Netherlands
Delta Lloyd total sales (including investment sales) increased by 48% to £810 million (2004: £555 million). This includes sales through our joint venture with ABN AMRO of £186 million (2004: £153 million).
Pension and annuity sales increased by 26% to £350 million (2004: £272 million), with strong growth in annuity sales in both the ABN AMRO and the direct networks. Sales through ABN AMRO include a limited offer promotion, designed to increase market awareness of the joint venture, in this competitive market. The offer is expected to close during the second quarter of 2005. In addition, Delta Lloyd has been able to take advantage of the greater than normal level of saving product maturities in the quarter, by recapturing them as annuity sales. Also included in this growth is group pension business sales which tend to vary quarter on quarter. These volumes were broadly flat, despite the first quarter of 2004 including one particularly significant contract.
Life and savings sales increased by 55% to £368 million (2004: £233 million). Sales of single premium life contracts increased by 21% to £157 million (2004: £127 million) due to increased levels of lump sum group transfer contracts and increased sales of savings products in Belgium. Regular premium sales include increased sales of life savings products with flexible premium terms and increased sales of bond and savings products through Delta Lloyd’s intermediary division. Investment sales increased by 81% to £92 million (2004: £51 million) due to improved investor sentiment, following rises in investment markets during the latter half of 2004 and into 2005.
New business contribution was £18 million (2004: £20 million) with margins of 2.5% (full year 2004: 3.7%). The movement reflects business mix and, in particular, greater volumes of annuity business, as well as the decrease in the bond yield of 60 basis points in the European Embedded Value assumptions at the end of 2004.
