Interim results - Worldwide long-term savings new business – Three months to 31 March 2006
Continental Europe
Other Europe:
Life and pension sales in Aviva’s other Continental European businesses in the Czech Republic, Hungary, Romania and Turkey amounted to £60 million (2005: £60 million, including £13 million of sales in the Portuguese business which was sold in 2005). Strong growth of 20% was achieved in continuing businesses, principally from an increase in sales through the broker channel in Hungary.
In Turkey, where Aviva is a top-five life and pensions provider, total sales were £31 million (2005 : £39 million) reflecting reduced activity in transfers from existing life to pension policies ahead of the regulatory deadline5 and increased competition to recruit sales advisers by newer companies entering the market.
Sales in Luxembourg have risen by 55% to £168 million (2005: £110 million), continuing a strong performance during 2005. Included in this total is £53 million (2005: £80 million) of sales through the Italian representative office.
In March, Aviva was granted a licence by the Federal Service of Insurance Supervision in Russia allowing it to offer a range of long-term savings and protection products in the Russian market. Aviva is developing its entry strategy, with sales expected to start later this year.
5. 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.
