Worldwide long-term savings new business – twelve months to 31 December 2005
Continental Europe
Italy:
Aviva Italy reported total sales growth of 27% to £2,294 million (2004: £1,799 million), including one-off single premium direct business of £123 million (2004: £82 million). This compares to the Italian market where, total sales in the 11 months to November 2005, were 11%1 higher, with bancassurance sales also 11%1 higher.
As anticipated, sales were lower in the second half of 2005, as most of Aviva’s banking partners focused their marketing campaigns earlier in the year.
UniCredit Group continues to be one of the most successful bancassurers in Italy with sales of £778 million (2004: £843 million). UniCredit Group plans to widen its product range with the introduction of new single premium protection and improved unit-linked products in 2006. In addition, the company intends to place greater focus on regular premium business in 2006, building on the 18% increase to £125 million achieved in 2005. As a result of the strong relationship with UniCredit Group, Aviva Italy expects to increase its access to the UniCredit Group branch network during 2006.
Banche Popolari Unite achieved sales growth of 140% to £648 million (2004: £268 million) following the extension of the bancassurance agreement earlier in 2005 for distribution through a further 380 branches. New business from single premium profit-sharing products increased significantly during the year and structured investment bonds with limited offer periods also continued to be successful.
Banca Popolare Italiana Group network achieved a sales growth of 38% higher at £530 million (2004: £383 million), driven by single premium profit-sharing business.
Sales through Banca delle Marche were higher at £178 million (2004: £173 million), following successful sales of profit-sharing business.
The long-term growth potential remains strong in the Italian market and Aviva Italy continues to develop its bancassurance relationships. However, as in previous years, the timing of marketing campaigns and new product launches in 2006 will vary during the year and result in some volatility in sales level each quarter.
- Market sales growth is calculated using the volume measure, single plus annualised regular premiums.
