New business

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New business

Life and pension sales

	Present value of new business premiums		Value of new business		New business margin
Life and pensions (gross of tax and minority interest)	2009 £m	Restated 2008 £m	2009 £m	Restated 2008 £m	2009 %	Restated 2008 %
United Kingdom	8,914	11,858	247	204	2.8%	1.7%
France	4,891	3,880	169	135	3.5%	3.5%
Ireland	1,072	1,299	12	15	1.1%	1.2%
Italy	3,607	2,331	124	71	3.4%	3.0%
Poland	1,079	1,842	55	65	5.1%	3.5%
Spain	2,454	2,489	151	202	6.2%	8.1%
Other Europe	420	1,014	10	29	2.4%	2.9%
Aviva Europe	13,523	12,855	521	517	3.9%	4.0%
Delta Lloyd	3,665	4,097	(103)	(47)	(2.8)%	(1.1)%
Europe	17,188	16,952	418	470	2.4%	2.8%
North America	4,545	5,715	16	55	0.4%	1.0%
Asia Pacific	1,356	1,720	29	43	2.1%	2.5%
Total life and pensions	32,003	36,245	710	772	2.2%	2.1%

	Present value of new business premiums		Value of new business		New business margin
Life and pensions (net of tax and minority interest)	2009 £m	Restated 2008 £m	2009 £m	Restated 2008 £m	2009 %	Restated 2008 %
United Kingdom	8,914	11,858	177	147	2.0%	1.2%
France	4,111	3,281	94	79	2.3%	2.4%
Ireland	804	974	8	10	1.0%	1.0%
Italy	1,614	980	38	21	2.4%	2.1%
Poland	933	1,604	39	46	4.2%	2.9%
Spain	1,326	1,357	51	68	3.8%	5.0%
Other Europe	420	1,014	8	24	1.9%	2.4%
Aviva Europe	9,208	9,210	238	248	2.6%	2.7%
Delta Lloyd	3,235	3,868	(78)	(48)	(2.4)%	(1.2)%
Europe	12,443	13,078	160	200	1.3%	1.5%
North America	4,545	5,715	16	36	0.4%	0.6%
Asia Pacific	1,348	1,713	22	33	1.6%	1.9%
Total life and pensions	27,250	32,364	375	416	1.4%	1.3%

United Kingdom

Throughout 2009 Aviva’s UK Life business has continued to follow a consistent strategy of proposition development, improving operational efficiency, enhancing customer and distributor service levels and disciplined financial management.

Exceptional economic conditions have impacted consumer confidence and reduced activity across the UK market. Our UK life and pension new business sales at £8,914 million (2008: £11,858 million) reflect this, together with management actions taken on a number of product lines to increase profitability. These included reducing commission rates and not writing business where the market does not allow us to achieve acceptable levels of return. This focus on profitability has led to a significantly improved new business margin of 2.8% (2008: 1.7%).

Pension sales decreased, in part, due to the reduced numbers of large schemes written compared with the same period last year. Sales of protection products were lower driven by the impact of the regulatory changes affecting creditor business. However excluding creditor business, protection sales were above prior year, primarily driven by our on-line simplified life proposition. Annuity sales decreased due to lower bulk purchase annuity volumes as we remain resolute in achieving a minimum level of return. Sales of individual annuities were higher reflecting our ability in a contracting market to provide an annuity income, using our market-leading pricing capability, which takes account of customers’ individual circumstances. Bond sales decreased compared with 2008 reflecting our focus on value driven by our commission reductions and the withdrawal of the Inflation Protected Guarantee product.

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