6 of the household budget in the Insee indexTotal costs would far exceed the benefitsThis market will not dry up any time soonAmbitious targetThe financial dimension is fearHuge productivity gains weighed on pricesSometimes the timing is not to the appointmentNeed to keep some flexibility and stay pragmatic on investment opportunitiesHowever on the first two points Kouchner was very lowThe auto issue is organized in WashingtonPolitics must regain power with the banksFirst British insurer, number five global Aviva remains confident in its ability to achieve the objectives of the strategic plan initiated by its Director General, by 2012, Andrew Moss. Emphasizing the importance current "transformations" the group, the latter says in "echos" that the crisis may, to some extent, speed them up. In addition to the achievement of 350 million pounds of annual cost savings by 2009 a figure which may be revised upward , the plan seeks to unify a group largely built by external growth and whose size has doubled since 2000. In 2008, sales of the insurer in life, savings and retirement (or almost 80 of activity) grew 1 to 40.3 billion pounds. Aviva, whose net earnings before tax had swung into the red in the first half ( 17 million pounds in IFRS standards), such as the effect of the volatility of financial markets, will publish its accounts on March 5.
Will the crisis lead you to review the objectives of your strategic plan
When I have the general direction, eighteen months ago, I launched the strategic "One Aviva, Twice the Value" plan. The first component, which aims to unify the Group and assumes many transformations, rest can no longer news. The second, which assumes particular double net earnings per share between 2007 and 2012, we believe that it is reachable. The current situation will complicate the situation Yes and no. Yes, because the loss in value of assets affects us. No, because this type of event can make the changes easier to run, or even them accelerate. We believe that our value creation program pastes perfectly to the environment.
Change your insurer daily
Even with the crisis, the bulk of our activities behaves normally. Our geographic diversification and our model of "multidistribution" balanced, it is even "business as usual". Damages, the current environment changes auto or home insurance needs at the margin. But it is also true in life. Sure, the economy suffers and debt reaches high levels. But most of our customers are in a period of their lives where they save, and strictly speaking, the current situation even more incentive to do so. I want proof that, in 2008, our business grew 1 to 40.3 billion pounds. In the United Kingdom, we have a record year, and in the United States, we have reached one year of advance the objective that we we were fixed on the acquisition of Ameru in November 2006, namely doubling our new business in three years.
Are you comfortable with your solvency ratios
At December 31, 2008, we have a surplus of 2 billion pounds, slightly higher credit to what we had in September 30. The actions taken to protect us from fluctuations in market shares were paid. Today, we maintain a level of comfortable protection: our own funds surplus would be $ 1.3 billion pounds if markets still fell by 40. Important point, our dividend policy remains unchanged.
Are you ready to seize external growth opportunities
This year, we focus on profitability and efficient use of our capital, rather than on growth. It is a great opportunity to have internally, many levers of value to enable. Pay large goodwill has no meaning now, and the best thing to do is to maintain its capital. There was very little "transform" in recent years and I am very pleased that we in we remained distant. Small opportunities may arise this year. We have been extremely cautious in acquisitions in recent months, and we will remain highly selective. We notably said that we were not interested in the assets of AIG, which, in the current state of the market, are extremely difficult to value.
The difficulties banks have an impact on your bancassurance agreements
Our 90 bancassurance agreements represented in 2008 almost a quarter of our sales of savings products in the long term. The power of distribution of banks remains intact. In France, our partnership with the North in Antarius credit is very satisfactory. Sales have declined 2 when the market of individual life insurance decreased by 12, and average of 15 bancassureurs. In the United Kingdom, our joint venture with RBS displays growth of 3 on 2008. My belief is same that banks will still have need to sell insurance products, which provide for commissions and regular income. We are therefore very well positioned to take advantage. Some banks decided to focus on their core business and separate from their insurance activities is another matter. This may be of interest to us, even if we remain very cautious on the ticket of entry to pay prices should decline and whether, historically, we have preferred the 50 - 50 joint venture model, where each brings key skills.
Was it the right time to centralize your management of assets in Aviva Investors activities
Undoubtedly. Security has become the crucial for customers, which leaves tremendous leeway to a company such as ours. No player in financial services is spared by the break-up of markets, even though it is largely of unrealised losses. This course will change the way we manage our assets. As of 2007, we had sold large blocks of shares for 3.4 billion. It obviously was a good decision. The issue today focuses on the risk of credit default. What is the level of losses anticipated by markets reflects reality We believe that there are investment opportunities in the correctly rated issuers of Western Europe. The difficulty is to remain prudent, without so opt for stagnation.
When are you passing under mark Aviva, process especially in the United Kingdom with Norwich
23 out of 27 countries have already adopted the Aviva brand. It was in particular the Poland, the Ireland, the United Kingdom. Norwich Union is well known to the United Kingdom, although it is also the mark seen as dear by many consumers. In Ireland, we will sponsor the Lansdowne Road rugby Stadium, which will be renamed "Aviva stadium". It is more than just a symbol: it is a true economic decision because we are convinced that a global mark is most powerful for insured persons, employees and shareholders.
