1Q 2015 IMS
The acquisition of Friends Life was completed on 10 April 2015, after the period to which this trading statement applies. Therefore, unless otherwise stated, all numbers outside of the Friends Life section are for Aviva standalone.
Life insurance
· Value of new business (VNB) grew 14%1 to £247 million (1Q14: £224 million)
· UK Life VNB grew 15% to £103 million (1Q14: £89 million), driven by higher equity release and pensions, which more than offset a reduction in annuity VNB
· Europe2 VNB grew 11%1 to £102 million, flat in reported currency
· Asia2 VNB grew 16%1 to £36 million (1Q14: £29 million)
General insurance
· Combined operating ratio (COR) improved to 96.4% (1Q14: 97.7%)
· UK COR of 98.3% (1Q14: 98.6%), Canada COR of 98.1% (1Q14: 102.7%), Europe COR of 89.8% (1Q14: 92.0%)
· GI and health net written premiums up 2%1 to £2,037 million, down 2% in reported currency
· UKGI net written premiums up 1% to £855 million (1Q14: £845 million)
Cash
· Operating capital generation (OCG) £0.5 billion (1Q14: £0.4 billion)
Balance sheet
· IFRS net asset value per share increased 2% to 348p (FY14: 340p)
· Economic capital surplus3 £8.1 billion (FY14: £8.0 billion), coverage ratio 177% (FY14: 178%)
· The acquisition of Friends Life added c.55p to our NAV per share on closure4
· Standalone external leverage ratio 40% of tangible capital (FY14: 41%), 28% on an S&P basis (FY14: 28%). Adjusted for Friends Life, estimated leverage ratios are 36% and 27% respectively on closure, well within our target range
· Holding company liquidity of £1.8 billion at 30 April 2015 including Friends Life
Friends Life
· Friends Life transaction completed on 10 April 2015 and detailed integration plans are being implemented
· Positive corporate benefits net flows of £0.2 billion, corporate benefits AUA 7% higher at £23.6 billion (FY14: £22.0 billion)
· Friends Life VNB declined to £20 million (1Q14: £32 million), driven by the expected decline in retirement income VNB following last year's Budget announcement
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