Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Aviva International
Spain:
Aviva continues to be the leading bancassurer in the Spanish life market and is number two in the life market overall1. New business sales increased by 22% to £592 million (2006: £495 million) and were boosted by successful marketing campaigns in the quarter.
Sales through bancassurance partnerships increased by 24% to £540 million (2006: £443 million). Most of this significant increase was due to strong sales of savings products including the successful launch of savings products that have been developed to take advantage of the more favourable tax regime for PIAS2 products. A slow down in mortgage-related protection business was offset by increased sales of free-standing protection products following a marketing campaign.
Sales in Aviva Vida y Pensiones, which distributes through its direct sales force and intermediaries, were £52 million (2006: £52 million).
New business contribution was £43 million (2006: £46 million) and the new business margin reduced to 7.3% (2006: 9.3%). As anticipated, the decrease in margin reflects a higher proportion of sales from savings products, while specific product margins have remained stable.
Aviva is well placed for future growth through its bancassurance partnerships and Aviva Vida y Pensiones. However, as in previous years, quarterly sales will continue to be variable due to the timing of marketing campaigns with banking partners, and the concentration of sales of pension business in the last quarter of the year.
- Based on gross written premiums as at 31 December 2006.
- PIAS are newly introduced savings contracts with tax benefits after ten years if an annuity is purchased.
