Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Australia:
Total sales increased by 17% to £1,600 million (2005: £1,398 million), driven primarily by significantly higher investment sales through Navigator, the master trust fund administration business.
Life and pension sales were £297 million (2005: £337 million), with continuing strong growth from protection products following product enhancements. Successive changes to pension laws since the middle of 20051 have resulted in a shift of corporate pension sales for Aviva Australia towards Navigator retirement funds and this trend is expected to continue.
Sales through Navigator increased by 34% to £1,110 million (2005: £848 million) as a result of ongoing improvements in product offerings, an increase in retirement fund business, sustained strong customer service levels and Aviva Australia’s strategic investments in key distributors. The changes to pension laws and favourable tax legislation are expected to have a positive impact on the sales through the Navigator platform. Other investment sales were £193 million (2005: £213 million).
- From 1 July 2005, for the first time, individuals were entitled to choose where superannuation contributions made on their behalf by their employer were directed. Previously the employer would choose the plan.
