Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Overview
Aviva achieved continued strong growth in the 3 months to 31 March 2007, with total long-term savings new business sales up 18% to £9,183 million (2006: £7,917 million). The overall increase reflects growth in life and pension sales of 16% to £7,751 million (2006: £6,788 million), and strong investment sales, up 30% to £1,432 million (2006: £1,129 million). The integration of AmerUs Group in the United States is progressing well with very strong sales of £837 million from the combined business (2006 pro forma1: £541 million), a pro forma increase of 67%.
Aviva UK's total sales increased by 9% to £3,500 million (2006: £3,207 million). Within this total, life and pension new business sales grew by 3% to £2,843 million (2006: £2,763 million); however, sales growth would be 6% if consistent operating assumptions2 were used for the comparative quarter in 2006. Sales benefited from growth in bonds and annuities, and collective investment sales rose by 48% to £657 million (2006: £444 million). Aviva's share of sales through its bancassurance joint venture with The Royal Bank of Scotland Group (RBSG) was up by 18% to £351 million (2006: £297 million), reflecting the continued strong performance from this partnership.
Aviva International's total long-term savings new business sales grew by 24% to £5,683 million (2006: £4,710 million), reflecting strong growth in the majority of Aviva's markets, and from businesses acquired in Ireland and the United States during 2006. Life and pension new business sales were 25% higher at £4,908 million (2006: £4,025 million), while investment sales grew by 17% to £775 million (2006: £685 million), primarily reflecting increased sales in Poland and sales through the Navigator platform in Singapore and Australia. New business contribution before the effect of required capital increased by 19% to £185 million (2006: £158 million) with a margin of 3.8% (2006: 3.9%).
- Pro forma figures represent the sum of the 2006 sales from Aviva's long-established US operations plus the sales from AmerUs Group, acquired in November 2006, on a consistent basis.
- Comparative sales figures are stated before the effect of year end 2006 assumption changes. Restating sales comparatives for the effect of 2006 persistency assumption changes, in order to give a like-for-like comparison using the same persistency basis, results in the following growth progression:
- Norwich Union's total sales, including investments, are up by 12% to £3,500 million (2006: £3,123 million).
- Norwich Union's Life & Pension sales are up by 6% to £2,843 million (2006: £2,679 million).
- # Total pension sales of £1,146 million are down 4% (2006: £1,188 million).
