Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Aviva International
Ireland:
Total new business sales in Ireland increased by 80% to £453 million (2006: £258 million)1.
Sales through Allied Irish Banks (AIB) increased to £206 million (two months in 2006: £93 million). These comprised £143 million of life sales, consisting primarily of single premium bonds and £63 million of pension sales. Pro forma2 sales growth for the three-month period was 63%. This substantial increase reflects the successful launch of the secure capital fund in January 2007, a special offer on life savings products and increased pension sales driven by strong fund performances.
Sales through Hibernian’s broker channel were 53% higher at £247 million (2006: £165 million). Life sales were 21% higher at £76 million (2006: £64 million), with strong sales of the secure capital fund and sales from the geared property fund prior to its closure in January. Pension sales were £171 million (2006: £101 million), reflecting higher sales of investment-only business and the continued success of the revised Horizon product re-launched in September 2006.
New business contribution was £6 million (2006: £5 million) with a margin of 1.3% (2006: 1.9%). The reduction in the margin primarily reflects assumption changes made in December 2006.
The continued development of new products and expansion of the funds offered through the bank and broker networks are expected to contribute to further growth in 2007.
- Sales for January 2006 did not include sales through AIB as the partnership began in February 2006.
- Pro forma sales for 2006 represent the sum of sales through AIB, including the period prior to beginning of the partnership in February 2006, plus sales through Hibernian’s existing broker channel, on a consistent basis
