Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Continental Europe - Other Europe:
Life and pension sales in Aviva’s other Continental European businesses in the Czech Republic, Hungary, Romania, Russia and Turkey amounted to £215 million (2005: £182 million, including £45 million of sales in the Portuguese business which was sold in 2005). Growth of 56% was achieved from continuing businesses, principally from an increase in sales through the broker channel in Hungary, reflecting the benefit from a surge in sales prior to changes in the tax regime.
In Turkey, where Aviva is a top-five life and pensions provider, total sales were £112 million (2005: £106 million) reflecting recent increased activity in transfers from existing life to pension policies ahead of the regulatory deadline1.
Investment sales in Luxembourg have risen by 18% to £382 million (2005: £325 million), benefiting from strong equity markets.
Aviva Russia was granted its licence in March 2006 and it has subsequently commenced trading in corporate sales on a limited scale. Aviva’s strategy is to position the business to take advantage of the rapid growth expected to occur as the life insurance industry develops with the expectation of achieving a top-five market position and a 10% share in the life insurance market in the next five years.
- Turkish legislation for pension business, which came into effect from August 2004, allows for transfers from existing life policies to new pension policies with the same life company until October 2006. Pensions business has advantages in terms of the range of investment funds and a lower tax charge on benefits at maturity/retirement.
