Last week, the Aviva group published its results for new business recorded in 2006.
Last week, the Aviva group published its results for new business recorded in 2006.
Globally, the Aviva group has recorded a growth in sales of 22% - representing the present value of premiums on new business - this amounts to £31.123 billion (as against £25.583 billion in 2005); also worthy of mention here is the remarkable performance, in terms of sales, achieved in the fourth quarter of 2006 and which has had a positive influence on the overall results of the group for the whole of 2006.
In terms of sales of life insurance and pensions, growth on a global scale was at 18%, amounting to £26.213 billion, as against £22.246 billion at the end of 2005.
In Great Britain, sales have recorded their best performance attained to date - a growth of 35% which represents £13.962 billion, as against £10.345 billion in 2005.
With regard to the total volume of international sales (excluding Great Britain), a growth of 13% has been recorded - £17.161 billion (as against £15.238 billion in 2005).
Also on a global scale, the growth in sales of investment products has been even more spectacular: 48% - representing a volume of sales of £4.910 billion (2005: £3.337 billion).
And the results obtained by AmerUs (the Aviva group's latest acquisition on the American continent) have been exceptional. The best quarter for sales of annuities and life insurance marked a growth of 21% of all sales in 2006.
Richard Harvey, group chief executive for Aviva plc, comments on the group's results: "These results demonstrate that Aviva is an elite player on a global scale. In the last quarter of 2006 we have succeeded in attaining a record volume of sales - of over £8 billion - in terms of long-term savings products. We are growing constantly, thereby benefiting from the investments that we have made, by making available to our clients an assorted range of products available via the method of distribution that they select.
"Our expanded business in the USA, which also now includes AmerUs, has recorded an impressive volume of sales and significant growth; we are confident that consumer demand for our life insurance and annuity products will continue to grow.
"In Great Britain, Norwich Union has continued its positive development, achieving an impressive volume of sales, up by over 35%. The balanced geographical distribution and the permanent growth of our presence on the European continent have enabled us to increase our volume of sales of life insurance and pensions by more than £1 billion, compared to last year, confirming the value of the markets to which we have access there. In Asia, we are accelerating the development of our business, in terms of having identified a growing demand for long-term savings products and protection in this area.
"We are confident that Aviva will continue to grow in 2007!"
2006 has also been a very good year for Aviva Life Insurance Romania.
On the basis of the accountancy regulations in force in Romania, the volume of underwritten gross premiums recorded an increase on the year 2005 of 30.72% in 2006 (63,987,881RON as against 48,951,258RON).* On 31 December 2005 the value of stocks was at 134,562,349RON, equating to an increase of 31.23% on the year 2005 (102,543,141RON).**
(Note: These figures have not been audited.)
Since 11 October 2000, the date on which the company was officially launched on the Romanian market, to date, over 400,000 Romanians have signed up for a policy with Aviva.
In 2006 Aviva also had extremely good results in terms of the development of its investment programmes.
In this area, the programmes valued in RON, made up of bonds and shares listed on the BVB1, have recorded significant increases in 2006. Amongst these, the Practic Max programme particularly stands out, with a structure made up of 50% bonds and 50% shares listed on the BVB. One year after its launch, this programme recorded one of the most remarkable developments in the market: 19.53% (Practic Max was launched on 01/02/2006).
This represents an outstanding performance, considering that, in that same period, the BET2 and BET-FI3 Bucharest Stock Exchange indices grew by 5.32% and 17.74% respectively. The performance attained is based on professional administration of the portfolio of the programme.
The Practic Plus programme - made up of 75% bonds and 25% shares listed on the BVB - has shown notable development, recording an increase of 11.41% at the end of the year 2006.
As regards those programmes valued in hard currency - Suprem, Median, Conservator, Actual and Imobilis - these have shown stable development in comparison with the previous year.
"We are content with what we have achieved in 2006. We have succeeded in significantly increasing gross underwritten premiums and attracting a significant number of clients to our portfolio. At the current time we are looking confidently to the future, eagerly awaiting the opportunities that 2007 will offer us. Aviva is confident of the potential offered by the Romanian market. Therefore, we plan to expand our company as much as possible from this point on and to achieve the highest possible listing on this market.", in the words of Shah Rouf, CEO of Aviva Life Insurance.
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* Based on the IFRS accountancy regulations, the volume of gross underwritten premiums recorded an increase on the year 2005 of 48.18% in 2006.
** Based on the IFRS accountancy regulations, the value of stocks recorded an increase on the year 2005 of 33.95% in 2006.
Aviva is the European market leader for pensions and life insurance, with over 300 years experience in the field.
1The Bucharest Stock Exchange
2Index of the 10 most traded companies on the Bucharest Stock Exchange
3Index measuring performance of SIFs on the Bucharest Stock Exchange.
For further information the point of contact:
Giliola Ignat
Telephone 203 83 73
Note for editors:
Aviva is the fifth largest group for insurance products and the biggest provider of insurance in Great Britain. The group is the market leader for life insurance and pension products in Europe, recording a sustained increase in the field of long-term savings on eastern European, Asian, Australian and US markets.
Aviva offers long-term savings products, private pensions, administration of investment funds and general insurance products. The group administers assets of €434 billion, representing the money of over 35 million clients worldwide.
In Romania, Aviva Life Insurance officially started trading on 11 October 2000, and the company currently boasts a sales team of over 1,000 consultants and managers and a network made up of 19 agencies and 4 development centres.