Highlights in the first half of 2009: initiatives reflecting the 2009 marketing strategy and new organisation
The first half of the year has been marked by numerous initiatives in line with the 2009 marketing strategy, which is structured around three main pillars:
- Security: the Aviva Lisséo Duo Janvier 2010 offer and the “Corporate Citizens on the Road” charter, in collaboration with the road safety association Prévention Routière;
- Dynamism: an exclusive partnership with Union des Auto-Entrepreneurs, launches of Aviva Rebond and the Assistance Plus pack, improvement of the Santhia complementary health insurance product;
- Sustainable development: 10% discount on car insurance for public transport season ticket holders, launch of the Vélocité deal for cyclists and the Aviva Valeurs Responsables socially responsible investment fund.
Aviva has also implemented an internal reorganisation with the aim of achieving new performance and growth levels, to actively contribute to the “One Aviva, twice the value” strategy in France and Europe.
Total consolidated gross sales up slightly to €3.4 billion at 30 June 2009 (2008: €3.3 billion):
- Life sales in line with the market with 5% growth, as well as strong growth in Antarius sales (+13% to €725 million) and a 5% increase in AFER. sales to €1.3 billion, concealing at this stage two-figure month-on-month growth since the spring;
- Gross non-life sales up slightly to €657 million (2008: €652 million).
- New life, savings and pensions business, based on PVNBP1, up 2% to €2.7 billion at 30 June 2009.
Tight control of operating costs (down 7% in one year), involving certain non-recurring items, and the continued implementation of the quality policy, making it possible to achieve a COR (excl. health) of 95.8%, has limited the fall in operating profit according to IFRS standards to €169 million (compared with €211 million at 30 June 2008); this figure is suffering from the effects of the drop in income from managed funds due to the depressed markets at the end of 2008 and considerable distortion of the product mix as a result of the marked resurgence of customer interest in euro funds in the life sector.
IFRS net profit of €135 million at 30 June 2009 (2008: €67 million), in the context of the gradual recovery of the financial markets in the course of the first half-year period.
Confirmation of the long-term consistent, high-quality management of Aviva Investors France. Over 10 years, 88% of Aviva Investors France funds have ranked in the top half of funds in their category (86% over one year). The asset manager has won several awards in 2009: 3 from French financial magazine Le Revenu and one from La Tribune/Morningstar.
Value of managed funds up to €79.8 billion at 30 June 2009 (2008: €71.4 billion).
Jean-Pierre Menanteau, CEO of Aviva France, said: “First of all, I must underline that the Aviva group has further increased its solvency surplus, which has risen from £2 billion at the end of 2008 to £3.2 billion at 30 June 2009. I’m also delighted with the new initiatives that the Aviva Group has undertaken, particularly the Delta Lloyd partial quotation project and the reduction of the half-year dividend in line with the fall in the operating profit, in order to strengthen the Group’s financial capacity to take advantage of opportunities for long-term profitable growth.
“As announced by the group, the project to overhaul Aviva Europe with a view to contributing to ‘One Aviva, twice the value’ will be presented on 22 October. The French teams are fully involved in this transformation within a Europe region that accounts for more than half of the group’s business.
“In the French market, Aviva’s balanced distribution model, which comprises life and non-life insurance as well as various distribution channels, continues to demonstrate its effectiveness. We’re delighted with the slight growth in turnover in the first half of 2009, despite the economic crisis and recession. We’re particularly pleased with the commercial efficiency of our partnerships, especially with Crédit du Nord and AFER, whose general meeting was a real highlight.
“In a context marked by uncertain financial markets and the significant impact of storms Klaus and Quentin, not to mention some severe hail episodes, we’ve kept up our efforts to contain costs and improve the effectiveness of our processes and investments, while remaining responsive in our risk management and marketing activities, and all this throughout a major reorganisation of Aviva France.
“Although the doubling of our net income is largely the fruit of exogenous macro-financial developments, it also reflects Aviva France’s resilience and ability to bounce back, and its management philosophy, which is traditionally prudent in the long term and active in the short term, which benefit our customers.”
