Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Spain:
Aviva remains the number one bancassurance group in the Spanish life market and number two in the life market1 overall.
Total new business sales were £2,059 million, including one-off sales of £21 million (2005: £2,013 million, including one-off sales of £34 million). Excluding one-off sales, good underlying growth of 4% in total new business sales was achieved for the year, outperforming a market that grew by 1%2. This strong performance has been achieved through sales efforts concentrated on higher margin protection and pension business. Trading conditions in the savings market were more subdued, affected by the uncertainty surrounding the details of tax changes announced for 2007. Aviva Spain has developed new savings products for 2007 that take advantage of the more favourable tax regime for PIAS3 products.
In Aviva Spain’s bancassurance distribution channels, total new business sales were £1,832 million (2005: £1,793 million). This performance was supported by marketing campaigns carried out by the bank partners in the first half of the year and strong sales of pension business in the fourth quarter, ahead of the planned reduction in pension tax relief from 1 January 2007.
Sales through Aviva Vida y Pensiones, which distributes through its direct sales force and intermediaries, increased to £227 million, including one-off sales of £21 million, (2005: £220 million, including one-off sales of £34 million). Unit-linked sales benefited from favourable equity market conditions in the year.
- Based on gross written premium for the nine months to the end of September 2006.
- Umbrella funds were established to offer tax incentives for clients wishing to switch their investments between funds.
- PIAS are newly introduced savings contracts with tax benefits after ten years if an annuity is purchased.
