Worldwide long-term savings new business – twelve months to 31 December 2005
Continental Europe
Spain:
Aviva is a leading bancassurer in the Spanish life market and was number two in the market overall, based on gross written premiums, in the first nine months of the year.
Total new business sales were £2,013 million (2004: £2,110 million) including one-off sales (2005: £34 million through Aviva Vida y Pensiones; 2004: £242 million through Caixa Galicia). Excluding one-off sales, underlying growth of 6% was achieved. Sales of protection business were strong in a buoyant housing market. Trading conditions in the savings market were more subdued due to low interest rates and pressure on disposable income.
Sales through bancassurance partnerships were £1,793 million (2004: £1,965 million) representing a 4% increase excluding one-off sales in 2004 through Caixa Galicia. The discrete fourth quarter sales of £576 million, represented the highest quarter’s sales since the second quarter in 2004 and benefited from pension campaigns in advance of the fiscal year-end. During the year, sales efforts were concentrated on higher margin protection and pension business. Aviva continues to focus on increasing customer penetration of its bancassurance customer bases through initiatives including launching new savings and pension products.
At Aviva Vida y Pensiones, which distributes through a direct sales force and intermediaries, new business sales increased strongly to £220 million (2004: £145 million). Most of this increase was due to strong sales of single premium individual pensions and unit-linked business, and included one-off sales of £34 million (2004: nil) in respect of large group savings and risk schemes.
Aviva Spain is well-placed for future growth through its bancassurance partnerships and Aviva Vida y Pensiones. However, as in previous years, quarterly sales will continue to be variable due to the timing of marketing campaigns with banking partners and the focus on pension business in the last quarter of the year.
