Worldwide long-term savings new business – twelve months to 31 December 2005
Continental Europe
Other Europe:
Life and pension sales from Aviva’s other European businesses were £739 million (2004: £804 million).
New business sales in Germany were £332 million (2004: £409 million). This sales performance is in line with the market, where the cessation of tax advantages on endowment products at the end of 2004 resulted in very high sales in that year, with Aviva’s sales of profit sharing savings products and credit life products performing well.
Sales though Norwich Union’s Dublin-based offshore life and savings business were £132 million (2004: £110 million).
In Turkey, where Aviva is a top-five life and pensions provider, total new business sales increased to £144 million (2004: £124 million), continuing to reflect good levels of personal pensions business. Transfers from existing life policies to pension policies ahead of the regulatory deadline1 in October 2006 have boosted single premium sales by £20 million (2004: £5 million).
Aviva’s businesses in the Czech Republic, Hungary, Lithuania, Portugal and Romania account for the remaining life and pension sales of £131 million (2004: £161 million). The prior year comparative includes one-off sales of £52 million resulting from pension reform legislation in Lithuania. Excluding the one-off sales in Lithuania and sales achieved by the Portuguese business which was disposed of on 7 October 2005, strong underlying growth of 43% was achieved.
UCIT sales in Luxembourg increased to £410 million (2004: £254 million) reflecting improved investor sentiment and further development of broker relationships and distribution channels. Within this, sales through the Italian representative office grew by 37% to £213 million (2004: £154 million).
Aviva has opened a representative office in Moscow while it continues to evaluate opportunities in the Russian market.
- Turkish legislation for pension business, which came into effect from August 2004, allows for transfers from existing life policies to new pension policies with the same life company until October 2006. Pensions business has advantages in terms of the range of investment funds and a lower tax charge on benefits at maturity/retirement.
