France: Annual results as at 31 December 2010

Total net consolidated turnover up 5%, at €7.0 billion on 31 December 2010 (2009: €6.7 billion).

Net IFRS result at €304 million on 31 December 2010 (2009: €390 million), reflecting the robustness of the operational model of Aviva France after two years of severe financial volatility.

Life insurance: +5% in an individual market up 6%.

• Increase of 5% of new life, savings and retirement business, at €5.2 billion on 31 December 2010 (2009: €4.9 billion), in a market progressing by 6%:
  • Growth of AFER of +6% at €3.0 billion on 31 December 2010 (2009: at €2.8 billion), highlighting the clients’ liking for simple and secure products as well as the competitive edge and excellent reputation from which the AFER product continues to benefit.
  • Progression of +6% of Antarius (Aviva / Crédit du Nord joint venture) at €1.2 billion on 31 December 2010 (2009: €1.1 billion). 
• New life, savings and retirement business on the basis of PVNBP¹ up 4% at €5.8 billion on 31 December 2010 (2009: €5.5 billion).

Damages and health insurance: a combined ratio that has been maintained at a solid level of performance within a context of a marked climatic accident rate index.

• Gross turnover up 3%, to €1.15 billion on 31 December 2010 (2009: €1.12 billion).
• Combined ratio² at 98.2% on 31 December 2010 (2009: 96.9%): evolution due to the maintenance of a strong subscription discipline and strict costs control, within an environment that features an increased accident rate index in France, particularly due to the effects of the Xynthia storm and flooding in the Var.

Assets management: performance of managed funds over time

• Confirmation of the regularity and quality of management over time of Aviva Investors France. Over 10 years, 97% of the funds of Aviva Investors France appear in the first half of the funds of their category (over three years, 91%).
• The assets manager was awarded 10 trophies in 2010, such as the Grand Prix of Agefi, five trophies by Le Revenu and four Lipper Funds Awards.
• Amount of managed liabilities of €80.7 billion on 31 December 2010 (2009: €77.4 billion).

Nicholas Schimel, director general of Aviva France, has declared: “In 2010, all of our distribution networks showed a growth in commercial life activity, in spite of the fact that the market settled in the fourth quarter. This development is linked to the high level of collection of the AFER, particularly in the first semester, and the commercial performances of our partner Crédit du Nord within our joint venture Antarius. The effectiveness of the 'Good advice' procedure, and the impact of the advertising campaign entitled 'Insurance in your image', also had a very positive effect.

"In damages, thanks to the dynamism of the general agents, we record a growth of our market shares. We are keeping up a solid performance level within an environment marked by a severe climatic accident rate index for which we are particularly mobilised among our clients.

"In order to reinforce the competitive edge of our operational model, the actions of transformation of our management processes and simplification of our structures have been pursued throughout the year. We kept the growth of our overheads under strict control.

"Aviva France has also been at the heart of numerous projects within Aviva Europe, within the framework of European construction. The French market occupies a clear place in the ambitions of the group in continental Europe, where our know-how and skills are tremendous assets.

"In 2011, the insurers will be addressing several stakes: the management of their capital with a view to the Solvability 2 reform, and the reinforcement of the technical results in damages. In this sense, 'Distribution 2015', an ambitious organic, profitable growth strategy, the general agents of which constitute the cornerstone, associated with our responsible pricing policy and costs control, is bound to strengthen us."

-ends-

Press contacts:
Estelle Joubert     
Telephone: 01 76 62 57 86 
E-mail: estelle_joubert@aviva.fr

Dominique Eluau        
Telephone: 01 76 62 67 19 
E-mail: dominique_eluau@aviva.fr

¹ PVNBP (Present Value of New Business Premiums): value updated on a yearly basis for new business according to the principles of the MCEV (Market Consistent Embedded Value) applied by the CFO Forum.

² Cost ratio of accidents on premiums acquired + commissions and costs on premiums issued.