Aviva plc: Worldwide long-term savings new business - twelve months to 31 December 2006
6 February, 2007
- Excellent full year performance with total worldwide sales1,3 up 22% to £31,123 million and record fourth quarter sales
- Worldwide life & pensions sales up 18% at £26,213 million
- Strongest UK performance to date: total sales3 up 35% to £13,962 million
- International total sales up 13% to £17,161 million
- Best ever quarterly annuity and life sales for AmerUs and total sales up 21% year on year
- Investment sales grew by 48% to £4,910 million
Richard Harvey, group chief executive, commented:
"These results show that Aviva is a world-class business. We produced over £8 billion in worldwide sales of long-term savings products in the last three months of 2006, which is a quarterly record for us. Our scale is building steadily as we benefit from the investment we’ve made in providing customers with a broad range of products through the distribution channel of their choice.
"Aviva’s newly expanded business in the US, which now incorporates AmerUs, has delivered record sales and strong growth, and we’re confident that consumer demand for our life and annuity products will continue to rise.
"In the UK, Norwich Union continued to perform extremely well, achieving an impressive 35% increase in total sales. Our geographic balance and growing presence in continental Europe enabled us to increase our life and pension sales by over £1 billion, compared to last year, demonstrating the value of the market that’s available to us there. In Asia we are accelerating the development of our business as we capture a growing share of the increasing demand for long-term savings and protection products.
"We are confident of further growth for Aviva in 2007."
| Financial highlights | 12 months to 31 December 2006 | 12 months to 31 December 2005 | Local currency growth2 |
|---|---|---|---|
| Aviva UK | |||
| Life and pensions new business sales3 | £11,507m | £9,185m | 25% |
| Investment sales | £2,455m | £1,160m | 112% |
| Total long-term savings new business sales3 | £13,962m | £10,345m | 35% |
| Aviva International | |||
| Life and pensions new business sales | £14,706m | £13,061m | 13% |
| Investment sales | £2,455m | £2,177m | 14% |
| Total long-term savings new business sales | £17,161m | £15,238m | 13% |
| Aviva Group | |||
| Life and pensions new business sales3 | £26,213m | £22,246m | 18% |
| Investment sales | £4,910m | £3,337m | 48% |
| Total long-term savings new business sales3 | £31,123m | £25,583m | 22% |
- All references to sales in this announcement refer to the present value of new business premiums (PVNBP) unless otherwise stated. PVNBP is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.
- All growth rates quoted are at constant rates of exchange.
- UK life sales figures are stated before the effect of changing from opening to closing operating assumptions. (i.e. using assumptions consistent with those used in reporting 2006 new business sales in the year to date). After including the effect of changes to lapse assumptions, to be consistent with the assumptions used in calculating closing embedded value, Aviva U ’s PVNBP, and consequently that of the group, is reduced by £361 million.
| Analysts/Investors: | |
|---|---|
| Philip Scott, group executive director, Aviva | +44 (0)20 7662 2264 |
| Patrick Snowball, group executive director, Aviva | +44 (0)20 7662 7574 |
| Charles Barrows, investor relations director, Aviva | +44 (0)20 7662 8115 |
| Jessie Burrows, head of investor relations, Aviva | +44 (0)20 7662 2111 |
| Media: | |
| Hayley Stimpson, director of external affairs | +44 (0)20 7662 7544 |
| Vanessa Booth, group media relations manager | +44 (0)20 7662 2482 |
| Rob Bailhache, Financial Dynamics | +44 (0)20 7269 7200 |
There will be a conference call today for wire services at 07:30am (GMT) on +44 (0)20 7162 0025. This conference call will be hosted by Philip Scott, group executive director, Aviva International and attended by Andrew Moss, group finance director and Patrick Snowball, group executive director, Aviva UK.
There will be a conference call today for analysts and investors at 09:30am (GMT) on +44 (0)20 7162 0125. This conference call will be hosted by Philip Scott, group executive director, Aviva International and attended by Andrew Moss, group finance director and Patrick Snowball, group executive director, Aviva UK.
Replay will be available for two weeks until 21 February 2007. The dial in number for replays is +44 (0)20 7031 4064 and the pass code is 733419.
Photographs are available on the Aviva media centre.
