Q4 2004 Life New Business
Aviva PLC
25 January 2005
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PAGE 1
25 January 2005
Aviva plc
Worldwide long-term savings new business
Twelve months to 31 December 2004
• Worldwide long-term savings new business sales including investment products up 18%* to £16,746 million (2003:
£14,433 million)
• Worldwide life and pension sales on an APE** basis up 9% to £2,550 million (2003: £2,377 million)
• Over 50% of the Group's life and pension new business sales from continental Europe, producing growth of
22%, with France, Netherlands, Italy and Spain outperforming local markets.
• Total bancassurance sales up 17% to £4,022 million (2003: £3,507 million)
• Worldwide investment sales up 44% to £1,629 million (2003: £1,141 million)
* All growth rates quoted are at constant rates of exchange.
** Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single
premiums.
Richard Harvey, group chief executive, commented:
'We had a strong finish to the year, having seen a gradual return of customer confidence in 2004. The all round
strength of our life businesses has enabled us to outperform in many of our major markets, while continuing to
maintain a clear focus on creating value.
'In the UK, we saw a return to growth in 2004, with total sales up 13% to £7.4 billion. We expect further life and
pensions growth over the next 12 months, with a stronger pick-up beyond that.
'Across continental Europe, our growth has accelerated with total sales rising 23% to £8.3 billion, reflecting our
attractive products and effective distribution.
'In Asia, over the past year we've further developed our businesses and distribution and continued to build sales
momentum, as we position Aviva to capture growth in the rapidly emerging long-term savings market in the region.
'We are confident of further profitable growth in 2005.'
Financial highlights 12 months to 12 months to Local
31 December 31 December currency
2004 2003 growth
£m £m %
Total life and pension new business sales 15,117 13,292 15%
Total investment sales 1,629 1,141 44%
---------------------------------------
Worldwide long-term savings new business sales 16,746 14,433 18%
Life and pensions new business sales on an APE basis 2,550 2,377 9%
Investment sales on an APE basis 182 129 41%
----------------------------------------
Worldwide long-term savings new business sales on an APE basis 2,732 2,506 11%
----------------------------------------
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PAGE 2
Enquiries:
Analysts/Investors:
Philip Scott, group executive director +44 (0)20 7662 2264
Steve Riley, investor relations director +44 (0)20 7662 8115
James Matthews, head of investor relations +44 (0)20 7662 2137
Media:
Hayley Stimpson, director of external affairs +44 (0)20 7662 7544
Sue Winston, head of group media relations +44 (0)20 7662 8221
Robert Bailhache, Financial Dynamics +44 (0)20 7269 7200
There will be a conference call today for wire services at 7:45am (UK time) on +44(0) 20 7784 1005. This conference
call will be hosted by Philip Scott, group executive director.
There will be a conference call today for analysts and investors at 9:30am (UK time) on +44 (0) 20 7019 9509. This
conference call will be hosted by Philip Scott, group executive director.
Replay will be available for two weeks until 7 February 2005. The dial in number for replay is +44 (0) 20 7984 7578
and the pass code is 370770# .
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PAGE 3
Total new business Annual premium
sales equivalent sales(2)
-------------------------- ------------------------
12 months to 12 months to
31 December Local 31 December Local
2004 currency 2004 currency
£m growth(1) £m growth(1)
Life and pensions
United Kingdom(3) 6,540 11% 1,118 5%
France 2,516 29% 307 30%
Ireland 269 10% 86 9%
Italy 1,574 11% 198 4%
Netherlands (including Belgium and Luxembourg) 1,279 32% 261 19%
Poland 91 46% 37 8%
Spain 1,657 16% 248 3%
Other Europe 426 25% 124 30%
Continental Europe 7,812 22% 1,261 15%
International 765 (4%) 171 (2%)
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Total life and pensions 15,117 15% 2,550 9%
====================================================================================================================
Investment sales
United Kingdom 859 26% 103 26%
Netherlands 196 (2%) 20 (2%)
Poland 77 (28%) 10 (20%)
Other Europe 254 431% 25 429%
Continental Europe 527 49% 55 49%
International 243 144% 24 144%
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Total investment sales 1,629 44% 182 41%
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Total long-term savings 16,746 18% 2,732 11%
====================================================================================================================
Navigator sales 661 5%
(not included above)
(1) Growth rates are calculated based on constant rates of exchange.
(2) Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single
premiums.
(3) United Kingdom new business sales shown in the table do not include new business sales through Norwich Union
Equity Release 'NUER'. Total new single premium mortgage completion sales amounted to £478 million (2003:
£501 million).
United Kingdom:
Norwich Union continues to leverage successfully its strong brand, wide product offering and multi-distribution
network to achieve profitable growth. Total sales, including investment sales increased by 13% to £7,399 million
(2003: £6,550 million), with total sales on an APE basis up 6% to £1,221 million (2003: £1,150 million). During 2004,
Norwich Union has continued to focus on delivering value and has achieved a strong new business sales performance
given pricing actions in pensions, annuities and protection business. Norwich Union continues to have a market leading
position, with an increased market share at the end of the third quarter of 12.3%.
Total bond sales increased by 21% to £2,260 million (2003: £1,866 million) driven by strong sales of unit-linked bonds
which continued in the fourth quarter albeit at lower levels than in the third quarter, as expected. Norwich Union is
benefiting from investors continuing to choose providers with strong brands and products. The broad range of
investment products and funds on offer from Norwich Union give customers flexibility and the option to build balanced
investment portfolios. Property and guaranteed investment funds continue to be popular. Collective investment
sales were up 26% to £859 million (2003: £680 million).
Total pension sales increased 3% to £2,635 million (2003: £2,556 million), with sales of individual pensions up 16%
to £2,007 million (2003: £1,727 million) and sales of group corporate pensions lower at £628 million (2003: £829
million), as employers continued to move away from final salary pension schemes. Within these numbers, combined sales
of group money purchase and group personal pensions increased by 31% to £448 million (2003: £341 million), reflecting
Aviva's strategic focus on the defined contribution group pensions market. Annuity sales increased by 17% to £1,278
million (2003: £1,091 million) in a flat market.
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PAGE 4
Norwich Union took a number of actions during the final quarter to reposition its pension product offering. This began
with a reduction in commission levels on individual 'stakeholder' pensions in October 2004. In mid December, a new
'non-stakeholder' personal pension for the individual full advice market was launched, giving customers the choice to
pay for their advice through fees, commission or a combination of both. The impact from these changes is difficult to
predict but there may be a slight reduction in sales in the first quarter on the products where commission has reduced.
However, the launch of this new product and similar competitor action on commissions is expected to compensate for any
reduction in individual pensions business, over the course of 2005.
Overall, protection business sales were higher at £367 million (2003: £357 million), driven by an increase in creditor
business. Norwich Union re-priced its term assurance business in January 2005 in order to make its product more
competitive.
Total sales for the full year from the joint venture* with The Royal Bank of Scotland Group (RBSG) were lower at
£777 million (2003: £847 million). There has been some benefit to sales during the fourth quarter, due to the closer
integration of the salesforce with the bank network. However, Norwich Union continues to work with RBSG to deliver
improved future sales growth, in line with expectations. Additional products will be added to the range in 2005
together with an increase in branch-based advisers. Delivering improved sales is high on RBSG's priorities.
Norwich Union is well placed for the changes taking place in distribution as a result of depolarisation.
Distribution agreements with Bankhall, Sesame (protection only) and Portman Building Society have already been
announced. In addition to this, Norwich Union has also secured agreements with another major network, a national
intermediary (Millfield) and a number of other distributors. Discussions with a number of key distribution groups are
in the advanced stages and will represent an opportunity to further strengthen Norwich Union's distribution portfolio.
Further details of these arrangements will be released in the first quarter. Wraps** are expected to be a major
distribution feature of the UK long-term savings market and Norwich Union is well advanced with its plans to launch the
Lifetime wrap platform.
In 2004 Norwich Union consolidated its market-leading position and starts 2005 with a greater degree of confidence in
the market. Some further market growth is expected over the next 12 months with a stronger pick up beyond then and
Norwich Union is confident that its multi-distribution capability, strong brand and wide product range will enable it
to capitalise on this.
France:
Aviva France achieved strong growth in 2004, with total new business sales of £2,516 million (2003: £1,996 million),
a 29% increase on the previous year. This excellent performance includes total new business sales from the new
bancassurance joint venture partnership with Credit du Nord of £109 million (£17 million on an APE basis). Excluding
Credit du Nord sales, growth during the year of 23% outperforms an estimated increase in the total individual life and
savings market of 14% during the first 11 months of 2004.
AFER is the largest savings association in France and continues to be an important source of new business growth for
Aviva France, with more than 616,000 members at the end of 2004. Total sales through AFER increased by 33% to £1,594
million (2003: £1,225 million) making 2004 the highest year of production since the creation of the association. Over
40% of this growth is due to policies purchased by the 38,000 new members joining the association in 2004, a
significant increase compared to 2003. Sales of single premium AFER euro funds were 23% higher at £1,389 million
(2003: £1,157 million), compared with estimated market growth of 10% during the first 11 months of 2004. This very high
level of growth in AFER sales, particularly in the fourth quarter, is very encouraging.
The proportion of the French market invested into unit-linked funds continues to benefit from steadily improving
equity markets and total Aviva France sales of unit-linked funds nearly doubled to £698 million (2003: £358 million).
This equates to growth of 91% excluding Credit du Nord sales and compares to an estimated 34% increase in the
individual unit-linked life and savings market during the first 11 months of 2004. Included within unit-linked funds is
strong growth in SFER, the unit-linked funds sold through AFER, with sales of £205 million (2003: £68 million).
Unit-linked products sold through AFER now represent 13% of total AFER sales and AFER customers now have access to a
wider range of funds, following the launch of two new funds during the year.
Total regular premiums for euro and unit-linked funds increased by 71% to £45 million (2003: £27 million), or 46%
growth excluding Credit du Nord. Sales of Plan d'Epargne Retraite (PERP) continue to be moderate as higher net worth
individuals, who are the target market for Aviva France, have yet to embrace annuity type products. As consumer
awareness gradually increases, the pensions market in France is expected to grow in importance in the longer-term.
From 1 October 2004, sales through the new bancassurance joint venture with Credit du Nord came on stream and total
sales amounted to £109 million. This is an encouraging start for the partnership, which gives Aviva France exclusive
distribution for life business through Credit du Nord's network of over 600 branches.
Ireland:
Hibernian Life and Pensions continues to be the third largest Irish life and pension provider and reported a 10%
increase in total sales to £269 million (2003: £250 million). This performance benefits from both strong single
premium pension sales throughout the year and increased sales of savings products in the fourth quarter. Sales on an
APE basis increased by 9% to £86 million (2003: £81 million).
* Aviva's share of these total sales and sales by product mix is shown in supplementary analysis 4.
** A wrap is an IT service that allows financial advisers to manage and transact a range of different client
investments.
New single premium pension sales were 11% higher at £149 million (2003: £137 million) and benefited from strong fourth
quarter sales. New regular premium pension sales were up 7% to £48 million (2003: £46 million), which reflects
Hibernian's ability to offer policyholders competitive products and a wide range of investment funds. Investment into
the two geared property funds, added to the range for the main October and November pension selling season, was
encouraging.
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PAGE 5
Life regular premium sales increased to £18 million (2003: £16 million) reflecting an increase in protection business
and additional new premiums on existing Special Savings Incentive Account (SSIA) policies. Life single premium
sales also increased to £54 million (2003: £51 million). Although the market throughout the year was marked by
continued investor caution and reduced demand for unit-linked and with-profit products, the fourth quarter benefited
from significant sales of the innovative Guaranteed Fund savings product, launched in August 2004.
Italy:
In Aviva Italy, total new business sales increased by 11% to £1,574 million (2003: £1,453 million), notwithstanding
lower single premium one-off direct business of £82 million (2003: £187 million). Sales momentum accelerated in the
fourth quarter, benefiting from marketing campaigns with bancassurance partners launched during the quarter, the
majority of which closed at the end of 2004. Strong underlying growth in total sales of 21% during the year, after
excluding the impact of one-off business, is an excellent performance in a flat Italian new business market in the
first 11 months of 2004.
Sales through UniCredito Italiano were lower at £753 million (2003: £814 million), reflecting more difficult trading
conditions for savings products. However, new business sales in the fourth quarter of £250 million were the highest
of any quarter this year and include the benefit of a marketing campaign focusing on single premium business.
Furthermore, sales in the fourth quarter were also helped by new product launches, which will continue into 2005.
The most recent agreement with Banca Popolare Commercio e Industria, now part of Banche Popolari Unite (BPU), achieved
strong growth with total sales of £267 million (2003: £138 million). Sales benefited from the continued success of
structured investment bonds. New regular premium products were introduced as planned in the fourth quarter to broaden
the product range. Preparations for the extension of the agreement with BPU to a further 380 branches have been
successfully completed and Aviva Italy looks forward to the additional benefits from the start of 2005.
Total sales from Banca Popolare di Lodi Group were higher at £361 million (2003: £243 million) and sales through Banca
delle Marche were also higher at £77 million (2003: £50 million). Both partners launched limited offer campaigns on
structured investment bonds which boosted sales in the fourth quarter.
Aviva Italy continues to develop its strong partnerships across Italy and work with their partners to market a range
of products to meet customers' needs. The long-term growth potential remains strong, although the timing of marketing
campaigns and product launches, which vary throughout the year, result in some volatility in sales levels each
quarter.
Netherlands (including Belgium and Luxembourg):
Delta Lloyd, a top-five life and pensions business in the Netherlands, achieved strong growth across all major product
lines during the year, with a 32% increase in total life and pension sales to £1,279 million (2003: £989 million).
Within this total, sales through the joint venture with ABN AMRO grew by 7% to £238 million (2003: £227 million), with
a 33% increase in sales on an APE basis to £65 million (2003: £50 million).
Total pension and annuity sales increased by 28% to £716 million (2003: £569 million), including 30% growth in group
pensions to £441 million (2003: £344 million). Delta Lloyd continues to target group pensions business and sales
through the intermediary business were particularly strong in the fourth quarter. Sales tend to be variable quarter
on quarter due to the size and timing of contracts, with a particular focus on the end of the year. Growth in annuity
sales has been steady over 2004, as market pricing disciplines have improved.
Total life product sales rose by 37% to £563 million (2003: £420 million), with improved sales of single premium
savings policies in Belgium and through the direct operations in the Netherlands. Bond and saving products sold through
ABN AMRO continue to be successful, particularly regular premium sales. Unit-linked products continue to be attractive
to investors as equity markets stabilise. Investment sales were £196 million (2003: £204 million).
Poland:
Aviva's Polish operations reported a pleasing performance with life and pension sales up 46% to £91 million (2003:
£64 million). Mutual fund sales were lower at £77 million (2003: £110 million), reflecting investor caution following
the strong stock market performance which benefited 2003 and more attractive returns on bank deposits following
interest rate rises in the second half of the year.
Life sales increased to £55 million (2003: £41 million), reflecting increased demand for single premium investment
products. Pension sales were higher at £36 million (2003: £23 million), benefiting from sales through the State Agency
to members of the workforce without a chosen pensions provider.
CU Polska remains the market leader in individual life and private pensions with a 14.4% share of the life market
measured by total premium income in the nine months of 2004, and a 28% share of the private pensions market measured
by total assets under management.
Spain:
In Spain, Aviva's new business sales grew by 16% to £1,657 million (2003: £1,464 million) following further growth in
its developing bancassurance partnerships. Included in these headline numbers are one-off sales of £242 million (2003:
£149 million) or £30 million (2003: £30 million) on an APE basis. Excluding one-off sales, good underlying growth of
10% in total new business sales for the year was achieved. This compares with a market increase of 5% in gross written
premiums in the first nine months of 2004.
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PAGE 6
Aviva remains the number one bancassurance group in the Spanish life market and number two in the market overall based
on gross written premiums in the first nine months of 2004. It also increased market share from 10.0% in 2003 to 10.6%.
The focus in the fourth quarter has been on pension campaigns in advance of the fiscal year end, with strong sales of
single premium pension products.
In Aviva Spain's bancassurance distribution channels, the life product focus during 2004 has been on higher margin
protection products over traditional savings products. Sales through Bancaja reflect this change in product mix and
were consequently lower at £671 million (2003: £799 million), notwithstanding that fourth quarter sales were the
highest of the year due to increased pensions business. Underlying growth was achieved from the partnerships with
Unicaja, Caja de Granada and Caixa Galicia, where total sales increased to £773 million (2003: £434 million). Included
within the Caixa Galicia sales was a large bulk pension transfer during the year, generating total one-off premium
sales of £242 million (2003 one-off total sales: £149 million).
At Aviva Vida y Pensiones, which distributes through a direct salesforce and intermediaries, new business sales
increased by 37% to £78m (2003: £57 million), including strong sales of pensions business in the fourth quarter.
Growth prospects remain strong across Aviva's Spanish bancassurance partnerships, particularly through the more recent
agreements, as it looks to increase customer penetration. However, quarterly sales are variable due to the timing of
marketing campaigns with our banking partners and product launches.
Other Europe:
Total sales for Other Europe businesses were £426 million (2003: £353 million), including total sales in Germany of
£218 million (2003: £163 million). Sales in Germany include the benefit of a limited offer, tax-efficient investment
product, launched ahead of the German tax law changes in 2005.
In Turkey, total new business premiums increased to £38 million (2003: £27 million), reflecting good levels of
regular premium sales in the personal pensions market, launched at the end of 2003. Aviva has achieved a number three
ranking in the pensions market, measured by total assets under management at 1 November 2004. Accession talks to
allow Turkey to join the European Union will begin in October 2005, providing a more positive outlook for the economy.
Sales through Norwich Union's Dublin-based offshore life and savings business were £110 million (2003: £82 million),
while sales of Luxembourg UCITS increased to £254 million (2003: £49 million) as a result of improved investor
sentiment and further development of the broker relationships and distribution channels, including sales through the
Italian representative office, set up at the end of 2003.
International - Asian businesses:
Asia offers significant potential for future growth, as demand for long-term savings product increases. Aviva
has taken a number of further steps during the year to achieve its longer-term ambitions for expansion in these
markets.
Singapore: Total sales through Aviva Singapore were £38 million (2003: £30 million) on an APE basis. This includes
total single premium sales of £115 million (2003: £53 million), which benefited from a successful limited single
premium product offer, launched during the third quarter. Aviva has over a 50% market share of bancassurance regular
premium new business and is the market leader in the developing broker market. It also leads in the employee
benefits and healthcare life business. The focus continues to be on higher margin regular premium business. While
not included in the new business figures, total Navigator Asia sales increased to £13 million (2003: £8 million).
Hong Kong: In addition to the successful partnership with DBS in Singapore, total sales through Aviva's partnership
with DBS in Hong Kong continued to grow strongly to £27 million (2003: £4 million).
India: Sales on an APE basis from Aviva's joint venture life business with Dabur Group were £19 million (2003: £9
million),ranking it eighth among private providers. Aviva's 26% share of new business sales on an APE basis amounted
to £5 million (2003: £2 million). Sales are through its six bancassurance partnerships including Canara Bank, India's
second largest bank, and its 3,200 strong direct sales force.
China: Total sales through Aviva's joint-venture life business, Aviva COFCO, have continued to grow to £5 million
(2003: £3 million), with operations now in Beijing, Guangzhou and Chengdu. Its 50% share of new business sales was £3
million (2003: £1 million). All geographical and business scope restrictions on foreign insurers were lifted in China
in December 2004, opening up key markets such as group insurance, health insurance and annuities. In 2005, Aviva COFCO
was granted regulatory approval to broaden its business scope, and will begin to write group life insurance policies
later this month. It is one of the first among foreign or Sino-foreign life insurers operating in China to launch group
insurance policies.
Other international businesses:
Australia: Total life and pension sales on an APE basis were higher at £61 million (2003: £58 million) which includes
growth from Aviva's corporate pension product. Sales of investment products in the region have improved as a result of
more positive investor sentiment towards equity markets, with unit trusts sales of £243 million (2003: £98 million).
While not included in the new business figures, sales of Navigator increased to £648 million (2003: £617 million),
also benefiting from improvements in product offerings and a more competitive fee structure.
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PAGE 7
United States: Total life and pension sales have benefited from a strong fourth quarter, ending the year at £359
million (2003: £538 million). Sales levels, compared to the prior year, reflect the reduction in fixed annuity sales
due to the low interest rate environment, during which Aviva continues to maintain pricing disciplines and revise
product terms as appropriate.
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PAGE 8
Notes to Editors
1. Aviva is the world's fifth largest insurance group, based on 31 December 2003 gross written premiums. It is one
of the top-five life companies in Europe and is the UK's largest insurer.
Aviva's principal business activities are long-term savings, fund management and general insurance,
with worldwide premium income and retail investment sales from continuing operations of around £30 billion for the
year ended 31 December 2003 and assets under management of more than £240 billion at 31 December 2003.
The Aviva media centre at www.aviva.com/media includes images, company and product information and a news
release archive.
2. All figures have been translated at average exchange rates applying for the period. The average rates employed in
this announcement are 1 euro = £0.68 (31 December 2003: 1 euro = £0.69).
3. All growth rates are quoted in local currency.
4. Definitions:
Annual premium equivalent (APE) is a UK industry standard for calculating life, pensions and investments new
business levels. It is the total of new regular premiums and 10% of single premiums.
5. Norwich Union Equity Release 'NUER' new business sales
United Kingdom new business sales shown in this press release do not include new business sales through NUER.
Sales relate to mortgage completions. Cumulative NUER new business sales in 2003 and 2004 on a quarterly basis are
shown in the table below.
Cumulative total single premium sales
------------------------------------------------------------------
2003 2004
-------------------------------- ---------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
£m £m £m £m £m £m £m £m
NUER 125 250 370 501 90 197 332 478
6. Aviva France reclassification of new business sales
France new business sales shown in this press release in supplement 1 have been reclassified to show total sales
analysed between euro and unit-linked savings contracts and protection business. Cumulative new business sales for
the fourth quarter of 2003 and each quarter of 2004 are shown in the table below.
Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004
Single Regular Single Regular Single Regular Single Regular Single Regular
£m £m £m £m £m £m £m £m £m £m
France
Euro savings 1,565 13 458 3 837 6 1,214 8 1,745 15
Unit-linked savings 344 14 171 5 325 10 474 16 668 30
Protection 41 19 11 5 21 11 31 13 41 17
------------------------------------------------------------------------------------------
1,950 46 640 13 1,183 27 1,719 37 2,454 62
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7. Cautionary statements:
This announcement may contain 'forward-looking statements' with respect to certain of Aviva's plans and its current
goals and expectations relating to its future financial condition, performance and results. By their nature, all
forward looking statements involve risk and uncertainty because they relate to future events and circumstances
which are beyond Aviva's control, including amongst other things, UK domestic and global economic business
conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and
actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other
uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and
other legislation and other regulations in the jurisdictions in which Aviva and its affiliates operate. As a
result, Aviva's actual future financial condition, performance and results may differ materially from the plans,
goals and expectations set forth in Aviva's forward-looking statements.
Aviva undertakes no obligation to update the forward-looking statements contained in this announcement or any other
forward-looking statements we may make.
Aviva plc is a company registered in England No. 2468686.
Registered office St Helen's 1 Undershaft London EC3P 3DQ
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Statistical Supplement
CONTENTS
Analyses
1. Detailed worldwide long-term savings new business analysis
2. Analysis of UK long-term savings by distribution channel - sales and APE
3. Analysis of France long-term savings by distribution channel
4. Analysis of sales via bancassurance channels
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PAGE 9
SUPPLEMENT 1
Detailed worldwide long-term savings new business analysis
Single Regular Total
------------------------------------------ --------------------------------------- ---------
12 months to 12 months to 12 months to 12 months to
31 December 31 December Local 31 December 31 December Local Local
2004 2003 currency 2004 2003 currency currency
£m £m growth(1) £m £m growth(1) growth(1)
United Kingdom
Individual pensions 1,742 1,479 18% 265 248 7% 16%
Group pensions 540 727 (26%) 88 102 14% (24%)
Annuities 1,278 1,091 17% - - - 17%
Bonds 2,260 1,866 21% - - - 21%
Protection 204 173 18% 163 184 (11%) 3%
---------------------------------------------------------------------------------------------------------------------
Total life and pensions 6,024 5,336 13% 516 534 (3%) 11%
Peps/Isas/Unit
trusts/Oeics 840 664 27% 19 16 19% 26%
----------------------------------------------------------------------------------------------------------------------
6,864 6,000 14% 535 550 (3%) 13%
France
Euro funds(2) 1,745 1,565 14% 15 13 19% 14%
Unit-linked funds 668 344 98% 30 14 115% 99%
Protection business 41 41 4% 17 19 (9%) -
--------------------------------------------------------------------------------------------------------------------
2,454 1,950 29% 62 46 37% 29%
Ireland
Life and savings 54 51 7% 18 16 15% 9%
Pensions 149 137 11% 48 46 7% 10%
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203 188 10% 66 62 9% 10%
Italy
Life and savings 1,529 1,399 12% 45 54 (15%) 11%
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1,529 1,399 12% 45 54 (15%) 11%
Netherlands(including
Belgium & Luxembourg)
Life 467 344 38% 96 76 29% 37%
Pensions 664 506 34% 52 63 (16%) 28%
---------------------------------------------------------------------------------------------------------------------
Total life and pensions 1,131 850 36% 148 139 9% 32%
Unit trusts 196 204 (2%) - - - (2%)
----------------------------------------------------------------------------------------------------------------------
1,327 1,054 29% 148 139 9% 26%
Poland
Life and savings 40 24 71% 15 17 (11%) 37%
Pensions 20 8 154% 16 15 11% 62%
---------------------------------------------------------------------------------------------------------------------
Total life and pensions 60 32 92% 31 32 (1%) 46%
Mutual funds 75 109 (28%) 2 1 50% (28%)
----------------------------------------------------------------------------------------------------------------------
135 141 (1%) 33 33 1% -
Spain
Life and savings 1,061 1,022 6% 52 55 (4%) 6%
Pensions 505 331 56% 39 56 (29%) 43%
---------------------------------------------------------------------------------------------------------------------
1,566 1,353 18% 91 111 (17%) 16%
Other Europe
Life and pensions 336 280 23% 90 73 32% 25%
UCITS and other 254 49 431% - - - 431%
---------------------------------------------------------------------------------------------------------------------
590 329 84% 90 73 32% 75%
International
Life and pensions 660 740 (4%) 105 113 (1%) (4%)
Unit trusts 243 98 144% - - - 144%
---------------------------------------------------------------------------------------------------------------------
903 838 15% 105 113 (1%) 13%
Total long-term
savings 15,571 13,252 19% 1,175 1,181 1% 18%
=====================================================================================================================
Analysed:
Life and pensions 13,963 12,128 17% 1,154 1,164 1% 15%
Investment sales 1,608 1,124 44% 21 17 19% 44%
---------------------------------------------------------------------------------------------------------------------
Total long-term
savings 15,571 13,252 19% 1,175 1,181 1% 18%
=====================================================================================================================
Navigator sales 661 625 5% - - - 5%
(not included above)
(1) Growth rates are calculated based on constant rates of exchange.
(2) Euro funds are savings that receive an annual bonus declaration, based on the investment performance of the
underlying funds.
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PAGE 10
SUPPLEMENT 2
Analysis of UK long-term savings by distribution channel
Single Regular Total
--------------------------------------- --------------------------------------- ----------
12 months to 12 months to 12 months to 12 months to
31 December 31 December Local 31 December 31 December Local Local
2004 2003 currency 2004 2003 currency currency
£m £m growth(1) £m £m growth(1) growth(1)
IFA
- life & pensions products 4,712 4,031 17% 414 420 (1%) 15%
- investment products 392 382 3% 1 2 (50%) 2%
---------------------------------------------------------------------------------------------------------------------
5,104 4,413 16% 415 422 (2%) 14%
Bancassurance
partnership with RBSG
- life & pensions products 398 439 (9%) 17 23 (26%) (10%)
- investment products 53 90 (41%) 17 13 31% (32%)
---------------------------------------------------------------------------------------------------------------------
451 529 (15%) 34 36 (5%) (14%)
Other partnerships/Direct
- life & pensions products 914 866 6% 85 91 (7%) 4%
- investment products 395 192 106% 1 1 - 105%
---------------------------------------------------------------------------------------------------------------------
1,309 1,058 24% 86 92 (7%) 21%
---------------------------------------------------------------------------------------------------------------------
Total UK long-term savings 6,864 6,000 14% 535 550 (3%) 13%
=====================================================================================================================
(1) Growth rates are calculated based on constant rates of exchange.
Annual premium equivalent (1)
Life and pensions sales Investment sales Total sales
------------------------- -------------------------- --------------------------
12 months to 12 months to 12 months to
31 December Local 31 December Local 31 December Local
2004 currency 2004 currency 2004 currency
£m growth(2) £m growth(2) £m growth(2)
IFA 885 8% 40 - 925 7%
Bancassurance partnership
with RBSG 57 (15%) 22 - 79 (11%)
Other partnerships/Direct 176 (1%) 41 105% 217 10%
--------------------------------------------------------------------------------------------------------------------
Total UK long-term savings 1,118 5% 103 26% 1,221 6%
====================================================================================================================
(1) Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single
premiums.
(2) Growth rates are calculated based on constant rates of exchange.
---------------------------------------------------------------------------------------------------------------------
PAGE 11
SUPPLEMENT 3
Analysis of France long-term savings by distribution channel
Single Regular Total
--------------------------------------- --------------------------------------- ----------
12 months to 12 months to 12 months to 12 months to
31 December 31 December Local 31 December 31 December Local Local
2004 2003 currency 2004 2003 currency currency
£m £m growth(1) £m £m growth(1) growth(1)
AFER
- Euro funds 1,389 1,157 23% - - - 23%
- Unit-linked funds 205 68 207% - - - 207%
---------------------------------------------------------------------------------------------------------------------
1,594 1,225 33% - - - 33%
Bancassurance partnership
with Credit du Nord
- Euro funds 80 - - 2 - - -
- Unit-linked funds 22 - - 5 - - -
--------------------------------------------------------------------------------------------------------------------
102 - - 7 - - -
Other
- Euro funds 276 408 (31%) 13 13 (8%) (30%)
- Unit-linked funds 441 276 63% 25 14 63% 63%
- Protection 41 41 4% 17 19 (9%) -
---------------------------------------------------------------------------------------------------------------------
758 725 7% 55 46 24% 8%
---------------------------------------------------------------------------------------------------------------------
Total France long-term
savings 2,454 1,950 29% 62 46 37% 29%
=====================================================================================================================
(1) Growth rates are calculated based on constant rates of exchange.
(2) Euro funds are savings that receive an annual bonus declaration, based on the investment performance of the
underlying funds.
---------------------------------------------------------------------------------------------------------------------
PAGE 12
SUPPLEMENT 4
Analysis of sales via our principal bancassurance channels
Total new business Annual premium
sales equivalent sales(2)
----------------------- -----------------------
12 months to 12 months to
31 December Local 31 December Local
2004 currency 2004 currency
£m growth(1) £m growth(1)
Life and pensions
United Kingdom
Royal Bank of Scotland Group 415 (10%) 57 (15%)
-------------------------------------------------------------------------------------------------------------------
415 (10%) 57 (15%)
France
Credit du Nord 109 - 17 -
-------------------------------------------------------------------------------------------------------------------
109 - 17 -
Italy
UniCredito Italiano 753 (6%) 88 (12%)
Banca Popolare di Lodi Group 361 52% 40 25%
Banca delle Marche 77 57% 29 32%
Banche Popolari Unite 267 98% 27 93%
-------------------------------------------------------------------------------------------------------------------
1,458 20% 184 10%
Netherlands
ABN AMRO 238 7% 65 33%
------------------------------------------------------------------------------------------------------------------
238 7% 65 33%
Spain
Bancaja 671 (14%) 91 (16%)
Caixa Galicia 491 117% 63 37%
Unicaja 202 25% 36 9%
Caja Espana 135 (21%) 20 (20%)
Caja de Granada 80 111% 15 39%
-------------------------------------------------------------------------------------------------------------------
1,579 15% 225 1%
International
DBS 153 164% 41 78%
-------------------------------------------------------------------------------------------------------------------
153 164% 41 78%
-------------------------------------------------------------------------------------------------------------------
Total life and pensions 3,952 18% 589 11%
Investment sales
United Kingdom
Royal Bank of Scotland Group 70 (32%) 22 -
-------------------------------------------------------------------------------------------------------------------
70 (32%) 22 -
-------------------------------------------------------------------------------------------------------------------
Total bancassurance sales 4,022 17% 611 11%
===================================================================================================================
(1) Growth rates are calculated based on constant rates of exchange.
(2) Annual premium equivalent (APE) is the UK industry's standard measure of new regular premiums and 10% of single
premiums.
Analysis of total new business sales via our joint venture with Royal Bank of Scotland Group (RBSG)
Total sales through our joint venture with RBSG are provided below on a 100% basis and for Aviva's share. In
reporting our life and pensions results, we have included our 50% share of sales written through the joint venture
life company and 100% of single premium with-profit bond sales written through a Norwich Union fund. Investment sales
represent our 50% share of the collective investment sales.
Total RBSG sales Aviva's share
-------------------------- -------------------------
12 months to 12 months to 12 months to 12 months to
31 December 31 December 31 December 31 December
2004 2003 2004 2003
£m £m £m £m
Single premium with-profit bond sales 193 283 193 283
Other life and pensions sales 444 358 222 179
-------------------------------------------------------------------------------------------------------------------
Total life and pension sales 637 641 415 462
Collective investment sales 140 206 70 103
-------------------------------------------------------------------------------------------------------------------
Total RBSG bancassurance sales 777 847 485 565
===================================================================================================================
For a PDF version of this announcement please go to www.aviva.com and a full html version will be available from
Monday 31 January 2005.
END OF ANNOUNCEMENT
This information is provided by RNS
The company news service from the London Stock Exchange