Italy
Aviva Italy reported an excellent 49% growth in total sales to £1,816 million (2004: £1,206 million), including one-off single premium business of £73 million (2004: £82 million). Total market sales, in the eight months to August 2005, were 20%1 higher, with bancassurance 25% higher.
Sales in the first nine months were higher than the corresponding period in 2004 across all Aviva’s Italian bancassurance partnerships. In a market characterised by low interest rates, the significant increase in savings business reflects increasing customer demand for single premium products with guarantees. In 2005, many of Aviva’s banking partners have focused marketing activity in the first half of the year with lower sales levels from autumn onwards.
Sales through UniCredito Italiano were 15% higher at £647 million (2004: £557 million), mainly as a result of increased sales of single premium unit-linked savings business compared to last year.
Following the extension of the agreement with Banche Popolari Unite (BPU) earlier this year for distribution through a further 380 branches, sales achieved significant growth of 164% to £505 million (2004: £188 million). Growth in single premium profit-sharing business has been strong in the third quarter of 2005.
Strong sales of single premium profit-sharing business also helped Banca Popolare Italiana Group achieve an excellent performance with total sales 79% higher at £423 million (2004: £234 million).
Sales through Banca delle Marche were 25% higher at £139 million (2004: £110 million), following successful sales of profit sharing business.
New business contribution increased to £46 million (2004: £35 million) reflecting the strong growth in sales. The lower margin at 2.5% (full year 2004: 2.7%) reflected business mix, with a higher proportion of lower margin structured investment bonds and profit sharing business.
- Market sales growth is calculated using the volume measure, single plus annualised regular premiums.
