Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Continental Europe - Poland (including Lithuania):
Aviva’s life and pension operations in Poland and Lithuania are leading businesses in their respective markets. Total sales, including investment sales, were £472 million (2005: £258 million).
Total new business contribution from life and pension sales was up 78% to £20 million (2005: £11 million), driven by the strong growth in sales, with a new business margin of 5.2% (2005: 5.0%).
Life sales in Poland increased substantially to £182 million (2005: £96 million), including £17 million from a large group scheme. This performance reflects strong sales of single premium unit-linked business, driven by a favourable equity market, positive results from continued development of the direct sales force and an improving focus on bancassurance.
Pension sales increased significantly to £172 million (2005: £100 million) mainly as a result of higher receipts of contributions from the State pension agency and higher amounts of assets obtained from the secondary market.
Life and savings sales in Lithuania were £31 million (2005: £26 million), confirming Aviva’s strong position in this market.
Investment sales in Poland were £87 million (2005: £36 million) reflecting a buoyant equity market, the benefit of a new distribution agreement with a leading broker and the increased productivity of the direct sales force.
The Polish insurance and investment markets continue to offer strong long-term growth potential, supported by a favourable economic outlook. Equity markets slowed in the third quarter and Aviva does not expect the current level of sales growth to be maintained in the final quarter.
