International – Asian businesses
Asia offers significant potential for future growth, as demand for long-term savings product increases. Aviva has taken a number of further steps during the year to achieve its longer-term ambitions for expansion in these markets.
Singapore: Total sales through Aviva Singapore were £38 million (2003: £30 million) on an APE basis. This includes total single premium sales of £115 million (2003: £53 million), which benefited from a successful limited single premium product offer, launched during the third quarter. Aviva has over a 50% market share of bancassurance regular premium new business and is the market leader in the developing broker market. It also leads in the employee benefits and healthcare life business. The focus continues to be on higher margin, regular premium business. While not included in the new business figures, total Navigator Asia sales increased to £13 million (2003: £8 million).
Hong Kong: In addition to the successful partnership with DBS in Singapore, total sales through Aviva's partnership with DBS in Hong Kong continued to grow strongly to £27 million (2003: £4 million).
India: Sales on an APE basis from Aviva's joint venture life business with Dabur Group were £19 million (2003: £9 million), ranking it eighth among private providers. Aviva's 26% share of new business sales on an APE basis amounted to £5 million (2003: £2 million). Sales are through its six bancassurance partnerships including Canara Bank, India's second largest bank, and its 3,200 strong direct sales force.
China: Total sales through Aviva's joint-venture life business, Aviva COFCO, have continued to grow to £5 million (2003: £3 million), with operations now in Beijing, Guangzhou and Chengdu. Its 50% share of new business sales was £3 million (2003: £1 million). All geographical and business scope restrictions on foreign insurers were lifted in China in December 2004, opening up key markets such as group insurance, health insurance and annuities. In 2005, Aviva COFCO was granted regulatory approval to broaden its business scope, and will begin to write group life insurance policies later this month. It is one of the first among foreign or Sino-foreign life insurers operating in China to launch group insurance policies.
