20th May 2008 16:54
20 May 2008
AVIVA UPDATE ON BANCASSURANCE AGREEMENT WITH ABN AMRO
Aviva plc ("Aviva") announces that its Dutch-based business, Delta Lloyd Group ("Delta Lloyd"), has received notice from ABN AMRO in the Netherlands that, as a consequence of the change of control of ABN AMRO, it wishes to end their 30 year joint venture bancassurance agreement signed in 2003 covering life and general insurance, and intends to buy out Delta Lloyd's 51% of the venture.
The price to be paid for Delta Lloyd's share will be determined in the near future, based on the terms of the agreement. This also includes a penalty as ABN AMRO chose to terminate the agreement following their change of control.
Aviva sells life and pensions, investment and general insurance products through a range of distribution channels including bancassurance. The company has over 100 bancassurance relationships world wide and many more distribution agreements. In this context, Delta Lloyd's share of 2007 life new business premiums1 and gross general insurance premiums written through the joint venture was £183 million (2006: £217 million) and £93 million (2006: £75 million) respectively. The joint venture represented less than 1% of Aviva's life new business premiums1 and new business contribution2 in 2007.
1 On a PVNBP basis, after deducting the minority interest.
2 After deducting the effect of required capital, tax and minority interest.
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Aviva is the leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion and funds under management of £364 billion at 31 December 2007.
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