Aviva Has Streamlined and Rebalanced Its Portfolio With a Little More Deleveraging Left to Go

With the divestment of peripheral operations and geographies, Aviva has tilted its portfolio to a regional focus and more balance across product lines. International growth took the company increasingly away from general insurance. This is back to levels of contribution seen historically. Aviva is still a life and savings business predominantly, generating close to three quarters of its earnings from protection and health, equity release, annuities, and long-term savings. Health insurance is increasingly important, serving 4.5 million retail customers and around 3.3 million customers who get health insurance through their employment. With elevated national health service waitlists, there is increasing demand for health insurance. In protection, the company’s products are split equally between individual and group insurance. Using individual protection as a benchmark, 10% of sales are direct, 10% are sold without advice but intermediated, and protection sales are heavily intermediated. Aviva is looking to make individual protection increasingly automated. Health and protection make up around 10% of operating profit from U.K. and Ireland life and savings.