1st Jun 2006 07:03
Aviva PLC01 June 2006 News release 1 June 2006 AVIVA ANNOUNCES NEW GROWTH AMBITIONS FOR ITS INTERNATIONAL BUSINESS Aviva plc ("Aviva" or "the Group") today announces new growth ambitions for itsinternational business with plans to achieve average annual organic salesgrowth1 of at least 10% a year across its international life operations over thenext five years, while growing new business profit2 at least as quickly assales. In addition, Aviva plans further international life growth from new jointventures and other distribution deals, funded by internally generated capital.It will also continue to grow its international general insurance businesses, ina manner consistent with the Group-wide target of meeting or beating a combinedoperating ratio of 98%. These objectives are in line with Aviva's strategy of managing its business forvalue to deliver profitable growth. At a presentation for investors and analysts on its international business at13:00 (BST) today Philip Scott, group executive director, Aviva International,will outline the Group's strategy for continued growth across its internationalbusinesses. The key points of Aviva's international strategy are: • developing the most effective business models and adapting these to each of Aviva's chosen markets; • continuing to grow Aviva's existing strong positions in developed markets, notably France, Netherlands, Italy, Ireland, Spain and Canada; • building leadership positions in selected emerging markets, notably Central and Eastern Europe, Russia, India and China; and • continued delivery of results by Aviva's strong management teams in each country. At the presentation Aviva will also outline the successful financial trackrecord of its international portfolio of businesses. In the first quarter of2006 Aviva delivered a 15% increase in life and pensions sales3 (to £3,674m)from its strong and established positions in the wealthy economies, butunder-penetrated life markets, of continental Europe. This was on top of lifeand pensions sales growth of 13% (to £11,933m) and a 22% increase in newbusiness profit4 (to £494m) from Aviva's continental European businesses in2005. The Group's first quarter 2006 performance also included a 56% increasein sales from its North American life business (to £152m) and growth of 39% inAviva's newer life operations in the developing economies of Asia (to £129m),where there is longer-term profit potential. Aviva will also highlight its strong multi-distribution capability which focuseson the most effective distribution to reach customers in each market. In 200526% of life new business sales (net of minorities) were made throughbancassurance, 40% through tied agents and direct channels and 34% throughindependent agents and brokers. Philip Scott commented: "Our focus remains on delivering profitable growth.This commitment to growing both sales and profit from our international lifeoperations demonstrates our belief in our ability to achieve our growthambitions over the next five years. "The growth of our life portfolio will come from building on our strongbusinesses in continental Europe, our growing business in North America and fromthe excellent positions we are taking in the developing Asian markets. We have acompetitive advantage in having secured an early and strong franchise incontinental Europe, a market that would now be difficult to enter and which hasstrong growth prospects. Our North American and Asian businesses are growingfast and we are developing leadership positions for the future in Asia as theseeconomies become wealthier and people develop the savings habit. "We continue to focus on organic growth with a watchful eye on value-creatingacquisition and joint-venture opportunities." - ends - 3 Life and pensions on a PVNBP basis at constant exchange rates 4 New business contribution: pre-tax and before the effect of required capital, gross of minorities Enquiries: Analysts: Charles Barrows, investor relations director +44 (0)20 7662 8115 Jessie Burrows, head of investor relations +44 (0)20 7662 2111 Nicole Marques, investor relations manager +44 (0)20 7662 8302 Media: Hayley Stimpson, director of external affairs +44 (0)20 7662 7544 Sue Winston, head of group media relations +44 (0)20 7662 8221 Vanessa Booth, group media relations manager +44 (0)20 7662 2482 Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200 Notes to editors: • ANALYSTS: The Aviva International seminar for investors and analysts takes place in Amsterdam at 13:00 (BST). The presentation slides will be available on the Group's website, www.aviva.com, from 13:00 (BST). The presentation is also being filmed for webcast and can be viewed live on the Group's website or by clicking here: http://www.aviva.com/seminars • NEWSWIRES: There will be a conference call today for wire services at 08:30 (BST) on +44 (0)20 7162 0025. Quote: Aviva, Philip Scott. • Aviva is the world's sixth largest insurance group based on gross worldwide premiums and market capitalisation (at 31 December 2004), and is one of the leading providers of life and pensions to Europe, with substantial positions in other markets around the world. • Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £35 billion and assets under management of £317 billion at 31 December 2005. • The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Aviva