Aviva announces its full-year 2008 long-term savings new business figures - 12 months to 31 December 2008
- Sales have continued to grow
- Global long-term savings sales up 1% to £40.3 billion (down 7% on local currency basis)
- Life and pensions sales up 11% to £36.3 billion (up 2% on local currency basis)
- Sales figures reported on Market Consistent Embedded Value (MCEV) basis for the first time
- Strength from our geographic spread and range of distribution
- UK: highest ever life and pensions sales at £11.9 billion
- Europe: life and pension sales up 8% to £17.0 billion, buoyed by strength of the euro (down 7% on local currency basis)
- North America: target to double sales in three years achieved a year ahead of plan, up 57% (up 45% on local currency basis)
- Asia Pacific: life and pension sales up 8% (down 1% on local currency basis) - led by 66% growth in China (up 40% on local currency basis)
- Capital and liquidity position remains strong
- Consistent strategy through global crisis has ensured the financial health of Aviva
- Estimated £2.0 billion IGD surplus as at 31 December 2008
- Strong liquidity position maintained
- Group dividend policy remains unchanged
Andrew Moss, Aviva’s chief executive, commented:
"In a year of unprecedented turbulence, our sales have continued to grow. Operating across 27 markets with a range of products and varied distribution has served us well and has brought us an additional real benefit from currency appreciation.
"Growth in developing economies such as Asia and central and eastern Europe has offset difficult conditions in more mature markets such as Ireland and Italy.
"Our capital position remains strong and Aviva continues to be attractive to customers seeking security for their long-term savings.
"Our priorities are to maintain our financial strength and continue to transform Aviva for the benefit of customers and shareholders."
| 12 months 2008 £m | Restated1 12 months 2007 £m | Sterling growth % | Local currency growth % | |
|---|---|---|---|---|
| Life and pensions business (PVNBP)2 | ||||
| United Kingdom | 11,858 | 11,797 | 1 % | 1 % |
| Europe | 16,990 | 15,684 | 8 % | (7)% |
| North America | 5,715 | 3,646 | 57 % | 45 % |
| Asia Pacific | 1,720 | 1,595 | 8 % | (1)% |
| Total life and pensions | 36,283 | 32,722 | 11 % | 2 % |
| Total investment sales3 | 3,995 | 6,983 | (43)% | (47)% |
| Total long-term savings | 40,278 | 39,705 | 1 % | (7)% |
- Restated numbers reflect the move from European Embedded Value (EEV) to Market Consistent Embedded Value (MCEV) basis
- All references to sales in this announcement refer to the present value of new business premiums (PVNBP) unless otherwise stated. PVNBP is the present value of new regular premiums plus 100% of single premiums.
- Investment sales are calculated as new single premium plus the annualised value of new regular premiums.
Enquiries:
| Andrew Moss | Group chief executive, Aviva | +44 (0)20 7662 2286 |
| Philip Scott | Chief financial officer, Aviva | +44 (0)20 7662 2683 |
| Analysts | ||
| Charles Barrows | Investor relations director, Aviva | +44 (0)20 7662 8115 |
| Jessie Burrows | Head of investor relations, Aviva | +44 (0)20 7662 2111 |
| Susie Yeoh | Senior investor relations manager, Aviva | +44 (0)20 7662 2117 |
| Media: | ||
| Hayley Stimpson | External affairs director, Aviva | +44 (0)20 7662 7544 |
| Sue Winston | Head of group media relations, Aviva | +44 (0)20 7662 8221 |
| Vanessa Rhodes | Senior group media relations manager, Aviva | +44 (0)20 7662 2482 |
| Danielle Anthony | Senior group media relations manager, Aviva | +44 (0)20 7662 9511 |
| Ed Simpkins/Matthew Newton | Finsbury | +44 (0)20 7251 3801 |
MEDIA: There will be a conference call today for real-time media covering the long-term savings new business announcement at 0745 hrs (GMT) on +44 (0)20 7162 0125 (quoting “Aviva, Andrew Moss”). There will be a conference call for print media at 1200 hrs (GMT) on +44 (0)20 7162 0025. Each of these conference calls will be hosted by Andrew Moss, group chief executive and attended by Philip Scott, chief financial officer, and Mark Hodges, chief executive Norwich Union Life.
ANALYSTS: A presentation to investors and analysts, covering both the long-term savings new business announcement and the restatement of 2007 results onto an MCEV basis, will take place at 1000 hrs (GMT) at St Helen’s, 1 Undershaft, London, EC3P 3DQ. The investor and analyst presentation is being filmed for live webcast and can be viewed on the group’s website or on www.cantos.com. In addition, a replay will be available on these websites later today. There will also be a live teleconference link to the investor and analyst meeting on +44(0)20 7138 0818. A replay facility will be available until 17 February 2009 on +44 (0)20 7806 1970. The pass code for the whole presentation, including the question and answer session, is 5463049# and for the question and answer session only the pass code is 4478829#.
The presentation slides will be available on the group's website from 0930 hrs (GMT).
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