Aviva plc announces 2020 preliminary results

Authored by Aviva 

A refocused Aviva, transforming at pace

Resilient financial performance

• Operating profit of £3,161m (2019: £3,184m) and IFRS profit for the year of £2,910m (2019: £2,663m)
• Core business unit operating profit of £2,492m (2019: £2,558m)
• Cash remittances of £1,500m (2019: £2,597m)
• Core business cash remittances of £1,359m (2019: £1,409m excluding UK Life special remittance)

Sales of Aviva France and Aviva Italy in 2021 – major progress in our strategic transformation

• On completion will significantly strengthen capital and liquidity: excess capital by c. £3.0bn and centre cash by c. £3.9bn
• Build on announced sales of Singapore, Vietnam, Hong Kong, Indonesia and Turkey

Robust financial strength

• Solvency II shareholder cover ratio of 202% (2019: 206%) and centre liquidity of £4.1bn (2019: £2.4bn)
• Solvency II debt leverage ratio of 31% (2019: 31%)

Delivering against our capital framework

• Expect £1.7bn debt reduction in H1 2021 including £800m tender offer announced today
• Investing for cash generative growth in our Core markets
• Expect to return to shareholders excess capital above 180% Solvency II shareholder cover ratio
• Total dividend of 21p (2019: 15.5p per share) with a final proposed dividend of 14p per share

Targeting sustainable growth across the UK, Ireland and Canada

• Momentum with record trading in Savings & Retirement, BPA and Group Protection
• New cumulative cash remittance target of over £5bn between 2021-23 with guidance for £1.8bn in 2023
• First major insurer globally to target Net Zero greenhouse emission status by 2040

Amanda Blanc, Chief Executive Officer, said:

“Over the past year we have supported our customers in the most challenging of circumstances. Across the whole of Aviva our people have been outstanding and I cannot thank them enough for all they have achieved.

2020 was a year of significant change for Aviva. We have taken major steps forward in simplifying the business, most recently with the sale of Aviva France and today’s announcement of the sale of the rest of our Italian operations. Our strategic focus is now on the UK, Ireland and Canada where we have leading positions. We are putting customers at the heart of everything we do and I am confident we will transform Aviva’s financial performance and deliver greater value for our shareholders. I recognise we have much more to do and we are getting on with it.

Our performance in 2020 demonstrates the resilience of our Core businesses and our growth potential. We delivered record sales in group protection; record sales of bulk purchase annuities; and record net flows in savings and retirement, where we are the largest provider of workplace pensions in the UK.

Aviva is financially strong and following the completion of the major disposals, we will be in a position to make a substantial return of capital to our shareholders. We are also announcing today an £800m debt tender offer. This allows us to accelerate our debt reduction plans and lower debt by a total of £1.7bn in the first half of this year.

Aviva is proud to be the UK’s leading insurer. We are the only insurer in the UK to meet the needs of customers at every stage of their lives. Our potential is clear and we are determined to realise it for the benefit of our customers, our people and our shareholders.”

Download Aviva's preliminary results announcement PDF (1.80 MB)

Download Aviva's preliminary results presentation PDF (9.0 MB)