Spain
Total new business sales were £1,353 million (2004: £1,539 million), with the year-on-year comparisons affected by one-off sales (2005: £25 million through Aviva Vida y Pensiones; 2004: £177 million through Caixa Galicia). Aviva continues to be a leading bancassurer in the Spanish life market and was number four in the market overall in the first half of 2005, based on gross written premiums.
Sales through bancassurance partnerships in the first nine months were focused on higher margin protection and pension business. Total sales were lower at £1,217 million (2004: £1,458 million) as a result of lower sales of savings business in an increasingly competitive market place. Aviva continues to increase penetration of its banking partners’ customer bases through a number of initiatives. These include launching new products to specific customer segments and expanding distribution coverage.
At Aviva Vida y Pensiones, which distributes through a direct sales force and intermediaries, new business sales increased to £136 million (2004: £81 million). Most of this significant increase was due to strong sales of individual pensions and unit-linked life business, and included one-off sales of £25 million (2004: nil) in respect of large group savings and risk schemes.
New business contribution has increased by 18% to £116 million (2004: £97 million) and the new business margin to 8.6% (full year 2004: 6.8%) as a result of the greater focus on higher margin protection products.
Growth potential remains strong in the Spanish bancassurance channels. During the final quarter of the year, the focus will again be on sales of tax advantaged pension plans ahead of the close of the fiscal year in December.
