Significant increase in profitability position as specialist in unit-linked products confirmed
- Significant increase in profitability position as specialist in unit-linked products confirmed
Growth in financial results
- Net turnover from reinsurance: €3,567 million, an increase of 11% (2005: €3,229 million).
- Operating profit based on EEV/IFRS° up 32% to €329.3 million (2005: €250.1 million).
- Based on IFRS accounting standards, operating profit before tax of €226.6 million (2005: €220.1 million).
ŕ Unaudited figures; life insurance figures based on EEV (European Embedded Value); other figures according to IFRS standards.
Life insurance:
strong sales of unit-linked products, recording a 29% increase
These results are based on the PVNBP (present value of new business premiums), updated and annualised according to the EEV principles applied by the CFO Forum.
- New business up 10% to €2,961 million (2005: €2,689 million).
This amount comprises AFER sales worth €1,356 million (2005: €1,254 million) and Antarius sales worth €735 million (2005: €596 million). - A rise of 29% in sales of unit-linked products, to €1,386 million (2005: €1,071 million). Aviva confirms its expertise in unit-linked products, which account for 49% of its total production (1 st half year of 2005: 42%).
- Furthermore, Aviva continues with the conversion of euro-denominated contracts into unit-linked contracts (Fourgous amendment), a process that was commenced in December 2005 within the framework of the “Good Advice” approach. At the end of June 2006, conversions totalling €4,531 million had been carried out, with 33% being reinvested in unit-linked products.
- Growth in gross margin on new business to 4.3% (2005: 3.8%).
- Life insurance result based on the EEV embedded value has risen by 25% to €285.3 million (2005: €229.1 million).
Non-life insurance:
COR* at 98.4% in a highly competitive environment
- Net improvement in the technical result, with a combined operating ratio (COR) of 98.4% (100.0% in 1st half of 2005). The combined ratio exclusive of health insurance stands at 97.5% (99.6% in 2005).
- Net reinsurance turnover: €634.8 million (2005: €615.2 million), up 3.2%.
*COR: Combined Operating Ratio
Asset management
- Assets managed: €69.8 billion (€67.2 billion at 31/12/05).
In a period of high market volatility, asset management always performs well. In the first half of 2006, Aviva Gestion d’Actifs was awarded 5 Gold Trophies by the French financial magazine Le Revenu, including the Gold Trophy for the whole SICAV and Fund range over 10 years.
Press contact:
Laurent Gibert,
tel: +33 (0)1 7662 7088
e-mail: laurent_gibert@aviva.fr
Notes to editors:
- Aviva is one of Europe’s leading providers of life insurance and pensions with strong positions in other markets around the world. In terms of gross premiums, Aviva is the world’s fifth-largest insurance group.
- Aviva operates in three main areas: life insurance and long-term savings, asset management and non-life insurance. Its annual premium income, according to the EEV principles, totals Ł36 billion and its managed assets stood at more than Ł322 billion on 31 December 2005.
- Press releases are available on the www.aviva.com and www.aviva.fr websites.