New life, savings and pensions business totals EUR 1.474 billion at 31 March 2007 (2006: EUR 1.656 billion), down 11%.
New life, savings and pensions business totals €1.474 billion at 31 March 2007 (2006: €1.656 billion), down 11%. In the first two months of the year, the market as a whole recorded a drop of 9%(1). This unfavourable context is explained by the volatility of the financial markets, uncertainties linked to the French presidential elections and the end of the effect of PELs (home ownership savings plans), which had sustained sales in 2006.
A specialist in unit-linked insurance, Aviva has continued with the conversion of euro-denominated contracts into unit-linked products, within the framework of its Good Advice approach, taking advantage of the opportunities created by the Fourgous amendment. Mainly performed through AFER, these conversions, which have not been counted towards Aviva's new business, totalled €507 million in the first quarter, with a cumulative total of €6.6 billion.
- Sales generated by AFER, the largest savings association in France, were down 11%, to €693 million (2006: €780 million). Unit-linked products accounted for 29% of sales (2006: 31%).
- Sales within the framework of the partnership with Crédit du Nord decreased by 9%, to €361 million (2006: €398 million), in line with the bank insurance market, which slumped by 10%.
- New business excluding AFER and Crédit du Nord was €420 million (2006: €478 million). Unit-linked products accounted for 82% of sales (2006: 75%), in particular thanks to the success of progressive savings products, geared towards shares. Moreover, demand for euro savings products was down.
The new business margin(2) stood at 4.2% (Q1 2006: 4.0%), while the contribution of new business was €63 million (2006: €66 million).
In 2007, Aviva France plans to build on its solid foundations to pursue its profitable development strategy, strengthen its brand presence and keep on the lookout for growth opportunities, especially through partnerships.
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* These results are based on the PVNBP (present value of new business premiums), the current value according to the EEV (European embedded value) principles applied by the CFO Forum.
(1) These figures include the recognition as turnover of Fourgous transfers by some market players. Aviva has not counted Fourgous conversions towards its new business.
(2) Gross contribution of new business to the embedded value.
Press Contacts:
Estelle Joubert
Telephone: +33 (0)1 7662 5786
E-mail: estelle_joubert@aviva.fr
Laurent Gibert
Telephone: +33 (0)1 7662 7300
E-mail: laurent_gibert@aviva.fr
Notes to editors:
About Aviva
Aviva is Europe's leading provider of life insurance and long-term savings products with strong positions in other markets around the world. Based on gross premiums at 31 December 2005, Aviva is the world's fifth-largest insurance group. Aviva's principal business activities are: life insurance and long-term savings, fund management and general insurance. At 31 December 2006, Aviva had turnover of €61.9 billion and €543 billion of assets under management.
With more than 150 years' experience in France, Aviva is one of the top 10 players in the insurance market. Aviva France operates with a balanced multi-distribution model, which has proven to be hugely successful: 875 general agents, 1,800 branch staff, 400 life insurance advisers, 1,000+ brokers, and its partners (Union Financière de France and Médéric). Aviva France also has major partners such as AFER, the largest savings association in France, and the Crédit du Nord Group. Specialising in unit-linked products, Aviva is recognised for the excellent performance of its long-term funds and solid commitment to its customers through its Good Advice approach. Aviva employs more than 3,200 staff. At 31 December 2006, Aviva France recorded consolidated sales of €6.4 billion, a consolidated operating profit of €689 million (based on the embedded value - EEV/IFRS standards) and managed assets worth €72.9 billion.