Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Other Europe:
Life and pension sales in the Czech Republic, Hungary, Romania, Russia and Turkey amounted to £308 million (2005: £240 million, including £45 million of sales in the Portuguese business, which was sold in 2005).
Strong growth of 60% was achieved from continuing businesses, principally from an increase in sales through the broker channel in Hungary ahead of changes in the tax regime, which became effective on 1 September 2006. Despite these tax changes, sales continued to be strong in the final quarter.
In Turkey, where Aviva is a top-five life and pensions provider, total sales were £162 million (2005: £144 million) driven by higher sales of regular premium pensions business, boosted by an increase in the number of sales advisers and productivity in the final quarter of 2006. The business also benefited from increased transfers from existing life to pension policies ahead of the regulatory deadline1.
Investment sales in Luxembourg have risen by 17% to £475 million (2005: £410 million), benefiting from a broad range of products, strong demand from investors and our award-winning funds. We anticipate that demand will continue into 2007 and that property and absolute return products will become increasingly popular with investors.
In Russia, Aviva began trading in corporate sales on a limited scale following the grant of its licence in March 2006. Aviva Russia’s strategy is to position the business to take advantage of the rapid growth expected to occur as the life insurance industry develops, with the expectation of achieving a top-five market position and a 10% share in the life insurance market within the next five years.
- Turkish legislation for pension business, which came into effect from August 2004, allows for transfers from existing life policies to new pension policies with the same life company until October 2006. Pension business has advantages in terms of the range of investment funds and a lower tax charge on benefits at maturity/retirement.
