Interim Managemment Statement.
Strong operating performance
Nine months 2011
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Good momentum in general n General insurance and health net written premiums
insurance of GBP7.0 billion, up 9%.
n Group combined operating ratio improved to 96%.
n UK general insurance sales up 12%: 318,000 new
personal motor customers this year, now more than
two million in total.
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Strong profitability n New business internal rate of return increased
in life insurance to 14%.
n Long term savings sales of GBP23.6 billion, 8%
lower, driven mainly by actions to write less capital-intensive
business, but also due to current market conditions
n UK life and pension sales up 6% to GBP8.1 billion.
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Focused on balance n IFRS net asset value per share increased by 23
sheet in a tough economic pence to 448 pence (HY2011: 425p).
environment
n IGD solvency surplus GBP2.7 billion and central
liquidity GBP2.3 billion at 30 September 2011.
n On track to meet net operational capital generation
target of between GBP1.5 billion and GBP1.8 billion.
n Minimal impairment on our high-quality long-term
asset portfolio.
n Strengthened equity and euro currency hedging providing
additional downside protection.
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Further delivery n On course to meet our financial targets in 2011.
of our strategy
in the third quarter n Market share gains in key UK markets - in individual
annuities, protection and personal motor*.
n Completed sale of RAC for GBP1.0 billion.
n Sale of Aviva Investors business in Australia.
n Sale of Delta Lloyd's loss-making German business.