Worldwide long-term savings new business – nine months to 30 September 2006
Overview
Aviva continued to grow strongly in the nine months to 30 September 2006, with total long-term savings new business sales up 22% to £22,718 million (2005: £18,601 million). The overall increase reflects growth in life and pension sales of 18% to £19,128 million (2005: £16,260 million), and exceptional growth in investment sales of 54% to £3,590 million (2005: £2,341 million).
Aviva UK’s total long-term savings sales grew by 39% to £10,464 million (2005: £7,541 million) and have already exceeded the figure for the whole of 2005 (full year 2005: £10,345 million). The growth reflects strong sales through both the intermediary channel and our successful bancassurance joint venture with The Royal Bank of Scotland Group (RBSG). This growth has been achieved while maintaining the UK margin before the cost of capital at 2.9%, in line with the full year 2005 figure. Aviva UK continues to focus on actively managing margin, volume and business mix.
Aviva International’s total long-term savings new business sales continued to experience strong growth of 11% to £12,254 million (2005: £11,060 million) reflecting expansion in most of its key markets. Growth in Asia was particularly strong at 100% and the region now accounts for over 5% of total international sales. Life and pensions new business sales were 8% higher at £10,337 million (2005: £9,574 million) while investment sales grew by 30% to £1,917 million (2005: £1,486 million), primarily reflecting increased sales through the Navigator platform. New business contribution before the effect of required capital increased by 10% to £412 million (2005: £374 million) and is broadly in line with sales growth. After the effect of required capital, new business contribution increased faster than sales, up 16% to £308 million (2005: £264 million), reflecting improved product mix and the continued focus on profitable growth and capital efficiency.
The acquisition of AmerUs in the US is on track. Last week, AmerUs shareholders voted in favour of our recommended offer and we continue to progress the required regulatory approvals. We remain confident that the transaction will complete by the end of 2006.
