Worldwide long-term savings new business – twelve months to 31 December 2005
Continental Europe
France:
Aviva France achieved sales growth of 26% to £3,530 million (2004: £2,782 million) with a strong full year’s contribution from the bancassurance joint venture with Crédit du Nord of £728 million (fourth quarter 2004: £127 million). Unit-linked sales grew 73% to £1,423 million (2004: £818 million) representing 42% of Aviva France total savings sales compared with 24%1 for the French individual savings market in the 12 months to December 2005. This performance reflects Aviva’s strategic focus on higher margin unit-linked products and the benefit from strongly performing equity markets.
AFER, France’s largest retirement savings association, attracted 34,000 new members in 2005 taking membership to over 638,000 at the end of the year. Unit-linked AFER sales grew strongly by 78% to £367 million (2004: £205 million) accounting for 22% of sales (2004: 13%), while Euro fund sales fell by 6% resulting in overall AFER sales growth of 5% to £1,685 million after an excellent 2004 (2004: £1,594 million).
Unit-linked sales, excluding sales through the strategic partnerships with AFER and Crédit du Nord, were up 18% to £703 million (2004: £590 million), representing 71% of savings sales through these channels. Euro fund sales were 15% lower reflecting the focus on unit-linked sales, with overall sales growing by 5% to £1,117 million (2004: £1,061 million).
Aviva Gestion d’Actifs continues to invest funds on behalf of Aviva France and its clients, demonstrating its expertise through the achievement of having 66% of its UCIT funds in the top two quartiles of investment performance in the past 12 months.
As part of Aviva France’s ongoing initiatives to ensure that customers receive best advice, Aviva France has implemented tools within its distribution networks to make sure that customers’ asset mix reflects their appetite for investment risk and is appropriate for their needs.
Market growth in France in 2005 was 15%1, reflecting the strong demand for insurance products. Although some slow down in the rate of market growth in 2006 is expected, significant growth in unit-linked fund investment will continue. With a diversified distribution capability, market-leading investment performance and award-winning fund management expertise, Aviva France is well positioned for continued growth in unit-linked business.
- Based on gross written premium.
