Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Continental Europe - Spain:
Aviva is the leading bancassurer in the Spanish life market and ranks second in the overall life market1.
Aviva Spain’s sales were £1,294 million (2005: £1,353 million, including one-offs of £25 million), reflecting the decline in the Spanish market of 5% in the first half of 2006. Sales of savings products were adversely affected by uncertainty surrounding the details of tax changes announced for 2007 and this uncertainty is likely to continue to affect sales of savings products for the remainder of the year. New products will be launched in early 2007 to take advantage of the proposed tax changes.
The new business contribution grew by 10% to £128 million (2005: £116 million) and the margin to 9.9% (2005: 8.6%), reflecting a greater proportion of sales of higher-margin protection products.
Sales through Aviva’s bancassurance partnerships in the first nine months were focused on higher-margin protection and pension business. Total sales were £1,165 million (2005: £1,217 million). This performance was supported by marketing campaigns carried out by the bank partners in the first half of the year.
Sales through Aviva Vida y Pensiones, which distributes through its direct sales force and intermediaries, were £129 million (2005: £136 million, including one-off sales of £25 million). Favourable equity market conditions in the first half of the year helped to achieve increased sales of unit-linked business.
Sales in the fourth quarter will benefit from the launch of new life and pension products. The reduction in pension tax relief from 1 January 2007 will be a feature of the marketing campaigns planned for the last quarter.
