Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Continental Europe - France:
Aviva France’s sales increased by 5% to £2,717 million (2005: £2,593 million), including sales of £657 million (2005: £560 million) through Aviva’s bancassurance partner, Crédit du Nord.
Aviva’s strategy continues to focus on the sale of higher margin, capital efficient unit-linked products and on profitable growth, resulting in a 13% increase in new business contribution to £111 million (2005: £98 million) with an increased margin of 4.1% (2005: 3.8%). Total unit-linked sales were 19% higher at £1,232 million (2005: £1,034 million), representing 47% (2005: 42%) of savings sales (excluding protection sales).
Overall market growth for the eight months to August slowed to 21%1, including the large but reducing effect of the reinvestment of ‘Plan d’Epargne Logement’ (PEL) banking product withdrawals. PEL has mostly benefited pure bancassurers with growth amongst traditional insurers declining to 11%.
Aviva continues to focus on encouraging Fourgous2 transfers, an area in which it has been very successful. In total, Aviva has achieved over 62,000 policy conversions amounting to £3.4 billion of transferred funds, of which £1.2 billion have been transferred to unit-linked funds. In the first half of 2006, Aviva generated more than 40%3 of all Fourgous transfers in the market and these transfers are excluded from Aviva’s life new business figures. These transfers, combined with ensuring that policyholders continue to receive best advice, enables a greater proportion of future new business from existing customers to be invested in unit-linked funds.
AFER, the largest retirement savings association in France, continues to grow and now has 650,000 members with sales of £1,252 million (2005: £1,230 million). Unit-linked sales through this important channel have grown strongly increasing by 42% to £392 million (2005: £276 million) and representing 31% of total AFER sales (2005: 22%).
New business sales through channels other than Aviva France’s partnerships with AFER and Crédit du Nord were £808 million (2005: £803 million), accounting for 30% of total sales (2005: 31%). Within this, higher margin unit-linked business grew to 76% (2005: 69%) as a proportion of savings sales.
Aviva France’s multi-distribution approach and first-class investment track record4 mean that the business is well-placed to continue to grow sales and new business contribution.
- Based on gross written premium
- The Fourgous amendment of 2005 enabled the tax-efficient transfer of existing 100% Euro funds into more balanced Euro and unit-linked portfolios
- Based on the value of funds converted
- In September 2006, ‘Mieux Vivre Votre Argent’ (a weekly magazine) ranked Aviva Gestion d’Actifs the best fund manager over the last 5 years
