Interim results - Worldwide long-term savings new business – Three months to 31 March 2006
Continental Europe
Spain:
Aviva is a leading bancassurer in the Spanish life market and was ranked third in the market overall4 at the end of 2005. Total sales were £495 million (2005: £461 million, including one-off sales of £25 million).
Sales through bancassurance partnerships were £443 million (2005: £389 million), representing an increase over the same period in 2005 of 16%. Growth in sales of protection products continued to be strong in a buoyant housing market. Aviva’s partnerships with Unicaja, Bancaja, Caja España and Caja de Granada achieved double digit growth primarily through savings product sales as a result of marketing initiatives.
Sales in Aviva Vida y Pensiones, which distributes through its direct sales force and intermediaries, were £52 million (2005: £72 million, including one off sales of £25 million). Growth, excluding one-off sales, was 12% reflecting increased sales of unit-linked business in the favourable market conditions.
Aviva 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 concentration of sales of pension business in the last quarter of the year.
New business contribution increased by 19% to £46 million (2005: £39 million) and the new business margin grew to 9.3% (2005: 8.5%), due to the higher margin achieved on protection sales.
4. Based on gross written premiums
