Aviva Asia Pacific
Aviva Asia Pacific continued to achieve a high rate of growth, with total sales 60% higher at £4,089 million (2006: £2,546 million), driven primarily by strong Navigator (wrap administration platform) sales across the region. This puts us well on the way to achieving our medium-term target of growing long-term savings new business sales by an average of at least 20% a year to 2010.
Australia:
Total sales for the year increased by 46% to £2,400 million (2006: £1,600 million), driven primarily by significantly higher investment sales through Navigator. Life and pension sales increased by 44% to £439 million (2006: £297 million) as a result of a £64 million one-off transfer of group pension business, growth in protection business and a strongly performing retail investment sector.
Investment sales grew by 47% to £1,961 million (2006: £1,303 million). Within this, sales through Navigator increased by 55% to £1,766 million (2006: £1,110 million), due largely to strategic investment in key independent financial adviser (IFA) groups and favourable changes to superannuation legislation. The one-off impact of legislation changes on sales in the first half of the year was £227 million for Navigator and £21 million for life and pension sales. Other investment sales were £195 million (2006: £193 million).
Singapore:
Total sales increased by 73% to £980 million (2006: £580 million). Life and pension sales of £281 million (2006: £319 million) reflected customers' preference to invest directly in unit trusts rather than bancassurance investment-linked products during the favourable investment market conditions that prevailed for most of the year.
Sales through Navigator increased 175% to £699 million (2006: £261 million) due to strong distribution relationships with key brokers, a comprehensive range of funds offered and a strong equity market encouraging direct investment by customers. We remain the market leader in the developing broker market as well as the employee benefits and healthcare segments.
Hong Kong:
Sales increased 83% to £363 million (2006: £216 million), primarily driven by IFA sales, which now account for 69% (2006: 55%) of total sales, and the continued good performance of the partnership with DBS Hong Kong.
China:
Sales through the joint venture life business, Aviva-COFCO, increased by 213% to £304 million (2006: £100 million) of which our 50% share was £152 million (2006: £50 million). We have increased our presence in the country to eight provinces, with a total of 25 city branches.
Malaysia:
In July 2007, we acquired a 49% stake in two of CIMB Group’s subsidiaries and entered into exclusive bancassurance agreements with CIMB Bank. This bank has the largest branch network in Malaysia, with over 4 million customers and 383 branches. Total sales for the six-month period, of £114 million, benefited from the launch of a single premium unit-linked tranche product in the last quarter, with our share being £56 million.
India:
Total sales increased by 45% to £473 million (2006: £323 million) and our 26% share of new business was £123 million (2006: £84 million). Sales have increased through bancassurance partnerships, ongoing expansion of the direct sales force and the addition of new branches in 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 £15 million (eleven months in 2006: £16 million). On the whole, Sri Lanka, in local currency terms, has performed marginally better than 2006.
