Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Rest of the World - Asian businesses
In line with its long-term strategic ambitions for the region, Aviva continues to achieve a strong rate of growth in new business sales. Total sales from operations in Asia were up 100% to £635 million (2005: £307 million). New business contribution from life and pension sales increased by 70% to £23 million (2005: £13 million) with a new business margin of 5.1% (2005: 5.2%).
Singapore: Total sales increased by 81% to £387 million (2005: £204 million). Life and pension sales were £207 million (2005: £147 million), reflecting limited period single premium sales through Aviva’s partnership with DBS. Aviva remains second in the bancassurance market and the leader in the developing broker market as well as the employee benefits and healthcare segment.
Sales through Navigator, the investment fund administration business, increased significantly to £180 million (2005: £57 million), reflecting good relationships with key brokers, the comprehensive range of funds offered and a buoyant equity market.
Hong Kong: Sales increased significantly to £141 million (2005: £59 million), due to strong IFA sales, that now account for 50% of the total, together with continued good performance from the partnership with DBS in Hong Kong.
China: Sales through the joint venture life business, Aviva-COFCO increased to £68 million (2005: £45 million) reflecting expansion in China where Aviva is now licensed in six major cities, with sales offices in a further seven cities. Aviva’s 50% share of sales was £34 million (2005: £22 million).
India: Aviva’s joint venture with the Dabur Group reported an excellent performance increasing total new business sales to £246 million (2005: £86 million), with Aviva’s 26% share of new business sales amounting to £64 million (2005: £22 million). Aviva is the leader in the bancassurance market and the seventh largest private insurer in India1. Aviva India has continued to increase its distribution relationship with banks, which now number 29 (2005: 17). The most recent agreement is with Doha Bank in Qatar, where Aviva’s products will be distributed to Qatar’s non-resident Indian community. Aviva’s direct sales force now numbers more than 12,800 agents, with an additional 5,000 in training.
Sri Lanka: On 1 February 2006, Aviva acquired a 51% stake in Eagle Insurance Company Limited (Eagle), the third-largest insurer in Sri Lanka. At the same time, Eagle entered into a bancassurance agreement with National Development Bank Limited, Sri Lanka’s biggest development bank and Eagle’s other major shareholder. Eagle has now entered its second bancassurance deal with Standard Chartered Bank, and has launched a set of innovative new products. Total sales since acquisition amount to £9 million.
