AVIVA PLC Delivering on our promises
It takes Aviva
Aviva plc
Annual Report and
Accounts 2023
Part 1
2. Governance | 3. IFRS Financial Statements | 4. Other Information |
It all starts with our customers
Make the most out of life, plan for the future. Have the confidence that if things go wrong, we'll be there to help put them right.
It takes Aviva.
Our reporting suite
This report forms part of our reporting suite.
Find out more on www.aviva.com
Results Presentation 2023 | Results | Climate-related Financial |
Presentation of our full year results. | Announcement 2023 | Disclosure 2023 |
Includes our news | Our report in compliance with | |
release and analysis of | the Taskforce on Climate-related | |
the financial results. | Financial Disclosure (TCFD). |
How to navigate this report
Throughout the Strategic report we use a colour coding system for our four strategic pillars: Growth, Customer, Efficiency and Sustainability:
Growth | Efficiency |
Accelerating growth | Top-quartile efficiency, |
in capital-light | synergies from our model, |
businesses | and technology at the core |
Customer | Sustainability | |
Digitally-led customer | Committed to social action, | |
experience and serving | climate action and being a | |
more needs | sustainable business |
Throughout the Strategic report we use a colour coding system for the three areas of our business: Insurance, Wealth and Retirement
InsuranceWealthRetirement
Use your browser's bookmarks and tools to navigate
To search this document: PC use Ctrl+F; MAC use Command+F
Reporting Criteria 2023 | Sustainability Datasheet 2023 |
Sets out the principles and definitions | All sustainability metrics are |
used to report the Group's key | included in our datasheet. |
sustainability performance indicators | |
and selected data points. |
2. Governance | 3. IFRS Financial Statements | 4. Other information |
Contents
1. Strategic Report (Part 1)
1.02 Aviva on a page
1.03 2023 highlights
1.04 Delivering for customers and shareholders
- Our investment case
- Chair's statement
- Chief Executive Officer's report
1.14 Chief Financial Officer's report
1.19 Our business model
1.21 Our external environment
1.23 Our strategy
1.28 Our key performance indicators
1.31 Our business review
1.43 Capital management
1.50 Our stakeholders
1.55 Our people
1.58 Our sustainability ambition
1.80 Non-financial and sustainability information statement
1.85 Our risks and risk management
1.94 Going concern and longer-term viability statement
Aviva plc
2. Governance (Part 1)
2.02 Chair's introduction to governance
2.03 Our compliance with the Code
2.04 Our Board of Directors
2.09 Our approach to governance
2.14 Our Board's activities
2.18 Nomination and Governance Committee report
2.21 Audit Committee report
2.27 Risk Committee report
2.29 Customer and Sustainability Committee report
2.31 Remuneration Committee report
2.35 Remuneration at a glance
2.37 Directors' remuneration policy
2.47 Annual report on remuneration
2.67 Directors' report
2.70 Statement of directors' responsibilities
3. IFRS Financial Statements (Part 2)
3.03 Independent auditors' report
3.18 Accounting policies
3.38 Consolidated financial statements
3.44 Notes to consolidated financial statements
3.171 Company financial statements
4. Other Information (Part 2)
4.02 Alternative Performance Measures (APMs)
- Shareholder services
- Cautionary statement
1.01
Foreword
The Strategic report and Governance pages form part 1 of the Annual Report and Accounts. The IFRS Financial Statements and Other Information form part 2 of the Annual Report and Accounts. Parts 1 and 2 together comprise the Aviva plc Annual Report and Accounts 2023.
The Strategic report contains information about Aviva, how we create value and how we run our business. It includes our strategy, our business model, key performance indicators, overview of our businesses, our approach to risk and our responsibility to our people, our communities and the planet. The Strategic report is only part of the Annual Report and Accounts 2023, which was approved by the Board on
6 March 2024 and signed on its behalf by Amanda Blanc, Chief Executive Officer. The Directors' report required under the Companies Act 2006 comprises the Governance section of the Annual Report and Accounts 2023.
The Strategic report should be read in conjunction with the Cautionary statement, included within the Other information section.
As a reminder
Reporting currency: We use £ sterling. Unless otherwise stated, all figures in this report relate to Group.
Explanations of key terms used in this report are available on:
www.aviva.com/glossary www.aviva.com/climate-goals- glossary
The Company's registered office:
80 Fenchurch Street
London, EC3M 4AE
Alternative Performance
Measures:
Throughout the Annual Report and Accounts we use a range of financial metrics to measure our performance and financial strength. These metrics include Alternative Performance Measures (APMs), which are non- Generally Accepted Accounting Principles (GAAP) measures that are not bound by the requirements of IFRS or Solvency II. A complete list of the APMs used by the Group, and further guidance in respect of their use, can be found in the Other information section in part 2 of the Annual Report and Accounts.
This guidance includes definitions and, where possible, reconciliations to relevant line items or sub-totals in the financial statements.
More information about Aviva can be found at www.aviva.com
Annual Report and Accounts 2023
2. Governance | 3. IFRS Financial Statements | 4. Other Information |
Aviva on a page
Aviva is the UK's leading diversified insurer across Insurance, Wealth and Retirement, with 19.2 million customers in the UK, Ireland and Canada
Our purpose is to be with you today for a better tomorrow
We're there to protect the things that matter most to our customers: their homes and belongings, their health and wealth, their future and their families.
To live up to that purpose, we have an ambition to be:
The leading UK provider and go-to customer brand for all insurance, wealth and retirement solutions, with major businesses in Canada and Ireland
We have a clear strategy to achieve this vision based on four pillars:
Growth
Accelerating growth in capital-light businesses
Customer
Digitally-led customer experience and serving more needs
Efficiency
Top quartile efficiency, synergies from our model and technology at the core
Sustainability
Committed to social action, climate action and being a sustainable business
We are guided by our values:
Commitment
We understand the impact we have on the world and take the responsibility that comes with it seriously
Care
We care deeply about the positive difference we can make in our customers' lives
Community
We recognise the strength that comes from working as one team, built on trust and respect
Confidence
We believe the best is yet to come for our customers, our people, and society
Offering customers a range of products and services across:
e | |||||
c | |||||
n | |||||
a | |||||
r | |||||
s | u | W | |||
n | a | ||||
I | e | ||||
l | |||||
t | |||||
h |
R | |
e | |
t | |
i | |
r | t |
e | |
men |
Read more on our strategy | Read more on our people | Read more on our business model |
Aviva plc | 1.02 | Annual Report and Accounts 2023 |
2. Governance |
2023 highlights
We have made significant progress in 2023
Our position as the UK's leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering. We are building a clear track record of strong and consistent performance. In each of the last three years we have grown sales1, operating profit2 and our dividend. This momentum gives us increased confidence for the future for Aviva, and so we are announcing a new £300 million share buyback programme, and upgrading our dividend guidance to mid-single digit growth in the cash cost.
3. IFRS Financial Statements | 4. Other Information |
Financial | ||
£1,467m | £1,106m | £2,734m |
Group adjusted | IFRS profit for the year3 | Baseline controllable |
operating profit‡,2 | costs‡ | |
£1,729m | £1,892m | 33.4p |
Solvency II operating | Cash remittances‡ | 2023 total dividend |
own funds generation‡ | per share | |
Growth | ||
£10,888m | £781m | £8,307m |
Gross written | Insurance, Wealth & | Wealth net flows‡ |
premiums (GWP)‡ | Retirement (IWR) value | |
of new business‡ |
-
Denotes Alternative Performance Measures (APMs) and further information can be found in the 'Other information' section.
1. Reference to sales represents Annual Premium Equivalent (APE) for Protection & Health, Present Value of New Business Premiums (PVNBP) for Annuities and Equity Release and Gross Written Premiums (GWP) for General Insurance. APE, PVNBP and GWP are APMs and further information can be found in 'Other Information' section.
2. Group adjusted operating profit is an APM which is used by the Group to supplement the required disclosures under IFRS. See the 'Other Information' section for further information.
3. IFRS Profit for the year represents IFRS profit for the year after tax
Aviva plc | 1.03 | Annual Report and Accounts 2023 |
2. Governance | 3. IFRS Financial Statements |
Delivering for customers and shareholders
Our strategy is centred around our customers. And we're only getting started. The better we understand what customers need, the better we can help them make things click.
4. Other Information
Life is complicated, the economy uncertain and the world is changing fast. Our customers look to us to help make sense of the financial puzzles in their lives; we take that responsibility to heart and always want to do better.
This year, some of those customers across Canada, Ireland and the UK again faced wildfires and hail, storms and flood. With homes damaged, and lives turned upside down, our teams were on hand to help. Our people worked extra shifts and teams were on the ground in the worst hit communities arranging temporary accommodation, emergency payments and repairs. This is Aviva at its best.
We're all working hard to make sure we keep our word to all our customers and live up to their expectations, today and long into the future. That's the reason we exist after all, to be 'with you today, for a better tomorrow'.
By getting that right and delivering on our purpose as well as we can, we will deliver on our full potential for shareholders too.
Aviva plc | 1.04 |
Annual Report and Accounts 2023
2. Governance | 3. IFRS Financial Statements | 4. Other Information |
Unique model
The UK's leading diversified insurer
Our customer base and market- leading positions across Insurance, Wealth and Retirement set us apart
Insurance Wealth Retirement
Making it click
At those moments that matter in life, we're uniquely placed with an extensive range of products and services our customers can rely on.
Read more in our business review
Passed first time, now | Step on to that | Set-up her own | Put something away |
she's going places | career ladder | start-up | for a rainy day |
Car insurance | Workplace pension | SME cyber cover | Financial advice |
Congratulations, | Ouch! Need some | New home, new | Make the most |
it's a girl | physio, fast | responsibilities | of retirement |
Junior ISA | Employee private medical cover | Life insurance | Annuities |
Home insurance | Equity release | ||
Aviva plc | 1.05 | Annual Report and Accounts 2023 |
4. Other Information
We're taking advantage of opportunities to grow in our chosen markets, and accelerating our progress through M&A
Growing organically
2023 has been another year of strong and consistent performance.
General insurance gross written premiums (GWP)1 have grown by 12% overall. Our Insurance, Wealth and Retirement business increased overall new business value (VNB) by 4%, with health insurance and protection sales1 both growing. Our workplace business continues to progress with a record £6.9 billion of net flows, winning 477 new schemes during the year. In our retirement business, we transacted on 56 BPA deals, for total sales1 of £5.5 billion.
Accelerating through acquisitions
In 2023, we announced two acquisitions that will accelerate growth of our capital-light2 businesses, which now make up over half our portfolio.
In September, we announced the acquisition of AIG's UK protection business for £460 million3. We already have strong organic growth and an award-winning protection business and this transaction, due to complete in 2024, will add further scale.
In November 2023, we announced a deal to acquire Canadian vehicle replacement insurance business Optiom. Completed in January 2024, the deal will improve our offering and distribution in a highly attractive segment of the Canadian market.
- Reference to sales represents Annual Premium Equivalent (APE) for Protection & Health, Present Value of New Business Premiums (PVNBP) for Annuities and Equity Release and Gross Written Premiums (GWP) for General Insurance. APE, PVNBP and GWP are APMs and further information can be found in 'Other Information' section.
- Capital-lightrefers to Aviva's General Insurance, Wealth, Protection and Health and Aviva Investors businesses
- Completion of this transaction is subject to customary closing conditions, including regulatory approvals
Read more in the CFO report
39%
of all new UK sales to existing customers
Aviva plc | 1.06 |
Annual Report and Accounts 2023
2. Governance | 3. IFRS Financial Statements |
Growing confidence
Investing for the future
Our consistent performance gives us the confidence to invest in our customers, our business and our communities
4. Other Information
Improving experience
We continue investing to make meaningful improvements to the way we serve our customers.
For example, new pricing analysis and models for our Global Corporate and Speciality team means quotes that used to take over an hour to load can now be ready in under ten minutes. In Ireland's wealth business, a new digital anti- money laundering solution cuts delays, allowing brokers to enter data themselves and make that data live within 30 minutes. Aviva Canada opened its first AutoCare Centres, to offer extra capacity, more convenient service and quicker claims handling, which has led to an improvement in its customer satisfaction scores.
Investing in the UK
Aviva Capital Partners (ACP), develops and invests in infrastructure assets with Aviva group capital. These investments will help grow the economy, create jobs and support community facilities.
Aviva plc
They also generate assets for our Insurance, Wealth & Retirement business to invest in, and for Aviva Investors to manage.
In October 2023, ACP was selected as preferred bidder, along with our partner the mixed-use developer Socius, to develop a district for cancer research and treatment at the London Cancer Hub.
The Hub will deliver major social and economic benefits, including 13,000 highly skilled jobs in health, science, education and construction.
Innovating solutions
Aviva Ventures, our corporate venture capital fund, has helped Tembo Money develop an innovative mortgage advice service since it was founded.
Through our partnership with the Founders Factory, we helped this start-up design and launch a way to help more people afford their own home, and we started to introduce their service at a reduced cost to some of our existing workplace customers and our employees in 2023.
1.07
Read more in our business review
Annual Report and Accounts 2023
2. Governance | 3. IFRS Financial Statements | 4. Other Information |
Superior returns
Delivering for our shareholders
Sustainable cash generation underpins our ongoing commitment to shareholders. It supports our dividend and allows us to make regular capital returns.
In March 2024 we announced a new share buyback programme of £300 million.
We have declared a final dividend of
22.3 pence, bringing our total dividend for the year to 33.4 pence.
In recognition of the group's strong prospects we have upgraded our dividend guidance to mid-single digit growth in the cash cost.
Cash remittances 2021-2023
£5,636m
2023 | £1,892 |
2022 | £1,845 |
2021 | £1,899 |
Total capital and dividend returned to shareholders over last 3 years:
£9bn
Read more about our investment case
33.4p
2023 total dividend per share
Aviva plc | 1.08 | Annual Report and Accounts 2023 |
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Aviva plc published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 09:57:03 UTC.
