International - Asian businesses:
In line with Aviva’s longer-term strategic ambitions for the region, Aviva continues to achieve an underlying strong rate of growth in new business sales generated by its Asian businesses. Total sales from the operations in Asia were £250 million (2004: £237 million).
Singapore: Sales were £147 million (2004: £191 million), with year-on-year comparisons affected by the limited period single premium product offering which generated sales of £98 million in the course of the third quarter of 2004. On an underlying basis, growth of 53% was achieved, reflecting the strong partnership with banking group DBS, together with increased sales from alternative distribution channels. The partnership has 46% of the bancassurance regular premium new business market. Aviva also remains the market leader in the developing broker market, and the employee benefits and healthcare business segment. Total Navigator Asia sales, which are not included in the new business figures, continued to increase significantly to £57 million (2004: £9 million), reflecting strong distribution relationships with key brokers and an increase in the number of funds offered.
Hong Kong: Sales continued to grow strongly to £59 million (2004: £30 million) reflecting good performance from the partnership with DBS in Hong Kong. The IFA channel, which was launched towards the end of 2004, accounted for 15% of these sales.
India: Total sales from the joint venture life business with Dabur increased to £86 million (2004: £46 million), ranking Aviva seventh amongst private providers. Aviva’s 26% attributable share of new business sales was £22 million (2004: £12 million). Distribution is through the growing direct sales force, now numbering over 6,000, and the bancassurance channel. 11 new bancassurance agreements with co-operative banks have been signed during 2005, bringing the total number of bancassurance agreements to 17.
China: Sales through the joint venture life business, Aviva COFCO, continue to grow rapidly. Total sales were £45 million (2004: £8 million). Aviva’s 50% share of new business sales was £22 million (2004: £4 million). Aviva has recently received a full branch licence for Fuzhou, the capital city of Fujian province. This brings the total number of major cities where Aviva is licensed to four, with sales offices in a further five cities. Applications for additional licences have been made to the China Insurance Regulatory Commission.
