Aviva plc Annual Report and Accounts 2023

It all starts with our customers

Make the most out of life, plan for the future. Have the confidence that if things go wrong, we'll be there to help put them right.

It takes Aviva.

Our reporting suite

This report forms part of our reporting suite.

Find out more on www.aviva.com

How to navigate this report

Throughout the Strategic report we use a colour coding system for our four strategic pillars: Growth, Customer, Efficiency and Sustainability:

Throughout the Strategic report we use a colour coding system for the three areas of our business: Insurance, Wealth and Retirement

InsuranceWealthRetirement

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Contents

1. Strategic Report (Part 1)

1.02 Aviva on a page

1.03 2023 highlights

1.04 Delivering for customers and shareholders

1. Our investment case
2. Chair's statement
3. Chief Executive Officer's report

1.14 Chief Financial Officer's report

1.19 Our business model

1.21 Our external environment

1.23 Our strategy

1.28 Our key performance indicators

1.31 Our business review

1.43 Capital management

1.50 Our stakeholders

1.55 Our people

1.58 Our sustainability ambition

1.80 Non-financial and sustainability information statement

1.85 Our risks and risk management

1.94 Going conceand longer-term viability statement

Aviva plc

2. Governance (Part 1)

2.02 Chair's introduction to governance

2.03 Our compliance with the Code

2.04 Our Board of Directors

2.09 Our approach to governance

2.14 Our Board's activities

2.18 Nomination and Governance Committee report

2.21 Audit Committee report

2.27 Risk Committee report

2.29 Customer and Sustainability Committee report

2.31 Remuneration Committee report

2.35 Remuneration at a glance

2.37 Directors' remuneration policy

2.47 Annual report on remuneration

2.67 Directors' report

2.70 Statement of directors' responsibilities

3. IFRS Financial Statements (Part 2)

3.03 Independent auditors' report

3.18 Accounting policies

3.38 Consolidated financial statements

3.44 Notes to consolidated financial statements

3.171 Company financial statements

4. Other Information (Part 2)

4.02 Alternative Performance Measures (APMs)

1. Shareholder services
2. Cautionary statement

1.01

Foreword

The Strategic report and Governance pages form part 1 of the Annual Report and Accounts. The IFRS Financial Statements and Other Information form part 2 of the Annual Report and Accounts. Parts 1 and 2 together comprise the Aviva plc Annual Report and Accounts 2023.

The Strategic report contains information about Aviva, how we create value and how we run our business. It includes our strategy, our business model, key performance indicators, overview of our businesses, our approach to risk and our responsibility to our people, our communities and the planet. The Strategic report is only part of the Annual Report and Accounts 2023, which was approved by the Board on

6 March 2024 and signed on its behalf by Amanda Blanc, Chief Executive Officer. The Directors' report required under the Companies Act 2006 comprises the Governance section of the Annual Report and Accounts 2023.

The Strategic report should be read in conjunction with the Cautionary statement, included within the Other information section.

As a reminder

Reporting currency: We use £ sterling. Unless otherwise stated, all figures in this report relate to Group.

Explanations of key terms used in this report are available on:

www.aviva.com/glossarywww.aviva.com/climate-goals-glossary

The Company's registered office:

80 Fenchurch Street

London, EC3M 4AE

Alternative Performance

Measures:

Throughout the Annual Report and Accounts we use a range of financial metrics to measure our performance and financial strength. These metrics include Alternative Performance Measures (APMs), which are non- Generally Accepted Accounting Principles (GAAP) measures that are not bound by the requirements of IFRS or Solvency II. A complete list of the APMs used by the Group, and further guidance in respect of their use, can be found in the Other information section in part 2 of the Annual Report and Accounts.

This guidance includes definitions and, where possible, reconciliations to relevant line items or sub-totals in the financial statements.

More information about Aviva can be found at www.aviva.com

Annual Report and Accounts 2023

To live up to that purpose, we have an ambition to be:

The leading UK provider and go-to customer brand for all insurance, wealth and retirement solutions, with major businesses in Canada and Ireland

We have a clear strategy to achieve this vision based on four pillars:

Growth

Accelerating growth in capital-light businesses

Customer

Digitally-led customer experience and serving more needs

Efficiency

Top quartile efficiency, synergies from our model and technology at the core

Sustainability

Committed to social action, climate action and being a sustainable business

We are guided by our values:

Commitment

We understand the impact we have on the world and take the responsibility that comes with it seriously

Care

We care deeply about the positive difference we can make in our customers' lives

Community

We recognise the strength that comes from working as one team, built on trust and respect

Confidence

We believe the best is yet to come for our customers, our people, and society

Offering customers a range of products and services across:

2023 highlights

We have made significant progress in 2023

Our position as the UK's leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering. We are building a clear track record of strong and consistent performance. In each of the last three years we have grown sales1, operating profit2 and our dividend. This momentum gives us increased confidence for the future for Aviva, and so we are announcing a new £300 million share buyback programme, and upgrading our dividend guidance to mid-single digit growth in the cash cost.

• Denotes Alternative Performance Measures (APMs) and further information can be found in the 'Other information' section.
  1. Reference to sales represents Annual Premium Equivalent (APE) for Protection & Health, Present Value of New Business Premiums (PVNBP) for Annuities and Equity Release and Gross Written Premiums (GWP) for General Insurance. APE, PVNBP and GWP are APMs and further information can be found in 'Other Information' section.
  2. Group adjusted operating profit is an APM which is used by the Group to supplement the required disclosures under IFRS. See the 'Other Information' section for further information.
  3. IFRS Profit for the year represents IFRS profit for the year after tax

Delivering for customers and shareholders

Our strategy is centred around our customers. And we're only getting started. The better we understand what customers need, the better we can help them make things click.

4. Other Information

Annual Report and Accounts 2023

Consistent performance

Strong growth

4. Other Information

Read more in the CFO report

39%

of all new UK sales to existing customers

Annual Report and Accounts 2023

Growing confidence

Investing for the future

Our consistent performance gives us the confidence to invest in our customers, our business and our communities

4. Other Information

Improving experience

We continue investing to make meaningful improvements to the way we serve our customers.

For example, new pricing analysis and models for our Global Corporate and Speciality team means quotes that used to take over an hour to load can now be ready in under ten minutes. In Ireland's wealth business, a new digital anti- money laundering solution cuts delays, allowing brokers to enter data themselves and make that data live within 30 minutes. Aviva Canada opened its first AutoCare Centres, to offer extra capacity, more convenient service and quicker claims handling, which has led to an improvement in its customer satisfaction scores.

Investing in the UK

Aviva Capital Partners (ACP), develops and invests in infrastructure assets with Aviva group capital. These investments will help grow the economy, create jobs and support community facilities.

Aviva plc

They also generate assets for our Insurance, Wealth & Retirement business to invest in, and for Aviva Investors to manage.

In October 2023, ACP was selected as preferred bidder, along with our partner the mixed-use developer Socius, to develop a district for cancer research and treatment at the London Cancer Hub.

The Hub will deliver major social and economic benefits, including 13,000 highly skilled jobs in health, science, education and construction.

Innovating solutions

Aviva Ventures, our corporate venture capital fund, has helped Tembo Money develop an innovative mortgage advice service since it was founded.

Through our partnership with the Founders Factory, we helped this start-up design and launch a way to help more people afford their own home, and we started to introduce their service at a reduced cost to some of our existing workplace customers and our employees in 2023.

1.07

Read more in our business review

Annual Report and Accounts 2023

Sustainable cash generation underpins our ongoing commitment to shareholders. It supports our dividend and allows us to make regular capital returns.

In March 2024 we announced a new share buyback programme of £300 million.

We have declared a final dividend of

22.3 pence, bringing our total dividend for the year to 33.4 pence.

In recognition of the group's strong prospects we have upgraded our dividend guidance to mid-single digit growth in the cash cost.

Cash remittances 2021-2023

£5,636m

Total capital and dividend returned to shareholders over last 3 years:

£9bn