Aviva, the largest insurance group in the United Kingdom and the fifth largest in the world in terms of gross premiums, has made a net profit in Spain of €119 million.
- Bancassurance turnover increases to €2.225 billion
- Over €1.8 billion worth of premiums written and contributions to pension plans totalling €635 million
- Spain generated almost half of the new business contribution for the Aviva group in Europe
Aviva, the largest insurance group in the United Kingdom and the fifth largest in the world in terms of gross premiums, has made a net profit in Spain of €119 million. The turnover was €2.504 billion, of which €1.869 billion was for premiums written and €635 million for contributions to pension plans. The total figure for funds managed was €13.114 billion.
During the past financial year, Aviva Spain was the leading generator of new business in Europe, ahead of the United Kingdom for the first time in the group's history. The New Business Contribution was 13% higher than in 2007, increasing from €292 million to €329 million.
According to David Angulo, Executive President of Aviva in Spain and Head of the European Bancassurance division, "Spain is becoming more and more important to the Aviva group's activity in Europe. We are not only the country which has generated most new business, but we also generated almost half of the new business contribution for the group in Europe"
Aviva is fourth in the Spanish rankings for life insurance1 and pension plans2 and third in the risk insurance rankings3.
Important figures for Aviva in Spain
| (Figures in million euros) | 2008 | 2007 | % difference |
| Premiums written | 1869 | 2240 | -17% |
| Contributions to pension plans | 635 | 703 | -10% |
| Total business | 2504 | 2943 | -15% |
| Funds managed | 13,114 | 14,161 | |
| Pre-tax profit | 168(1) | 181 | -7% |
| Profit before investment reserves (pre-tax) | 204 | 181 | 13% |
| Profit after tax | 119 | 125 | -5% |
| Profit above the minimum solvency margin | 1.4 | 1.3 | |
| New business (PVNBP) | 3158 | 3553 | -11% |
| New Business Contribution (NBC) | 329 | 292 | 13% |
| NBM | 10.4 % | 8.2 % | 2.2 |
| Operating profit (EEV) | 358 | 345 | 4% |
(1) This figure stands at €204 million if you add the €36 million of investment reserves set aside in 2008.
Angulo pointed out that: "In 2008 we particularly focused on creating value, improving our efficiency and reinforcing our business model to face 2009 with confidence; thanks to this focus, we increased our operating profit to €358 million and we have allocated more than €36 million to investment reserves in order to prepare ourselves for the future."
Leader in the bancassurance sector
Aviva has made €2.225 billion from bancassurance business in Spain, of which €1.640 billion was for premiums written and €585 million for contributions to pension plans.
| (Figures in million euros) | 2008 | 2007 | % diff. |
| Premiums written | 1640 | 2024 | -19% |
| Contributions to pension plans | 585 | 620 | -6% |
| Total business | 2225 | 2644 | -16% |
| Funds managed (1) | 11,798 | 12,731 | |
| Pre-tax profit (2) | 165 | 173 | -5% |
| Profit before investment reserves (pre-tax) | 197 | 173 | 14% |
(1) In 2008 the New Accounting Plan, in 2007 Accounting Plan 97, the figures are not comparable.
(2) This figure stands at €197 million if you add the €32 million of investment reserves set aside in 2008.
Aviva, which is the leader in the bancassurance sector in Spain, sells its insurance through partner companies - Bancaja (Aseval), Caja Granada, Unicorp, Caixa Galicia (CXG Aviva), Caja España and Cajamurcia. The contribution levels of each of these companies have remained similar to those from last year, although the contribution of Cajamurcia is particularly notable.
Ignacio Izquierdo, chief executive, pointed out that: "In 2008 we saw an increase in the sales of high-value products such as risk and pensions insurance which have a higher profit margin". Izquierdo added that "being in tune with and having an excellent relationship with our shareholders continues to produce outstanding results which have allowed us to maintain practically the same profit figures as for last year, which was an exceptional year; the secret is in the total integration of Aviva's products into the network of the organisations which we work with and in long-term collaboration."
Aviva Vida y Pensiones (Life and Pensions)
Aviva Vida y Pensiones has made a turnover of €279 million (229 million in premiums written and 50 million in contributions to pension plans).
| (Figures in million euros) | 2008 | 2007 | % diff. |
| Premiums written | 229 | 217 | 6% |
| Contributions to pension plans | 50 | 82 | -39% |
| Total business | 279 | 299 | -7% |
| Funds managed (1) | 1316 | 1430 | |
| Profit above the minimum solvency margin | 2.9 | 2.5 | |
| Pre-tax profit | 3 | 8 | -63% |
| Profit before investment reserves (pre-tax) | 7 | 8 | -12% |
(1) In 2008 the New Accounting Plan, in 2007 Accounting Plan 97, the figures are not comparable.
The new structure of Aviva in Spain
In order to ensure that all of the group's companies are more efficient and flexible, Aviva Spain has created a new structure which focuses on the customer and on an excellent service through the creation of a single Shared Services centre. Ignacio Izquierdo believes that this decision is "Aviva Spain's second major step since entering the bancassurance distribution sector."
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For more information:
José Herrero
Telephone: 915 640 496 - 670 858 248
E-mail: jherrero@ulled.com
Albert Concepción
Telephone: 915 640 496 - 616 905 066
E-mail: aconcepcion@ulled.com
Notes to editors:
Aviva is one of the leading European insurance groups in the life and pensions market.
In Spain Aviva is one of the leading companies in the life and pensions insurance sector. It markets its products through professional brokers (Aviva Vida y Pensiones) and strategic alliances (50% holdings and managed by Aviva) with some of the main Spanish savings banks (Bancaja, Caixa Galicia, Unicaja, Caja España and Caja Granada). www.aviva.es
1 Source: Unespa, ICEA
2 Source: Inverco report of 31 December 2008
3 Source: ICEA