Italy
In Aviva Italy, total new business sales increased by 11% to £1,574 million (2003: £1,453 million), notwithstanding lower single premium one-off direct business of £82 million (2003: £187 million). Sales momentum accelerated in the fourth quarter, benefiting from marketing campaigns with bancassurance partners launched during the quarter, the majority of which closed at the end of 2004. Strong underlying growth in total sales of 21% during the year, after excluding the impact of one-off business, is an excellent performance in a flat Italian new business market in the first 11 months of 2004.
Sales through UniCredito Italiano were lower at £753 million (2003: £814 million), reflecting more difficult trading conditions for savings products. However, new business sales in the fourth quarter of £250 million were the highest of any quarter this year and include the benefit of a marketing campaign focusing on single premium business. Furthermore, sales in the fourth quarter were also helped by new product launches, which will continue into 2005.
The most recent agreement with Banca Popolare Commercio e Industria, now part of Banche Popolari Unite (BPU), achieved strong growth with total sales of £267 million (2003: £138 million). Sales benefited from the continued success of structured investment bonds. New regular premium products were introduced as planned in the fourth quarter to broaden the product range. Preparations for the extension of the agreement with BPU to a further 380 branches have been successfully completed and Aviva Italy looks forward to the additional benefits from the start of 2005.
Total sales from Banca Popolare di Lodi Group were higher at £361 million (2003: £243 million) and sales through Banca delle Marche were also higher at £77 million (2003: £50 million). Both partners launched campaigns on structured investment bonds which boosted sales in the fourth quarter.
Aviva Italy continues to develop its strong partnerships across Italy and work with their partners to market a range of products to meet customers' needs. The long-term growth potential remains strong, although the timing of marketing campaigns and product launches, which vary throughout the year, result in some volatility in sales levels each quarter.
