Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Netherlands (including Belgium and Germany):
Delta Lloyd’s total sales, including investment sales, were £2,631 million (2005: £3,302 million). The conditions in the markets in which Delta Lloyd operates continue to be challenging, affected by aggressive pricing, competition for investment funds and by regulatory and fiscal changes. Delta Lloyd continued to focus on achieving a balance between profitability and business volumes.
Life and savings sales were £895 million (2005: £1,275 million). In Germany, sales reduced to £157 million (2005: £305 million), with investment bond volumes affected by the flattening yield curve and with the first quarter of 2005 boosted by a late influx of endowment sales following a change in the tax law. In the Dutch market, savings sales have been affected by increased competition, lower mortgage market activity and by lower investment in retirement planning products.
Pension and annuity sales were £1,451 million (2005: £1,464 million). Sales of group pension schemes were particularly strong in the final quarter of both 2006 and 2005, while sales in 2006 also include £152 million of premium received from the Delta Lloyd pension scheme. Group pension sales tend to fluctuate from quarter to quarter due to the timing and size of group contracts.
Investment sales of £285 million (2005: £563 million) reflected increased market competition in 2006 and the exceptional success of Delta Lloyd’s Select Dividend fund in late 2005. Delta Lloyd plans to enhance its fund offering in 2007.
In this challenging environment, Delta Lloyd continues to seek out new sales opportunities. In particular, group pensions, further development of distribution through the ABN AMRO networks and distribution through alternative channels are viewed as areas of growth opportunity, giving prospects for improvement in 2007.
