Aviva plc (“Aviva”) has been granted a licence by the Federal Service of Insurance Supervision in Russia, which will allow Aviva to offer a range of long-term savings and protection products in the Russian market.
Aviva plc (“Aviva”) has been granted a licence by the Federal Service of Insurance Supervision in Russia, which will allow Aviva to offer a range of long-term savings and protection products in the Russian market.
Commenting on Aviva’s new licence, Philip Scott, executive director of Aviva, said: “The granting of this licence marks a very important milestone in our entry into the Russian market. The local team is making good progress in assessing the opportunities for us and we’re close to finalising Aviva’s market entry strategy.”
Last year Aviva established a representative office in Moscow, with a view to evaluating the market potential, distribution options and product design.
“There are a number of factors which make the Russian market attractive” says Philip Scott. “Recent regulatory reform, an emerging middle-class and the low penetration of life insurance and protection products all combine to make it potentially an important market for Aviva in the long-term.”
Aviva will finalise its market entry strategy in the next few months, with a view to beginning operations in Russia later this year.
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Enquiries:
Analysts
Charles Barrows, investor relations director +44 (0)20 7662 8115
Nicole Marques, investor relations manager +44 (0)20 7662 8302
Media
Sue Winston, head of group media relations +44 (0)20 7662 8221
Vanessa Booth, group media relations manager +44 (0)20 7662 2482
Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200
Notes to editors:
Russia statistics:
- Population: almost 143 million people: Russia has 14 cities each with one million or more inhabitants (Source: CIA World Factbook - http://www.cia.gov/cia/publications/factbook/geos/rs.html)
- 2005 GDP: $766bn (Source: World Bank)
- Economy: Russia is the world’s 10th largest economy measured using the purchasing power parity method (Source: World Bank)
- Foreign direct investment totalled $26bn in 2005, ranking Russia third among the world’s emerging markets. (Source: United Nations Development Programme)
- Penetration of long-term savings products: about 0.05% of GDP (Source: Federal Service of Insurance Supervision, Russia)
- Adult literacy: 99.6% - making Russia one of the best-educated states in Europe (Source: CIA World Factbook)
- Recent regulatory reform means that European insurers can now own 100% of a life business in Russia
- A photograph of Philip Scott in Russia is available in the Aviva.com media centre.
- Aviva is the world’s sixth-largest insurance group based on gross world-wide premiums and market capitalisation (at 31 December 2004); it is one of the leading providers of life and pensions in Europe and has substantial businesses in other markets around the world
- Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of Ł35 billion and assets under management of Ł317 billion at 31 December 2005
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.