News
Aviva plc: Worldwide long-term savings new business - twelve months to 31 December 2007
06 February, 2008
- Total worldwide sales1 up 25%2 to £38,583 million
- Worldwide life and pensions sales up 22% to £31,600 million
- UK; total sales up by 6% to £14,406 million
- Europe; total sales growth of 19% to £16,486 million
- North America; excellent performance with pro forma3 39% increase in total sales to £3,602 million
- Asia Pacific; ahead of growth targets with total sales up 60% to £4,089 million
- Investment sales continue to deliver robust growth - up 41% to £6,983 million
- Update on UK adverse weather and group COR: estimated cost increased by £75 million to £475 million and COR of 100%, 95% before the impact of the exceptional adverse weather
Andrew Moss, group chief executive, commented:
"In line with our priority of focusing on growing our existing businesses, I'm very pleased to report that Aviva has achieved total sales growth of 25% in 2007. In Europe, we've delivered impressive growth across our portfolio, and in the US we're on track to double our sales within three years of our acquisition of AmerUs. Asia Pacific has shown exceptionally strong growth and the region now accounts for around 11% of the group's sales. UK growth is in line with the market and our priority there remains to focus on profitability.
"Following the exceptional weather conditions in the UK in June and July last year, our general insurance business helped over 45,000 households and 6,000 businesses get back on their feet after the floods. The costs of these events will be higher than we first estimated and, as expected, the floods have had an impact on the group's full year COR. I'm pleased to say that without these exceptional claims we would have achieved a COR of 95%, some 3% better than our 'meet or beat' target.
"Aviva has a broad portfolio of products across the world. While our markets will be affected by the current economic uncertainty, I believe we will continue to grow both new business sales and profit in 2008 in line with our stated targets. We will do this by maintaining a strong focus on increasing our customer reach and delivering our 'One Aviva, twice the value' vision."
| Financial highlights | 12 months to 31 December 2007 | 12 months to 31 December 2006 | Local currency growth2 |
|---|---|---|---|
| Aviva UK | |||
| Life and pensions new business sales | £11,655m | £11,146m | 5% |
| Investment sales | £2,751m | £2,455m | 12% |
| Total long-term savings new business sales | £14,406m | £13,601m | 6% |
| Aviva Europe | |||
| Life and pensions new business sales | £14,914m | £12,840m | 15% |
| Investment sales | £1,572m | £891m | 74% |
| Total long-term savings new business sales | £16,486m | £13,731m | 19% |
| Aviva North America | |||
| Life and pensions new business sales | £3,602m | £884m | 343% |
| Investment sales | - | - | - |
| Total long-term savings new business sales | £3,602m | £884m | 343% |
| Aviva Asia Pacific | |||
| Life and pensions new business sales | £1,429m | £982m | 49% |
| Investment sales | £2,660m | £1,564m | 67% |
| Total long-term savings new business sales | £4,089m | £2,546m | 60% |
| Aviva Group | |||
| Life and pensions new business sales | £31,600m | £25,852m | 22% |
| Investment sales | £6,983m | £4,910m | 41% |
| Total long-term savings new business sales | £38,583m | £30,762m | 25% |
Footnotes to the worldwide long-term savings new business highlights:
- All references to sales in this announcement refer to the present value of new business premiums (PVNBP) unless otherwise stated. PVNBP is the present value of new regular premiums plus 100% of single premiums, calculated using assumptions consistent with those used to determine new business contribution.
- All growth rates are quoted in local currency.
- 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 basis.
Enquiries:
| Analysts/Investors: | |
| Andrew Moss, group chief executive, Aviva | +44 (0)20 7662 2286 |
| Philip Scott, group finance director, Aviva | +44 (0)20 7662 2264 |
| Charles Barrows, investor relations director, Aviva | +44 (0)20 7662 8115 |
| Jessie Burrows, head of investor relations, Aviva | +44 (0)20 7662 2111 |
| Media: | |
| Hayley Stimpson, director of external affairs | +44 (0)20 7662 7544 |
| Sue Winston, head of group media relations | +44 (0)20 7662 8221 |
| Vanessa Rhodes, group media relations manager | +44 (0)20 7662 2482 |
| James Murgatroyd/Ed Simpkins, Finsbury | +44 (0)20 7251 3801 |
There will be a conference call today for wire services at 7.45am (GMT) on +44 (0)20 7162 0125 (quoting "Aviva, Andrew Moss"). This conference call will be hosted by Andrew Moss, group chief executive, and attended by Philip Scott, group finance director, and Mark Hodges, chief executive, UK Life.
There will be a conference call today for analysts and investors at 09:30am (GMT) on +44 (0)20 7162 0126 (quoting "Aviva, Andrew Moss"). This conference call will be hosted by Andrew Moss, group chief executive, and attended by Philip Scott, group finance director, and Mark Hodges, chief executive, UK Life.
Replay will be available until 22 February 2008. The dial in number for replays is +44 (0)20 7031 4064 and the pass code is 655729.
Photographs are available in the Aviva media centre.
