Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006

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Supplement 3

Detailed analysis of new business contribution

(a) Before the effect of required capital – PVNBP basis

  Present value of new business premiums1 New business contribution2,3 New business margin4
  3 months 2007 £m 3 months 2006 £m 3 months 2007 £m 3 months 2006 £m 3 months 2007 3 months 2006 Full year 2006
Life and pensions
United Kingdom 2,843 2,763 86 77 3.0% 2.8% 2.9%
France 989 1,134 42 45 4.2% 4.0% 4.3%
Ireland 453 258 6 5 1.3% 1.9% 1.2%
Italy 935 845 26 21 2.8% 2.5% 2.5%
Netherlands (including Belgium and Germany) 603 722 21 19 3.5% 2.6% 2.4%
Poland 167 160 7 8 4.2% 5.0% 5.2%
Spain 592 495 43 46 7.3% 9.3% 8.9%
Other Europe 84 60 (1) (1) (1.2)% (1.7)% (1.3)%
Continental Europe 3,823 3,674 144 143 3.8% 3.9% 3.9%
Asia 175 129 9 8 5.1% 6.2% 3.8%
Australia 73 70 4 4 5.5% 5.7% 5.7%
Asia Pacific 248 199 13 12 5.2% 6.0% 4.4%
United States 837 152 28 3 3.3% 2.0% 2.3%
International 4,908 4,025 185 158 3.8% 3.9% 3.8%
Total life and pensions 7,751 6,788 271 235 3.5% 3.5% 3.5%
Analysed between:
Bancassurance channels 2,349 2,120 103 97 4.4% 4.6% 4.8%
Other distribution channels 5,402 4,668 168 138 3.1% 3.0% 2.9%
  7,751 6,788 271 235 3.5% 3.5% 3.5%
  1. Present value of new business premiums (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.
  2. Before the effect of required capital.
  3. New business contribution before the effect of required capital includes minority interests in 2007 of £47 million (3 months 2006: £48 million). This comprises minority interests in France of £7 million (3 months 2006: £8 million), Ireland £1 million (3 months 2006: nil), Netherlands £1 million (3 months 2006: £3 million), Italy £15 million (3 months 2006: £12 million), Spain £22 million (3 months 2006: £24 million) and Poland £1 million (3 months 2006: £1 million).
  4. New business margin represents the ratio of new business contribution to PVNBP, expressed as a percentage.

(b) After the effect of required capital

  Present value of new business premiums1 New business contribution2,3 New business margin4
  3 months 2007 £m 3 months 2006 £m 3 months 2007 £m 3 months 2006 £m 3 months 2007 3 months 2006 Full year 2006
Life and pensions business
United Kingdom 2,843 2,763 70 60 2.5% 2.2% 2.4%
France 989 1,134 29 32 2.9% 2.8% 3.1%
Ireland 453 258 5 4 1.1% 1.6% 0.7%
Italy 935 845 20 15 2.1% 1.8% 1.8%
Netherlands (including Belgium and Germany) 603 722 15 9 2.5% 1.2% 1.1%
Poland 167 160 7 8 4.2% 5.0% 4.7%
Spain 592 495 39 42 6.6% 8.5% 8.2%
Other Europe 84 60 (3) (1) (3.6)% (1.7)% (1.9)%
Continental Europe 3,823 3,674 112 109 2.9% 3.0% 3.0%
Asia 175 129 7 6 4.0% 4.7% 3.2%
Australia 73 70 2 2 2.7% 2.9% 3.0%
Asia Pacific 248 199 9 8 3.6% 4.0% 3.2%
United States 837 152 18 1 2.2% 0.7% 0.9%
International 4,908 4,025 139 118 2.8% 2.9% 2.9%
Total life and Pensions 7,751 6,788 209 178 2.7% 2.6% 2.6%
  1. Present value of new business premiums (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.
  2. New business contribution is after the effect of required capital. The effect of required capital represents the impact of holding the required capital (expressed as a % of minimum European Union (EU) solvency margin or equivalent for non-EU operations) and discounting to present value the projected future releases from the required capital to shareholders.
  3. New business contribution after the effect of required capital includes minority interests in 2007 of £38 million (3 months 2006: £39 million). This comprises minority interests in France of £4 million (3 months 2006: £4 million), Ireland £1 million (3 months 2006: nil), Italy £11 million (3 months 2006: £9 million), Netherlands £1 million (3 months 2006: £3 million), Spain £20 million (3 months 2006: £22 million) and Poland £1 million (3 months 2006: £1 million).
  4. New business margin represents the ratio of new business contribution after the effect of required capital to PVNBP, expressed as a percentage.

(c) After the effect of required capital, minority interest, and tax

  Present value of new business premiums1 New business contribution2 New business margin3
  3 months 2007 £m 3 months 2006 £m 3 months 2007 £m 3 months 2006 £m 3 months 2007 3 months 2006 Full year 2006
United Kingdom 2,843 2,763 49 43 1.7% 1.6% 1.7%
Continental Europe 2,648 2,618 51 47 1.9% 1.8% 1.8%
Asia Pacific 246 198 8 7 3.3% 3.4% 2.5%
United States 837 152 11 - 1.3% - 0.6%
International 3,731 2,968 70 54 1.9% 1.8% 1.7%
Attributable to equity shareholders 6,574 5,731 119 97 1.8% 1.7% 1.7%
Analysed between:
Bancassurance channels 1,322 1,179 34 30 2.6% 2.5% 2.7%
Other distribution channels 5,252 4,552 85 67 1.6% 1.5% 1.4%
  6,574 5,731 119 97 1.8% 1.7% 1.7%
  1. PVNBP is stated after deducting minority interest.
  2. Contribution stated after deducting cost of required capital, tax and minority interest.
  3. New business margin represents the ratio of new business contribution after deducting cost of required capital, tax and minority interest to PVNBP after deducting the minority share, expressed as a percentage.

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