Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Overview
Aviva achieved continued strong growth in the 12 months to 31 December 2006, with total long-term savings new business sales up 22% to £31,123 million (2005: £25,583 million). The overall increase reflects growth in life and pension sales of 18% to £26,213 million (2005: £22,246 million), and exceptional growth in investment sales of 48%, to £4,910 million (2005: £3,337 million). Sales in the fourth quarter amounted to £8,405 million (2005: £6,982 million), a record quarter for the group.
Aviva UK’s total sales increased by 35% to £13,962 million (2005: £10,345 million). Within this total, life and pension new business sales grew by 25% to £11,507 million (2005: £9,185 million) before the effect of lapse assumption changes, benefiting from strong growth in pension and bond sales. Collective investment sales were exceptionally strong, up 112% to £2,455 million (2005: £1,160 million), benefiting from new fund offerings and strong investment markets. Aviva’s share of sales through the joint venture with The Royal Bank of Scotland Group were up by 58% to £1,169 million (2005: £742 million), reflecting an increased focus from both partners and a rise in the number of sales advisers.
Aviva International’s total long-term savings new business sales continued to experience strong growth. Sales increased by 13% to £17,161 million (2005: £15,238 million) reflecting strong growth in a number of Aviva’s main markets and from businesses acquired during the year in Ireland and the United States. Growth in Asia was 91% and the region now accounts for 6% of total international sales. Life and pension new business sales were 13% higher at £14,706 million (2005: £13,061 million), while investment sales grew by 14% to £2,455 million (2005: £2,177 million), primarily reflecting increased sales through the Navigator platform in Australia and Singapore.
The acquisition of AmerUs Group in the US was completed on 15 November 2006, and the company adopted the Aviva branding upon the close of the transaction. Sales in the year ended strongly, with £324 million of sales in the six weeks following acquisition.
