Worldwide long-term savings new business – twelve months to 31 December 2005
7 February, 2006
- Strong worldwide total sales1 growth of 10%2 (£24.6 billion; 2004: £22.3 billion)
- International total sales growth of 16% (£14.4 billion; 2004: £12.3 billion), now contributing 59% of new business
- Worldwide bancassurance total sales growth of 22% (£6.2 billion; 2004: £5.0 billion), demonstrating continued success in this channel
- UK sales robust (£10.2 billion; 2004: £10.0 billion); sales continued to increase quarter-on-quarter and best sales performance by the joint venture with the Royal Bank of Scotland Group since it was formed
- Record year for investment sales, growth of 45% (£2.4 billion; 2004: £1.6 billion)
Richard Harvey, group chief executive, commented:
"Our long-term savings business is flourishing, thanks to our strong international portfolio, which delivered 16% growth in sales in 2005, demonstrating our ability to develop our existing businesses and to add distribution. We are particularly pleased both by the results from France, Italy and the Netherlands, which achieved consistently good performances throughout the year, and by the highly promising performances from our Asian and US businesses.
"The UK business finished 2005 on a robust note and the final quarter was the strongest of the year. We’re building real momentum, continuing to manage our business for value and gaining market share in the second half of the year. We’re well placed to take advantage of what we anticipate will be good UK market growth in 2006.
"We are confident of further growth for Aviva in 2006."
| Financial highlights | 12 months to 31 December 2005 |
12 months to 31 December 2004 |
Local currency growth |
|---|---|---|---|
| Aviva International | |||
| life and pensions new business sales | £13,193m | £11,489m | 14% |
| Investment sales | £1,239m | £770m | 56% |
| Total long-term savings new business sales | £14,432m | £12,259m | 16% |
| Aviva UK | |||
| life and pensions new business sales | £9,053m | £9,172m | (1%) |
| Investment sales | £1,160m | £859m | 35% |
| Total long-term savings new business sales | £10,213m | £10,031m | 2% |
| Aviva Group | |||
| life and pensions new business sales | £22,246m | £20,661m | 7% |
| Investment sales | £2,399m | £1,629m | 45% |
| Total long-term savings new business sales | £24,645m | £22,290m | 10% |
- 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.
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 |
| Siobhan Boylan, director of group reporting, Aviva | +44 (0)20 7662 2176 |
| 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 0125. 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 0025. This conference call will be hosted by Philip Scott, group executive director.
Replay will be available for two weeks until 20 February 2006. The dial in number for replay is +44 (0)20 7031 4064 and the pass code is 689579.
