Spain
In Spain, Aviva's new business sales grew by 16% to £1,657 million (2003: £1,464 million) following further growth in its developing bancassurance partnerships. Included in these headline numbers are one-off sales of £242 million (2003: £149 million) or £30 million (2003: £30 million) on an APE basis. Excluding one-off sales, good underlying growth of 10% in total new business sales for the year was achieved. This compares with a market increase of 5% in gross written premiums in the first nine months of 2004.
Aviva remains the number one bancassurance group in the Spanish life market and number two in the market overall based on gross written premiums in the first nine months of 2004. It also increased market share from 10.0% in 2003 to 10.6%.
The focus in the fourth quarter has been on pension campaigns in advance of the fiscal year end, with strong sales of single premium pension products.
In Aviva Spain's bancassurance distribution channels, the life product focus during 2004 has been on higher margin protection products over traditional savings products. Sales through Bancaja reflect this change in product mix and were consequently lower at £671 million (2003: £799 million), notwithstanding that fourth quarter sales were the highest of the year due to increased pensions business. Underlying growth was achieved from the partnerships with Unicaja, Caja de Granada and Caixa Galicia, where total sales increased to £773 million (2003: £434 million). Included within the Caixa Galicia sales was a large bulk pension transfer during the year, generating total one-off premium sales of £242 million (2003 one-off total sales: £149 million).
At Aviva Vida y Pensiones, which distributes through a direct salesforce and intermediaries, new business sales increased by 37% to £78m (2003: £57 million), including strong sales of pensions business in the fourth quarter.
Growth prospects remain strong across Aviva's Spanish bancassurance partnerships, particularly through the more recent agreements, as it looks to increase customer penetration. However, quarterly sales are variable due to the timing of marketing campaigns with our banking partners and product launches.
