Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Poland (including Lithuania):
Aviva’s life and pension operations in Poland and Lithuania are leading businesses in their respective markets. Total sales, including investment sales, increased by 74% to £665 million (2005: £373 million) and included sales in Lithuania of £39 million (2005: £35 million).
Life sales in Poland were £268 million (2005: £147 million). This performance reflects strong sales of single premium unit-linked business, driven by a favourable equity market, recent promotional campaigns, and positive results from both the development of the direct sales force and bancassurance.
Pension sales increased substantially to £227 million (2005: £138 million) driven by overdue premiums from the State pension agency and higher levels of transfers from other providers. In the final quarter, CU Polska was acknowledged as having the best pension fund in Central and Eastern Europe by the prestigious industry monthly magazine Investment & Pensions Europe1. In November 2006, the value of Aviva’s pension assets passed the 30 billion Polish zloty (£5.3 billion) mark.
Investment sales in Poland were £131 million (2005: £53 million), reflecting a buoyant equity market, the expansion of sales channels, recent advertising and promotional activities, and the success of the umbrella funds2 launched in November 2006.
The Polish insurance and investment markets continue to offer strong long-term growth potential, supported by a favourable economic outlook. Further growth is expected in 2007 following product advancements and continued development of distribution channels.
- The monthly Investment & Pensions Europe has been published since 1997 and is the most important periodical in Europe dealing with pension funds. Each year it confers awards for the best funds in individual European countries and in theme categories.
- Umbrella funds were established to offer tax incentives for clients wishing to switch their investments between funds.
