Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Continental Europe - Italy:
Aviva Italy reported an excellent performance with total sales up 13% to £2,059 million (2005: £1,816 million, including one-off single premium direct sales of £73 million). This growth contrasted favourably with the Italian market, which showed a decline in total sales of 9%1.
New business contribution increased by 11% to £51 million (2005: £46 million), reflecting the growth in sales at a stable margin of 2.5% (2005: 2.5%).
UniCredit Group continues to be one of the most successful bancassurers in Italy and Aviva’s total sales have increased by 70% to £1,103 million (2005: £647 million), benefiting from access to additional branches in the UniCredit Group network since January 2006.
Sales through Banche Popolari Unite were £483 million (2005: £505 million). A new protection product was launched in the third quarter of the year to broaden the product range.
Sales through the Banca Popolare Italiana Group network were £401 million (2005: £423 million) as demand for structured bonds was lower than last year. Marketing campaigns were carried out in the first half of 2005, while in 2006 they are expected to take place in the last quarter.
Sales through Banca delle Marche were lower at £32 million (2005: £139 million, including one-off single premium direct sales of £29 million), resulting from the timing of marketing campaigns and a significant change in sales mix from regular premium products to single premium. A marketing campaign is planned for the fourth quarter focused on a new unit-linked product.
The long-term growth potential remains strong in the Italian market and Aviva Italy continues to develop its bancassurance relationships. However, the timing of marketing campaigns and new product launches is variable and results in some volatility in sales volumes each quarter.
