Aviva, the UK insurance, life assurance and pensions provider creating by the merger of Commercial Union and Norwich Union, says 2003 saw worldwide life and pensions sales virtually unchanged at ?2,377 million, against ?2,373 million in 2002. Total worldwide sales, including investment products, were down slightly at ?14.4 billion, against ?14.6 billion in 2002. Worldwide total bancassurance sales were up 27 per cent to ?563 million.
“In 2003, we increased market share in many of our key markets, despite difficult trading conditions,” says Richard Harvey, Group Chief Executive. “Continental European life and pension sales were up 6% on an APE basis, with particularly strong performances in Italy, the Netherlands and also Spain, where our bancassurance strategy has enabled us to become the leading life business. In the UK, Norwich Union reclaimed the number one position, growing our market share to over 12% in the third quarter. Our competitive position continues to improve in our largest market. Aviva’s growth prospects remain strong, particularly given Europe’s ageing populations and widespread pensions reform. We are well-positioned to benefit from this market expansion and a market upturn, capturing growth through our extensive distribution networks. The prospects for growth in 2004 are encouraging, with evidence that investors are regaining confidence as equity markets recover.
Aviva added that its Irish subsidiary, Hibernian Life & Pensions, was now the third largest provider in Ireland, with a market share of 11%. Hibernian also remains the largest provider of life and pensions products through the broker market. The company reported new Annual Premium Equivalent (APE) of Euros 115.4 million for 2003, against Euros 162.3 million in 2002, but that figure included Euros 38.8 million of once-off SSIA business.