Aviva Australia today announced a 46% surge in profit after tax to $70.8 million for the six months ended 30 June 2007, up from $48.4 million in the six months to 30 June 2006.
Aviva Australia today announced a 46% surge in profit after tax to $70.8 million for the six months ended 30 June 2007, up from $48.4 million in the six months to 30 June 2006.
Gross inflows to the Navigator platform rose by 67% to $2.94 billion, while net inflows doubled to $1.78 billion, bringing Aviva's total funds under administration in Australia up to $27.2 billion.
The surge continued in wealth protection with sales of $32.1 million continuing a growth rate of over 50% pa since Aviva's Protectionfirst range was launched in 2004.
Commenting on the strong performance, Aviva's chief executive officer, Allan Griffiths said: "We are delighted to announce such a strong set of interim results. Our leading position in super has allowed us to benefit from the simpler super changes with a surge in inflows to our Navigator platform.
"On the protection side of the business our Riskfirst online applications account for 25% of new business just three months after launch - a clear demonstration that this is breakthrough technology that sets Aviva apart."
During 2006, Aviva acquired a 25% strategic stake in Infocus, the Queensland based dealer group. This in conjunction with other partnerships, including the 23.5% ownership of Australia's largest dealer group, Professional Investment Services is now delivering consistent value and highlighting that Aviva's distribution strategy is paying off.
"Our new business figures quite simply show customers are recognising Aviva as a leading insurance and investment provider in Australia and they are choosing to do business with us," said Allan. "That, after all, is the ultimate test of a successful organisation".
Aviva plc announced a 25% increase in worldwide sales to $46.88 billion (£19.294 billion) together with a 24% increase in life EEV operating profit. In the Asia Pacific region, which incudes Australia, sales grew by 72% with operations commencing in Malaysia and Taiwan.
Mr Griffiths said: "In Australia our Navigator inflows increased by 67% to $2.94 billion and our protection sales by 58% to $32 million. The fact that sales in Asia Pacific as a whole are growing even faster - by 72% - shows the pace of Aviva's expansion in our region."
Aviva is continuing to invest in further growth and launches a nationwide brand campaign this Sunday 12 August which will increase recognition among target customers.
"A strong Australian performance within a top global organisation, ranked as the world's fifth largest insurer and the first to commit to becoming carbon neutral puts Aviva Australia in a great position for the remainder of 2007 and beyond," said Mr Griffiths.
"These strong business results show our strategy is delivering rapid organic growth. At the same time, Aviva continues to look for suitably priced acquisitions," he added.
Further details of Aviva plc results are available on www.aviva.com
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Note to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Aviva is one of the leading providers of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £41.5 billion at 31 December 2006 and assets under management of £377 billion at 30 June 2007.
- The information in this document reflects Aviva Australia Holdings Limited (ABN 38 095 045 784) and its related entities understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.
* Based on life and pensions PVNBP, total investment sales and general insurance and health net written premiums including share of associates' premiums.