Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Continental Europe - Ireland:
Including sales through the bancassurance partnership with Allied Irish Banks (AIB), Ireland’s largest retail bank, Hibernian’s new business sales increased by 79% to £902 million (2005: £504 million).
New business contribution was £19 million (2005: £13 million) with a margin of 2.1% (2005: 2.6%). The reduction in the margin reflects continuing competitive pressures and changes in assumptions.
Sales through AIB, which commenced at the end of January, amounted to £424 million, representing a substantial improvement on 2005. These sales comprised £314 million of life sales, consisting primarily of single premium bonds, and £110 million of pension sales. Life sales benefited from the reopening of the Hibernian property fund in July with sales through the bank channel of £49 million. The integration with Ark Life is proceeding according to plan and there have been a number of new product developments specifically designed for the bank channel.
Life sales through the Hibernian broker channel were 14% higher at £190 million (2005: £167 million), with strong sales of single premium unit-linked business reflecting the continued success of the limited-offer guaranteed fund prior to its closure in June.
Pension sales through the Hibernian broker channel were £288 million (2005: £337 million), with the decrease reflecting an exceptional level of investment-only group pension contracts sold in 2005. Sales tend to fluctuate from quarter to quarter due to the timing and size of these group contracts and the concentration of individual pensions sales in the final quarter.
Further growth is expected in 2006 and 2007 through the continued development of new products, including a re-launched pension product, expansion of the fund offering through the bank and broker networks, as well as the Special Savings Incentive Accounts maturity peak in April 2007.
