Aviva plc: Worldwide long-term savings new business – 12 months to 31 December 2006
Aviva International
United States:
Life and pension sales increased five-fold to £837 million (2006: £152 million). Pro forma1 sales increased by 67% from £541 million in 2006. This performance continues the growth momentum achieved during the fourth quarter of 2006.
This strong performance produced record quarterly sales for life and annuity products and is primarily due to product enhancements and marketing campaigns in response to continuing strong consumer demand for single premium annuity products. Pro forma sales of annuity products showed very strong growth of 62% over 2006 against a declining fixed annuity market. Sales of structured settlements increased by 40%. Funding agreement sales, which are large corporate transactions and can vary significantly quarter on quarter, were £95 million (2006: £nil).
New business contribution increased to £28 million (2006: £3 million) with a margin of 3.3% (2006: 2.0%), reflecting the benefit of the new combined business.
Aviva USA remains committed to sales growth in 2007 of 20% for the combined business while maintaining margins.
- 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.
