Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Rest of the World
Asian businesses:
In line with its long-term strategic ambitions for the region, Aviva continues to achieve a strong rate of growth in new business sales. Total sales from operations in Asia were up 91% to £946 million (2005: £486 million).
Singapore: Total sales increased by 77% to £580 million (2005: £317 million). Life and pension sales increased to £319 million (2005: £227 million), reflecting strong sales of limited period single premium savings products through Aviva’s partnership with banking group Development Bank of Singapore (DBS) together with an increase in sales through other distribution channels. Aviva remains second in the bancassurance market and is the leader in the developing broker market and in the employee benefits and healthcare segment.
Sales through Navigator, the investment fund administration business, increased substantially to £261 million (2005: £90 million), reflecting good relationships with key brokers, the comprehensive range of funds offered and an ongoing buoyant economic environment.
Hong Kong: Sales increased significantly to £216 million (2005: £103 million). This reflects the development of the IFA channel, which now contributes 55% (2005: 35%) of new business sales and the continued good performance from the partnership with DBS.
China: Sales through the joint venture life business Aviva-COFCO increased by 41% to £100 million (2005: £71 million) reflecting expansion in the branch network. Aviva-COFCO is now licensed in six provinces and 15 cities and was ranked 5th1 amongst foreign joint ventures as at the end of November 2006. Aviva’s 50% share of sales was £50 million (2005: £35 million).
India: Total new business sales through Aviva’s joint venture with the Dabur Group, increased strongly to £323 million (2005: £123 million), with Aviva’s 26% share amounting to £84 million (2005: £32 million). Aviva is the seventh largest private insurer in India2.
This excellent performance was driven by Aviva India’s rapidly expanding distribution channels. At the year-end, the direct sales force numbered more than 14,000 agents (2005: 6,700) with a further 6,000 in training and there were over 30 (2005: 17) distribution agreements in the bancassurance channel in place.
On 16 January 2007, Aviva announced a significant bancassurance agreement with IndusInd Bank, one of India’s fastest-growing private sector banks with 1.4 million customers and 148 branches, thereby extending Aviva’s leadership in the bancassurance market.
Sri Lanka: New business sales, since Aviva acquired a 51% stake in Eagle Insurance on 1 February 2006, amounted to £16 million. During the year, Eagle Insurance entered into two bancassurance agreements with National Development Bank and Standard Chartered Bank.
Malaysia: In January 2007, it was announced that Aviva had agreed to purchase 49% of each of the life and takaful3 businesses of Bumiputra-Commerce Holdings Berhad (BCHB). Aviva is now working to finalise the terms of the deal that will also be subject to regulatory approval.
- Measured in terms of year to date first year premium income for eleven months to November 2006.
- Measured in terms of first year weighted premium income in the first nine months of 2006.
- Takaful is a type of financial service that is compatible with Islamic Shari’ah law, with features similar to those of mutual societies.
