News

France: Aviva's quarterly results at 30 June 2010

05 August, 2010

• Net growth in commercial activity of 12%, including an 18% increase in Life business in an overall market that grew by 9%
• Climatic events that affected operating profit
• Continued growth of net profit: +21% excluding the effects of Storm Xynthia
• Increasing allocation of resources to the Quantum Leap programme
• Total consolidated gross sales up 12% to €3.9 billion at 30 June 2010 (2009: €3.4 billion).
• Life business grew by 18%, outstripping the market (+9% for individual contracts), with a 31% increase in premium income from the AFER contract to €1.7 billion (2009: €1.3 billion) and 3% growth in Antarius sales to €679 million (2009: €657 million).
• Gross Non-Life sales up slightly to €659 million (2009: €657 million).
• Operating profit (according to IFRS) was up 2% excluding effects linked to Storm Xynthia (€20 million), while overall is was down 10% to €152 million (compared with €169 million at 30 June 2009). Excluding the Xynthia effect, the favourable product mix with euro funds in the Life sector, the upward trend in claim rates in the Non-Life sector and the operating costs for Quantum are more than compensated by strong insurance discipline, in both Life and Non-Life, and the continued strict control of Aviva France's operating cost base.
• IFRS-based net profit grew 21% excluding the Xynthia effect and was up 6% overall to €143 million as at 30 June 2010 (2009: €135 million), in a context of highly volatile financial markets, particularly towards the end of the first half-year.
• Net cash flow from Life business enjoyed excellent growth: up 41% to €1.19 billion.
• A 12.7% rise in assets under management to €89.9 billion as at 30 June 2010 (2009: €79.8 billion).
• Aviva Investors France reaffirms the consistency and quality of its management. Over 10 years, 96% of Aviva Investors France funds have ranked in the top half of funds in their category (89% over one year).

•  Renewed recognition of the quality of Aviva's products
  - Label of excellence for Aviva's popular retirement savings plan (PERP), Vectura, Senséo and long-term care insurance
  - Aviva Investors France wins five awards from Le Revenue magazine, including three over two years and two over 10 years, and four Lipper Fund awards.

• Partnership signed with Predica to build the first new-generation tower in Paris' La Défense district: Carpe Diem.

•  Further progress in sustainable development
  - Approval of Aviva France's agreement for older employees
  - Support for Haiti and Chief Raoni from the Amazon
  - Launch of the clean vehicle loan
  - Desire to take part in public debate with the creation of the "Link between the Generations Observation Centre".

Jean-Pierre Menanteau, CEO of Aviva France, commented: "The first half of 2010 was marked by continued strong sales in our Life business, which are still significantly higher than the market as a whole, and a good sales volume for P&C.

The AFER contract performed particularly well and the remarkable increase in premium income confirms the confidence of its policyholders in a partnership that has performed solidly for 34 years, and we saw strong Antarius sales with our partner Crédit du Nord.

The company really rallied to help its customers through the series of climatic events that hit France: Storm Xynthia, flooding in Var and heavy hail in the north-east and Doubs.

We have also often been in the front line in projects for Aviva Europe's Quantum Leap programme, which is mobilising growing amounts of the company's resources within all segments of the value chain.

The fact that our net profit has continued to rise in a highly volatile financial environment validates Aviva France's philosophy of prudent management in the long term and active management in the short term."

Press contact:
Estelle Joubert: +33 (0)1 7662 5786 – Email: estelle_joubert@aviva.fr

About Aviva
Aviva is the world’s sixth-largest insurance group*, with 53 million customers across Europe, North America and the Asia Pacific region. Aviva’s principal business activities are: life insurance and long-term savings, fund management and general insurance. At 31 December 2009, Aviva had turnover of €51.3 billion, with €426 billion of assets under management. Aviva is the largest insurer in the UK and one of the main providers of life insurance and pension products in Europe.

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With more than 180 years’ experience in France, Aviva is among the top ten players in the insurance market. Aviva France has a solid and profitable multi-distribution model based on a comprehensive range of products, mainly intended for individuals and SMEs. Some 900 general agents, 1,800 branch staff, 400 life insurance advisers, almost 900 wealth management advisers (Union Financière de France) and more than 1,000 active partner brokers are on hand to serve 3 million customers every day.

Aviva has developed unique expertise in building effective partnerships for the benefit of its customers, most notably with AFER, the largest savings association in France, and the Crédit du Nord, Société Générale and Ford groups. Specialising in unit-linked products, Aviva is recognised for the excellent performance of its long-term funds, the quality and innovation of its products, and solid commitment to customers through its Good Advice approach.

Aviva France is a socially responsible company and has developed initiatives that include reducing and neutralising its CO2 emissions, supporting more than 250 projects to help children and the elderly through the Aviva Foundation, and implementing an acclaimed diversity policy. The Aviva Group directly employs more than 4,700 staff in France.

As at 31 December 2009, Aviva France reported consolidated sales of €6.7 billion and an IFRS-based net profit of €390 million. The company had €77.4 billion of assets under management as at 31 December 2009.

*Based on gross worldwide premiums at 31 December 2008.