Aviva North Amrica
Our North America business delivered record full year sales up 39%12 on a pro forma basis to £3,602 million (2006: £884 million, pro forma 2006: £2,821 million). This is an excellent result representing growth across all product lines. We continue to be optimistic in our outlook for growth in 2008 and remain on track to double the size of our business within three years of the acquisition of the former AmerUs Group completed in late 2006.
Aviva USA is number one in indexed life sales and number two in indexed annuity sales. Sales of annuities reached £2,600 million (2006: £744 million), a pro forma increase of 47%12 over the prior period (pro forma 2006: £1,921 million), which is a terrific result. During the quarter we launched three new products which, along with the recent AM Best rating upgrade to A+, support our confidence on growth prospects notwithstanding recent volatility in equity markets and lower interest rates.
Life sales were £573 million (2006: £140 million) representing a pro forma 9%12 increase (pro forma 2006: £570 million). Funding agreement sales for the year were strong at £429 million (2006: nil, pro forma 2006: £330 million), an increase of 42%12 on a pro forma basis. Funding agreement sales, which are a core part of our product portfolio, are large corporate transactions and consequently vary quarter on quarter.
- Pro forma increases are based upon the combined sales for the former Aviva business based in Boston and the former AmerUs Group for the 2006 year and are stated on a local currency rate basis.
