Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Ireland:
Including sales through the bancassurance partnership with Allied Irish Banks (AIB), Ireland’s largest retail bank, Hibernian’s new business sales increased by 93% to £1,273 million (2005: £665 million).
Sales through AIB, which began at the end of January 2006, amounted to £589 million. These comprised £383 million of life sales, consisting primarily of single premium bonds and £206 million of pension sales. This business grew strongly with sales 36% higher year on year. The reopening of the Hibernian property fund produced £49 million of life sales through the bank channel. A number of new product developments specifically designed for the bank channel and new rollover products are in place to capture maturities from the Special Savings Incentive Accounts (SSIAs).
Life sales through Hibernian’s broker channel were 13% higher at £243 million (2005: £216 million), with strong sales of single premium unit-linked business reflecting buoyant market conditions and the continued success of the limited-offer guaranteed fund prior to its closure in June.
Pension sales through Hibernian’s broker channel were £441 million (2005: £449 million), with increased sales in the final quarter, which is traditionally strong.
Hibernian’s broker businesses are continuing to witness a level of lapse experience higher than previously projected within its assumptions for life and pension business. Disclosure of the impact of the changes to assumptions on Aviva’s full year results will be provided at our preliminary announcement on 1 March 2007.
Further growth is expected in 2007 from the continued development of new products and expansion of the funds offered through the bank and broker networks.
