International – Asian businesses
Aviva continues to increase the rate of growth in new business sales generated by the Asian businesses in order to achieve its longer-term strategic ambitions in the region.
Singapore: Sales at Aviva Singapore increased by 130% to £55 million (2004: £24 million), benefiting from the partnership with banking group DBS, together with local publicity surrounding retirement planning and retirement products. The partnership has over 50% of the bancassurance regular premium new business market and the focus continues to be on selling higher margin regular premium business. Aviva is also the market leader in the developing broker market and employee benefits and healthcare business segments. Total Navigator Asia sales (not included in the new business figures) were strong at £12 million (2004: £8 million), benefiting from an increase in the number of funds offered.
Hong Kong: Our partnership with DBS also extends to Hong Kong, where total sales continued to increase strongly to £18 million (2004: £8 million). Single premium sales of £11 million (2004: £5 million) benefited from the launch of a limited offer savings product.
India: Total sales from the joint venture life business with Dabur Group increased to £35 million (2004: £12 million), ranking Aviva eighth amongst private providers. Aviva’s 26% share of new business sales was £9 million (2004: £4 million). Distribution is through six bancassurance partnerships, including Canara Bank, India’s second largest bank, and through the growing direct sales force, now numbering 4,600.
China: Sales from the joint-venture life business with Aviva COFCO, generated through operations in Guangzhou, Beijing and Chengdu, continue to grow rapidly. Total new business sales were £6 million (2004: nil) and Aviva’s 50% share was £3 million (2004: nil). In January 2005 Aviva COFCO was one of the first foreign insurers to start writing group insurance policies. Regulatory approval has recently been granted to open additional sales offices in the cities of Zhongshan in Guangdong province and Mianyang in Sichuan, making Aviva COFCO the first foreign insurer to enter these markets.
