Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Aviva International
Australia:
Total sales increased by 10% to £398 million (2006: £379 million), driven primarily by significantly higher investment sales through Navigator, the master trust fund administration business.
Life and pension sales increased by 9% to £73 million (2006: £70 million), with continuing strong growth from protection products following product enhancements together with an increase in pension sales driven by a transfer in of corporate pension business. However, successive changes to pension laws since the middle of 20051 have resulted in a shift of retail pension sales for Aviva Australia towards Navigator retirement funds and this trend is expected to continue.
Sales through Navigator increased by 15% to £289 million (2006: £264 million) as a result of ongoing improvements in product offerings, an increase in retirement fund business, sustained strong customer service levels and Aviva Australia's strategic investments in key distributors. Navigator has recently announced the addition of 26 new funds, the largest refreshing of the fund list undertaken, applicable to all asset classes and risk appetites. This change, combined with the changes to pension laws and favourable tax legislation are expected to have a positive impact on the sales through the Navigator platform. Other investment sales were £36 million (2006: £45 million).
- From 1 July 2005, for the first time, individuals were entitled to choose where superannuation contributions made on their behalf by their employer were directed. Previously the employer would choose the plan.
