Interim results - Worldwide long-term savings new business – Three months to 31 March 2006
Notes to Editors
- Aviva is one of the leading providers of life and pensions to Europe with substantial positions in other markets around the world, making it the world’s sixth largest insurance group based on gross worldwide premiums and market capitalisation at 31 December 2004.
Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £35 billion and assets under management of £317 billion at 31 December 2005.
* Based on life and pensions PVNBP, total investment sales and general insurance and health net written premiums including share of associates’ premiums.
The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive. - All figures have been translated at average exchange rates applying for the period. The average rates employed in this announcement are 1 euro = £0.68 (three months to 31 March 2005: 1 euro = £0.69).
- All growth rates are quoted in local currency.
- Definition:
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. - Subsequent to previous reporting periods, the analysis of financial results by country has been amended and certain small businesses have been reclassified to align the financial reporting of those businesses with management responsibilities. The specific businesses affected are:
- Norwich Union International Life has moved to Aviva UK from Other Europe
- Germany has moved to Netherlands from Other Europe
- Lithuania has moved to Poland from Other Europe
The reclassifications noted above do not affect total sales, new business contribution or new business margin. All comparative data has been restated to take account of the reclassifications. Details of the reclassifications, including restated 2005 quarterly PVNBP and new business contribution before the effect of required capital, are set out below.
| Originally reported | Cumulative (£million) | |||||||
|---|---|---|---|---|---|---|---|---|
| Q1 2005 | Q2 2005 | Q3 2005 | Q4 2005 | |||||
| Life and pensions | PVNBP | New business contribution | PVNBP | New business contribution | PVNBP | New business contribution | PVNBP | New business contribution |
| Netherlands | 718 | 18 | 1,241 | 39 | 1,742 | 55 | 2,407 | 88 |
| Poland | 61 | 3 | 112 | 5 | 196 | 9 | 285 | 14 |
| Other Europe | 224 | 3 | 364 | 3 | 574 | 7 | 739 | 7 |
| United Kingdom | 2,140 | 67 | 4,244 | 135 | 6,586 | 198 | 9,053 | 265 |
| 3,143 | 91 | 5,961 | 182 | 9,098 | 269 | 12,484 | 374 | |
| After re-classification | Cumulative (£million) | |||||||
|---|---|---|---|---|---|---|---|---|
| Q1 2005 | Q2 2005 | Q3 2005 | Q4 2005 | |||||
| Life and pensions | PVNBP | New business contribution | PVNBP | New business contribution | PVNBP | New business contribution | PVNBP | New business contribution |
| Netherlands | 833 | 18 | 1,383 | 39 | 2,008 | 56 | 2,739 | 90 |
| Poland | 67 | 3 | 137 | 7 | 222 | 11 | 320 | 16 |
| Other Europe | 60 | 2 | 129 | - | 182 | 1 | 240 | (1) |
| United Kingdom | 2,183 | 68 | 4,312 | 136 | 6,686 | 201 | 9,185 | 269 |
| 3,143 | 91 | 5,961 | 182 | 9,098 | 269 | 12,484 | 374 | |
In addition to the reclassifications noted above, sales through the Navigator platform that were previously excluded from investment sales figures and were reported separately have now been included. This change increases the total investment sales figure by £310 million for the first quarter of 2006 (2005: £178 million). If sales through the Navigator platform had not been included in investment sales, the total long-term savings growth for the first quarter of 2006 would be 24%.
| Cumulative (£ million) | ||||
|---|---|---|---|---|
| Originally reported | Q1 2005 PVBNP |
Q2 2005 PVNBP |
Q3 2005 PVNBP |
Q4 2005 PVNBP |
| Investment sales (excl. Navigator) | 475 | 1,062 | 1,673 | 2,399 |
| Rest of the World (excl. Navigator) | 47 | 106 | 176 | 213 |
| Navigator | 178 | 432 | 668 | 938 |
| After reclassification | Q1 2005 PVNBP |
Q2 2005 PVNBP |
Q3 2005 PVNBP |
Q4 2005 PVNBP |
| Investment sales (incl. Navigator) | 653 | 1,494 | 2,341 | 3,337 |
| Rest of the World (incl. Navigator) | 225 | 538 | 844 | 1,151 |
- Cautionary statements:
This preliminary announcement may contain “forward-looking statements” with respect to certain of Aviva’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Aviva’s control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Aviva and its affiliates operate. As a result, Aviva’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Aviva’s forward-looking statements.
Aviva undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward-looking statements we may make.
