Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Aviva International
Asia Pacific:
In line with its long-term strategic ambitions, Aviva continues to achieve a strong rate of growth in new business sales with total sales 34% higher at £700 million (2006: £554 million) driven primarily by significantly higher sales in the Asian businesses. New business contribution from life and pension sales, before the effect of required capital, increased by 18% to £13 million (2006: £12 million). New business margin of 5.2% (2006: 6.0%) remained strong compared to the full year 2006 margin of 4.4%. However, new business margins are influenced by marketing campaigns and product launches, resulting in some volatility between quarters. Growth potential for the region remains strong and Aviva's diversified distribution model places the business in a strong position for continued growth in the future.
Singapore:
Total sales increased by 91% to £168 million (2006: £93 million) driven by higher investment sales through Navigator, Aviva's investment fund administration business. Life and pension sales were £41 million (2006: £47 million), reflecting a slow quarter with an absence of limited period single premium product sales through Aviva's bancassurance partner Development Bank of Singapore (DBS). Aviva remains second in the bancassurance market and market leader in the developing broker market and in the employee benefits and healthcare segment.
Sales through Navigator increased substantially to £127 million (2006: £46 million), reflecting good relationships with key brokers, the comprehensive range of funds offered and an ongoing buoyant economic environment.
Hong Kong:
Sales increased significantly to £76 million (2006: £40 million). This reflects the development of the IFA channel, which contributed 68% (2006: 45%) of sales and the continued good performance from the partnership with DBS.
China:
Sales through the joint venture life business Aviva-COFCO, which was ranked fifth amongst foreign joint ventures as at the end of 2006, increased by 77% to £36 million (2006: £22 million) reflecting ongoing expansion in China. Aviva-COFCO recently opened sales offices in Zhuzhou, in Hunan province, and in Shijiazhuang, in Hebei province, and it is now licensed in seven provinces and 17 cities. Aviva's 50% share of sales was £18 million (2006: £11 million).
India:
Total sales from Aviva's joint venture with the Dabur Group increased to £135 million (2006: £105 million), ranking Aviva seventh amongst private insurers. Aviva's 26% share of sales amounted to £35 million (2006: £27 million). Aviva is the leader in the bancassurance market in India with over 30 distribution agreements now in place. The direct sales force continues to expand and now numbers more than 21,000 agents (2006: 9,300), with an additional 6,500 in training.
Sri Lanka:
Total life sales were £5 million (two months in 2006: £4 million). Aviva acquired a 51% stake in Eagle Insurance Company Limited, the third-largest insurer in Sri Lanka on the 1 February 2006. Sales are expected to continue to increase through Sri Lanka's two bancassurance agreements that were signed in 2006 and through ongoing expansion of the direct sales force.
