Worldwide long-term savings new business – twelve months to 31 December 2005
Rest of the World
Australia:
Life and pension sales increased by 8% to £337 million (2004: £312 million). Sales of protection products have more than doubled during 2005, following the launch of enhanced products in late 2004. Corporate pension sales achieved moderate growth despite market uncertainty resulting from changes in legislation in July 20051. However, recent changes in tax legislation are expected to have a beneficial impact on growth in corporate pensions over the medium-term. Investment sales were £213 million (2004: £243 million).
While not included in the new business figures, sales of Navigator, the master trust fund administration business, increased by 26% to £848 million (2004: £648 million) as a result of ongoing improvements in product offerings and customer service. During the year, the business also launched a simplified version of the Navigator product, “Navigator Access”, which targets lower account balances, to broaden the distribution range of the product set.
Aviva has also agreed strategic investments and alliances with a number of distribution partners, to enhance future sales volumes across both insurance and Navigator products. These include strategic stakes in Professional Investment Holdings and Financial Technology Securities and a product alliance with HBOS to utilise Aviva’s Navigator platform to administer HBOS’s clients’ investments. Within Aviva Australia, the benefits from these recent deals and pension reform are likely to accrue primarily within the Navigator business.
- From 1st July 2005, for the first time, individuals were entitled to choose where superannuation contributions made on their behalf by their employer were directed. Previously the employer would choose the plan.
