Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Aviva International
Poland (including Lithuania):
Aviva's life and pension operations in Poland and Lithuania are leading businesses in their respective markets. Total sales, including investment sales, increased by 28% to £231 million (2006: £188 million).
Life sales in Poland were £75 million (2006: £86 million, including one-off sales of £14 million from a large group scheme). Underlying growth of 7% reflected increased bancassurance volumes, sales of single premium unit-linked business and a favourable equity market. Pension sales increased significantly to £87 million (2006: £71 million) mainly as a result of an increase in higher average premiums from new entrants to the pension market. Single premium sales benefited from higher transfer activity, which was partially offset by lower receipts of overdue premiums from the state pension agency.
Life and savings sales in Lithuania were £5 million (2006: £3 million), enhancing Aviva's strong position in this market.
Investment sales in Poland were substantially higher at £64 million (2006: £28 million) supported by a strong equity market performance and the benefit of marketing campaigns promoting the umbrella1 and balanced funds.
Total new business contribution from life and pension sales was £7 million (2006: £8 million). The new business margin was 4.2% (2006: 5.0%), affected by the lower amounts of overdue premiums from the state pension agency, which have no associated costs and therefore a higher margin.
The Polish insurance and investment markets continue to offer strong long-term growth potential, supported by a favourable economic outlook.
- Umbrella funds were established to offer tax incentives for clients wishing to switch their investments between funds.
