Worldwide long-term savings new business – nine months to 30 September 2006
Aviva International
Rest of the World - United States
Life and pension sales increased by 3% to £408 million (2005: £393 million). Sales of deferred annuities have been adversely affected by difficult market conditions associated with a flat yield curve and this is expected to continue. Structured settlement products continue to show strong growth following the A.M. Best rating upgrade to A+ in November 2005. Fixed index annuity sales increased by 200% to £48 million (2005: £16 million, sales commenced in the second quarter) due to competitive rates and the success of recent marketing campaigns.
New business contribution remained at a level of £9 million (2005: £9 million). The margin of 2.2% (2005: 2.3%) remains broadly in line with the prior year.
