Two of the UK’s powerhouse financial services companies today announced an alliance in Australia that will see two subsidiary companies working hand in hand.
Two of the UK’s powerhouse financial services companies today announced an alliance in Australia that will see two subsidiary companies working hand in hand.
St Andrews Australia, HBOS Australia’s Insurance and Investment arm, will now use a white label version of Aviva’s Navigator investment platform to administer its clients investments. It is anticipated more than A$1.5 billion will be under this badge when the contract is reviewed in five years.
St Andrews has 30 financial advisers now located in Western Australia, Victoria and New South Wales, who will be provided with Navigator’s n-link technology, providing superior financial planning, research and client management systems. In addition to these 30 planners, St Andrews has 14 sales and training staff who train BankWest staff on how to sell low cost direct life and investment products. It is anticipated St Andrews will recruit an additional 20 financial advisers over the course of this year.
Announcing the alliance, Aviva chief executive officer Allan Griffiths said this was an exciting opportunity for both companies, given the complementary nature of what each party has to offer.
"Aviva and HBOS share similar goals of delivering outperforming products and tools to the end consumer. Under our alliance, St Andrews customers will be treated to some of the best products and services the Australian financial services industry has to offer."*
Aviva chief operating officer Grant Salmon said both companies had enjoyed enormous success in bancassurance across Europe. HBOS plc derives 20% of it’s A$11 billion profit from insurance and investment products and some of Aviva Plc’s fastest growing markets are founded on bancassurance relationships.
"Aviva and HBOS understand each other’s business models well. We are complementary in our skills and have a track record of cohesiveness. One of the great aspects of this alliance is we both bring excellence to the table, and are culturally aligned.
"We are not a bank and we don’t control distribution. We are a product manufacturer and a funds administration provider and we recognise HBOS is the expert retailer. I think the success of this operation both in Australia and around the world over the last 10 years has proven HBOS understand distribution. HBOS and Aviva will continue to leverage off their global leadership and experience in bancassurance partnerships.
"I expect that HBOS will become widely recognised around Australia as a successful bancassurer. The recent acquisition of the RACV’s Financial Services business gives HBOS a significant presence in the local market, and Aviva will be proud to partner them.
"We see this as the start of a long term, mutually beneficial relationship between two very well positioned partners," said Grant Salmon.
Aviva recently announced it had secured a A$500 million badging agreement with Queensland-based dealer group Infocus, which will be run on the A$12 billion Navigator platform.
Professional Investment Holdings will shortly ask its members to approve an increase in Aviva’s stake to 26 per cent.
-ends-
*Aviva Australia chief executive officer Allan Griffiths is currently overseas attending a group management meeting, however was heavily involved in constructing the alliance.
For further information please contact:
Simon Morgan
Group General Manager Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632
Sally-Ann Parker
HBOSA
Phone: (08) 9449 6124
Mobile: 0439 938 935
Notes to editors:
Aviva
- Aviva Australia is a group of two specialist financial services companies: Navigator Australia Limited and Norwich Union Life Australia Limited. Portfolio Partners Limited is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$74 billion, and more than A$592 billion of assets under management (as at 17January 2005). The group has more than 51,000 employees and 30 million customers worldwide.
- 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 Navigator, 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 Navigator 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.
HBOS
- HBOS Australia Pty Ltd is a holding company formed in 2004 to oversee the operations of the Australian operations of UK financial services group, HBOS plc. HBOSA comprises four diverse financial services operations - BankWest, Capital Finance, St Andrew's Australia and BOS International. Its parent, HBOS plc, is one of the world's largest financial services groups.
- After a year of consolidation, integration and investment, HBOS Australia announced a solid growth ahead of Group target in the first year of a five-year plan.
- St Andrew's Australia Pty Ltd, is a wholly owned subsidiary of HBOSA, and is the holding company of HBOS Australia's credit insurance, life insurance and wealth management businesses. St Andrew's Insurance (Australia) began trading in 1998 providing customers with consumer credit insurance products. In 2004, St Andrew's opened a new life insurance company. St Andrew’s continued to further expand its operations, first with the acquisition of BWA Financial Services Ltd in 2004 and RACV Financial Services Limited in 2005. These expansion initiatives form part of the overall growth strategy of HBOSA Insurance & Investment operations in the Australian market.