Netherlands (including Belgium and Luxembourg)
Total life and pension sales from Delta Lloyd, our top-five life and pensions business in the Netherlands, increased by 33% to £893 million (2003: £681 million), with strong growth across all major product lines. Total sales through our joint venture with ABN AMRO grew by 8% to £193 million (2003: £182 million), while on an APE basis sales increased by 70% to £53 million (2003: £32 million). Bond sales and regular premium mortgage protection products have proved particularly successful through this distribution channel.
Total pension and annuity sales increased by 26% to £479 million (2003: £386 million) with 50% growth in group pensions to £281 million (2003: £190 million) partially offset by a decrease in individual pension business. Group pensions business continues to be the focus of our intermediary divisions, although sales levels vary quarter on quarter due to the size of the contracts. In comparison, modest growth in annuity sales reflects the continued competitive market, particularly for immediate annuity business.
Total life product sales rose by 43% to £414 million (2003: £295 million) with significantly improved sales of single premium policies in Belgium following a successful sales promotion, and improved bond and saving sales through our bancassurance, direct and Belgian distribution channels. Unit-linked products are becoming more attractive to investors in the more stable equity market and steadily improving economic environment. Sales of mortgage-related protection products increased by 32% to £33 million (2003: £26 million) as a result of improved regular premium sales through ABN AMRO.
New business contribution amounted to £58 million (2003: £34 million) with a margin of 31.9% (full year 2003: 27.7%). The increase in margins reflects the improved product mix across our business units.
