Aviva plc: Worldwide long-term savings new business - 12 months to 31 December 2004

Richard Harvey, group chief executive, commented:

“We had a strong finish to the year, having seen a gradual return of customer confidence in 2004. The all round strength of our life businesses has enabled us to outperform in many of our major markets, while continuing to maintain a clear focus on creating value.

“In the UK, we saw a return to growth in 2004, with total sales up 13% to £7.4 billion. We expect further life and pensions growth over the next 12 months, with a stronger pick-up beyond that.

“Across continental Europe, our growth has accelerated with total sales rising 23% to £8.3 billion, reflecting our attractive products and effective distribution.

“In Asia, over the past year we’ve further developed our businesses and distribution and continued to build sales momentum, as we position Aviva to capture growth in the rapidly emerging long-term savings market in the region.

“We are confident of further profitable growth in 2005.”

• Worldwide long-term savings new business sales including investment products up 18%(1) to £16,746 million (2003: £14,433 million)
• Worldwide life and pension sales on an APE(2) basis up 9% to £2,550 million (2003: £2,377 million)
• Over 50% of the Group’s life and pension new business sales from continental Europe, producing growth of 22%, with France, Netherlands, Italy and Spain outperforming local markets
• Total bancassurance sales up 17% to £4,022 million (2003: £3,507 million)
• Worldwide investment sales up 44% to £1,629 million (2003: £1,141 million)

1. All growth rates quoted are at constant rates of exchange.
2. Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single premiums.