Aviva plc: Worldwide long-term savings new business - three months to 31 March 2007
24 April, 2007
- Record quarter with total worldwide sales1 up 18%2 to £9,183 million
- Worldwide life and pensions sales up 16% to £7,751 million
- Outstanding USA performance: pro forma sales growth of 67% from the combined business
- Total UK sales up 9% to £3,500 million, with new business margin rising to 3.0%
- Excellent growth continues in Asia Pacific region - total sales up 34% to £700 million
- Strong investment sales - up 30% to £1,432 million
- New business profit growth of 17% with new business margin remaining strong at 3.5%
Andrew Moss, group finance director and incoming group chief executive, commented:
“This is a record quarter from Aviva, showing profitable growth across our multi-national portfolio.”
“Our US business has been our star performer. Sales are up by 67%, at an increased margin. AmerUs is proving to be an exciting acquisition and we now have a much stronger presence in the world's largest savings market.”
“Over the last two years in the UK, we've driven profitable growth by simplifying our infrastructure, managing costs and improving service. This focus will continue and we have more to do, but we're now seeing the benefits of our strategy with increases in both sales and margin.”
| Financial highlights | 3 months to 31 March 2007 | 3 months to 31 March 2006 | Local currency growth2 |
|---|---|---|---|
| Aviva UK | |||
| Life and pensions new business sales | £2,843m | £2,763m | 3% |
| Investment sales | £657m | £444m | 48% |
| Total long-term savings new business sales | £3,500m | £3,207m | 9% |
| New business contribution before required capital | £86m | £77m | 12% |
| New business margin before required capital | 3.0% | 2.8% | |
| Aviva International | |||
| Life and pensions new business sales | £4,908m | £4,025m | 25% |
| Investment sales | £775m | £685m | 17% |
| Total long-term savings new business sales | £5,683m | £4,710m | 24% |
| New business contribution before required capital | £185m | £158m | 19% |
| New business margin before required capital | 3.8% | 3.9% | |
| Aviva Group | |||
| Life and pensions new business sales | £7,751m | £6,788m | 16% |
| Investment sales | £1,432m | £1,129m | 30% |
| Total long-term savings new business sales | £9,183m | £7,917m | 18% |
| New business contribution before required capital | £271m | £235m | 17% |
| New business margin before required capital | 3.5% | 3.5% | |
- All references to sales in this announcement refer to the present value of new business premiums (PVNBP) unless otherwise stated. PVNBP is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.
- All growth rates quoted are at constant rates of exchange.
| Analysts/Investors: | |
|---|---|
| Andrew Moss, group chief executive, Aviva | +44 (0)20 7662 2286 |
| Philip Scott, group finance director, Aviva | +44 (0)20 7662 2264 |
| Charles Barrows, investor relations director, Aviva | +44 (0)20 7662 8115 |
| Amanda Wilbraham, senior manager investor relations, Aviva | +44 (0)20 7662 2111 |
| Media: | |
| Hayley Stimpson, director of external affairs | +44 (0)20 7662 7544 |
| Sue Winston, head of group media relations | +44 (0)20 7662 8221 |
| Vanessa Rhodes, group media relations manager | +44 (0)20 7662 2482 |
| James Murgatroyd/Ed Simpkins, Finsbury | +44 (0)20 7251 3801 |
There will be a conference call today for wire services at 07:45am (BST) on +44 (0)20 7162 0125. This conference call will be hosted by Andrew Moss, group finance director and attended by Philip Scott, group executive director, Aviva International, Patrick Snowball, group executive director, Aviva UK, Tidjane Thiam, chief executive, Aviva Europe and Mark Hodges, chief executive, Norwich Union Life.
There will be a conference call today for analysts and investors at 09:30am (BST) on +44 (0)20 7162 0025. This conference call will be hosted by Andrew Moss, group finance director and attended by Philip Scott, group executive director, Aviva International, Patrick Snowball, group executive director, Aviva UK, Tidjane Thiam, chief executive, Aviva Europe and Mark Hodges, chief executive, Norwich Union Life.
Replay will be available for two weeks until 9 May 2007. The dial in number for replays is +44 (0)20 7031 4064 and the pass code is 743998.
Photographs are available in the Aviva media centre.
