Worldwide long-term savings new business 9 months to 30 September 2007
Aviva North America
Aviva Asia Pacific continues to achieve a strong rate of growth in new business sales with total sales 66% higher at £3,068 million (2006: £1,878 million), driven primarily by strong Navigator sales across the region. New business contribution before the effect of required capital from life and pension sales increased 68% to £52 million (2006: £33 million) producing a new business margin of 5.0% (2006: 4.9%). Growth potential for the region remains strong and Aviva's diversified model places the business in a strong position for continued growth.
Australia:
Total sales increased by 50% to £1,874 million (2006: £1,243 million), driven primarily by significantly higher investment sales through Navigator. Life and pension sales increased by 63% to £349 million (2006: £213 million) as a result of a £64 million one-off transfer in of group business, growth in protection business and a strongly performing retail sector.
Investment sales grew by 47% to £1,525 million (2006: £1,030 million). Sales through Navigator increased by 58% to £1,361 million (2006: £860 million) due to significant contributions from Aviva investments in key Independent Financial Advisor (IFA) groups and as a result of changes to superannuation legislation. The one-off impact of the legislation changes on sales in the first half of the year is estimated at £227 million for Navigator and £21 million for life and pension sales. Other investment sales were £164 million (2006: £170 million).
Singapore:
Total sales increased by 94% to £724 million (2006: £387 million), with life and pension sales growing moderately by 10% to £219 million (2006: £207 million). Buoyant investment markets reduced bancassurance sales, reflecting customers' preference to invest directly in unit trusts, via the IFA channel, rather than investment-linked products.
Sales through Navigator increased significantly by 192% to £505 million (2006: £180 million) reflecting strong distribution relationships with key brokers, a comprehensive range of funds offered and a strong equity market. Aviva remains the market leader in the developing broker market as well as the employee benefits and healthcare segment.
Hong Kong:
Sales have almost doubled to £252 million (2006: £141 million) due to strong IFA sales, which now accounts for 68% (2006: 50%) of total sales and the continued good performance from the partnership with DBS Hong Kong.
China:
Sales through the joint venture life business, Aviva-COFCO increased significantly by 204% to £196 million (2006: £68 million) of which Aviva's 50% share was £98 million (2006: £34 million). Aviva has increased its presence in the country to seven provinces, with a total of 22 city branches.
Malaysia:
In July 2007, Aviva acquired a 49% stake in two of CIMB Group's subsidiaries, Commerce Life Assurance Berhad and Commerce Takaful Berhad. These subsidiaries entered into exclusive bancassurance agreements with CIMB Group's subsidiary, CIMB Bank, which has the largest branch network in Malaysia, with over 4 million customers and 383 branches. Total sales since commencement are £45 million, with Aviva's share being £22 million.
India:
Total sales from Aviva's joint venture with the Dabur Group increased to £331 million (2006: £246 million) and Aviva's 26% share of new business sales was £86 million (2006: £64 million). Sales are expected to increase through the bancassurance partnerships, ongoing expansion of the direct sales force and the addition of new branches during the year.
Sri Lanka:
In Sri Lanka, Eagle is the third largest life insurer and has become the leader in the life bancassurance market. Total life sales were £12 million (eight months in 2006: £9 million).
