Financial Data and Key Metrics Changes - Cash remittances increased by 22% to £1.66 billion, on track to achieve a target of greater than £5 billion over 2021 to 2023 [22][23] - Year-end Solvency II position was strong at 244%, with a pro forma ratio expected to be 186% after planned debt reduction and acquisition [23][28] - Total capital return announced at £4.75 billion, exceeding the original promise of at least £4 billion [16][36] Business Line Data and Key Metrics Changes - Life new business sales grew by 23%, driven by bulk purchase annuities with record volumes of £6.2 billion [13][25] - General Insurance premiums increased by 6% to £8.8 billion, with a combined ratio of 92.9% [25][50] - Savings & Retirement net flows rose by 17% to exceed £10 billion, marking a record for Aviva [14][26] Market Data and Key Metrics Changes - UK & Ireland Life cash remittances rose by 21% to £1.2 billion, with profits and AUM in Savings & Retirement up 24% and 19% respectively [44][46] - In Canada, General Insurance achieved its highest level of premiums and profits on record, with commercial line premiums up 10% [54] Company Strategy and Development Direction - The company is focused on four strategic priorities: growth, customer, efficiency, and sustainability [60][85] - A significant acquisition of Succession Wealth for £385 million aims to enhance financial advice offerings and capture maturing outflows from existing customers [19][73] - The company plans to invest £300 million to accelerate organic growth, targeting a £100 million increase in operating profit [18][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for Aviva, highlighting strong operational momentum and the successful execution of strategic plans [15][57] - The company is optimistic about growth opportunities in the wealth market, with a £1.6 trillion market opportunity projected to grow to £2.1 trillion by 2024 [64][65] - Management acknowledged the uncertain external environment but emphasized a commitment to maintaining a strong capital framework [104] Other Important Information - The company has achieved £244 million in cost reductions, with a new target of £750 million by 2024 [40][41] - The dividend for 2021 was declared at just over 22p per share, up 5% year-on-year, with anticipated increases for 2022 and 2023 [17][34] Q&A Session All Questions and Answers Question: Cash plan and future cash generation - The company upgraded its cash flow target to £5.4 billion, providing more flexibility for investments and growth [96][97] Question: Solvency II review and capital targets - Management has not built expectations from the Solvency II review into their plans but remains encouraged by recent announcements [104][106] Question: Investment in growth and expected returns - The £300 million investment is expected to support various growth initiatives across the group, with no single project being solely responsible for the anticipated profit increase [100][101]
Aviva(AVVIY) - 2021 Q4 - Earnings Call Transcript