Worldwide long-term savings new business – twelve months to 31 December 2005
Rest of the World
Asian businesses:
In line with its longer-term strategic ambitions for the region, Aviva continues to achieve a strong underlying rate of growth in new business sales. Total sales from the operations in Asia were higher by 23% to £396 million (2004: £316 million).
Singapore: Sales were £226 million (2004: £242 million), with year-on-year comparisons affected by limited period single premium product offerings of £32 million in the final quarter of 2005 compared with £98 million in the third quarter of 2004. On an underlying basis, growth of 35% was achieved, reflecting the strong partnership with banking group DBS together with increased sales from alternative distribution channels. The partnership has 43% of the bancassurance regular premium new business market and Aviva remains the market leader in the developing broker market as well as the employee benefits and healthcare segment. Sales of Navigator, the investment fund administration business, which are not included in the new business figures, increased significantly to £90 million (2004: £13 million) reflecting strong distribution relationships with key brokers and an increase in the number of funds offered.
Hong Kong: Sales doubled during 2005 to £103 million (2004: £52 million) reflecting good performance from the partnership with DBS in Hong Kong and the developing IFA channel, together with an increased focus on unit-linked products. The IFA channel, which was launched towards the end of 2004, accounted for 35% of total sales.
India: Total sales from the joint venture life business with Dabur continued to increase rapidly to £123 million (2004: £56 million), ranking Aviva seventh amongst private providers. Aviva’s 26% attributable share of new business sales was £32 million (2004: £15 million). Distribution is through the rapidly growing direct sales force and the bancassurance channel. The direct sales force now numbers over 6,700 and, in addition, there are more than 1,800 people in training due to join soon. During 2005, 11 new bancassurance agreements with co-operative banks were signed bringing the total number of bancassurance agreements to 17.
Since the beginning of 2006, Aviva announced a significant bancassurance agreement with Centurion Bank of Punjab, a leading private bank with 2.2 million customers and 240 branches, thereby extending Aviva's leadership position in bancassurance. Aviva has also strengthened its position in the Indian sub-continent through its acquisition of 51% in Eagle Insurance, the third largest insurer in Sri Lanka. In conjunction with this acquisition, Eagle Insurance and NDB Bank, Eagle's other principal owner, have entered into a long-term bancassurance agreement.
China: Sales through the joint venture life business, Aviva COFCO, continue to grow strongly. Total sales were £71 million (2004: £14 million). Aviva’s 50% share of new business sales was £35 million (2004: £7 million). Aviva is now licensed to operate in four major cities, with sales offices in a further five cities. Aviva has recently been granted permission to apply to open a branch in Jinan, the capital city of Shandong province, and is looking forward to the rapid development of this new market. Aviva will continue to increase its presence in China during 2006.
