Worldwide long-term savings new business - 3 months to 31 March 2006
27 April, 2006
- Excellent worldwide total sales1 growth of 26%2 (£7.9 billion; 2005 £6.3 billion)
- UK total sales growth of 34% (£3.2 billion; 2005 £2.4 billion)
- International total sales growth of 21% (£4.7 billion; 2005 £3.9 billion)
- Life and pension sales up 20% (£6.8 billion; 2005 £5.7 billion)
- New business contribution growth of 20% (£235 million; 2005 £197 million)
- Investment sales up 72% (£1.1 billion; 2005 £0.7 billion)
Richard Harvey, group chief executive, commented:
"I am delighted with our performance in the first quarter of 2006. Aviva has accelerated sales growth across its worldwide long-term savings businesses and profits are growing in line with sales.
"Geographical diversity is one of our great strengths, and in the first quarter almost 60% of long-term savings new business comes from Aviva International. In the UK, our sales momentum is highly encouraging and new business profit is increasing strongly.
"Aviva is in excellent shape and our balanced portfolio means we are better positioned than ever to seize profitable market opportunities."
| Financial highlights | 3 months to 31 March 2006 |
3 months to 31 March 2005 |
Local currency growth |
|---|---|---|---|
| Aviva International | |||
| Life and pensions new business sales | £4,025m | £3,476m | 16% |
| Investment sales | £685m | £444m | 53% |
| Total long-term savings new business sales | £4,710m | £3,920m | 21% |
| New business contribution before required capital | £158m | £129m | 24% |
| New business margin before required capital | 3.9% | 3.7% | |
| Aviva UK | |||
| Life and pensions new business sales | £2,763m | £2,183m | 27% |
| Investment sales | £444m | £209m | 112% |
| Total long-term savings new business sales | £3,207m | £2,392m | 34% |
| New business contribution before required capital | £77m | £68m | 13% |
| New business margin before required capital | 2.8% | 3.1% | |
| Aviva Group | |||
| Life and pensions new business sales | £6,788m | £5,659m | 20% |
| Investment sales | £1,129m | £653m | 72% |
| Total long-term savings new business sales | £7,917m | £6,312m | 26% |
| New business contribution before required capital | £235m | £197m | 20% |
| New business margin before required capital | 3.5% | 3.5% |
- All references to sales in this announcement refer to the present value of new business premiums unless otherwise stated. Present value of new business premiums (PVNBP) is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.
- All growth rates quoted are at constant rates of exchange.
Enquiries:
| Analysts/Investors: | |
| Philip Scott, group executive director, Aviva | +44 (0)20 7662 2264 |
| Patrick Snowball, group executive director, Aviva | +44 (0)20 7662 7574 |
| Charles Barrows, investor relations director, Aviva | +44 (0)20 7662 8115 |
| Media: | |
| Sue Winston, head of group media relations | +44 (0)20 7662 8221 |
| Vanessa Booth, media relations manager | +44 (0)20 7662 2482 |
| Robert Bailhache, Financial Dynamics | +44 (0)20 7269 7200 |
There will be a conference call today for wire services at 7:45am (UK time) on +44 (0)20 7162 0025. This conference call will be hosted by Philip Scott, group executive director and attended by Andrew Moss, group finance director and Patrick Snowball, group executive director.
There will be a conference call today for analysts and investors at 9:30am (UK time) on +44 (0)20 7162 0025. This conference call will be hosted by Philip Scott, group executive director and attended by Andrew Moss, group finance director and Patrick Snowball, group executive director.
Replay will be available for two weeks until 12 May 2006. The dial in number for replay is +44 (0)20 7031 4064 and the pass code is 700519.
