Aviva plc Q3 2021 Trading Update

RNS Number : 0202S

Aviva PLC

11 November 2021

 

Page 1

News Release
11 November 2021

Aviva plc Q3 2021 Trading Update

Growth and strategic execution drive strong year-to-date performance at Aviva

Remain on track to meet or exceed cash remittance and cost saving targets

Strong solvency and liquidity positions. Capital return of at least £4bn underway with c.£450m of the £750m share buyback completed

Savings & Retirement		Annuities & Equity Release		General Insurance1		Aviva Investors		Solvency II
£7.3bn		£5.3bn		£6.5bn		£1.6bn		215%
Net flows +21%		PVNBP (14)%		GWP +5%		Ext. net flows +37%		Cover ratio +12pp
9M20: £6.0bn		9M20: £6.2bn		9M20: £6.2bn		9M20: £1.2bn		HY21: 203 %

Amanda Blanc, Group Chief Executive Officer, said:

"Aviva has delivered strong performance in the first nine months. Record inflows in Savings & Retirement and excellent growth in General Insurance support our confidence in Aviva's growth potential. Savings & Retirement net flows were up 21% year-to-date, continuing the strong first half performance. Bulk annuity volumes accelerated sharply in the third quarter. General Insurance premiums¹ grew 5% year-to-date reflecting solid customer retention and new business wins, particularly in commercial lines.

"We continue to make excellent and rapid strategic progress, right across Aviva. The completion of disposals in France and Italy GI since the half year are significant milestones as we deliver a radically simplified and refocused Aviva. We are delivering our commitment to return at least £4bn of capital to shareholders, with c.£450m of the £750m share buyback already successfully completed.

"Aviva is targeting Net Zero by 2040 and we welcome the Government's plan, mandating financial institutions to publish transition plans. This will help to ensure that every firm making a Net Zero commitment - whether an insurer, a bank or an asset manager - is doing so in a robust and consistent way.

"We look forward with confidence. We expect the good trading momentum to continue in the fourth quarter, and we remain on track to meet or exceed our cash and cost saving targets."

Strong growth in Life sales² and GI premiums

• UK&I life sales of £25.3bn (9M20: £21.8bn) with strong growth in Savings & Retirement. Improved annuity volumes versus the first half with £2.4bn BPAs written in Q321, bringing 9M21 volumes to £4.0bn (9M20: £5.0bn).

• General Insurance gross written premiums (GWP)¹ up 5% to £6.5bn at 9M21 (9M20: £6.2bn) and COR¹ 92.4% (9M20: 98.1%).

Continued focus on cost efficiency

• Controllable costs^1,3 down 2% (excluding cost reduction implementation and IFRS 17 costs) to £2,045m at 9M21 (9M20: 2,080m) despite the headwinds of inflation and targeted investments in growth.

• On track to achieve savings target of £300m in 2022 relative to our 2018 baseline and net of inflation. Focus over the longer term remains to deliver top-quartile cost efficiency.

Positive outlook for cash remittances

• Expecting strong growth in cash remittances for the year from the £1.4bn achieved last year (9M21 continuing cash remittances: £1.1bn) and we remain on track to achieve our target of over £5bn in cumulative business unit cash remittances¹ in 2021 to 2023.

1 From continuing operations

2 References to sales represent present value of new business premiums (PVNBP) which is an Alternative Performance Measure (APM) and further information can be found in the 'Other information' section of the 2021 interim results announcement.

3 Controllable costs represent other expenses from continuing operations of £1.7bn for 9M21, reported in the IFRS consolidated income statement, and adjusted to show the controllable operational overheads associated with maintaining our businesses (for example adjusted to include indirect acquisition costs, and exclude certain amortisation and impairment charges and premium based taxes, fees and levies that vary directly with premiums). Controllable costs is an APM and further information can be found in the 'Other information' section of the 2021 interim results announcement.

Page 2

Solvency and liquidity remain strong

• Solvency II shareholder cover ratio of 215% at Q321 (HY21: 203%).

• Pro forma prospective cover ratio at Q321 of c.197%, adjusted for remaining disposals, illustrative capital return, further debt reduction, and also for the estimated impact of interest rate reduction between 30 September and 5 November 2021 (HY21: 195%) - please refer to page 5 for further details.

• Centre liquidity (Oct 21) of £4.5bn (Jul 21: £2.8bn), with the increase since July mainly reflecting divestment proceeds received.

• Solvency II debt leverage ratio of 28% at Q321 (HY21: 26%).

Focus the portfolio nears completion. Capital return underway

• Recently completed disposals of France for £2.8bn and Italy GI for £284m. The remaining completions in Poland, Italy (Life) and Vietnam are expected by the end of the year, bringing to a conclusion the £7.5bn divestment programme.

• £750m share buyback commenced with c.£450m completed. We expect at least £4bn to be returned by HY22 with further details to be provided at FY21 results in March 2022 (subject to regulatory and shareholder approvals, remaining completions and market conditions).

Pages 3 to 6 of this release cover Q3 trading performance, capital, and outlook in further detail

Page 3

Life sales¹ and Value of New Business (VNB)

			PVNBP				VNB
	9M21 £m	9M20 £m	Sterling % change		9M21 £m	9M20 £m	Sterling % change
Savings & Retirement and Other	16,970	12,649	34	%	141	79	78	%
Annuities & Equity Release	5,294	6,163	(14)	%	16	85	(81)	%
Protection & Health	1,845	1,854	-	%	146	125	17	%
Ireland Life	1,210	1,170	3	%	16	3	433	%
UK & Ireland Life total	25,319	21,836	16	%	319	292	9	%
Strategic investments	909	502	81	%	67	14	379	%
Continuing operations	26,228	22,338	17	%	386	306	26	%
Discontinued operations	8,442	8,777	(4)	%	302	397	(24)	%
Total2	34,670	31,115	11	%	688	703	(2)	%

Strong 9M21 sales of £26.2bn, up 17%, in continuing operations. VNB³ is also up sharply versus the prior year, by 26% to £386m.

Savings & Retirement

• Overall sales were up 34% with Retail sales up 52%, continuing the strong first half performance.

• Workplace sales were up 24% due to increased membership in existing schemes and good levels of new scheme wins, where our ESG credentials are increasingly a key factor for employers selecting a new provider.

• VNB increased significantly, to £141m (9M20: £79m), partly reflecting the strong sales performance.

Annuities & Equity Release

• Sales were 14% lower at 9M21, mainly reflecting the lower BPA volumes written in a subdued market in the first half of the year. Activity has accelerated strongly in the third quarter with £2.4bn of volumes written, bringing 9M21 volumes to £4.0bn.

• VNB of £16m (9M20: £85m) reflects lower initial BPA margins. This should improve as we progress toward our target asset allocation and reinsurance in the fourth quarter, as seen in previous years, albeit we expect full year 2021 margins to be below 2020 levels due to the low credit spread environment.

Protection & Health

• Overall sales were flat. Health was up 12% at 9M21 driven by positive reaction to our Expert Select proposition, which in Q3 helped deliver our highest quarterly retail volumes on record. In October our Health business surpassed 1 million insured lives for the first time.

• Individual Protection sales were up 2% at 9M21 benefiting from the opening up of the economy during the year, while we are also making good progress in widening our distribution including in digital channels. Group Protection was 16% lower, primarily due to two large scheme wins in the prior period.

• VNB grew 17% due to higher Individual Protection and Health margins, reflecting changes in the business mix.

Ireland Life

• Sales grew 3% at 9M21 driven by strong sales in unit-linked and protection business.

• A rationalised new product offering with a focused fund range for brokers and customers has improved margins with VNB up significantly in the period.

Strategic Investments

• Sales increase at 9M21 mainly reflects the inclusion of our minority stake in Aviva SingLife, which was formed on 30 November 2020 following the disposal of Singapore (shown in discontinued operations for 9M20).

• Aviva SingLife has seen strong sales of long-term care in 2021, whilst China has seen good sales growth and improved margins.

1 References to sales represent present value of new business premiums (PVNBP) which is an Alternative Performance Measure (APM) and further information can be found in the 'Other information' section of the 2021 interim results announcement.

2 Excludes Aviva Investors

3 From continuing operations

Page 4

Savings & Retirement and Aviva Investors net flows¹ and assets under management (AUM)

			Net flows		Assets under management
	9M21 £m	9M20 £m	change		30 Sep 21 £bn	30 Jun 21 £bn	change
Savings & Retirement	7,295	6,010	21	%	145	141	3	%
Aviva Investors	893	(443)	302	%	263	260	1	%
Of which: Aviva Investors external assets	1,601	1,171	37	%	59	56	4	%

Savings & Retirement

• Net flows were up 21% at £7.3bn (9M20: £6.0bn) benefiting from record inflows in both Platform and Workplace.

• Platform net flows grew by 62% to £4.2bn for 9M21 (9M20: £2.6bn), while Q3 delivered our 2nd largest quarter ever of inflows, following on from our largest ever quarter in Q1.

• Workplace net flows remained strong at £3.6bn for 9M21 (9M20: 3.8bn), with record inflows for the year-to-date.

Aviva Investors

• Positive net flows of £0.9bn (9M20: net outflows of £0.4bn), excluding cash and liquidity funds, have improved in the period driven by lower internal net outflows and external net flows of £1.6bn (9M20: £1.2bn) as our trading momentum remains strong.

• Pipeline of third-party business remains healthy and our shift in focus towards our strengths of ESG, real assets, infrastructure and credit continues to deliver improvements.

General Insurance GWP and COR

											GWP						COR
	Personal lines				Commercial lines				Total				Total
	9M21 £m	9M20 £m	Sterling % change		9M21 £m	9M20 £m	Sterling % change		9M21 £m	9M20 £m	Sterling % change		9M21 %		9M20 %		Change
UK	1,785	1,807	(1)	%	1,895	1,635	16	%	3,680	3,442	7	%	94.2	%	100.5	%	(6.3) pp
Ireland	158	180	(12)	%	155	133	17	%	313	313	-	%	90.2	%	93.0	%	(2.8) pp
Canada	1,653	1,630	1	%	893	814	10	%	2,546	2,444	4	%	90.2	%	95.5	%	(5.3) pp
Continuing operations	3,596	3,617	(1)	%	2,942	2,582	14	%	6,539	6,199	5	%	92.4	%	98.1	%	(5.7)pp
Discontinued operations									1,384	1,339	3	%	100.3	%	93.1	%	7.2pp
Total									7,923	7,538	5	%	93.8	%	97.3	%	(3.5)pp

Overall

• Continuing operations GWP growth of 5% to £6.5bn (9M20: £6.2bn), representing our highest premiums in a decade. The UK delivered growth of 7% and Canada 4%.

• COR from continuing operations improved by 5.7pp to 92.4% (9M20: 98.1%) as a result of stronger underwriting performance, and a reduction in COVID-19 related claims, partly offset by adverse weather experience in Q3, following July flooding in the UK and events in British Columbia, Alberta and Ontario in Canada.

• Claims frequency in motor lines has begun to normalise as we emerge from lockdown restrictions, albeit remaining below pre-pandemic levels, while the softer rate environment in motor in the UK, Ireland and Canada is now being reflected in earnings. We continue to expect to achieve a COR across our continuing General Insurance business of less than 94% in 2021.

UK & Ireland

• UK commercial lines growth of 16% was driven by well-priced new business opportunities, strong retention and continued rate momentum, including growth of 20% in Global Corporate and Specialty (GCS) lines and 12% in SME.

• Our retail personal lines business in the UK grew 4% with customers up 7% to 3.4m, reflecting the benefits of the successful launch of the Aviva brand on price comparison websites, helping to offset the impact of a soft rate market.

• Total UK personal lines premiums were 1% lower with the growth in retail being offset by lower sales through some of our distribution partners and very low demand for travel insurance in 2021.

• Ireland premiums were 3% higher at constant currency (flat on a reported basis) with strong growth in commercial lines partially offset by continued soft rate environment in motor.

Canada

• Commercial lines premiums were 10% higher (as reported and at constant currency), with the business benefiting from new business activity, higher policy retention and the favourable rate environment.

• Personal lines premiums were 2% higher at constant currency (1% higher on a reported basis), a strong result considering the introduction of lower rates in Ontario, our largest market, in May and June.

1 Aviva Investors net flows excludes liquidity funds and cash

Page 5

Capital & Centre liquidity

Solvency II shareholder cover ratio

• The cover ratio increased 12pp during the quarter to 215% (HY21: 203%) driven by completion of the Aviva France disposal on 30 September 2021, Solvency II Operating Capital Generation (OCG) and favourable market movements driven mainly by rising interest rates.

• This was partly offset by the 2021 interim dividend (£0.3bn) and the commitment to return £750m of capital via a share buyback, which has been fully recognised in our Solvency II position.

Solvency II debt leverage ratio

• Remains in-line with our less than 30% target, but increased as expected to 28% from 26% at HY21 partly due to the £750m share buyback and payment of the interim dividend.

Centre liquidity and cash remittance

£bn	9M21	9M20
Cash remittances from continuing operations	1.1	0.6
Cash remittances from discontinued operations	0.2	0.1
Total cash remittances	1.3	0.7
	Oct 21	Jul 21
Centre liquidity	4.5	2.8

• Centre liquidity of £4.5bn as at the end of October 2021 (July 2021: £2.8bn), reflecting the proceeds from the sales of Aviva France (£2.8bn) and Italy GI (£0.3bn), repayment of £0.5bn of internal loan, payment of the interim dividend (£0.3bn) in October and £0.4bn of share buyback up to the end of October.

• Cash remittances from continuing operations are £1.1bn at 9M21 (9M20: £0.6bn) with cash remittances for the full year expected to be up strongly on the £1.4bn achieved last year.

Pro forma prospective Solvency II shareholder cover ratio, liquidity and leverage

• Pro forma Solvency II shareholder cover ratio allows for completion of remaining disposals, an illustrative capital return of £4bn which includes the £750m share buyback currently underway, and further external debt reduction of c.£1bn. Pro forma centre liquidity also allows for £0.7bn repayment of internal loan (of which £0.5bn was repaid following completion of the France sale).

Pro forma £bn unless otherwise stated	Pro forma estimated at HY 2021		Q3 change	Pro forma estimated at Q3 2021
Own funds	18.1		(0.2)	17.9
SCR	(9.3)		0.3	(9.0)
Surplus	8.8		0.1	8.9
Solvency II Shareholder cover ratio (%)	195	%		200	%
Centre liquidity (July 2021 & October 2021 pro formas)	2.7		(0.4)	2.3
Solvency II debt leverage ratio	28	%		28	%

• Our pro forma prospective cover ratio is estimated at 200% which has increased 5pp during the quarter owing to favourable market movements and Solvency II OCG, partly offset by the declared interim dividend. Following the reduction in interest rates since September 30, this ratio is estimated to be approximately 197% as at close on 5 November 2021.

• Estimated pro forma centre liquidity of £2.3bn is down £0.4bn following payment of the interim dividend (£0.3bn).

• The estimated SCR includes a c.£2bn benefit from diversification between the continuing businesses.

Page 6

Outlook

Growth

• We are confident that Aviva is well positioned to capitalise on the growth opportunities in our core markets of UK, Ireland and Canada.

• We expect to see continued strong momentum in Savings & Retirement. We expect to write £5-6bn of BPA volumes in total this year, following strong sales in the third quarter and a good pipeline of transactions.

• Annuity & Equity Release margins should improve in the fourth quarter but we expect them to remain below 2020 levels due to the low credit spread environment.

• In General Insurance, we continue to see good opportunities for growth in commercial lines as we capitalise on our market leading positions with brokers and the favourable rate environment.

• In personal lines, the softer rates in motor and the adverse weather conditions in the second half of the year will impact profitability, nevertheless we still expect the overall GI COR for continuing operations to be below 94% for the full year.

• We continue to expect the full year benefit from UK Life management actions & other to be in the £0 - £200m range.

Efficiency

• Our focus on transforming performance means we are on track to deliver our £300m cost reduction target in 2022 net of inflation, including over £225m of cumulative savings by the end of 2021.

• Implementation costs to deliver the savings are expected to be significantly higher in the second half compared to the first, as more actions are completed as we work towards delivering our target in 2022.

Cash

• On track to achieve target of over £5bn in cumulative cash remittances from continuing operations in 2021 to 2023; with cash remittances for the full year expected to be up strongly on the £1.4bn achieved last year (9M21 continuing cash remittances: £1.1bn), and to continue to increase in 2022, as we grow toward £1.8bn of cash remittances in 2023.

Page 7

Appendix: Q3 discrete quarter information

Life sales¹ and Value of New Business (VNB)

			PVNBP			VNB
	Q321 £m	Q320 £m	Sterling % change		Q321 £m	Q320 £m
Savings & Retirement and Other	5,271	4,073	29	%	31	20
Annuities & Equity Release	2,828	2,325	22	%	(34)	(88)
Protection & Health	590	562	5	%	51	40
Ireland Life	390	400	(3)	%	6	-
UK & Ireland Life total	9,079	7,360	23	%	54	(28)
Strategic investments	292	124	135	%	8	4
Continuing operations	9,371	7,484	25	%	62	(24)
Discontinued operations	2,564	3,097	(17)	%	69	132
Total2	11,935	10,581	13	%	131	108

Savings & Retirement and Aviva Investors net flows³

			Net flows
	Q321 £m	Q320 £m	Change £m
Savings & Retirement	2,122	1,844	278
Aviva Investors	64	131	(67)
Of which: Aviva Investors external assets	517	(132)	649

General Insurance GWP and COR

											GWP						COR
	Personal lines				Commercial lines				Total				Total
	Q321 £m	Q320 £m	Sterling % change		Q321 £m	Q320 £m	Sterling % change		Q321 £m	Q320 £m	Sterling % change		Q321 %		Q320 %		Change
UK	572	596	(4)	%	615	531	16	%	1,187	1,127	5	%	94.9	%	88.9	%	6.0 pp
Ireland	53	63	(15)	%	48	38	26	%	101	101	-	%	89.7	%	89.1	%	0.6 pp
Canada	606	601	1	%	279	263	6	%	885	864	2	%	93.0	%	95.5	%	(2.5) pp
Continuing operations	1,231	1,260	(2)	%	942	832	13	%	2,173	2,092	4	%	93.9	%	91.6	%	2.3 pp
Discontinued operations									374	392	(5)	%	108.7	%	95.1	%	13.5 pp
Total									2,547	2,484	3	%	96.6	%	92.2	%	4.4 pp

1 References to sales represent present value of new business premiums (PVNBP) which is an Alternative Performance Measure (APM) and further information can be found in the 'Other information' section of the 2021 interim results announcement.

2 Excludes Aviva Investors

3 Aviva Investors net flows excludes liquidity funds and cash

Page 8

Analyst call

An analyst call will take place at 0900hrs GMT on 11 November 2021 and will be live-streamed via our website. A replay will be available after the event. www.aviva.com

Upcoming events

We will be hosting the next of our Aviva In Focus sessions on 23 November 2021. The session will cover our UK Protection & Health business. For further details please email [e-mail].

Enquiries

Media:

Andrew Reid            [phone]

Sarah Swailes             [phone]

Analysts:

Rupert Taylor Rea    [phone]

Tegan Gill  [phone]

Michael O'Hara  [phone]

Notes to editors

• For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/  

• Throughout this trading update we use a range of financial metrics to measure our performance and financial strength. These metrics include Alternative Performance Measures (APMs), which are non-GAAP measures that are not bound by the requirements of IFRS and Solvency II. A complete list and further guidance in respect of the APMs used by the Group can be found in the 'Other information' section of the 2021 interim results announcement.

• All figures have been translated at average exchange rates applying for the period, with the exception of the capital position which is translated at the closing rates on 30 September 2021. The average rates employed in this announcement are 1 euro = £0.86 (Q3 2020: 1 euro = £0.88) and CAD$1 = £0.58 (Q3 2020: CAD$1 = £0.58). Growth rates in this announcement have been provided in sterling terms unless stated otherwise.

• We exist to be with people when it really matters, throughout their lives. We have been taking care of people for more than 320 years, in line with our purpose of being 'with you today, for a better tomorrow'. In 2020, we paid £30.6 billion in claims and benefits to our customers.

• Aviva is invested in our people, our customers, our communities and our planet. In 2021, we announced our plan to become a Net Zero carbon emissions company by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. Aviva has been leading this agenda for decades: Aviva was the first international insurer to go operationally carbon neutral in 2006 and we are champions of renewable energy and energy storage at our offices, allowing us to achieve our 2030 carbon reduction target (70% reduction on 2010 levels) 10 years early. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition at www.aviva.com/sustainability .

• Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/social-purpose  

• We are focused on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience. We also have strategic investments in Singapore, China and India.

Page 9

Cautionary statements

This document should be read in conjunction with the documents distributed by Aviva plc (the 'Company' or 'Aviva') through The Regulatory News Service (RNS). This announcement contains, and we may make other verbal or written 'forward-looking statements' with respect to certain of Aviva's plans and current goals and expectations relating to future financial condition, performance, results, strategic initiatives and objectives. Statements containing the words 'believes', 'intends', 'expects', 'projects', 'plans', 'will', 'seeks', 'aims', 'may', 'could', 'outlook', 'likely', 'target', 'goal', 'guidance', 'trends', 'future', 'estimates', 'potential' and 'anticipates', and words of similar meaning, are forward-looking. By their nature, all forward-looking statements involve risk and uncertainty. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in these statements. Aviva believes factors that could cause actual results to differ materially from those indicated in forward-looking statements in the announcement include, but are not limited to: the impact of ongoing uncertain conditions in the global financial markets and the local and international political and economic situation generally; market developments and government actions (including those arising from the evolving relationship between the UK and the EU); the effect of credit spread volatility on the net unrealised value of the investment portfolio; the effect of losses due to defaults by counterparties, including potential sovereign debt defaults or restructurings, on the value of our investments; changes in interest rates that may cause policyholders to surrender their contracts, reduce the value or yield of our investment portfolio and impact our asset and liability matching; the unpredictable consequences of reforms to reference rates, including LIBOR; the impact of changes in short or long-term inflation; the impact of changes in equity or property prices on our investment portfolio; fluctuations in currency exchange rates; the effect of market fluctuations on the value of options and guarantees embedded in some of our life insurance products and the value of the assets backing their reserves; the amount of allowances and impairments taken on our investments; the effect of adverse capital and credit market conditions on our ability to meet liquidity needs and our access to capital; changes in, or restrictions on, our ability to initiate capital management initiatives; changes in or inaccuracy of assumptions in pricing and reserving for insurance business (particularly with regard to mortality and morbidity trends, lapse rates and policy renewal rates), longevity and endowments; a cyclical downturn of the insurance industry; the impact of natural and man-made catastrophic events (including the impact of Covid-19) on our business activities and results of operations; the transitional, litigation and physical risks associated with climate change; our reliance on information and technology and third-party service providers for our operations and systems; the impact of the Group's risk mitigation strategies proving less effective than anticipated, including the inability of reinsurers to meet obligations or unavailability of reinsurance coverage; poor investment performance of the Group's asset management business; the withdrawal by customer's at short notice of assets under the Group's management; failure to manage risks in operating securities lending of Group and third-party client assets; increased competition in the UK and in other countries where we have significant operations; regulatory approval of changes to the Group's internal model for calculation of regulatory capital under the UK's version of Solvency II rules; the impact of actual experience differing from estimates used in valuing and amortising deferred acquisition costs (DAC) and acquired value of in-force business (AVIF); the impact of recognising an impairment of our goodwill or intangibles with indefinite lives; changes in valuation methodologies, estimates and assumptions used in the valuation of investment securities; the effect of legal proceedings and regulatory investigations; the impact of operational risks, including inadequate or failed internal and external processes, systems and human error or from external events and malicious acts (including cyber attack and theft, loss or misuse of customer data); risks associated with arrangements with third parties, including joint ventures; our reliance on third-party distribution channels to deliver our products; funding risks associated with our participation in defined benefit staff pension schemes; the failure to attract or retain the necessary key personnel; the effect of systems errors or regulatory changes on the calculation of unit prices or deduction of charges for our unit-linked products that may require retrospective compensation to our customers; the effect of simplifying our operating structure and activities; the effect of a decline in any of our ratings by rating agencies on our standing among customers, broker-dealers, agents, wholesalers and other distributors of our products and services; changes to our brand and reputation; changes in tax laws and interpretation of existing tax laws in jurisdictions where we conduct business; changes to International Financial Reporting Standards relevant to insurance companies and their interpretation (for example, IFRS 17); the inability to protect our intellectual property; the effect of undisclosed liabilities, execution and separation issues and other risks associated with our business disposals; and the timing/regulatory approval impact and other uncertainties, such as diversion of management attention and other resources, relating to announced and future disposals and relating to future acquisitions, combinations or disposals within relevant industries; the policies, decisions and actions of government or regulatory authorities in the UK, the EU, the US, Canada or elsewhere, including changes to and the implementation of key legislation and regulation. Please see Aviva's most recent Annual Report for further details of risks, uncertainties and other factors relevant to the business and its securities.

Aviva undertakes no obligation to update the forward looking statements in this announcement or any other forward-looking statements we may make. Forward-looking statements in this report are current only as of the date on which such statements are made.

This report has been prepared for, and only for, the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to who this document is shown or into whose hands it may come, and any such responsibility or liability is expressly disclaimed.

 

END

 

 

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