Italy
At Aviva Italy, new business sales increased strongly by 33% to £601 million (2004: £443 million), including single premium one-off direct business of £53 million (2004: £68 million). The momentum of new business sales from bancassurance partners continued into 2005, although this exceptional growth rate is not expected to continue at this level for the rest of the year as the 2004 first quarter comparator was unusually low.
Sales through UniCredito Italiano were 17% higher at £217 million (2004: £181 million), reflecting increased popularity of single premium unit-linked business. Further new product launches are planned during the year, including a new regular premium savings product in the second quarter.
Banche Popolari Unite (BPU) achieved strong growth with sales of £156 million (2004: £98 million). Sales benefited from the extension of our agreement with BPU to a further 380 branches from the start of 2005. Structured investment bonds with limited offer periods continued to be successful and sales of regular premium unit-linked product sales commenced in the first quarter to broaden the product range. We expect this sales momentum to continue throughout the year.
Total sales from Banca Popolare di Lodi Group were higher at £140 million (2004: £70 million), reflecting strong demand for both structured investment bonds and profit sharing policies. Sales through Banca delle Marche also increased to £33 million (2004: £31 million).
Long-term growth potential remains strong and Aviva Italy continues to develop its strong partnerships across Italy and work with its partners to market a range of products to meet the needs of customers. Consequently, the timing of marketing campaigns and product launches will vary throughout the year with some resulting volatility in sales levels each quarter.
New business contribution was £16 million (2004: £12 million) reflecting sales growth, with margins being maintained at 2.7%.
