Results Announcement
- Strong worldwide total sales1 growth, up 12%2 (£17,933m; 2004: £15,823m)
- Life and pensions new business profit up 13% (£575m; 2004: £505m), ahead of sales growth of 10% (£16,260m; 2004: £14,697m)
- Continental Europe driving total sales growth, up 23% (£9,420m; 2004: £7,554m), and contributing 53% of new business
- UK sales robust (£7,441m; 2004: £7,438m), with growing momentum, increasing 11% in third quarter compared to second quarter (Q3: £2,684m; Q2: £2,408m)
- Bancassurance remains strong, with total sales up 28% (£4,610m; 2004: £3,692m) and new business profit up 30% (£219m; 2004: £167m)
- New business margin stable at 3.5% (full year 2004: 3.4%)
Richard Harvey, group chief executive, commented:
“This is another strong performance from our international portfolio of life businesses. We have retained our focus on managing our business for value, while growing worldwide sales by 12%.
“Our operations in continental Europe are delivering good growth, especially in France and Italy. In Asia we continue to develop new distribution in line with our long-term growth plans for this fast-growing region.
“Aviva’s international performance continues to offset a competitive UK market environment. In the UK we have seen our third consecutive quarter of sales growth and momentum is building for the rest of the year and into 2006.
“Bancassurance continues to go from strength to strength and is a key part of our multi-distribution approach.
“Our healthy long-term savings performance is complemented by a thriving general insurance business, giving Aviva the competitive advantage of a balanced business portfolio.”
| Financial highlights | 9 months to 30 September 2005 |
9 months to 30 September 2004 |
Local currency growth |
|---|---|---|---|
| Life and pensions new business sales | £16,260m | £14,697m | 10% |
| Investment sales | £1,673m | £1,126m | 46% |
| Total long-term savings new business sales | £17,933m | £15,823m | 12% |
| New business contribution before required capital | £575m | £505m | 13% |
| New business contribution after required capital | £429m | £380m | 12% |
| New business margin before required capital | 3.5% | 3.4%3 | |
| New business margin after required capital | 2.6% | 2.5%3 |
- All references to sales in this announcement refer to the present value of new business premiums unless otherwise stated. Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.
- All growth rates quoted are at constant rates of exchange.
- Full year 2004 margin.
Enquiries:
| Analysts/Investors: | |
| Philip Scott, group executive director, Aviva | +44 (0)20 7662 2264 |
| Gary Withers, chief executive, Norwich Union Life | +44 (0)1904 452827 |
| Charles Barrows, Investor relations director, Aviva | +44 (0)20 7662 8115 |
| Media: | |
| Hayley Stimpson, director of external affairs | +44 (0)20 7662 7544 |
| Sue Winston, head of group media relations | +44 (0)20 7662 8221 |
| Robert Bailhache, Financial Dynamics | +44 (0)20 7269 7200 |
There will be a conference call today for wire services at 7:45am (UK time) on +44 (0)20 7162 0080. This conference call will be hosted by Philip Scott, group executive director.
There will be a conference call today for analysts and investors at 9:30am (UK time) on +44 (0)20 7162 0081. This conference call will be hosted by Philip Scott, group executive director.
Replay will be available for two weeks until 10 November 2005. The dial in number for replay is +44 (0)20 7031 4064 and the pass code is 678878.
To view the full text of this release, download the announcement in PDF (0.19Mb).
