying claims ratio1,2
|
67.1
|
64.2
|
69.0
|
67.2
|
68.4
|
67.0
|
67.8
|
65.4
|
Prior year reserve strengthening/(release)3
|
(2.4)
|
(1.4)
|
(2.7)
|
0.3
|
(4.4)
|
(3.5)
|
(3.2)
|
(1.6)
|
Weather over/(under) long-term average4
|
0.2
|
(1.4)
|
(0.1)
|
2.2
|
(0.7)
|
2.0
|
(0.1)
|
0.2
|
Claims ratio2
|
64.9
|
61.4
|
66.2
|
69.7
|
63.3
|
65.5
|
64.5
|
64.0
|
Commission and expense ratio5
|
30.1
|
33.5
|
29.2
|
28.0
|
30.5
|
30.6
|
30.1
|
31.7
|
Combined operating ratio2
|
95.0
|
94.9
|
95.4
|
97.7
|
93.8
|
96.1
|
94.6
|
95.7
|
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 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
3 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.
|
4 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.
|
5 Commission and expense ratio includes the impact of profit sharing arrangements.
|
2015
£m
|
2014
£m
|
|
Cash remitted to Group
|
667
|
437
|
Life operating profit: IFRS basis (restated)1
|
1,432
|
1,049
|
Expenses
|
||
Operating expenses
|
815
|
565
|
Integration and restructuring costs
|
215
|
28
|
1,030
|
593
|
|
Value of new business
|
625
|
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.
|
2015
£m
|
2014
£m
|
|
Cash remitted to Group1
|
358
|
294
|
Operating profit: IFRS basis2
|
430
|
499
|
Expenses
|
||
Operating expenses
|
697
|
755
|
Integration and restructuring costs
|
26
|
11
|
723
|
766
|
|
Combined operating ratio2,3
|
95.0%
|
94.9%
|
1 Cash remittances include amounts of £351 million received from UK & Ireland GI in February 2016 in respect of 2015 activity and £273 million received from UKGI in February 2015 in respect of 2014 activity.
|
2 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
3 General insurance business only.
|
Claims ratio
|
Commission and
expense ratio
|
Combined operating ratio
|
||||
United Kingdom & Ireland
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
Personal
|
65.8
|
62.4
|
28.8
|
33.9
|
94.6
|
96.3
|
Commercial
|
63.6
|
59.9
|
32.1
|
32.9
|
95.7
|
92.8
|
Total
|
64.9
|
61.4
|
30.1
|
33.5
|
95.0
|
94.9
|
2 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
3 General insurance business only.
|
2015
£m
|
2014
£m
|
|
Cash remitted to Group
|
431
|
473
|
Operating profit: IFRS basis (restated)2
|
||
Life (restated)2
|
766
|
882
|
General insurance & health
|
114
|
113
|
880
|
995
|
|
Expenses
|
||
Operating expenses
|
526
|
596
|
Integration and restructuring costs
|
22
|
17
|
548
|
613
|
|
Value of new business
|
||
Value of new business - excluding Eurovita & CxG
|
400
|
392
|
Effects of disposals/Assets held for sale (Eurovita & CxG)
|
-
|
(1)
|
400
|
391
|
|
Combined operating ratio3
|
95.4%
|
97.7%
|
Combined operating ratio3 - excluding Turkey
|
95.4%
|
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 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.
|
3 General insurance business only.
|
4 Poland includes Lithuania, Italy excludes Eurovita and Spain excludes CxG.
|
5 On a constant currency basis.
|
Claims ratio
|
Commission and
expense ratio
|
Combined operating ratio
|
||||
Europe
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
France
|
67.8
|
70.1
|
27.9
|
26.8
|
95.7
|
96.9
|
Poland
|
54.4
|
57.6
|
40.3
|
38.4
|
94.7
|
96.0
|
Italy
|
64.1
|
66.6
|
30.2
|
27.4
|
94.3
|
94.0
|
Turkey
|
-
|
101.5
|
-
|
45.4
|
-
|
146.9
|
Total
|
66.2
|
69.7
|
29.2
|
28.0
|
95.4
|
97.7
|
1 General Insurance business only.
|
2015
£m
|
2014
£m
|
|
Cash remitted to Group
|
6
|
138
|
General Insurance operating profit: IFRS basis
|
214
|
189
|
Expenses
|
||
Operating expenses
|
298
|
316
|
Integration and restructuring costs
|
7
|
4
|
305
|
320
|
|
Combined operating ratio
|
93.8%
|
96.1%
|
Claims ratio
|
Commission and
expense ratio
|
Combined operating ratio
|
||||
Canada
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
2015
%
|
2014
%
|
Personal
|
66.8
|
68.1
|
27.8
|
28.3
|
94.6
|
96.4
|
Commercial
|
57.1
|
61.1
|
35.4
|
34.4
|
92.5
|
95.5
|
Total
|
63.3
|
65.5
|
30.5
|
30.6
|
93.8
|
96.1
|
2015
£m
|
2014
£m
|
|
Cash remitted to Group
|
21
|
23
|
Operating profit: IFRS basis
|
||
Life
|
244
|
87
|
General insurance & health
|
(6)
|
(2)
|
238
|
85
|
|
Expenses
|
||
Operating expenses
|
141
|
80
|
Integration and restructuring costs
|
7
|
1
|
148
|
81
|
|
Value of new business
|
||
Value of new business - excluding South Korea
|
151
|
122
|
Effects of disposals (South Korea)
|
-
|
5
|
151
|
127
|
|
Combined operating ratio1
|
101.6%
|
97.8%
|
1 General insurance business only.
|
2 Asia excludes South Korea.
|
2015
£m
|
2014
£m
|
|
Cash remitted to Group1
|
24
|
16
|
Fund management operating profit: IFRS basis
|
||
Aviva Investors
|
105
|
79
|
United Kingdom
|
-
|
6
|
Asia
|
1
|
1
|
106
|
86
|
|
Aviva Investors: Operating profit: IFRS basis
|
||
Fund management
|
105
|
79
|
Other operations
|
-
|
(18)
|
105
|
61
|
|
Expenses1
|
||
Operating expenses
|
345
|
298
|
Integration and restructuring costs
|
11
|
4
|
356
|
302
|
|
Value of new business1
|
16
|
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
|
17,231
|
5,946
|
23,177
|
Gross claims/redemptions
|
(21,995)
|
(6,255)
|
(28,250)
|
Market movements and other1
|
(3,556)
|
(1,438)
|
(4,994)
|
Acquisitions2
|
54,079
|
-
|
54,079
|
Funds under management at 31 December 2015
|
246,174
|
43,736
|
289,910
|
1 Market movements and other includes £3.0 billion of outflows within Internal for the Ark Life & Aviva Assicuration Vita mandates (disposals). Within external market movements are liquidity outflows of £890 million.
|
2 Acquisitions includes Friends Life, Real Estate Finance and France Real Estate.
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
2015
£m
|
Restated1
2014
£m
|
2015
£m
|
Restated1
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
Restated1
2014
£m
|
|
New business income
|
708
|
462
|
228
|
227
|
152
|
126
|
1,088
|
815
|
Underwriting margin
|
279
|
175
|
208
|
230
|
82
|
58
|
569
|
463
|
Investment return
|
1,208
|
738
|
989
|
1,113
|
90
|
50
|
2,287
|
1,901
|
Total Income
|
2,195
|
1,375
|
1,425
|
1,570
|
324
|
234
|
3,944
|
3,179
|
Acquisition expenses
|
(405)
|
(278)
|
(243)
|
(263)
|
(127)
|
(96)
|
(775)
|
(637)
|
Administration expenses
|
(584)
|
(364)
|
(434)
|
(467)
|
(73)
|
(36)
|
(1,091)
|
(867)
|
Total Expenses
|
(989)
|
(642)
|
(677)
|
(730)
|
(200)
|
(132)
|
(1,866)
|
(1,504)
|
DAC and other
|
226
|
316
|
18
|
42
|
120
|
(15)
|
364
|
343
|
1,432
|
1,049
|
766
|
882
|
244
|
87
|
2,442
|
2,018
|
|
Other business2
|
(23)
|
1
|
||||||
Total
|
2,419
|
2,019
|
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.
|
2 Other business includes the total result for Aviva Investors Pooled Pensions and Aviva Life Reinsurance.
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
|
New business income (£m)
|
708
|
462
|
228
|
227
|
152
|
126
|
1,088
|
815
|
APE (£m)1
|
2,075
|
1,409
|
947
|
1,071
|
356
|
285
|
3,378
|
2,765
|
As margin on APE (%)
|
34%
|
33%
|
24%
|
21%
|
43%
|
44%
|
32%
|
29%
|
Underwriting margin (£m)
|
279
|
175
|
208
|
230
|
82
|
58
|
569
|
463
|
Analysed by:
|
||||||||
Expenses
|
65
|
44
|
44
|
55
|
39
|
30
|
148
|
129
|
Mortality and longevity
|
201
|
114
|
142
|
153
|
38
|
22
|
381
|
289
|
Persistency
|
13
|
17
|
22
|
22
|
5
|
6
|
40
|
45
|
1 APE excludes UK Retail Fund Management and Health business in UK & Ireland and Asia.
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
|
Unit-linked margin (£m)
|
763
|
434
|
435
|
439
|
70
|
13
|
1,268
|
886
|
As Annual management charge on average reserves (bps)
|
83
|
87
|
140
|
126
|
108
|
108
|
98
|
103
|
Average reserves (£bn)
|
92.4
|
49.8
|
31.0
|
34.8
|
6.5
|
1.2
|
129.9
|
85.8
|
Participating business (£m)
|
152
|
94
|
470
|
531
|
(3)
|
(1)
|
619
|
624
|
As bonus on average reserves (bps)
|
31
|
27
|
84
|
90
|
n/a
|
n/a
|
57
|
65
|
Average reserves (£bn)
|
49.5
|
34.4
|
55.9
|
59.3
|
2.7
|
1.7
|
108.1
|
95.4
|
Spread margin (£m)
|
198
|
136
|
7
|
25
|
10
|
26
|
215
|
187
|
As spread margin on average reserves (bps)
|
36
|
32
|
23
|
60
|
111
|
236
|
37
|
39
|
Average reserves (£bn)
|
54.6
|
42.1
|
3.1
|
4.2
|
0.9
|
1.1
|
58.6
|
47.4
|
Expected return on shareholder assets (£m)
|
95
|
74
|
77
|
118
|
13
|
12
|
185
|
204
|
Total (£m)
|
1,208
|
738
|
989
|
1,113
|
90
|
50
|
2,287
|
1,901
|
United Kingdom & Ireland
|
Europe
|
Asia
|
Total
|
|||||
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
2015
£m
|
2014
£m
|
|
Acquisition expenses (£m)
|
(405)
|
(278)
|
(243)
|
(263)
|
(127)
|
(96)
|
(775)
|
(637)
|
APE (£m)1
|
2,075
|
1,409
|
947
|
1,071
|
356
|
285
|
3,378
|
2,765
|
As acquisition expense ratio on APE (%)
|
20%
|
20%
|
26%
|
25%
|
36%
|
34%
|
23%
|
23%
|
Administration expenses (£m)
|
(584)
|
(364)
|
(434)
|
(467)
|
(73)
|
(36)
|
(1,091)
|
(867)
|
As existing business expense ratio on average reserves (bps)
|
30
|
29
|
48
|
48
|
72
|
90
|
37
|
38
|
Average reserves (£bn)
|
196.5
|
126.3
|
90.0
|
98.3
|
10.1
|
4.0
|
296.6
|
228.6
|
1 APE excludes UK Retail Fund Management and Health business in UK & Ireland and Asia.
|
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 &
Other2
£m
|
Total
£m
|
General insurance
|
|||||||||||
Gross written premiums
|
2,253
|
1,719
|
3,972
|
291
|
4,263
|
1,324
|
785
|
2,109
|
1,263
|
12
|
7,647
|
Net written premiums1
|
2,168
|
1,517
|
3,685
|
282
|
3,967
|
1,282
|
710
|
1,992
|
1,200
|
12
|
7,171
|
Net earned premiums1
|
2,160
|
1,493
|
3,653
|
262
|
3,915
|
1,258
|
719
|
1,977
|
1,171
|
16
|
7,079
|
Net claims incurred1
|
(1,413)
|
(950)
|
(2,363)
|
(177)
|
(2,540)
|
(840)
|
(411)
|
(1,251)
|
(775)
|
1
|
(4,565)
|
Of which claims handling costs
|
(170)
|
(7)
|
(177)
|
(74)
|
(45)
|
-
|
(296)
|
||||
Written commission
|
(479)
|
(307)
|
(786)
|
(36)
|
(822)
|
(248)
|
(147)
|
(395)
|
(245)
|
-
|
(1,462)
|
Written expenses3
|
(153)
|
(182)
|
(335)
|
(39)
|
(374)
|
(108)
|
(105)
|
(213)
|
(105)
|
(7)
|
(699)
|
Movement in DAC and other
|
(18)
|
3
|
(15)
|
(1)
|
(16)
|
5
|
(3)
|
2
|
13
|
-
|
(1)
|
Underwriting result1
|
97
|
57
|
154
|
9
|
163
|
67
|
53
|
120
|
59
|
10
|
352
|
Longer-term investment return4
|
215
|
21
|
236
|
98
|
53
|
3
|
390
|
||||
Other5
|
(1)
|
-
|
(1)
|
(4)
|
-
|
-
|
(5)
|
||||
Operating profit1
|
368
|
30
|
398
|
214
|
112
|
13
|
737
|
||||
Health insurance
|
|||||||||||
Underwriting result
|
27
|
-
|
1
|
(6)
|
22
|
||||||
Longer-term investment return
|
5
|
-
|
1
|
-
|
6
|
||||||
Operating profit
|
32
|
-
|
2
|
(6)
|
28
|
||||||
Total operating profit1
|
430
|
214
|
114
|
7
|
765
|
||||||
General insurance combined operating ratio1
|
|||||||||||
Claims ratio1
|
65.4%
|
63.6%
|
64.7%
|
67.9%
|
64.9%
|
66.8%
|
57.1%
|
63.3%
|
66.2%
|
64.5%
|
|
Commission ratio
|
22.1%
|
20.2%
|
21.3%
|
12.8%
|
20.7%
|
19.3%
|
20.7%
|
19.8%
|
20.4%
|
20.4%
|
|
Expense ratio
|
7.0%
|
12.0%
|
9.1%
|
13.9%
|
9.4%
|
8.5%
|
14.7%
|
10.7%
|
8.8%
|
9.7%
|
|
Combined operating ratio1,6
|
94.5%
|
95.8%
|
95.1%
|
94.6%
|
95.0%
|
94.6%
|
92.5%
|
93.8%
|
95.4%
|
94.6%
|
|
Assets supporting general insurance and health business
|
|||||||||||
Debt securities
|
3,993
|
470
|
4,463
|
2,999
|
1,937
|
209
|
9,608
|
||||
Equity securities
|
8
|
-
|
8
|
188
|
21
|
-
|
217
|
||||
Investment property
|
198
|
-
|
198
|
-
|
137
|
-
|
335
|
||||
Cash and cash equivalents
|
639
|
79
|
718
|
107
|
118
|
26
|
969
|
||||
Other7
|
2,559
|
104
|
2,663
|
135
|
209
|
1
|
3,008
|
||||
Assets at 31 December 2015
|
7,397
|
653
|
8,050
|
3,429
|
2,422
|
236
|
14,137
|
||||
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
|
||||
Other7
|
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
|
8,080
|
831
|
8,911
|
3,578
|
2,535
|
244
|
15,268
|
||||
LTIR as % of average assets
|
2.7%
|
2.5%
|
2.7%
|
2.7%
|
2.1%
|
1.2%
|
2.6%
|
1 Excludes the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
2 Asia & Other includes Aviva Re.
|
3 Operating expenses shown in note 3 includes claims handling costs and written expenses included in general insurance COR above, plus operating expenses of other non-insurance operations.
|
4 The UK & Ireland LTIR includes £115 million (FY14: £156 million) relating to the internal loan. This is lower than 2014 primarily as a result of the reduction in the balance of this loan during 2015.
|
5 Includes unwind of discount and pension scheme net finance costs.
|
6 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.
|
7 Includes loans and other financial investments.
|
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 and other
|
(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%
|
1 Asia & Other includes Aviva Re.
|
2 Operating expenses shown in note 3 includes claims handling costs and written expenses included in general insurance COR above, plus operating expenses of other non-insurance operations.
|
3 The UK & Ireland LTIR includes £156 million (FY13: £221 million) relating to the internal loan. This is lower than 2013 primarily as a result of a reduction in the balance of this loan during 2014.
|
4 Includes unwind of discount and pension scheme net finance costs.
|
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 Includes loans and other financial investments.
|
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
31 December 2015
£m
|
|
Life and platform business
|
|||||||
UK - non-profit - platform
|
5,282
|
-
|
3,695
|
(461)
|
3,234
|
(140)
|
8,376
|
UK - non-profit - other
|
83,731
|
63,810
|
8,019
|
(10,799)
|
(2,780)
|
(1,231)
|
143,530
|
Ireland
|
5,518
|
-
|
515
|
(589)
|
(74)
|
(292)
|
5,152
|
United Kingdom & Ireland (excluding UK with-profits)
|
94,531
|
63,810
|
12,229
|
(11,849)
|
380
|
(1,663)
|
157,058
|
Europe
|
96,602
|
-
|
7,877
|
(6,868)
|
1,009
|
(2,979)
|
94,632
|
Asia
|
4,240
|
7,505
|
1,496
|
(1,231)
|
265
|
(526)
|
11,484
|
Other
|
1,862
|
-
|
28
|
(257)
|
(229)
|
119
|
1,752
|
197,235
|
71,315
|
21,630
|
(20,205)
|
1,425
|
(5,049)
|
264,926
|
|
UK - with-profits and other
|
46,677
|
62,067
|
|||||
Total life and platform business
|
243,912
|
326,993
|
1 For further details on the acquisition of Friends Life see note B4.
|
2 Life business net flows in the table above are net of reinsurance and exclude flows related to UK equity release products.
|
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
|
Carrying value in the statement of financial position
£m
|
Debt securities
|
||||||
Government bonds
|
5,956
|
12,799
|
13,018
|
19,553
|
24,635
|
75,961
|
Corporate bonds
|
4,036
|
22,366
|
8,221
|
14,393
|
24,994
|
74,010
|
Other
|
198
|
2,581
|
2,783
|
2,311
|
5,120
|
12,993
|
10,190
|
37,746
|
24,022
|
36,257
|
54,749
|
162,964
|
|
Loans
|
||||||
Mortgage loans
|
-
|
16,954
|
-
|
305
|
1
|
17,260
|
Other loans
|
142
|
1,868
|
83
|
2,355
|
725
|
5,173
|
142
|
18,822
|
83
|
2,660
|
726
|
22,433
|
|
Equity securities
|
227
|
310
|
47,394
|
12,168
|
3,459
|
63,558
|
Investment property
|
366
|
172
|
6,647
|
3,139
|
977
|
11,301
|
Other investments
|
625
|
1,536
|
39,795
|
3,284
|
2,455
|
47,695
|
Total as at 31 December 2015
|
11,550
|
58,586
|
117,941
|
57,508
|
62,366
|
307,951
|
Total as at 31 December 2014
|
12,463
|
46,820
|
71,454
|
42,077
|
64,009
|
236,823
|
1 Of the £11.6 billion of assets 7% relates to other shareholder business assets.
|
IFRS
|
31 December 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
|
2,665
|
66p
|
2,173
|
74p
|
Investment return variances and economic assumption changes on life and non-life business
|
(170)
|
(4)p
|
188
|
6p
|
Profit/(loss) on the disposal and remeasurements of subsidiaries and associates
|
2
|
-
|
232
|
8p
|
Goodwill impairment and amortisation of intangibles
|
(177)
|
(4)p
|
(114)
|
(4)p
|
Amortisation and impairment of acquired value of in-force business
|
(498)
|
(12)p
|
-
|
-
|
Integration and restructuring costs
|
(379)
|
(9)p
|
(140)
|
(5)p
|
Other4
|
(53)
|
(1)p
|
-
|
-
|
Tax on operating profit and on other activities
|
(311)
|
(8)p
|
(601)
|
(20)p
|
Non-controlling interests
|
(161)
|
(4)p
|
(169)
|
(6)p
|
Profit after tax attributable to shareholders of Aviva plc
|
918
|
24p
|
1,569
|
53p
|
AFS securities (fair value) & other reserve movements
|
10
|
-
|
62
|
2p
|
Ordinary dividends
|
(635)
|
(16)p
|
(446)
|
(15)p
|
Direct capital instrument and tier 1 notes interest and preference share dividend
|
(74)
|
(2)p
|
(86)
|
(3)p
|
Foreign exchange rate movements
|
(325)
|
(8)p
|
(317)
|
(11)p
|
Remeasurements of pension schemes
|
(142)
|
(4)p
|
1,315
|
45p
|
Friends Life acquisition5
|
5,975
|
55p
|
-
|
-
|
Other net equity movements
|
19
|
-
|
(43)
|
(1)p
|
Equity attributable to shareholders of Aviva plc at 31 December1
|
15,764
|
389p
|
10,018
|
340p
|
1 Excluding preference shares.
|
2 Number of shares as at 31 December 2015: 4,048 million (31 December 2014: 2,950 million).
|
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.
|
4 Comprises the impact from an outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
5 Includes the dilution effect on IFRS NAV per share of the increase in number of shares arising as a result of the acquisition of Friends Life.
|
MCEV1
|
31 December 2015
£m
|
pence per
share3
|
31 December 2014
£m
|
pence per
share3
|
Equity attributable to shareholders of Aviva plc at 1 January2
|
15,547
|
527p
|
13,643
|
463p
|
Operating profit
|
2,582
|
64p
|
2,885
|
98p
|
Investment return variances and economic assumption changes on life and non-life business
|
(926)
|
(23)p
|
(36)
|
(1)p
|
Profit/(loss) on the disposal and remeasurements of subsidiaries and associates
|
-
|
-
|
178
|
6p
|
Goodwill impairment and amortisation of intangibles
|
(181)
|
(4)p
|
(130)
|
(4)p
|
Amortisation and impairment of acquired value of in-force business
|
-
|
-
|
-
|
-
|
Integration and restructuring costs
|
(382)
|
(9)p
|
(159)
|
(6)p
|
Other
|
174
|
4p
|
(198)
|
(7)p
|
Tax on operating profit and on other activities
|
(485)
|
(12)p
|
(674)
|
(23)p
|
Non-controlling interests
|
(161)
|
(4)p
|
(208)
|
(7)p
|
Profit after tax attributable to shareholders of Aviva plc
|
621
|
16p
|
1,658
|
56p
|
AFS securities (fair value) & other reserve movements
|
(1)
|
-
|
(1)
|
-
|
Ordinary dividends
|
(635)
|
(16)p
|
(446)
|
(15)p
|
Direct capital instruments and tier 1 notes interest and preference share dividend
|
(74)
|
(2)p
|
(86)
|
(3)p
|
Foreign exchange rate movements
|
(463)
|
(11)p
|
(546)
|
(19)p
|
Remeasurements of pension schemes
|
(142)
|
(4)p
|
1,315
|
45p
|
Friends Life acquisition4
|
5,975
|
5p
|
-
|
-
|
Other net equity movements
|
19
|
-
|
10
|
-
|
Equity attributable to shareholders of Aviva plc at 31 December2
|
20,847
|
515p
|
15,547
|
527p
|
1 In preparing the MCEV information, the directors have done so in accordance with the European Insurance CFO Forum MCEV Principles. No allowance for the impact of Solvency II has been made as permitted by the additional guidance issued in October 2015 by the European Insurance CFO Forum.
|
2 Excluding preference shares.
|
3 Number of shares as at 31 December 2015: 4,048 million (31 December 2014: 2,950 million).
|
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.
|
2015
%
|
Restated1
2014
%
|
|
United Kingdom & Ireland Life
|
14.2%
|
16.1%
|
United Kingdom & Ireland General Insurance and Health
|
7.9%
|
9.0%
|
Europe
|
12.7%
|
13.0%
|
Canada
|
16.9%
|
14.2%
|
Asia
|
22.0%
|
9.4%
|
Fund management
|
30.1%
|
23.2%
|
Corporate and Other Business
|
n/a
|
n/a
|
Return on total capital employed
|
10.7%
|
11.4%
|
Subordinated debt
|
4.4%
|
5.3%
|
Senior debt
|
3.5%
|
2.1%
|
Return on total equity
|
13.3%
|
14.2%
|
Less: Non-controlling interest
|
12.2%
|
10.5%
|
Direct capital instrument and tier 1 notes
|
6.6%
|
5.5%
|
Preference capital
|
8.5%
|
8.5%
|
Return on equity shareholders' funds2
|
14.0%
|
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 10.5% (FY14: 15.8%).
|
UK life funds
£bn
|
Other business
£bn
|
31 December 2015
£bn
|
31 December 2014
£bn
|
|
Insurance Groups Directive (IGD) capital resources
|
11.8
|
10.8
|
22.6
|
14.4
|
Less: capital resources requirement
|
(11.8)
|
(4.8)
|
(16.6)
|
(11.2)
|
Insurance Group Directive (IGD) excess solvency
|
-
|
6.0
|
6.0
|
3.2
|
Cover over EU minimum (calculated excluding UK life funds)
|
2.2 times
|
1.6 times
|
£bn
|
|
IGD solvency surplus at 31 December 2014
|
3.2
|
Acquisition of Friends Life
|
1.6
|
Operating profits net of integration and restructuring costs
|
1.6
|
Net hybrid debt issue1
|
0.4
|
Dividends and appropriations
|
(0.3)
|
Pension scheme funding
|
(0.2)
|
Outward reinsurance of latent reserves2
|
0.2
|
Increase in capital resources requirement
|
(0.1)
|
Other regulatory adjustments
|
(0.4)
|
Estimated IGD solvency surplus at 31 December 2015
|
6.0
|
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 redeemed in the second half of 2015.
|
2 Outward quota share reinsurance agreement completed in 2015 in Aviva Insurance Limited (AIL). See note A10 for further details.
|
2015
£bn
|
2014
£bn
|
|
Available economic capital
|
25.9
|
18.6
|
Standalone required economic capital
|
(21.2)
|
(16.1)
|
Diversification benefit
|
6.9
|
5.9
|
Diversified required economic capital
|
(14.3)
|
(10.2)
|
Estimated economic capital position at 31 December before foreseeable dividend accrual
|
11.6
|
8.4
|
Cover Ratio
|
181%
|
182%
|
Foreseeable dividend accrual
|
-
|
(0.4)
|
Estimated economic capital position at 31 December
|
11.6
|
8.0
|
Cover Ratio
|
181%
|
178%
|
2015
£bn
|
2014
£bn
|
|
Economic capital surplus position at 1 January
|
8.0
|
8.3
|
MCEV operating earnings
|
1.7
|
1.6
|
Economic variances (including FX)
|
(1.3)
|
(0.5)
|
Other non-operating items
|
(0.3)
|
(0.4)
|
Dividends and appropriations, and shares issued in lieu of dividends
|
(0.3)
|
(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
|
0.2
|
0.1
|
Change in available economic capital
|
7.7
|
0.2
|
Impact of trading operations and other
|
1.5
|
0.3
|
Other changes in methodology
|
(2.0)
|
(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 31 December before foreseeable dividend accrual
|
11.6
|
8.4
|
Foreseeable dividend accrual
|
-
|
(0.4)
|
Estimated economic capital surplus position at 31 December
|
11.6
|
8.0
|
2015
£bn
|
2014
£bn
|
|
Credit risk1
|
3.3
|
2.4
|
Equity risk2
|
1.6
|
1.5
|
Interest rate risk3
|
0.7
|
0.6
|
Other market risk4
|
1.6
|
1.4
|
Life insurance risk5
|
2.7
|
1.3
|
General insurance risk6
|
0.7
|
0.8
|
Operational Risk
|
1.0
|
0.7
|
Other risk7
|
2.7
|
1.5
|
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.
|
2 Capital held in respect of equity risk recognises the Group's shareholder exposure to changes in the market value of assets.
|
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.
|
5 Capital held in respect of life insurance risk recognises the Group's shareholder exposure to life insurance specific risks, such as longevity and lapse.
|
6 Capital held in respect of general insurance risk recognises the Group's shareholder exposure to general insurance specific risks, such as claims volatility and catastrophe.
|
7 Capital held in respect of other risk recognises the Group's shareholder exposure to specific risks unique to particular business units and other items.
|
2015
£bn
|
|
Own Funds
|
21.8
|
Solvency Capital Requirement before diversification
|
(16.3)
|
Diversification benefit
|
4.2
|
Diversified Solvency Capital Requirement
|
(12.1)
|
Estimated Solvency II position at 31 December1
|
9.7
|
Cover Ratio
|
180%
|
1 The estimated Solvency II ratio represents the shareholder view. This ratio excludes the contribution to Group SCR and Group Own Funds of fully ring-fenced with-profits funds (£2.7 billion) and staff pension schemes in surplus (£0.7 billion) - these exclusions have no impact on Solvency II surplus. The impact from internal reinsurance arrangements between UK Life, UK and Ireland General Insurance and Aviva International Insurance Limited and the securitisation of equity release mortgages held by UK Life, effective 1 January 2016, have also been reflected in the Solvency II position.
|
2015
£bn
|
|
Credit risk1
|
2.5
|
Equity risk2
|
1.1
|
Interest rate risk3
|
0.7
|
Other market risk4
|
1.3
|
Life insurance risk5
|
3.4
|
General insurance risk6
|
0.8
|
Operational risk
|
1.1
|
Other risk7
|
1.2
|
Total
|
12.1
|
1 Capital held in respect of credit risk recognises the Group's shareholder exposure to changes in the market value of assets and defaults.
|
2 Capital held in respect of equity risk recognises the Group's shareholder exposure to changes in the market value of assets.
|
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.
|
5 Capital held in respect of life insurance risk recognises the Group's shareholder exposure to life insurance specific risks, such as longevity and lapse.
|
6 Capital held in respect of general insurance risk recognises the Group's shareholder exposure to general insurance specific risks, such as claims volatility and catastrophe.
|
7 Capital held in respect of other risk recognises the Group's shareholder exposure to specific risks unique to particular business units and other items.
|
· 25 basis point increase and decrease in the risk-free rate, including all consequential changes (including assumed investment returns for all asset classes, market values of fixed interest assets, risk discount rates);
|
· 50 basis point increase and decrease in credit spreads for corporate bonds with credit rating A at 10 year duration, with the other ratings and durations stressed by the same proportion relative to the stressed capital requirement;
|
· 10% increase and decrease in market values of equity assets.
|
· 10% increase in maintenance expenses and investment expenses (a 10% sensitivity on a base expense assumption of £10 p.a. would represent an expense assumption of £11 p.a.);
|
· 10% increase in lapse rates (a 10% sensitivity on a base assumption of 5% p.a. would represent a lapse rate of 5.5% p.a.);
|
· 5% increase in both mortality and morbidity rates for life assurance;
|
· 5% decrease in mortality rates for annuity business;
|
· 5% increase in gross loss ratios for general insurance and health business.
|
Sensitivities
|
Impact on cover ratio
%
|
|
Changes in Economic assumptions
|
25bps increase in interest rate
|
3%
|
25bps decrease in interest rate
|
(4%)
|
|
50bps increase in corporate bond spread
|
(1%)
|
|
50bps decrease in corporate bond spread
|
1%
|
|
10% increase in market value of equity
|
1%
|
|
10% decrease in market value of equity1
|
0%
|
|
Changes in Non-Economic assumptions
|
10% increase in maintenance and investment expenses
|
(6%)
|
10% increase in lapse rates
|
(2%)
|
|
5% increase in mortality/morbidity rates - Life assurance
|
(1%)
|
|
5% decrease in mortality rates - annuity business
|
(8%)
|
|
5% increase in gross loss ratios
|
(2%)
|
|
1 A 10% fall in equities results in a proportionate decrease in Group Own Funds and Group SCR with no overall impact on the rounded Group cover ratio.
|
2015
£bn
|
|
Total Group equity on an IFRS basis
|
18.2
|
Elimination of goodwill and other intangible assets1
|
(9.9)
|
Liability valuation differences (net of transitional deductions)
|
20.5
|
Inclusion of risk margin (net of transitional deductions)
|
(4.0)
|
Net deferred tax2
|
(1.3)
|
Revaluation of subordinated liabilities
|
(0.7)
|
Solvency II Net Assets (gross of non-controlling interests)
|
22.8
|
Difference between Solvency II Net Assets and Own Funds3
|
(1.0)
|
Solvency II Own Funds4
|
21.8
|
1 Includes £1.9 billion of goodwill and £8.0 billion of other intangible assets comprising acquired value of in-force business of £4.4 billion, deferred acquisition costs (net of deferred income) of £2.3 billion and other intangibles of £1.3 billion.
|
2 Net deferred tax includes the tax effect of all other reconciling items in the table above which are shown gross of tax.
|
3 Regulatory adjustments to bridge from Solvency II Net Assets to Own Funds include recognition of subordinated debt capital and non-available non-controlling interests.
|
4 The estimated Solvency II position represents the shareholder view. It excludes the contribution to Group SCR and Group Own Funds of fully ring-fenced with-profits funds (£2.7 billion) and staff pension schemes in surplus (£0.7 billion) - these exclusions have no impact on Solvency II surplus. The impact from internal reinsurance arrangements between UK Life, UK and Ireland General Insurance and Aviva International Insurance Limited and the securitisation of equity release mortgages held by UK Life, effective 1 January 2016, have also been reflected in the Solvency II position.
|
2015
£bn
|
|
Total Group equity on a MCEV basis (net of tax and gross of non-controlling interests)
|
23.9
|
Removal of MCEV frictional costs1
|
0.5
|
Removal of MCEV cost of non-hedgeable risks1
|
1.4
|
Elimination of goodwill and other intangible assets
|
(3.6)
|
Liability valuation differences (net of transitional deductions)
|
5.2
|
Inclusion of risk margin (net of transitional deductions)
|
(4.0)
|
Net deferred tax2
|
0.1
|
Revaluation of subordinated liabilities
|
(0.7)
|
Solvency II Net Assets (net of tax and gross of non-controlling interests)
|
22.8
|
Difference between Solvency II Net Assets and Own Funds3
|
(1.0)
|
Solvency II Own Funds4
|
21.8
|
1 The frictional cost and cost of non-hedgeable risks are shown gross of non-controlling interests. The numbers shown in disclosure F9 are net of non-controlling interests.
|
2 Net deferred tax includes the tax effect of all other reconciling items in the table above which are shown gross of tax.
|
3 Regulatory adjustments to bridge from Solvency II Net Assets to Own Funds include recognition of subordinated debt capital and non-available non-controlling interests.
|
4 The estimated Solvency II position represents the shareholder view. It excludes the contribution to Group SCR and Group Own Funds of fully ring-fenced with-profits funds (£2.7 billion) and staff pension schemes in surplus (£0.7 billion) - these exclusions have no impact on Solvency II surplus. The impact from internal reinsurance arrangements between UK Life, UK and Ireland General Insurance and Aviva International Insurance Limited and the securitisation of equity release mortgages held by UK Life, effective 1 January 2016, have also been reflected in the Solvency II position.
|
2015
£bn
|
|
Estimated economic capital surplus
|
11.6
|
Liability valuation differences (net of transitional deductions)
|
1.5
|
Inclusion of risk margin (net of transitional deductions)
|
(3.3)
|
Other valuation differences
|
(0.1)
|
Estimated Solvency II surplus
|
9.7
|
1 The reconciliation items in the bridge above are presented on a net of tax basis.
|
End part 2 of 2
|
AVIVA PLC
|
|
By: /s/ K.A. Cooper
|
|
K.A. Cooper
|
|
Group Company Secretary
|