Worldwide long-term savings new business – twelve months to 31 December 2005
Continental Europe
Netherlands (including Germany, Belgium and Luxembourg):
Delta Lloyd’s total sales increased by 25% to £2,970 million (2004: £2,364 million) driven primarily by significantly higher investment sales. Bancassurance sales through the joint venture with ABN AMRO increased by 9% to £543 million (2004: £493 million).
Pension and annuity sales were £1,473 million1 (2004: £1,050 million). Annuity sales increased by 13% to £354 million (2004: £311 million) reflecting the limited period special offer in the first half of the year. Volumes of annuities slowed in the fourth quarter due to Delta Lloyd’s decision not to match competitor pricing actions. Delta Lloyd’s pensions sales have tended to fluctuate from quarter to quarter due to the timing and size of contracts, with particularly strong single premium sales achieved in the fourth quarter.
Life and savings sales were £934 million (2004: £1,118 million). Within this, bonds and savings sales performed well in a market characterised by low investment returns and included non-recurring sales in the final quarter of the year in advance of the introduction of a 1.1% insurance tax levy on life premiums from 1 January 2006 in Belgium.
Investment sales increased to £563 million (2004: £196 million) reflecting an excellent fourth quarter performance. This follows the launch of a new fund at the beginning of October and the continued sales momentum from earlier in the year. Delta Lloyd’s investment funds are sold through a number of bank, fund manager and fund supermarket partners.
Delta Lloyd expects positive growth to continue in 2006, albeit at a lower rate, supported by recoveries in the economies of the Netherlands and Belgium. The Netherlands market is expected to remain competitive in what is a period of rapid regulatory and fiscal change.
- The 2005 figure includes £517 million of sales that have been identified as being more appropriately classified as pensions business and would have been reported as life business using the 2004 classification.
